Guest Quarters: Is a Guest House or Casita Right for You?

By Julie Gordey

Sep. 8, 2025 at 1:16 PM CST

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As you embark on your journey to your new retirement home, you may want to add a guest house – or casita. These accessory dwelling units (ADUs) offer comfort, privacy, and flexibility for family, visitors, or even rental income.

Why it matters: A casita can enhance your lifestyle, boost property value, and provide options for multigenerational living or extra income – but it comes with costs and regulations.

What Is a Casita?

A casita is a small, separate living space on your property. It can serve as guest quarters, an in-law suite, office, studio, or rental unit.

Key Considerations

  • Zoning, building codes, and HOA rules vary.

  • Permits, safety standards, and utility connections are required.

Intended Use
  • Guest space, home office, art studio, or rental income?

  • Consider accessibility features if aging in place or hosting loved ones with mobility needs.

  • Multi-functional design (ex: office with Murphy bed) maximizes value.

Costs
  • $100–$500 per square foot plus $15,000–$25,000 for permits, foundation, and installation.

  • Long-term expenses: taxes, utilities, maintenance, insurance.

  • For rentals: run the numbers on income vs. costs to calculate payback.

Location
  • Over the garage, attached to the main house, or a detached structure.

  • Attached units may mean lower taxes and fewer restrictions.

  • Detached units offer privacy but may trigger higher taxes or zoning hurdles.

Bottom line: A casita can be a smart investment in retirement – adding flexibility, privacy, and potential income. Just weigh the upfront costs, long-term expenses, and local rules before breaking ground.

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Julie Gordey

A lifelong educator, Julie Gordey, is a retired school administrator.  After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.