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Hidden Costs of Converting a Garage into a Livable ADU (Accessory Dwelling Unit)

The transformation of an extra garage into an Accessory Dwelling Unit (ADU) could be a smart solution that allows you to gain extra living space and is more cost-effective than new construction plans. One thing people are not always aware of, though, is that they might soon find themselves in a situation where every cost starts to increase and add up.

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1. Permits and Legal Fees

One of the first hurdles in any home conversion is dealing with permits and local regulations. Many homeowners underestimate how much time and money this step can take.

Zoning and Building Permits

Every city has different rules for ADUs. Some areas allow this to happen with minimal paperwork, while others require extensive approvals, so you may need:

  • A zoning permit to confirm your property allows ADUs
  • A building permit for structural changes
  • Electrical, plumbing, and mechanical permits

Such permits will range in price, but they could be anything between a few hundred and even thousands of dollars. It may save money initially to skip them, but once caught, one may face fines.

Legal and Consulting Fees

If your project is complex, you might need to hire:

  • An architect or engineer for plans
  • A lawyer to review local laws
  • A consultant to help navigate the permit process

These professionals don’t come cheap. But their expertise can prevent costly mistakes later.

2. Structural and Insulation Upgrades

Most garages have thin walls, minimal insulation, and basic foundations, so turning them into a livable space means making major upgrades.

Reinforcing the Structure

Garages often lack proper support for living spaces. You may need to:

  • Strengthen the foundation to handle added weight
  • Replace or reinforce walls for safety
  • Raise the ceiling if it’s too low

Adding Insulation, Heating, and Cooling

Most garages aren’t insulated, making them freezing in winter and boiling in summer. To make the space comfortable, you’ll likely need:

  • Wall and ceiling insulation
  • A heating system (like a mini-split HVAC)
  • Proper ventilation to prevent mold

These upgrades are essential but can easily add $5,000–$15,000 to your budget.

3. Plumbing and Electrical Work

You’ll need proper plumbing and electrical systems, but installing these can be expensive.

Running New Plumbing Lines

Adding a bathroom or kitchen means:

  • Extending water supply lines
  • Installing drainage pipes
  • Possibly digging up concrete for sewer connections

Plumbers charge by the hour. This work can cost $5,000–$20,000, depending on complexity.

Additional Hidden Costs

Smaller expenses can also sneak up on you:

Windows and Natural Light

Most garages have few (if any) windows. Adding them isn’t just about cutting holes in walls—you’ll need:

  • Well-sized windows for safety and ventilation
  • Framing/weatherproofing
  • Possibly meeting egress codes (for emergency exits)

This can add another $2,000–$8,000.

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