Basement apartment
Turn a finished or unfinished basement into a private, income-producing rental with its own entrance.
New law starts Oct 1, 2026 — Utah’s new ADU law is now in effect
Utah’s New ADU Law Starts October 1. Find Out What Your Home Can Earn.
Utah just opened backyard ADUs on lots 11,000+ sq ft, and basement and garage units are already allowed in most cities. We design, permit, and build every type.
Free home review · Licensed & insured general contractor · Utah County & the Wasatch Front
01 — The new law
What Utah’s new law means for you
SB 284 (Utah Code § 10-21-304) opens the door to backyard homes across the Wasatch Front. Here’s the plain-English version.
- 1StartingAs of Oct 1, 2026, most Utah cities with 5,000+ residents must allow a detached ADU on single-family lots of 11,000 sq ft or more.
- 2Basement and garage ADUs were already allowed in most Utah neighborhoods. The new law adds detached backyard units on qualifying lots.
- 3Many cities also allow detached ADUs on smaller lots, so every homeowner has options, whatever their lot size.
- 4One ADU per lot: choose the type that fits your home and goals.
- 5Cities are still writing their rules, and HOA covenants and utility capacity can affect what’s allowed. That’s where we come in.
Good to know: Eligibility depends on your city, zoning, HOA covenants, and utility capacity. We’ll confirm everything before you spend anything on design.
02 — What we build
Every type of ADU. One team to design, permit, and build.
Garage or shop conversion
Convert an existing detached garage or shop into a permitted, livable unit, often the fastest path to rent.
Attached addition
Add a self-contained living space onto your home with its own private entrance. Great for family.
Newly allowed on 11,000+ sq ft lots
Detached backyard cottage
A standalone home in your backyard, the type Utah’s new law opens up on larger lots.
03 — Home eligibility check
Check what your home qualifies for, free
Answer a few questions. We’ll tell you what’s likely allowed, then confirm everything with your city before you spend a dollar.
Your results appear here. Every answer is friendly. There’s almost always an option.
04 — Income calculator
Estimate what your home could earn
Pick your city, type, and size. Add financing to see your payment and monthly cash flow.
Your city
ADU type
Bedrooms
How you’d pay
Your current mortgage rate
This changes which option we recommend, not your payment.
Estimated monthly rent
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Project cost
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Payback
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Monthly payment
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Net cash flow
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10-year net cash flow, midpoint estimate
Estimates only. One ADU per lot. Payback is before taxes, insurance, and upkeep.
05 — Paying for it
Most people don’t pay cash
Homeowners usually borrow against equity they already have, then let the rent cover the payment. Here are the four routes, and the calculator above shows what each one does to your monthly numbers.
HELOC
A line of credit against your equity. You draw only what you use as the build progresses, so you don’t pay interest on the whole amount up front. Rates move with the market.
Best for: basement and garage conversions, and anyone who wants flexibility.
Home equity loan
A lump sum at a fixed rate with the same payment every month. Simple to budget against rent, and the payment can’t climb on you later.
Best for: people who want one predictable payment.
Cash-out refi or construction loan
Pulls from your equity or funds the build in draws, spread over 30 years for the lowest monthly payment. A refi replaces your current mortgage, so it’s worth comparing if you have a low rate.
Best for: larger detached builds.
Cash
No payment, no interest
No loan, no approval, and the rent is yours from the first month. Most people who go this route are converting a basement, where the cost is lowest.
Best for: smaller projects and anyone sitting on savings.
We’re builders, not lenders, and nothing here is a loan offer. Tell us you want financing help on the form and we’ll walk you through the options during your review.
06 — Permits, handled
Not sure you’re allowed? We’ll help.
Every city is rewriting its rules right now. We stay on top of it so you don’t have to guess.
We check your city’s rules
Current ordinance, zoning, setbacks, HOA covenants, and utility capacity, researched for your specific lot.
We handle the permit application
We submit everything and manage all the back-and-forth with your city so you don’t have to.
We recommend what fits
If one type isn’t allowed, we’ll show you the one that is: a basement unit, garage conversion, attached addition, or a smaller design.
Get my free home review
We confirm eligibility before any design work. No promise of approval, just the facts for your lot.
07 — Process
From home review to move-in ready
One team handles the whole thing: research, design, permits, and construction.
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01
Week 1
Free home review
We research your zoning, lot size, HOA, and utilities, then tell you exactly what your home allows, at no cost.
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02
Weeks 2–8
Design & permits
Floor plans, engineering, and every permit. We handle all the back-and-forth with your city.
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03
10–20 weeks
Build
Licensed crews handle site prep, framing, mechanical, electrical, plumbing, and finishes, inspected at every stage.
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04
Final week
Move-in ready
Final inspection, punch list, and a rent-ready unit handed off with permits closed out.
08 — Who it’s for
Built for the way Utah families actually live
Rental income
Offset your mortgage with a long-term tenant paying $1,200–$2,000 a month, depending on size and location.
- Long-term leases, steady income
- Private entrance and living space
- See your payback in the calculator
Family living
Keep aging parents close or give adult kids their own space, without losing privacy for anyone.
- Aging parents nearby
- Adult kids moving back
- Accessible, single-level living
Student housing
Near BYU or UVU? A clean, well-built unit rents fast to students and covers your costs.
- High demand near campus
- Durable, low-maintenance finishes
- 12-month leases, steady income
Optional add-on
Want us to manage it too?
After the build, we can place a vetted tenant and handle rent, maintenance, and turnovers, so the income shows up without the work. Just check the box on the request form.
Answers before you ask
What is Utah’s new ADU law (SB 284)?
SB 284 is a 2026 state law, now Utah Code § 10-21-304. Starting October 1, 2026, it requires most Utah cities with 5,000 or more residents in the state’s more populated counties to allow a detached ADU on single-family lots of 11,000 square feet or more. Cities still set details like setbacks, height, and parking.
Does the new law mean my ADU has to be detached?
No. The law adds the detached, backyard option. Basement apartments, garage conversions, and attached additions are still options, and internal ADUs like basement apartments have been allowed in most Utah neighborhoods since 2021.
Does my city have to allow a backyard ADU?
Most Utah County cities are covered, including American Fork, Lehi, Orem, and Provo. Covered cities must allow a detached ADU on qualifying lots, but each city writes its own rules for size, setbacks, parking, and owner occupancy, and some are still finalizing them. We check your city’s current rules for you.
What if my lot is under 11,000 square feet?
You still have options. Many cities allow detached ADUs on smaller lots, and basement apartments usually don’t depend on the 11,000 sq ft mark at all. We’ll tell you which types fit your lot.
Can I turn my basement into a legal rental?
In most Utah neighborhoods, yes. A legal basement apartment needs things like proper egress windows, ceiling height, fire separation, and a permit. Many cities also require the owner to live on the property. We design to code and handle the permit.
Can I convert my existing garage or shop?
Often, yes, if the structure was legally built. It usually needs insulation, utilities, egress, and other upgrades to meet code for living space. The new law also requires covered cities to create a path for converting existing legal accessory buildings.
Can my HOA stop me?
Possibly. The new law doesn’t change private HOA covenants (CC&Rs), and some restrict ADUs. We review your covenants as part of your free home review.
Can I have a basement apartment and a backyard ADU?
Generally no. Utah allows one ADU per lot, either internal or detached. We’ll help you pick the type that works best for your property and goals.
Do I have to live on the property?
In many cities, yes. Owner-occupancy rules are common: the owner lives in either the main house or the ADU. Requirements vary by city, and we’ll confirm yours.
How much does an ADU cost?
It depends on the type and your home. Basement and garage conversions usually cost the least because the structure already exists. Attached additions and detached cottages cost more because they’re new construction. Use the calculator for a ballpark, then get an exact quote after your free review.
How much rent can I charge?
In Utah County, most ADUs rent for roughly $1,000 to $2,000 a month depending on size, finish, and location. Many cities don’t allow short-term rentals in ADUs, so plan on long-term leases.
How long does it take?
Most projects take about 3 to 7 months from your first call to move-in. Basement and garage conversions are usually faster. City permit review is the biggest variable, and we manage it for you.
Can I finance it?
Common options include a HELOC, a cash-out refinance, or a construction or renovation loan. Some lenders will consider the ADU’s future rent. We’ll walk you through the options during your review.
Do you help find tenants or manage the unit?
Yes. After the build, we can help place a vetted tenant and handle rent, maintenance, and turnovers. Just check the box on the request form.
Your city’s ADU rules:
Free home review
Get your free home review
We’ll confirm what’s allowed on your lot and what it could earn, before you spend anything on design.
- We call you within 1 business dayQuick questions about your home and goals.
- We review your propertyZoning, lot, HOA covenants, and utilities.
- You get a clear recommendationThe best ADU type for your home and an estimate. No obligation.
Rather talk now? Call (435) 919-7275
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