Can an ADU Be a Primary Residence?

December 15, 2024

If you’ve ever thought about downsizing or maximizing the potential of your property, you might have considered an accessory dwelling unit (ADU). These compact and efficient homes have become a hot topic, but many wonder: can they actually be used as a primary residence? 

The short answer is yes, an ADU can be a primary residence; but there’s more to know. Whether you’re considering adding an ADU to your property or moving into one yourself, this guide will provide clarity.

ADUs aren’t just trendy—they’re practical, too. They offer a flexible living solution for a variety of needs, from housing family members to generating rental income. But what does it take to turn an ADU into your main home? Let’s dive into the details and focus on how East Atlanta is paving the way for ADU living.

What Is an ADU?

An ADU is a small, self-contained housing unit located on the same lot as a single-family home. In short, there will be a main building on the lot (a regular home) and then a tiny home in the back – the ADU. 

ADUs can take many forms, including converted garages, basement apartments, or standalone backyard cottages. They’re designed to provide additional living space while maintaining the existing property’s primary function. Learn more about these versatile living solutions in our introduction to ADUs.

Can an ADU Legally Be Your Primary Residence?

A primary residence is the main home where you live most of the time, as opposed to a secondary or vacation home. It typically serves as your legal address for tax purposes and voter registration. For an ADU to be considered your primary residence, it must comply with specific zoning laws and meet habitability standards.

The legality of living in an ADU as your primary residence depends on local zoning laws and regulations. In some areas, ADUs are restricted to being secondary units, while in others, they can serve as standalone residences.

East Atlanta ADUs

East Atlanta has embraced the ADU trend, offering favorable regulations that allow ADUs to be used as primary residences. Homeowners here enjoy flexibility, but it’s essential to confirm your specific lot’s zoning codes and permitting requirements with the city of Atlanta before making the switch.

An experienced ADU builder can assist you with navigating the complex legal requirements surrounding a new ADU. If you’re based in East Atlanta, one of your options is Smart Spaces ADU – an up-and-coming builder serving Tucker, Grayson, and Brookhaven with innovative living solutions. 

Steps to Establish an ADU as a Primary Residence

It’s vital to ensure that your ADU complies with all local laws to avoid getting fined or otherwise penalized by your area. Always make sure to:

  1. Check Your Local Zoning Laws: Ensure that your municipality allows ADUs to serve as primary residences. You can usually find zoning regulations on your city or county’s official website or by contacting the local planning department.
  2. Obtain All Necessary Permits: Secure building permits and approvals to meet local requirements. A professional contractor or architect familiar with ADU projects can guide you through this process.
  3. Ensure Total Compliance with Building Codes: Your ADU must meet safety and habitability standards. Your contractor or architect can assist you with this as well. 
  4. Plan for Utilities and Access: Confirm that your ADU has viable utilities and proper access (aka, an independent entrance) for long-term living. Wondering where you’re getting your water and electricity from? An ADU’s utilities can often be extensions from the main house.

Other legal considerations for ADUs often include local setback limits, minimum lot sizes, permitted owner occupancy for rental properties, and possible parking space requirements, depending on your area. 

The Benefits of Adding an ADU to Your Backyard

Adding an ADU to your backyard isn’t just a practical choice—it’s an exciting way to transform your property. Whether you’re looking to boost your home’s value or create a space for loved ones, ADUs have something to offer for everyone. Here’s some ways your ADU can pay you back: 

  • Increased Property Value: ADUs can boost your home’s resale value. Think of it as a long-term investment—a well-designed ADU can make your property stand out and attract buyers willing to pay more.
  • Rental Income: Use your ADU as a long-term or short-term rental to generate passive income. It’s a smart way to make your property work for you and ease financial burdens like mortgage payments.
  • Multi-Generational Living: ADUs provide a private space for aging parents or adult children. It’s the perfect balance of independence and togetherness for families with evolving needs.
  • Sustainable Living: ADUs typically require fewer resources to build and maintain, making them an eco-friendly housing solution. Plus, their compact size helps reduce energy costs and leaves a lighter footprint on the environment.

Financing Your New Backyard ADU

When you’re thinking about building an ADU, you might be wondering how you’re going to afford it. We recommend talking to your prospective ADU contractor first; they might have local partnerships or recommendations to simplify the funding process.

Some of your options available include: 

  • Home Equity Loans: Use your home’s equity to fund construction. These loans work by borrowing against the value of your home, making them a great choice if you’ve built significant equity and want a lower interest rate.
  • Cash-Out Refinancing: Replace your existing mortgage with a larger one to cover ADU costs. This option is ideal if current interest rates are favorable and you’d like to consolidate your borrowing into one payment.
  • Construction Loans: Secure funding specifically for new building projects. These short-term loans are designed for construction purposes, providing funds as needed during each phase of the project.
  • Grants and Incentives: Check for local programs that support ADU development. Many cities offer financial assistance to encourage affordable housing, making this a great option if you qualify.

Get Started Building Your Atlanta ADU

Building an ADU is a big step, but it doesn’t have to be overwhelming. Working with professionals who understand local regulations can make the process seamless. From initial planning to final construction, they’ll ensure your ADU meets all requirements and fits your vision. 

If you’re ready to create a custom ADU in East Atlanta, get in touch with our experienced team at Smart Spaces ADUs. Browse our ADU plans, and contact us to start turning your dream into reality. Whether you’re looking to build your primary residence or simply to add value to your property, an ADU could be the perfect solution.

Rick Starkey of SmartSpaces ADUs

Rich, Founder of Smart Spaces ADUs

Thanks to his passion for his community, Rich founded Smart Spaces ADUs to build affordable, accessible homes that cater to unique living experiences. SmartSpaces ADUs is Eastern Atlanta’s premier provider of ADUs, garage conversions and tiny homes.

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