What A Mother-In-Law Suite Can Offer From Features To Value

As parents and children age, it makes sense that you might want to live closer to family so you don’t miss important milestones in each other’s lives. A mother-in-law suite can help you create more space that makes sense for your family. If you watch HGTV, you may find yourself hearing about mother-in-law suites from buyers looking for a new home. Mother-in-law suites can offer a range of features and provide various benefits, adding value to a property. A mother-in-law suite provides a separate living space, allowing others to have their own independence.

What Is A Mother-In-Law Suite?

A mother-in-law suite is a small living area within a family house. It is a self-contained living space that is attached, within a home, or detached on the same property as a main residence. They typically include a bedroom, full bathroom, kitchen and a private entrance. Depending on the region and cultural preferences, a mother-in-law suite can also be called a mother-in-law apartment, in-law suite, accessory dwelling unit (ADU), granny flat, guest house, casita, secondary suite, carriage house, cottage, basement apartment, bungalow, multigenerational suite, family suite, additional dwelling space, home extension, annex, bonus room, loft apartment or independent living unit.  

Additional Uses For A Mother-In-Law Suite

Whether you have an extra room on the first floor of your house or space in your backyard, adding a mother-in-law suite might be seamless for you. And when a mother-in-law suite is vacant, there are several other creative ways a homeowner can utilize the space. Here are some other uses for a spare room:

• Guest quarters, house or suite for visitors
• Residence for an older child
• Short-term or long-term rental apartment
• Home office or workspace
• Home gym or fitness studio
• Art studio
• She shed or man cave
• Nanny quarters
• College crash pad
• Hosting space
• Creative studio or workshop
• Storage

Why Are Mother-In-Law Suites Popular?

A mother-in-law suite is a popular way to offer a comfortable place for relatives and guests to stay in your home while increasing property value. Mother-in-law suites catch the eye of so many homeowners and are popular for several reasons such as a desire for multigenerational housing, caring for aging parents, building an accessible living space for a family member(s) with mobility issues and providing a source of rental income to help with mortgage payments or other expenses. They offer flexibility in how they can be used by serving as guest suites for visitors, home offices, or studios for artists.

Features Of A Mother-In-Law Suite

• Private entrance: Discreet and inviting. It is usually located at the side or back of the main house, providing a separate entry point for the occupants of the mother-in-law suite.
• Bedroom: Cozy and comfortable. The room is typically located within a separate living space, detached or attached to the main house, providing a sense of independence.
• Full bathroom: Private and self-contained. It is designed to provide comfort and convenience for guests or family members who may be staying in the suite.
• Kitchen or kitchenette: A place to prepare small meals. It is a smaller space that provides basic cooking facilities.

Common Types Of Mother-In-Law Suites

Mother-in-law suites can be attached to the main home, usually in a walkout basement apartment or as a first-floor attachment or stand-alone in the yard. Depending on their needs and available space, there are three common types of mother-in-law suites that homeowners can add to their property. These common types include interior, attached and detached or backyard.  

Interior Mother-In-Law Suite

Interior mother-in-law suites are often used for multigenerational living arrangements, where elderly parents or in-laws can live close to their adult children and grandchildren while maintaining some level of independence.

• Finished basement
• Converted attic space

Attached Mother-In-Law Suite

An attached mother-in-law suite can come in various configurations and sizes, ranging from a small studio apartment to a larger suite with multiple rooms.

• Living space above attached garage
• Attached converted garage
• An addition to existing home

Detached Or Backyard Mother-In-Law Suite

A detached or backyard mother-in-law suite, is a separate, standalone living space that is typically located on the same property as the main house but is fully self-contained and independent.

• Guest house or accessory dwelling unit (ADU)
• Detached converted garage
• Prefab tiny house

Advantages Of Mother-In-Law Suites

Adding a mother-in-law suite not only increases the value of your home, but it also can bring your family closer together. There are several benefits to having a mother-in-law suite, including:

• Provides the ability to support loved ones: Homeowners will have peace of mind knowing that their aging parents or other family members are living near the main household if they need help. 

• Can serve as your own private space: The private nature of a mother-in-law suite allows for versatility in its use based on the changing needs of the homeowner and their family. It can be a craft room, fitness area, art studio, etc.

• Increases your home’s value and appeal: Having a mother in-law suite usually creates value in removing the need to pay for another home. This added living space can increase the overall square footage of your home, which can be a significant factor in determining its value.

• Opens the opportunity to collect rental income: If you have or are considering creating a mother-in-law suite, the addition can give you a great opportunity to earn a passive income by renting the space out through Airbnb. This extra income can be used to cover mortgage payments, save for retirement, invest in other opportunities or simply improve your financial stability.

Disadvantages Of Mother-In-Law Suites

While having a mother-in-law suite add-on as a part of your home can offer several benefits, there are also potential drawbacks to consider, including:

• Can be expensive to build and maintain: Building a mother-in-law suite can be a costly venture. This includes creating a separate living space with its own private entrance, bedroom, full bathroom and kitchen or kitchenette, as well as ensuring compliance with building codes and regulations. It is not just the initial upfront costs of additional construction and renovation work. Higher utility costs in the future should also be considered. Just like how your house costs money to maintain, there will also be a cost to keep your mother-in-law suite in livable condition. If you’re renting out the space, cleaning and upkeep will be required between tenants.
• Invites higher property taxes: If the assessed value of your property increases due to the addition of a mother-in-law suite, the result of higher property taxes can be a disadvantage.
• Potential loss of outdoor space: Constructing a mother-in-law suite may require dedicating a portion of the yard or outdoor space for its construction.
• Tricky paperwork and zoning regulations: Building a mother-in-law suite typically involves obtaining permits and complying with local regulations, including zoning laws like building near property line, building codes like square footage limitations and operating rules like rental limitations or required insurance premiums.

Can You Build A Mother-In-Law Suite On Your Property?

Renovating a home to build a mother-in-law suite can be a significant undertaking, but with careful planning and execution, it can be a valuable addition to your property. If you’re considering this addition, keep these steps in mind on how a homeowner can renovate their home and build a mother-in-law suite on their property.

• Check your local regulations and building codes
• Paperwork and applications for zoning permits
• Plan design, layout, budget and financing
• Site preparation before construction
• Amenities and connecting utilities

How Much Does It Cost To Build A Mother-In-Law Suite?

Depending on your needs and desired amenities, costs to build a mother-in-law suite run from a few thousand to $100,000 or more depending on how creative you get with this additional space. The costs that factor into the total include construction, permitting fees, design charges, site preparation, utility connections, landscaping and interior and exterior finishes.

• Interior mother-in-law suites: Turning a basement into a functional mother-in-law suite typically costs $10,000 to $30,000. The costs can vary greatly depending on various factors such as location, size, design, quality of materials, labor costs and local building codes.
• Attached mother-in-law suites: Plan on spending about $100 to $200 per square foot for materials and labor. The cost of building an attached mother-in-law suite can vary depending on several factors including location, size, existing infrastructure, quality of materials, accessibility features, site conditions, permits and contractor fees.
• Detached mother-in-law suites: Detached mother-in-law suites cost an average of $200,000 to $400,000 for a single story and $300,000 to $550,000 for two stories. Some of the key factors that can cause the average price to increase or decrease include location, size, construction materials, site conditions, permits, labor costs, amenities and contractor fees.

How To Pay For A Mother-In-Law Suite Addition

Unless you’ve got a pile of cash savings in the bank, you’ll need to explore ways to finance a mother-in-law suite addition on a property. Here are some options to consider: cash-out refinance, home equity loan, home improvement loan and personal loan.

How Does A Mother-In-Law Suite Add Value To A Property?

Homes with a mother-in-law suite can increase a home's value in several ways: rental income, expanded living space, property flexibility, enhanced marketability and long-term investment.

Looking For Homes With Mother-In-Law Suites

Home buyers can find homes with a mother-in-law suite with the help of an experienced real estate agent who can provide valuable expertise and insight and may have access to listings that are not publicly available.

The Bottom Line: Mother-In-Law Suites Can Expand Your Home’s Potential

A mother-in-law suite offers a private living space for parents, in-laws or other relatives that’s either attached or located on the same property as a single-family home. There are benefits of adding on a mother-in-law suite such as providing the ability to support loved ones, serving as your own private space, increasing your home’s value and appeal and opening the opportunity to collect rental income. However, there are also drawbacks to adding on a mother-in-law suite such as being expensive to build and maintain, inviting higher property taxes, potentially losing outdoor space and the tricky paperwork and zoning regulations.

To add one to your property, check your local regulations and building codes, complete paperwork and applications for zoning permits, make plans, including design, layout, budget, financing, etc., complete preparation before construction, add amenities and connect utilities. Apply for a cash-out refinance to start your mother-in-law suite project today!