Karlev

A Full-Size 1200 SQFT Unit vs a Converted Garage: The Real Economics

9 min read

Garage conversions look cheaper per square foot. Then you price the rent, the appraisal lift and the twenty-year maintenance curve.

Comparing the wrong number

Cost per square foot is the number everyone reaches for and the least useful one. A converted garage inherits the slab, the framing, the roof and the drainage of a structure never designed to be lived in. A purpose-built unit starts from an engineered platform.

What size does to rent

Rental income scales with usable bedrooms, not just floor area. A 400 SQFT studio and a 1200 SQFT two-bedroom are in different markets with different tenant pools. Our range runs 200, 400, 600, 800, 1000 and 1200 SQFT precisely so the unit can be matched to the rental market on your block.

Appraisal and property value

Independent appraisers consistently show meaningful property-value increases from well-designed ADUs in most metros. Design quality and permit status both matter to that number, which is one more argument for an HCD-insignia unit over an unpermitted conversion.

The twenty-year line

Aluminum structure, A1 non-combustible fiber-cement cladding with a 50-year substrate warranty, and a 24-gauge standing-seam roof with a 40-year paint warranty. The maintenance curve on that assembly is flatter than anything a conversion can offer.