Every ADU starts with a question: "Can I build?" — and ends with a set of keys. Here's every stage of the journey in between.
The road from dream to done isn't a mystery — it's a process. Each phase builds on the last, and every decision you make compounds into the home you'll hand the keys to.
Before you hire an architect or fall in love with a design, you need answers. This phase is your detective work — a low-cost, high-value investigation to uncover any "fatal flaws" that could derail the project before it begins. You'll decode zoning, analyze your site, and create your first realistic budget.
Think of setbacks as the "Buffer Safe Zone" — the minimum distance from each property line where you're allowed to build. Draw them on your survey first to see your actual buildable area.
This is where your dream takes physical form on paper. Your architect translates goals, needs, and constraints into a buildable design — coordinating civil, structural, and MEP engineers into one unified drawing set. Then comes the permit process: submitting plans, addressing review comments, and earning official approval.
Good ADU architecture is "context-aware." The design should read as a harmonious addition — matching roof pitches, window proportions, and materials — not a "tacked-on" box.
Running concurrently with your design phase, this is where you align ambitions with financial reality. From HELOCs and construction-to-perm loans to FHA 203(k) programs and state incentives — there are more options than most homeowners realize. The goal: get pre-approved so your permit and loan close together.
The monthly rent from an ADU can offset a significant portion of your mortgage payment. Many lenders now consider projected ADU rental income when qualifying borrowers.
With permits in hand and financing secured, it's time to find your builder. This phase is about assembling your bid package, vetting 2–3 qualified contractors, running an apples-to-apples bid comparison, and selecting the partner you trust to bring your project to life — then locking it all down in a bulletproof contract.
Never sign a contract without retainage language, a clear payment schedule tied to milestones, and final unconditional lien waiver requirements. Your contract is your constitution.
The longest and most dynamic phase. From the pre-construction meeting through site work, foundation, framing (or modular set day), rough-ins, insulation, drywall, and finishes — your ADU takes shape. Municipal inspections occur at every critical milestone. Weekly builder meetings keep you informed and in control.
Meet your builder weekly. A consistent meeting rhythm keeps decisions moving, catches issues early, and ensures your project stays on track and on budget.
The moment of truth. The final building inspection confirms safety and code compliance. Your punch list walk-through confirms quality. Commissioning proves that all systems — HVAC, ventilation, plumbing, electrical — actually perform as designed. Then comes the handover: Certificate of Occupancy, the closeout binder, and your keys.
You cannot legally occupy the ADU until you have your Certificate of Occupancy. A rushed closeout is the hallmark of an amateur builder — a thorough one is the signature of a true professional.
The end of construction is a starting line, not a finish line. If you're renting, this phase requires a fundamental mindset shift — from homeowner to landlord-investor. From landlord insurance and tenant screening to lease signing and proactive maintenance scheduling, your ADU becomes a living, income-generating asset that builds long-term wealth.
Managing your ADU rental is one of the most rewarding aspects of the project. But success isn't accidental — it's the result of deliberate systems, proactive maintenance, and treating it like the business it is.
From your first feasibility question to your final set of keys, The ADU Exchange gives you the tools, the trades, and the trusted guidance to move forward with confidence.