7 Unique Ways to Use your Garage, Casita, or other ADU

Beyond simply offering extra space, Accessory Dwelling Units, or ADUs, present unique opportunities to adapt your home for changing needs, generate income, or add long-term value.

You might not know it, but your home may come equipped with an ADU already. Garages and casitas can serve as ADUs with the proper upgrades.

Here are seven unique ways to use an ADU, from a space for Grandma to a craft room.

1. Multigenerational Living

A popular use of an ADU is as independent housing for aging parents, adult children, or extended family members. This setup offers the best of both worlds: close proximity for caregiving or support, while still maintaining privacy and independence.

Benefits:

• Reduces costs for both generations by avoiding assisted living or rent elsewhere

• Promotes family connection and support

• Adds long-term value to your home (more square footage) without expanding your main house footprint

2. Rental Income

ADUs can serve as income-generating rentals. Whether for long-term leases or short-term vacation stays, ADUs are a great way to start passive income through house hacking. With platforms like Airbnb or VRBO, a stylishly-furnished ADU can become a source of steady side income.

Benefits:

• Generates passive income

• Helps offset mortgage or property taxes

• Boosts property resale appeal for buyers interested in income properties

3. Work From Home

More people are working from home than ever before. ADUs offer a separate, distraction-free environment to boost productivity. They’re a great solution for remote work, client meetings, or creative pursuits such as writing, painting, or photography. If you have a side hustle or startup business, it’s a great way to keep your business separate from your home, too.

Benefits:

• Eliminates the need to rent outside office or studio space

• Increases work-life separation/balance

• May offer tax advantages as a home office (consult a financial advisor)

4. Home Gym or Wellness Area

An ADU can be turned into a dedicated gym, yoga studio, or wellness space. With enough space for equipment and natural light, it can become your private sanctuary for health and fitness.

Benefits:

• Encourages consistent wellness routines

• Saves you money on gym memberships or class fees

• Offers privacy and convenience

5. Guest House or Hospitality Space

Hosting friends or family becomes easier with a fully equipped guest suite. An ADU used as a guest house gives visitors privacy and comfort.

Benefits:

• Creates hospitality without disrupting the main household

• Great for holidays or visiting family

• May double as rental space when not in use

6. College Student Housing

If you have teens or college-age kids living at home, an ADU can be a semi-independent space that gives them freedom while keeping them nearby. It's a great way to ease the transition from childhood into full independence, while allowing your adult children to save up for a place of their own.

Benefits:

• Offers autonomy for young adults

• Helps avoid dorm or apartment costs

• Can be re-purposed for other uses after Junior moves out

7. Hobby Room or Learning Space

Whether it's woodworking, music, gaming, or crafting, a detached ADU makes a perfect hobby zone or learning studio free from the noise and clutter of the main house.

Benefits:

• Creates a focused environment

• Reduces project mess and creates storage space equipment

• Encourages long-term engagement with creative or educational pursuits

The Bottom Line

Whether you want to support your family, earn extra income, or simply make the most of your property, building or converting an ADU might be the right move for you.

Before building or repurposing an ADU, always check local zoning regulations, permits, and rental laws. With the right planning, your ADU can become the most valuable and functional space on your property.

Follow NewHomeSource on Facebook, X, and Instagram, and visit newhomesource.com/learn for more tips and tricks on new homes.