Should you invest in an addition, or a casita for your home?
Guest houses or casitas, also referred to as accessory dwelling units (ADUs), have become one of the most popular home additions in the Phoenix area. Homeowners are building them to house aging parents, accommodate adult children, host long-term guests, or generate rental income on their property.
Before moving forward, there are a few important factors to work through. Here are four guidelines to help you decide if a casita is the right investment for your home.
1. Consider Legal Logistics
The specific rules for guest houses and casitas vary by region. Check your city’s zoning and building laws carefully. If your home is in an area with a homeowners’ association, ask the governing organization if guest houses are allowed.
Remember that ADUs require you to submit plans, get permits and follow all regulations, as well as incorporate standards addressing fire safety, water lines and sewer connections.
2. Know the Intended Use
Talk to your partner or family members about the purpose of the additional space. Doing so will help you determine if it should be included in the construction project. If you are thinking about aging in place or have friends or family with disabilities, you might want features such as ramps instead of steps and wide hallways to accommodate a walker or wheelchair.
To get the biggest return on your investment, consider making the guest space a multi-functional use space. For instance, a home office could have a Murphy bed to accommodate guests or an in-law suite might include a space for arts and crafts.
You may even decide to build it as an income suite and lease it, if your homeowner’s association allows this use.
3. Understand the Costs
Even if the space is small, you’ll need to pay for features such as heating, air conditioning electricity and water. For this reason, the costs for a casita often add up quickly.
ADUs can range anywhere from $100 to $500 per square foot, depending on the design elements. That does not include permits, the foundation and installation, which can tack on an extra $15,000 to $25,000. For a detailed breakdown of what casita construction actually costs in the Anthem and Phoenix area, see our full guide: How Much Does It Cost to Build a Casita in Arizona?
If you’re considering the idea of renting the place, take some time to calculate the monthly income you expect to receive from it, including costs such as vacancy rate. Then work out how many months it would take you to recover your initial investment.
4. Think through Location
Designs for a guest house often consist of a spot over a garage, a small apartment attached to the home or a separate structure located on a different part of the property. If the guest house is attached to your home, you’ll be closer to visitors. You’ll likely enjoy lower taxes and fewer zoning restrictions. Separate accommodations, on the other hand, might lead to higher taxes and more zoning restrictions.
A guest house that stands on its own, however, provides more space for everyone. Guests will love the separate quarters because, regardless of how close you are to your guests, a little separation and privacy are always welcome.
At Rise Above Remodeling, we specialize in building custom casitas, guest houses, and home additions that add both function and value to your property. For an estimate and discussion if you are considering building an addition or casita, call us today at (623) 551-2013!
