Turning a Garage Into Living Space: When It’s Legal—and When It’s Not

If you’re lucky enough to have a garage on your property, converting it into a living space can be an effective way to increase your usable square footage, home value, and potentially, income. 

Whether your goal is to create a guest suite, home office, or rental unit, permits, zoning laws, insulation, and safety considerations should all be top of mind.

“A garage conversion is one of those projects that sounds easy on paper but is actually a full remodel in disguise," says Danny Niemela, vice president and CFO at ArDan Construction in Scottsdale, AZ.

By understanding the requirements and nuances involved right off the bat, you can ensure compliance and avoid costly mistakes down the road. 

Legal requirements for garage conversions

A garage conversion is not a simple home renovation. In fact, it’s far from it.

Before you move forward with this project, it’s a good idea to familiarize yourself with the following:

Zoning laws

Depending on where you’re located, zoning laws can either restrict or forbid living space in a converted garage, require a certain amount of off-street parking, and even dictate the design. 

“Zoning might also require a minimum garage size and impose specific requirements if you plan to use the space as a short-term rental,” explains Steve King, workshop operations manager at Sheds Unlimited in Morgantown, PA.

You can find zoning information on your city or county website.

Permits 

“This is a full-blown construction project, which means you’ll definitely need a building permit from your local government,” says Arthur Kulchitskiy, founder and contractor of JDI Construction in Vancouver, WA. 

You’ll also need specialty permits for electricity, plumbing, and air conditioning. To apply for them, reach out to your local building department. 

Insulation

You’ll need to add wall insulation to meet your local energy code as well as ceiling and roof insulation, ventilation, and air sealing around rim joists or any old utility openings. Garages weren’t built for comfort, so insulation is of utmost importance.

“I’ve been hired on other people’s projects that appear finished, but were never comfortable for the customer because insulation wasn’t treated as seriously,” says King. 

Safety considerations

King points out that your zoning or fire code may require a certain distance between the garage and the main house. “It will also likely mandate egress (escape) windows or doors in bedrooms and main living areas. There may be stair widths requirements as well,” explains King.

How much does it cost to convert your garage?

While converting a garage into a living space comes with many benefits, it’s not a cheap endeavor.

“In order to do it legally, you’re talking $40,000 on the low end and getting closer to $90,000 if plumbing is involved. Add another $10,000 if the roofline or exterior needs to be modified,” says Niemela.

Note that while there may be ways to save money on your conversion, it all depends on your garage and how you need to alter it to meet your intended purpose.

By speaking to a contractor, architect, and even a structural engineer early on, you’ll get a better idea of the full scope of work and costs involved.

Expert tips to follow when considering this project

If you’re toying with the idea of a garage conversion, these pointers from the pros can steer you in the right direction—and potentially save you a great deal of headaches and hassles in the future.

Make sure your home qualifies 

Contact your local city planning department to determine whether or not your home is even eligible for the type of garage conversion you’d like to complete. 

“I’ve seen multiple projects halted due to homeowners assuming their property qualifies for a particular type of conversion that was actually illegal in their area,” explains Branden Wells, CEO of Truecraft Construction in Costa Mesa, CA. 

Decide on a purpose upfront

Once you know the purpose of your project, you can design with it in mind. “If the garage is going to be an Airbnb, for example, make sure all your requirements are met in the design process to save you time and money during the actual build,” says King.

Shop around

Reach out to several reputable local general contractors who are experienced with garage conversions. Meet each contractor at your garage to discuss your budget and goals. From there, pick your favorite.