Should You Make Your Garage a Living Space?
How useful are these renovations, and does a converted garage provide much in terms of income generation or resale value? As you consider converting your garage into a living space, this guide will walk you through the decision-making process. We'll look at potential renovation options, their costs, and their impact on your bottom line.
The Benefits and Drawbacks
Weighing the benefits and drawbacks of converting a garage into a living space boils down to your personal preferences, the unique features of your home, and the general area in which you live.
When you convert your garage into a living space, you lose the multifunctional space that a garage provides for storage and vehicle parking. In exchange, you get a space that can only be used for indoor living.
Furthermore, you may lose money when selling, especially if every other home in your neighborhood has a garage.
Finally, consider your options based on whether or not your garage is attached to your home. Attached garages with existing infrastructure, such as ductwork for heating and cooling, may be easier to convert. Standalone garages may be more expensive to upgrade and will not provide a seamless transition from your home for the additional living space.
Consider the following pros and cons:
Pros
Extra living space
Income from a rental or vacation property
Potentially higher resale value
Cons
Parking space loss
Storage space loss
Potential resale value loss
Dealing with the Renovation
Converting a garage to a living space necessitates major changes to the lighting, heating and cooling systems, and plumbing if you want to add something like a bathroom. Furthermore, many of these renovations will be governed by local ordinances and building codes in your area.
Garage Window and Door Installation
You should think about adding windows to your garage so you don't end up with a dark box at the end of your renovation. According to your local building codes, you may even be required to install windows. Furthermore, while some converted garages retain use of the garage door, if you intend to rent out your garage, make sure it has a conventional entrance and that any remaining garage doors are properly insulated or replaced to protect against the elements.
Heating and Cooling a Garage Conversion
Unless they are attached to the main house, many garages are uninsulated and lack heating and cooling infrastructure. Even so, you may need to have your garage retrofitted with a heating and cooling system. These options include standalone units, ductwork installation, and baseboard heating and cooling. You'll probably want to insulate your garage to keep it at a comfortable temperature.
Lighting and Power Outlets
Garages are typically required to have only one light and one switch, whereas the average home and living space has several. You'll need to hire a licensed electrician to complete this task so you don't have to live in a darkened room. Again, consult your local building codes to ensure that the new living space is up to code.
Adding Plumbing to a Garage Conversion
If you want to turn your converted garage into a standalone apartment or vacation rental, you'll need to factor in the cost of adding plumbing to the structure. This could entail tearing up the foundation to lay pipe, which could be the most expensive aspect of the renovation. Consider that garages with built-in laundry may have a cost advantage because plumbing may already exist.
Flooring
Even when attached, many garages are on a lower level than your home. You may want to raise the floor in some cases. If you do this, you must ensure that the new space maintains the correct ceiling heights mandated by your local government. Then, to cover up what is most likely a cement slab, you'll want to lay down a new type of flooring material in your garage. Options range from tile to plank flooring and beyond.
Potential Earnings and Resale Value
Checking rental options in your area will give you a good idea of how much money your converted garage could bring in. A one-bedroom or loft-style apartment with its own entrance is likely comparable to a converted garage space you might offer. The other option, of course, is to rent out the room to visitors on a less frequent basis through vacation rental websites, which sometimes take a cut of your earnings.
In either case, you should check the local laws regarding rental properties in your area to see if this is an acceptable use of your space. Many cities will levy an additional tax on your vacation rental property, which you should factor into your income potential.
When it comes to resale value, having a converted garage is a mixed bag. Many buyers prefer to have a garage where they can store lawn equipment and park their vehicles to keep them out of the elements. Other buyers may prefer the extra living space, especially in areas of the country where real estate is expensive and individual lots are scarce. You should also consider the local climate when making this decision; de-icing your car every winter can get tiresome if you don't have a place to park.
Frequently Asked Questions
Do home buyers prefer dedicated parking or more living space? This is dependent on the location. Local real estate agents are the best resource for questions about resale values in your specific area. Connect with one in your area to see what comps are available and to discuss the pros and cons.
How simple is it to convert a garage into a rental room? Depending on your end goal, a garage conversion can be a significant undertaking. If the garage is connected with dedicated heating and cooling, your job will be much smaller than a freestanding garage without either. Obtain several quotes to ensure that you are considering all aspects of the project.
Is it possible to rent out my garage? Local laws governing rental properties differ by municipality. Check with your local zoning laws to ensure that you are permitted to rent out your space. You should also consider the costs, as some towns will deduct a vacation or property rental tax from your income.
Steps to Take
If you're still unsure whether a garage conversion is worthwhile, start by contacting local professionals. If garage conversions and rental properties are your ultimate goal, check with the local government to see what is permitted and what the restrictions are. Then, consult with a local real estate agent for advice. The agent will know whether buyers in the area expect a garage or are content to buy a home without one. After that, consult with a contractor to plan out your project. To compare costs, obtain quotes from multiple professionals.
