FAQs | ATL ADU CO

adu faqs

Once you start really thinking about putting an ADU in your back yard, the questions start to pile up. What size ADU can fit on my lot? How will an ADU affect my taxes? Is my shed an ADU? We’ve compiled the most common questions below in two sections –ADUs and Guest Houses. If your questions aren’t answered below, don’t worry! That’s what we’re here for. Reach out to us at info@ atladuco.com and we will help fill in the blanks.

FAQ responses are based on zoning and interpretation information at the time of this document’s preparation. The home owner is responsible for confirming allowed uses, particularly those related to leasing, short-term rental, and insurance. The ATL ADU CO will evaluate zoning possibilities for your project during the Feasibility Phase.

Design element of a human head with a question mark to represent questions

WHAT IS AN ADU?

ADU stands for Accessory Dwelling Unit. It is a small, detached living structure located behind the primary residence on a lot. ADUs include their own kitchen, bedroom and bathroom facilities. They are intended to be “accessory” to the primary dwelling. The rise in ADUs stems from a range of benefits including an expanded living area, increased property value, and the creation of rental income, a home office, or multigenerational living.

DO YOU PROVIDE CUSTOM ADUs?

We do not provide custom designs, but rather have pre-designed models that we offer in consideration of efficiency and budget.

WHAT IS YOUR SERVICE AREA?

We work predominantly in the City of Atlanta, City of Decatur, City of Avondale, and Dekalb County. We will also consider projects throughout Metro Atlanta. Please contact us with your address to confirm if you are in our service area.

HOW LONG DOES IT TAKE?

The timeline for our turnkey service is roughly 8-10 months from start to finish. That includes 4-5 months for preconstruction (survey, feasibility study, site planning, permitting) and 4-5 months for construction.

WHAT IS THE DIFFERENCE BETWEEN A GUEST HOUSE AND AN ADU?

Primarily, the size of an ADU is limited to 750 SF, while Guest Houses are limited to 30% of the main house on the lot. ADUs are legally allowed to have full cooking facilities, whereas Guest Houses can have an amazing wet bar, but not a built in stove.

ADUs count towards the allowable buildable square footage (your FAR - Floor Area Ratio) of your lot, but Guest houses do not. This means that if you want to build an ADU, you would not be allowed to build as big of a house. Most existing houses don’t max out their square footage, so this is typically not an issue.

Because of the square footage, the Edgewood (Carriage House) is technically a guest house, while the R-Town and K-Wood are ADUs.

WHAT ARE THE REQUIREMENTS FOR OWNING AN ADU?

1) ADUs cannot be sold separately from the main house (hence the term accessory).

2) The total number of units on the property cannot exceed two, including the ADU.

3) Except in the case of home occupations, no accessory use shall be permitted or allowed for a commercial venture.

4) The unit must be 750 SF or less.

5) There is no minimum lot size required but you cannot create a new substandard lot of record in the city.

6) No direct access road is necessary.

7) There is no needed parking space designated for the ADU.

HOW DO I KNOW IF MY HOME MEETS THE ZONING CRITERIA ASSOCIATED WITH AN ADU?

In Atlanta, ADUs are only allowed on R-5, R-4, and R-4A-zoned lots. However, everything is still limited by the lot coverage and square footage limitations of the overall zoning.

Lot coverage requirements and square footage limitations of the overall zoning are as follows: 20’-0” height limit, 55% lot coverage, and 50% FAR (65% at lots smaller than 7,500 SF). ADUs may be no closer to neighboring houses than to the primary house on a lot, but ADU side and rear setbacks are 4’-0” in R-5 zones, and 7’-0” side, 15’-0” rear, in R-4 and R-4A zones.

CAN I RENT MY PRIMARY HOME AND ADU TO SEPARATE PARTIES?

This depends on where your property is located. The City of Atlanta does allow for the rental of the primary and accessory structure. Other municipalities, like Dekalb County and Decatur, require the homeowner to live on the property. Also, to rent short term in the City of Atlanta, you must live on the property. This is not a zoning ordinance but a city ordinance.

WHAT ABOUT AIRBNB?

Our ADUs have the ability to easily adapt to short-term, long-term, or mid-term rentals. Short term rental platforms, like Airbnb, require much more engagement, but the returns are significantly more. We are not advocating for, or against, the merits of Airbnb, but we do recognize it exists, and provides an opportunity for a homeowner to capture additional income. This income can be a critical component of housing security for residents that have limited options to earn more to pay for increasing property taxes.

HOW MUCH WILL MY PROPERTY VALUE INCREASE IF I ADD AN ADU?

The growing number of ADUs in the country has led to more comps, and more data, used by appraisers, that supports an increase in property value. In our opinion (and many others), additional square footage, the potential for rental income, or a work from home option, will undoubtedly lead to an increase in your property value. Learn more

WHAT ARE THE FINANCING OPTIONS FOR MY NEW ADU?

We can put you in touch with our ADU mortgage expert to discuss you options. Please contact us to begin that process.

WILL TAXES GO UP BASED ON INCREASED SQUARE FOOTAGE OF MAIN + SECOND DWELLING?

Expecting an increase of taxes based upon additional square footage is a reasonable assumption.

IS THERE A WARRANTY OR GUARANTEE ASSOCIATED WITH YOUR SERVICE?

There is a one year builder’s warranty provided.

IS THERE INSURANCE THAT NEEDS TO BE ADDED FOR AN ADU ON MY PROPERTY?

Yes. You should extend your home insurance to cover the ADU. Contact your home insurance agency for quotes. You should also ask your tenant(s) to purchase renters insurance so that they are covered for liability and their personal items.

IS THERE ANY TERM ASSOCIATED WITH RENTING OUT THE ADUS?

ADUs do not have a lease term limit like Guest Houses. We recommend researching online for a lease that fi ts your needs. There are also several web based property management companies that provide a range of services to simplify the rental management component for a fee.

MY BACKYARD IS LOWER THAN THE STREET. WILL I HAVE DRAINAGE ISSUES?

ADUs located in lower back yards often require additional stormwater management, elevated building slabs, and sanitary sewer pumping to the home’s existing public sewer connection - typically located between the primary residence and the street. However, this is not always the case, and these back yard conditions can be evaluated early in the ATL ADU CO Process. The ATL ADU CO team includes civil engineers and architects well-versed in these areas and can help you evaluate if your lower back yard is still a good candidate for an ADU.

guest house faqs

HOW BIG DOES MY HOUSE NEED TO BE TO MEET THE 30% REQUIREMENT FOR THE EDGEWOOD (CARRIAGE HOUSE)?

- For Edgewood (Carriage House) - your house needs to be 3570 sf.

- You can also include your unfinished basement and attic (with an overhead of 6ft 8in). Remember that attic space with head height of more than 7’ can contribute a portion of space towards your needed square footage (but it is discounted by 50%).

DOES THE PORCH/DECK COUNT INTO THE SQ. FT. OF THE DWELLING? DOES AN OUTDOOR KITCHEN BETWEEN THE DWELLING AND THE MAIN HOUSE COUNT TOWARD SQ. FT. OF DWELLING IF THEY’RE CONNECTED BY A DECK?

Unconditioned space does not count towards your square footage/FAR if you are trying to increase the size of your home to count towards a larger ADU. Porches do count towards your lot coverage whether covered or uncovered.