Transforming Your Backyard into a Rental Income Generator: ADU Plans for Homeowners

As the cost of living continues to rise, many homeowners are looking for ways to generate additional income from their existing living space. One increasingly popular solution is the addition of an Accessory Dwelling Unit (ADU) in their backyard. ADU plans allow homeowners to create a separate living space on their property that can be rented out for additional income.

Choosing the right plan for your Accessory Dwelling Unit is crucial if you are serious about making the most of your available space. In addition to this, the right plan will ensure that whatever you build will be functional, comfortable, and meet all local regulations. In this article, we will explore how homeowners can use ADUs to transform their backyard into a rental income generator, the importance of choosing the right ADU house plans, and the benefits of designing the perfect ADU floor plans.


  1170 sq/ft     2 Bed     2 Bath


  570 sq/ft     1 Bed     1 Bath


1250 sq/ft     2 Bed    2 Bath


  650 sq/ft     2 Bed     1 Bath


  1162 sq/ft     2 Bed    2 Bath


  1410 sq/ft     3 Bed     2 Bath


880 sq/ft     2 Bed    1 Bath


910 sq/ft    2 Bed     1 Bath


1200 sq/ft     2 Bed    2 Bath


  800 sq/ft     2 Bed     1 Bath


  784 sq/ft     2 Bed     1 Bath


972 sq/ft     2 Bed     1 Bath


795 sq/ft     2 Bed    1 Bath


  532 sq/ft     1 Bed     1 Bath


1000 sq/ft     2 Bed     1 Bath


500 sq/ft     1 Bed     1 Bath


858 sq/ft     2 Bed    1 Bath


  285 sq/ft     1 Bed     1 Bath

Benefits of Designing the Perfect ADU

Designing the perfect ADU can provide many benefits for homeowners. Below are some of these benefits:

Additional Income

One of the main benefits of building an ADU is the potential for additional income. Renting out the ADU can provide homeowners with a steady source of income, helping them to pay off their mortgage or cover other expenses.

Increased Property Value

Building an ADU can increase the value of a property because they are highly sought after by homebuyers, making them a valuable investment. The right ADU design can also enhance the aesthetic appeal of a property, making it more attractive to potential buyers.


An ADU adds increased flexibility and versatility to a home. The space can be used as a rental unit, a guest house, or as a living space for family members. This versatility ensures that the ADU is always in use, providing value and benefit for the homeowner.

Aging in Place

This can be the perfect solution for homeowners who wish to age in place. The ADU can be designed to be accessible and functional for seniors, allowing them to live independently while remaining close to their family.

Understanding ADU Floor Plans

One of the most important factors to consider when building an ADU is the floor plan. ADU floor plans determine the layout, functionality, and overall feel of the living space. Homeowners need to consider the purpose of the ADU when choosing a floor plan. For example, if it will be used as a rental unit, the floor plan should be designed to accommodate tenants’ needs while providing privacy for both the homeowner and the tenants.

Customization is another crucial factor when it comes to ADU floor plans. Many floor plans are designed to fit specific lot sizes and shapes, making it necessary to find a floor plan that suits your property. Customizing the floor plan can also help homeowners to maximize space, ensuring that the structure is functional and comfortable for tenants.

There are many different types of ADU floor plans to choose from and these include studio, one-bedroom, and two-bedroom plans. Homeowners must select a plan based on their needs and the needs of their potential tenants. For example, a one-bedroom ADU may be suitable for a single tenant or a couple, while a two-bedroom ADU may be more appropriate for a small family.

Finally, homeowners should consider the size they want for the ADU. 500 sq ft ADU plans appear to be increasingly popular because they are more affordable to build and require less space. This makes them ideal for homeowners with smaller backyards or budgets. Additionally, a 500 sq ft ADU can still be functional and comfortable for tenants with the right plan and design.

ADU Plans
ADU Plans

Factors to Consider when Designing ADU Plans

As with all building projects, the plan is one of the most important things to take care of when you decide to build an ADU. ADU house plans determine the overall design, style, and functionality of the structure. There are many plans available, including traditional, contemporary, and modern designs. Homeowners need to choose a plan that suits their needs and preferences while also complying with local regulations.

There are a number of factors that should be considered before deciding on a plan. Since these factors are critical to finding the right plan, we’ll quickly look at a few of them.

Determine the Purpose

One crucial factor to consider when designing ADU plans is the purpose of the ADU. From the very beginning, homeowners need to determine whether the ADU will be used as a rental unit, a guest house, or a living space for a family member. Knowing the purpose of the ADU will influence the overall design and layout of the plan.

Consider the Size and Shape of the Lot

Another factor to consider when designing ADU house plans is the size and shape of the lot. Homeowners need to choose house plans that suit their property and are compliant with local zoning regulations. The plan needs to be designed in such a way that they do not encroach on the privacy or living space of the main house.

Consider Your Budget

When designing ADU house plans, it is also important to consider the budget. It is important to select house plans that fit your budget while still meeting your needs and preferences. Your ADU plans can be customized to fit specific budgets, making it possible to create a functional and comfortable living space that is also affordable. This is one reason why it is always recommended that you work with professionals.

Consider Energy Efficiency and Sustainability

Finally, energy-efficiency and sustainability are important consideration factors, especially as the world continues to march toward sustainable energy options. Green building options can be incorporated into the design and construction of ADUs, resulting in lower energy bills and a reduced carbon footprint.

Creating a Rental Income Stream with ADU Plans

For anyone looking to create a rental income from an existing property, building an Accessory Dwelling Unit (ADU) is a popular choice to explore. Like we stated at the beginning, ADUs are separate living units that can be rented out to tenants for an additional stream of income. If you wish to use this method for creating additional rental income, this next section is important. We shall look at different important aspects of this venture so you can be better prepared for it.

Benefits of Using ADU Plans to Create Rental Income

There are several benefits to creating rental income this way. First, ADUs provide homeowners with a source of passive income. We already mentioned this above. Renting out an ADU can generate a steady stream of income that can help homeowners pay off their mortgage, cover property taxes, or fund home renovations.

Second, ADUs can provide homeowners with a flexible living arrangement. Homeowners can choose to rent out their ADU on a short-term or long-term basis, depending on their needs and preferences. For example, if a homeowner needs additional income during a particular season, they can choose to rent out the space on a short-term basis to vacationers or tourists.

Understanding Local Laws and Regulations for Renting ADUs

Before renting out an ADU, it’s important that you understand the local laws and regulations for renting ADUs in your area. Many cities and states have specific regulations regarding the construction and rental of ADUs, such as minimum size requirements, parking regulations, and rental restrictions.

Ensure that your ADU plans comply with these regulations before you begin the project. Failure to comply with local regulations can result in fines or legal consequences.

Finding the Right Tenant for Your ADU

It’s one thing to build a space for rental but an entirely different thing to find suitable tenants. You can advertise on online rental platforms, local classifieds, or through word-of-mouth.

When selecting a tenant, it’s important to conduct proper background checks, verify employment and income, and check references. It is also important for you to establish clear guidelines and expectations with your tenants. This should include rental rates, payment schedules, and maintenance responsibilities.

Determining the Right Rental Price for Your ADU

Rental rates for ADUs will be largely dependent on factors like location, size, and amenities offered. Carry out some research on the rental rates for similar ADUs in the area to determine a fair rental price. You can also contact realtors who operate in the area for advice.

When fixing the rental price, be sure to consider the cost of maintenance, utilities, and other expenses that will arise. Rental rates should be competitive, but also reflective of the value that the ADU provides to tenants.

ADU Plans
ADU Plans
ADU Plans

Examples of ADU Plans

There are different types of ADU plans available today. The plan that will suit you will depend on your preferences, lot size and budget, among other things. To give you an idea of some the options available, we’ll quickly look at some examples:

The Studio ADU Plan

This is a small, self-contained living space that usually consists of a single room with a kitchenette and bathroom. The Studio ADU is a great option for homeowners who wish to add extra living space without sacrificing their yard or outdoor space. This type of ADU is ideal for a single tenant or at most a couple.

The Garage Conversion ADU Plan

This plan involves converting an existing garage into a separate living space. This type of ADU is a cost-effective way to add living space to a property without the need for too much additional construction. Garage Conversion ADUs can include a bedroom, bathroom, and kitchenette.

The Basement Conversion ADU Plan

Similar to the Garage Conversion ADU Plan, this plan involves converting an existing basement into a separate living space. Basement Conversion ADUs can include a bedroom, bathroom, and kitchenette. This type of ADU is a great option for homeowners who have unused basement space and wish to add extra living space to their property.

The Attached ADU Plan

This plan requires the addition of a separate living space to an existing house, usually as an extension to the main living area. The Attached ADU can have its own entrance or share an entrance with the main house. This type of ADU can be designed to blend seamlessly with the existing house, and can include a bedroom, bathroom, and kitchenette.

The Detached ADU Plan

For this plan, a separate living unit has to be built on the property, detached from the main house. The Detached ADU can be designed to match the style of the main house or be a unique standalone structure. This type of ADU can include a bedroom, bathroom, kitchen, and living space.


It’s always a good plan to have multiple streams of income. As a homeowner, ADU plans offer you an additional way of adding to your income. All you need is the perfect ADU plan to get you started. Thankfully, this is what we special on here at Truoba. Our team of architects and designers has created a variety of ADU plans that you can check out right now. These plans are designed to the highest standard and offer the best of style and functionality. These ready-to-go plans can also be customized to accommodate whatever adjustments you may want done. Better still, you can get one designed for you from scratch. All you need to do is let us know what you need and you’ll get it. Don’t let anything stop you from making that extra rental income.