The Ultimate Guide to Building a Backyard Guest House

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Ryan Fitzgerald Ryan Fitzgerald
Apr 9, 2024 9 min read
The Ultimate Guide to Building a Backyard Guest House
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The Ultimate Guide to Building a Backyard Guest House

Are you considering building a backyard guest house? Keep reading to learn more about how to make a backyard guest house and everything that goes into it. 

Small backyard guest houses are skyrocketing in popularity recently. These areas are great for hosting guests and provide some needed extra living space while offering privacy and comfort rather than a spare bedroom. 

Building a backyard guest house can also become an extra source of income, especially if you are looking for short-term rentals. With the recent rise of Airbnb, this is a much easier thing for people to do to earn money. 

A guest house may seem like a luxury to some people, but it is actually a home improvement project that can be taken for about the exact cost of a kitchen renovation. Building that extra house will not only add value to your property but also provide a tranquil space for you and your guests. 

There are many things to do when you are considering building a backyard guest house. Keep reading to learn more about everything you need to know about building a guest house and what is going into it ultimately. 

Here is what you need to know about building a backyard guest house and everything that goes into it.

1. What Type of Build-Out?

Custom Build

Building a custom backyard guest house gives you and the clients the most control over the design and layout of this new space. The process of building a custom guest house is the same as a regular home in most cases. Creating a site plan design and getting the necessary zoning and permits will help you with this build. 

Construction teams build these homes from scratch, so these types of projects tend to be more expensive than other builds. The average cost per square foot to build a custom build will range from $100 to $200 per square foot, which means a 500-square-foot house will most likely cost about $50,000 to build. 

Planning custom built guest house

Convert Existing Structure

Converting existing structures can be like a garage, large shed, or even a barn into a backyard home. One of the main benefits of converting an existing structure is that it can be much less expensive than building a new one from scratch and can be a quicker and easier process since you will not have to start off with a foundation and basic structure. 

However, there are a couple of drawbacks to this structure. Some existing structures may not be up to code, and some guest houses must meet certain safety and habitability standards. But who doesn't love the rustic charm of an old barn?

Buy Ready Structure

A modular structure that comes as a kit of parts is the cheapest option, while some products are even marketed very low. There are a lot of different structures than just ordering and putting them in your yard. 

Several choices might work for this project, such as a storage shed that you can finish and turn into a guest house studio, a backyard guest house kit that you build yourself, or even a prefabricated guest house or tiny home. 

A ready-made structure is the most cost-effective option compared to building a custom guest house, but it also gives you some room to customize certain parts of the design. 

2. Draw Up Plans

A backyard guest house can add extra space, privacy, and value to your home. Whether you are searching for an additional room or space for a guest, designing and drawing up your plans is essential. Here are some things you should plan. 

Size

The size of your guest house will determine how many people will be staying in it. If you need a larger area for more guests, then you will need to consider building something more significant that can accommodate that. It is important to consider size regulations in your area to determine the size of your house, as well as zoning laws that may limit the property's square footage. 

Layout

Once your home's size is known and approved, it is important to think about the layout. You should start off by determining the kind of space you need and what kind of rooms you want throughout the area. How much light do you want, where will the furniture go, where will any wiring go, and maybe other questions because you start building? 

Bedroom in the new guest house in backyard

Amenities

Your backyard house will be more inviting when you have amenities such as comfortable furniture and features that make your visitors feel welcome. Other necessary amenities, such as lighting fixtures and patios, are some things to consider when you are adding comfort and convenience to your guest house. 

Drawing up plans for the guest house requires careful consideration regarding many things. Planning prior to the construction will help you build the perfect dream home that can be affordable and add many DIY improvements to add value to your home

3. Find the Ideal Location

Location of guest house in yard

Building a backyard guest house is a great way to provide additional space and privacy. Several factors must be considered when deciding on the perfect spot to build. 

Location of Main House

You need to first consider where the main house is located because having your guest house a certain distance away from your home makes a huge difference. Depending on if you want a private extension or a closer room will influence where you decide to place the new house. 

Utilizing Available Landscape

Certain landscape features, such as trees and hills, will help dictate where your guest house will go. If these areas are on your property, they can either make it more beneficial to build there or make it hazardous, so determining whether the landscape in the area is good for the house is essential. 

Accessibility

Accessibility is important because you want to ensure the guest can enter the area quickly and without obstacles. On the other hand, you will want to make sure there are roads or pathways leading up to the house that have light so people can walk or drive comfortably and safely to the home. 

Privacy and Noise

Noise levels should be taken into account when choosing where a house should go so the guests have peace and quiet from the hustle and bustle. You may think about soundproofing the house or putting the home in an area that has low traffic and is more private in the yard. There are many features that affect this. 

4. Cost and Process?

Adding a guest suite to your backyard is an investment, and the cost before construction can vary. The cost of the guest house will depend on the size, material used, permits, and other fees and features you add to it. 

With preparation and planning, it will help you budget your cost. Having a contractor start building your house will help reduce stress as well as give you your options to make sure you can afford it. 

The average cost per square foot to build a custom build will range from $100 to $200 per square foot, which means a 500-square-foot house will most likely cost about $50,000 to build. However, depending on the type of house you choose, the cost will vary. 

Private guest house entrence

When preparing to build the guest house in the backyard, it is important to understand the project timeline. Asking a professional for an estimated completion date is important, especially when planning inspections for the home. 

It is also important to understand that depending on where you are, some areas require certain permits and rules when you are building an accessory structure. So, understanding where you are and what regulations you have to go through is essential. 

5. Best Floor Plans

Small house plans can make or break the space you choose. There are many different styles to add to your guest house plans. Here are some styles of floor plans you can choose from. 

Standard

This type of guest house layout is like a standard one-bedroom or studio apartment style. This option usually has an open floor plan with a kitchen, dining, or living room that is all grouped together. There will also be a bathroom and maybe another bedroom. 

Loft Style

A loft-style backyard guest house is a great choice when space is limited since it uses vertical space well. The first floor will usually be an open floor plan with a small kitchen and living area, as well as a smaller bathroom, while the first floor will be a loft with a sleeping area. 

Entertaining

This type of guest house is a multi-purpose space that can provide extra entertaining space as well as a place for people to sleep. Many people like to have an extra room with large sliding or french doors next to the patio area that can have a bar or outdoor kitchen for entertaining. 

Methodology

We used information and data from different sources as well as our own data to understand how to build a backyard guest house and everything that goes into the planning. There were various data to use, so we put them together to create a guide to help you. 

Above are a few sources that we used to gather most of our information about understanding how to build a backyard guest house and everything that goes into the planning. 

Having guest over in the backyard guest house

FAQS

What is a good size for a guest house?

On average, typical guest houses range in size from 600 to 1,500 square feet while still having all the advantages of a normal home. 

How to build your own guest house?

When you are building your own guest house, you need first to learn the local laws of ADUs, figure out the purpose, determine the type, hire a contractor, secure your finances, and find out when you are starting the project. 

How much does a guest house add to property value?

If your guest house is detached, it will be considered a line item adjustment and has the potential of adding anywhere from $10,000 to as much as $30,000 to your total asking price of your home when you are reading to sell. 

The Ultimate Guide to Building a Backyard Guest House - The Bottom Line

Planning and constructing a backyard guest house can be time-consuming but fulfilling. Whether you are using this house as an extra living space or offering the guests a comfortable and convenient area, creating the perfect backyard guest house involves considering many things. 

As stated above, to build this backyard house, you need to consider the location, your budget, the materials and labor, and the styles and designs that you want to include. It all takes careful planning, but when done right, the result will be a perfect guest house that fits your aesthetic and the existing landscape. 

Building a guest house may seem like a lavish expense, but it is actually a home improvement project that can be completed at a cost similar to a kitchen renovation. Not only does constructing an extra house add value to your property, but it also provides a peaceful space for you and your guests.

If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs

Ryan Fitzgerald
Written by
Ryan Fitzgerald
Realtor

Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!

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