{"id":22961,"date":"2023-07-17T13:00:00","date_gmt":"2023-07-17T17:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=22961"},"modified":"2023-07-14T14:23:41","modified_gmt":"2023-07-14T18:23:41","slug":"what-are-accessory-dwelling-units","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/what-are-accessory-dwelling-units\/","title":{"rendered":"Tiny Homes, Laneway Houses and More: Everything You Need to Know About Accessory Dwelling Units"},"content":{"rendered":"\n<p>With the demand for affordable housing growing, and <a href=\"https:\/\/www.zoocasa.com\/blog\/boc-july-interest-rate-hike\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage payments increasing<\/a>, accessory dwelling units (ADUs) are emerging as a possible solution for homeowners looking to earn additional income or accommodate aging family members. ADUs are self-contained housing units built on an existing property, usually in the backyard of a home, and can come in the form of a tiny house or laneway home.&nbsp;<\/p>\n\n\n\n<p><strong><em>Enjoying our content? Subscribe to our free <\/em><\/strong><a href=\"http:\/\/zoocasa.com\/newsletter\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>weekly newsletter<\/em><\/strong><\/a><strong><em> to get real estate market insights, news, and reports straight to your inbox.<\/em><\/strong><\/p>\n\n\n\n<p>\u201cThe most popular ADUs are ones that are under 600 sq. ft. because this is the sweet spot that allows them to fit in with the regulations that most cities are adopting in the new bylaws,\u201d explained <a href=\"https:\/\/tinyestates.ca\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tiny Estates<\/a> co-founder William Forbes. \u201cBylaws vary from city to city, but most properties do qualify for 300 sq. ft. to 600 sq. ft. ADUs.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2-750x422.jpg\" alt=\"\" class=\"wp-image-22985\" width=\"563\" height=\"317\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2-750x422.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2-300x169.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2-768x432.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2-1536x864.jpg 1536w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0000-1-2.jpg 600w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Construction begins for a detached 1-bedroom ADU.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6-750x422.jpg\" alt=\"\" class=\"wp-image-22987\" width=\"563\" height=\"317\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6-750x422.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6-300x169.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6-768x432.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6-1536x864.jpg 1536w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230713-WA0003-6.jpg 600w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Walls and insulation are added to the 1-bedroom ADU. <\/figcaption><\/figure>\n\n\n\n<p>The recent passing of Bill 23 in Ontario allows for three residential units to be built per lot, and this is giving ADUs an opportunity to flourish. \u201cWe\u2019re seeing a massive trend in the direction of adopting and allowing for ADUs by local governments because of the major housing shortage. By increasing density in residential areas with ADUs in backyards it allows us to tackle the housing crisis in a unique way,\u201d said William. \u201cFrom our experience operating in <a href=\"https:\/\/www.zoocasa.com\/kitchener-on-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Kitchener<\/a>, the area is investor-friendly and the ADUs are getting approval quite easily.\u201d<\/p>\n\n\n\n<p>It\u2019s not just Kitchener that has opened the floodgates for more additional housing units to be built, but also <a href=\"https:\/\/www.zoocasa.com\/guelph-on-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Guelph<\/a>, <a href=\"https:\/\/www.zoocasa.com\/cambridge-on-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Cambridge<\/a>, <a href=\"https:\/\/www.zoocasa.com\/brantford-on-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Brantford<\/a>, and even <a href=\"https:\/\/www.zoocasa.com\/toronto-on-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Toronto<\/a>.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <\/strong><a href=\"https:\/\/www.zoocasa.com\/blog\/boc-july-interest-rate-hike\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>The Impact of the Bank of Canada\u2019s Third Interest Rate Hike of 2023 on Canadian Real Estate<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h1 class=\"wp-block-heading\">What to Know Before Investing in an ADU<\/h1>\n\n\n\n<p>In general, detached properties with sufficient backyard space are ideal for investing in an ADU. It varies case by case, but having around 800 sq. ft. of usable land will be sufficient.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004-750x563.jpg\" alt=\"\" class=\"wp-image-22988\" width=\"563\" height=\"422\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004-750x563.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004-300x225.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004-768x576.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004-1536x1152.jpg 1536w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230414-WA0004.jpg 600w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; The completed exterior of the 1-bedroom ADU.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081-750x550.jpg\" alt=\"\" class=\"wp-image-22989\" width=\"564\" height=\"414\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081-750x550.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081-300x220.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081-768x563.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081-1536x1126.jpg 1536w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00081.jpg 600w\" sizes=\"auto, (max-width: 564px) 100vw, 564px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Interior of the completed 1-bedroom ADU.<\/figcaption><\/figure>\n\n\n\n<p>If you\u2019re an investor looking to enter the housing market, ADUs are often more attainable than condos or other larger properties. \u201cIt makes more sense often to actually build the ADU, which is more affordable, than to buy a condo because you have the flexibility on how big to build it and its simpler from an investors perspective,\u201d said William.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061-750x563.jpg\" alt=\"\" class=\"wp-image-22990\" width=\"563\" height=\"422\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061-750x563.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061-300x225.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061-768x576.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061-1536x1152.jpg 1536w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00061.jpg 600w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Interior of the completed 1-bedroom ADU.<\/figcaption><\/figure>\n\n\n\n<p>Some homeowners may be able to afford an ADU without outside help, but there are still plenty of financing options available, including home equity loans, a second mortgage, or even grant or loan programs offered by some cities. Depending on how you finance your ADU, you can expect to get a considerable return on your investment. \u201cIt\u2019s hard to generalize, but I think it&#8217;s safe to say you can expect an 8-12% return on your money,\u201d said William.&nbsp;<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">How the Building Process Works<\/h1>\n\n\n\n<p>The first step is getting your zoning application from your local government. After that, you\u2019ll need to apply for a building permit and have a structural engineer draft the drawings for the permit. You\u2019ll also have to get your electrical, water and sewage services checked in order to ensure there is sufficient service, and if not, have them upgraded.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <\/strong><a href=\"https:\/\/www.zoocasa.com\/blog\/trreb-june-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Toronto\u2019s Summer Market Off to a Competitive Start Amid Dwindling Supply: TRREB<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p>After that, it\u2019s time to build! First comes the underground trenching, then the foundation, and lastly the actual ADU unit. You can expect the build time to take between 4 &#8211; 5 months. If this sounds overwhelming, don\u2019t fret. There are a lot of professionals who are ready to help you in the process.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"1000\" data-id=\"22993\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1-750x1000.jpg\" alt=\"\" class=\"wp-image-22993\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1-750x1000.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1-225x300.jpg 225w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1-768x1024.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1-1152x1536.jpg 1152w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA00201-1.jpg 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Interior of the completed 1-bedroom ADU.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"1000\" data-id=\"22994\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1-750x1000.jpg\" alt=\"\" class=\"wp-image-22994\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1-750x1000.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1-225x300.jpg 225w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1-768x1024.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1-1152x1536.jpg 1152w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2023\/07\/IMG-20230126-WA0026-1.jpg 600w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><figcaption class=\"wp-element-caption\">Tiny Estates &#8211; Interior of the completed 1-bedroom ADU.<\/figcaption><\/figure>\n<\/figure>\n\n\n\n<p>\u201cIt&#8217;s important to speak with an expert in the field to get a better understanding on whether your property can support an ADU. We have good relations with the city and we will conduct a property feasibility assessment to see if your property qualifies for this,\u201d added William.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re in the Kitchener-Waterloo region and considering building an ADU, whether it be as an investment or as a personal space, <a href=\"https:\/\/tinyestates.ca\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tiny Estates<\/a> can help. If you\u2019d like to speak with a realtor to hear more about real estate investment and alternative properties, <a href=\"https:\/\/www.zoocasa.com\/buy-with-zoocasa\" target=\"_blank\" rel=\"noreferrer noopener\">give us a call<\/a> today!<\/p>\n\n\n<div class=\"cta\">\n<div class=\"cta-left\">\n<div class=\"cta-title\">Looking for expert advice?<\/div>\n<div class=\"cta-body\">Contact us today to speak to a Realtor in your area<\/div>\n<\/div>\n<div class=\"cta-right\"><a href=\"https:\/\/www.zoocasa.com\/sell-with-zoocasa\"><button class=\"cta-button\">Talk To Our Experts<\/button><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With the demand for affordable housing growing, and mortgage payments increasing, accessory dwelling units (ADUs) are emerging as a possible solution for homeowners looking to earn additional income or accommodate aging family members. ADUs are self-contained housing units built on an existing property, usually in the backyard of a home, and can come in the [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":22964,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"1","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"footnotes":""},"categories":[1158,560],"tags":[],"class_list":["post-22961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expert-advice","category-home-investment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tiny Homes, Laneway Houses and More: Everything You Need to Know About Accessory Dwelling Units | Zoocasa Blog<\/title>\n<meta name=\"description\" content=\"With the demand for affordable housing growing, accessory dwelling units (ADUs) are emerging as a possible solution for homeowners looking to earn additional income. Find out more about this housing trend and see how investing in one may benefit you.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/what-are-accessory-dwelling-units\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tiny Homes, Laneway Houses and More: Everything You Need to Know About Accessory Dwelling Units | Zoocasa Blog\" \/>\n<meta property=\"og:description\" content=\"With the demand for affordable housing growing, accessory dwelling units (ADUs) are emerging as a possible solution for homeowners looking to earn additional income. 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