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Tiny homes are trending, with social media showcasing downsizing enthusiasts and those building backyard ADUs (accessory dwelling units) to generate extra income through platforms like Airbnb. You might be considering this option too, especially if you have an old shed or some free yard space.

While renovating an existing structure might seem appealing, is it a wise choice? If you plan to live in it or rent it out, numerous legal and safety issues must be addressed. For backyard workshops and she-sheds, the regulations are more relaxed.

Tiny Home vs. ADU: What’s the Difference?

First, let's clarify some terminology. What distinguishes a tiny home from an ADU? Can these terms be used interchangeably? It depends on location and perspective.

What is a tiny home?

The term "tiny home" can have different meanings for different people. Many associate tiny homes with structures on wheels, resembling single-wide trailers. Others define tiny homes by their square footage, typically around 200 square feet. In Oregon, for example, a tiny home is defined as a structure designed to offer low-cost or minimally sized housing options.

What is an ADU?

Accessory dwelling units (ADUs) are more straightforward. An ADU is a secondary dwelling unit on the same property as a primary residence. Unlike tiny homes, ADUs have strict zoning implications. An ADU cannot be the only residence on a property; it must be an additional structure separate from the main home.

In summary: A tiny home can be an ADU, and an ADU can be a tiny home, but not all ADUs are tiny homes, and not all tiny homes qualify as ADUs.

Adding an ADU: Key Considerations

The popularity of ADUs and tiny homes on TV and YouTube might tempt you to quickly convert your shed with some paint and solar lights. This approach is fine for a casual backyard space, but a lasting investment requires thorough planning, starting with zoning.

Permitting

Zoning regulations are crucial when adding an ADU. Regulations vary by state, county, and city. Some areas allow ADUs by right, while others require a conditional use permit, an exception to zoning laws. In some places, ADUs are prohibited altogether. Always check with your local planning and permitting office.

Footprint requirements

Footprint regulations in different zones can complicate ADU development. Land use codes often control the amount of development and open space through setbacks and lot coverage limits. Setbacks create non-buildable space around property perimeters, limiting building size relative to property lines. Lot coverage limits dictate the maximum percentage of property that can have structures, typically between 30% and 60%.

Zone density

Zone density affects the look and feel of neighborhoods. Lower density zones often require larger minimum dwelling sizes, such as 1,000 square feet for the ground floor. Higher density zones allow smaller dwellings, sometimes as small as 500 square feet, but often exclude true tiny homes.

Parking and other considerations

Using an Airstream trailer as a dwelling is heavily regulated. RVs, including trailer homes, are often banned as permanent dwellings by city codes and are not considered real property. Parking requirements, such as hard surface driveways and carport or garage mandates, also apply when developing a new residence.

Can I Convert My Shed into an ADU?

Converting a shed into a tiny home is generally not recommended. Sheds are not built to the safety standards required for homes, particularly regarding fire safety. Homes are constructed with fire-rated materials to allow occupants time to escape in case of a fire. Sheds lack these safety features.

While you could renovate a shed to meet building codes, it is unlikely to save money and may introduce more challenges than designing a tiny home from scratch.

For a safe, legal, and cost-effective tiny home or ADU, thorough planning, understanding zoning laws, and considering safety standards are essential steps.