Backyard tiny homes, also known as Accessory Dwelling Units (ADUs), are revolutionizing the way Colorado homeowners think about their properties. Whether you call them granny flats, tiny homes, or guest houses, these structures offer an impressive range of benefits that cater to diverse needs. From boosting property value to creating multigenerational living spaces, here are the top 10 reasons why adding a backyard home could be the perfect solution for your Colorado property.
Adding a backyard home can turn your property into a reliable source of income. Colorado’s rental market is booming, with ADUs in cities like Denver and Boulder commanding monthly rents between $1,500 and $2,500. This additional income can help offset mortgage payments, fund renovations, or even serve as a retirement income stream.
Homes with ADUs often rent faster than traditional apartments due to their privacy and unique appeal to tenants. This becomes even more true with Kindred Tiny Homes brand new tasteful stick-built tiny homes.
Investing in a backyard home significantly increases your property’s market value. Studies show that properties with ADUs sell for up to 35% more than those without. In Colorado’s competitive real estate market, an ADU can set your home apart and attract buyers willing to pay a premium for the additional living space and flexibility.
An ADU can make your property more attractive to a wider range of buyers, from young professionals to retirees.
As families seek ways to stay close without sacrificing independence, backyard homes provide the perfect solution. An ADU allows aging parents or adult children to live nearby while maintaining their privacy. This setup fosters connection, support, and convenience for the entire family.
In Fort Collins, a family built an ADU for their aging parents, enabling them to downsize while staying close to their grandchildren.
Backyard homes are incredibly versatile. Whether you need a home office, guesthouse, art studio, or gym, an ADU can adapt to meet your changing needs. This flexibility ensures your investment remains valuable no matter how your lifestyle evolves.
Designing an ADU with multifunctional features, such as Murphy beds or built-in storage, maximizes usability in smaller spaces. Working with a design-build firm, such as Kindred Tiny Homes, where the whole process is handled by the same team allows you to maximize all of these options.
As Colorado faces rising housing costs, backyard homes offer an affordable alternative for homeowners and renters alike. They’re perfect for those who need a cost-effective living solution, whether for family members or tenants seeking budget-friendly options in desirable neighborhoods.
An ADU can also help alleviate housing shortages in Colorado’s urban areas by creating additional housing units without requiring new infrastructure.
Newly constructed stick-built ADUs are designed with advanced features that prioritize quality and comfort. These homes often include high-performance insulation, energy-efficient windows, low-flow toilets, and LED lighting. These features not only contribute to a comfortable living environment but also lower utility costs and enhance durability. Colorado’s focus on green building standards ensures that these elements align with state-wide conservation goals, making your ADU a smart and sustainable investment.
Incorporating xeriscaping around your ADU can further reduce water usage and maintenance costs, aligning with Colorado’s conservation efforts.
The rise of remote work has transformed how we use our homes. A backyard home can serve as a dedicated workspace, free from the distractions of the main house. Imagine having a quiet, well-equipped office just steps away from your backdoor—a game-changer for productivity and work-life balance.
Colorado’s scenic surroundings make backyard homes ideal for creative professionals seeking an inspiring workspace.
Hosting out-of-town guests is much easier with a backyard home. Your visitors can enjoy their own space while remaining close to the main house. It’s a win-win for everyone, ensuring comfort and convenience without compromising your daily routine.
Add thoughtful touches like a mini kitchenette or private bathroom to enhance the guest experience.
Backyard homes are perfect for short-term rental platforms like Airbnb or VRBO. Colorado’s popularity as a tourist destination makes ADUs a lucrative opportunity for homeowners looking to capitalize on high demand for unique, private accommodations.
Make sure to research local regulations on short-term rentals, as rules vary across Colorado cities. Some municipalities may have restrictions on occupancy or rental duration but the new state wide legislation has removed many of these restrictions.
Backyard homes are highly customizable, allowing homeowners to design a space that complements their property’s style. From modern, minimalist to charming traditional designs, the possibilities are endless. Working with a design-build firm like Kindred Tiny Homes ensures your ADU is both functional and visually stunning.
Incorporating Colorado-inspired elements and features like natural wood finishes, fire places, and large windows to capture mountain views can enhance your backyard home’s appeal.
Backyard homes allow for increased housing density without the need to develop open land or disrupt green spaces. By utilizing existing properties, ADUs help maintain Colorado’s natural beauty and reduce urban sprawl.
This eco-friendly approach aligns with Colorado’s commitment to preserving its environment and prioritizing sustainable urban planning.
ADU owners can benefit from various tax incentives and deductions. Depending on how the ADU is used—whether for rental income, energy-efficient upgrades, or home office purposes—there are opportunities to offset costs come tax season.
Speak with a tax professional to learn about specific credits or deductions you may qualify for when adding an ADU to your property.
Adding an ADU to your property can significantly enhance your financial equity. This additional structure not only increases property value but also creates an asset that can be leveraged for future financial goals, like securing a loan or refinancing your home.
With Colorado’s rising real estate values, an ADU can be a smart financial tool for long-term wealth building.
Backyard homes offer the flexibility to explore unique living arrangements. Whether it’s creating a co-living space, housing for caretakers, or a shared home office for remote workers, ADUs adapt to diverse needs.
A Colorado Springs couple converted their detached garage into an ADU that serves as both a guesthouse and a yoga studio, doubling its functionality.
Building a backyard home prepares your property for future possibilities. As your needs evolve, your ADU can transition from a rental unit to a guest suite, home office, or multigenerational living space.
An ADU is an investment in your home’s adaptability, ensuring it meets your lifestyle needs for decades to come.
Adding a backyard tiny home is a significant project, and working with a reputable design-build firm ensures you maximize every benefit while avoiding potential pitfalls. Here’s how a firm like Kindred Tiny Homes simplifies the process and enhances your experience:
A backyard tiny home is more than just an addition to your property—it’s an opportunity to bring family closer together, create financial stability, and invest in your future. Whether you’re looking for extra income, a family living solution, or a space to call your own, an ADU offers unmatched benefits.
At Kindred Tiny Homes, we specialize in designing and building backyard tiny homes that reflect your vision and maximize your property’s potential. From consultation to completion, our team is dedicated to making your ADU project seamless and rewarding.
Ready to start your ADU journey? Contact us today to schedule your free consultation and explore the possibilities for your Colorado property.
Have questions about ADUs? Contact our team for expert guidance.
Have questions about ADUs? Contact our team for expert guidance.
The average cost to build one of our ADU’s is around $200,000, depending on number of bedrooms, overall size, and selected upgrades.
Our studios range from $98,000 to $158,000, our 1 bedrooms range from $148,000 to $220,000, and our 2 bedrooms range from $195,000 to $287,000. All of our ADU’s are custom stick built though so we can tailor to your exact needs and placement on the property!
The answer is likely yes!
Due to the new laws in Colorado no cities, counties, or HOA’s will be allowed to deny ADU’s.
The total average timeline of our builds around 12 months. The design phase to ensure your ADU is exactly how you want it to be is 2-3 months, permitting is generally 3-4 months, and the build is 4-6 months until you have a beautiful turn key ADU down to the appliances!
This depends on your property but it is something our site expert can answer for you!
That’s a great question!
We switched from our ADU’s being modular and on wheels to being stick built for three primary reasons.
1. The quality and longevity of our builds weren’t what we wanted before stick built.
2. If they are modular/on wheels, they are not considered dwellings, so you don’t see the value added to your property compared to a stick built ADU.
3. Stick built ADUs allow us to tailor specifically to your property, ensuring a cohesive aesthetic.
The average monthly rent for our ADU’s is $2,000-$3,000 and increase your property value 20-40%.
Ready to build your dream tiny home?