The Ultimate Guide To Laneway Homes

The ultimate guide to laneway homes

Let’s face it, that garage at the back of your property could use some serious work. Honestly, one good windstorm could give it that final kiss of death. So, you start doing your research to replace it and are shocked at the price of installing a new garage.

Even more shocking, it wouldn’t cost that much more to put an apartment above the garage space and create a laneway home. 

But what on earth is a laneway home?

In this blog, we give you guidance and clarity on what these homes are and what they can be. 

Note: Many of the videos in this blog will be specific to Canada. This is because laneway homes have become increasingly popular there.

However, laneway homes would be eligible in nearly any place that allows ADUs, but more on that as we go.

What Are Laneway Homes?

Lane-way homes are a form of alternative housing where a garage is converted into an accessory dwelling unit. There are two primary ways that these homes are constructed usign the garage space.

1.) Above Garage Unit

Above garage laneway homes are exactly what they sound like. A living space above the garage. This is typically achieved by building the laneway home on a cement pour “basement foundation” and allowing for garage door entries. These are ideal if you plan to use some of the garage space for yourself, and allow for the tenant of your laneway home to use some of the garage space as well. 

2.) Renovated Garage

A laneway home that utilizes a renovated garage typically means that the garage has been completely renovated into a living space. These kinds of structures are great if having a one-story, ground-level living space is essential to you. However, these can become complicated if you need to have a parking spot for the structure.

While it may seem odd for a modular home company to think we have the solution to this type of housing, we offer a unique approach. With a structure like ours, you can build a basement foundation with garage door openings and then place a Zook Cabin on top of it. This allows you to create the perfect above-garage laneway home. 

How Big Can a Laneway Homes Be?

How large can laneway homes be built

Laneway housing sizes depend on what your local municipality will allow. Generally speaking, Laneway homes can not be larger than 1200 sq ft. or half the size of your primary residence (per ADU laws). Keep in mind that the point of a laneway home is to have a second home on your property, typically via alley access. So while you may be able to build a 1200 sq. ft. space, keep in mind that you will be looking at quite a large building directly in your backyard.

Are Laneway Homes the Same Thing As ADUs?

Generally speaking, yes, laneway homes and ADUs are the same thing. However, laneway homes have more to do with the location than that of a general ADU.

For example, an ADU may be placed on your property anywhere that your township will approve. On the other hand, a laneway home is accessed via an alleyway, allowing your property to be as separate as possible from the occupants of the laneway home.

Can Laneway Homes Be Above Garage Apartments?

Can Laneway Homes Be Above Garage apartment
The Walden Stack

Yes, and generally speaking, laneway homes are simply apartments above a garage.  On the other hand, some people may make their laneway home an entire housing unit. Meaning that it’s not just a garage apartment, but rather an ADU with laneway access to the unit.

However, you will need to see what your municipality deems as a laneway home versus a simple apartment as it may impact your insurance and taxes.

Where Are Laneway Houses Legal?

Laneway houses are permitted in areas where accessory dwelling units (ADUs) are allowed. What sets laneway houses apart, however, is that they often include a garage, which provides the required parking. This can make the approval process easier compared to other types of ADUs, where the lack of dedicated parking often becomes a barrier to formal approval.

Can You Rent Out A Laneway House?

Can you rent out laneway homes

Yes. In most cases, you can rent out the laneway houses. The point of a laneway home is to create additional housing in highly sought-after areas. For example, laneway homes have become increasingly popular in places like Los Angeles (though these types of structures are even more popular in Canada).

How Long Does It Take To Have a Laneway Home Built?

At Zook Cabins, you can have a laneway home in less than 1 year from it’s time of order. However, if you choose the stick-built route, you will typically experience a longer wait time and be subject to more on-site inspections.

On-site builds have the added difficulties of inclement weather, labor shortages, and delayed inspections.

On the other hand, if you go with a modular builder like Zook Cabins, you are not subject to these same kinds of issues. In fact, all of the homes we have to offer are built in our production facilities, where we are not subject to inclement weather conditions, a labor shortage, or delays in inspections. All of this results in you having a quality-built home delivered to you within a reasonable timeframe.

Do I Need A Permit For A Laneway House? 

Yes. A permit is required to construct a laneway home, regardless of your location. Laneway homes typically fall under ADU regulations, so an ADU permit is generally required if you intend to create a laneway home. To help you understand who to contact for Laneway home construction, we have created an ever-evolving list of ADU regulations for every state in our delivery zone. These guides will help you understand who you need to contact.

What Kind of Foundation Does a Laneway Home Need?

What kind of foundation does a laneway home need

Generally speaking, a laneway home requires a garage foundation. While other foundations may be suitable for modular style construction, they cannot give your tenant, or yourself, usable space below the structure.

Additionally, laneway homes will need to be able to support the added parking from the structure. If the house occupies the space where a vehicle would normally park, your proposed structure may be denied. This is just one of the many reasons that a garage foundation is typically the best solution when creating aa laneway home.

Are There Grants for Laneway Houses?

Yes, provided that the laneway home falls under the ADU laws for your area. For example, in California, there is currently an incentive program that offers up to $40,000 for your ADU project. Additionally, some states that offer grant money for ADUs and Laneway homes require that the structure be used for long-term tenants to qualify for the grant money. However, not every state has laws or regulations for ADUs or Laneway houses, so be sure to check with your local municipality.

Can I Sell My Laneway House Separate From My Main House?

Can laneway homes be sold seperate from my main house
The A-Frame ADU

It depends on your location.

In many places, your Laneway house falls under ADU laws and must be sold with the main home. 

However, in some states, like California, you can sell your ADUs separately. While this may be possible to sell your laneway house separately from your primary dwelling, your neighbors can change whenever the owners of that laneway house property want to sell. 

Selling your laneway home to a laid-back young professional couple can seem like a perfect fit, until it quickly turns into a large family with kids playing right in what used to feel like your own backyard.

How Are Laneway Homes Insured? 

Generally speaking, laneway homes will need their own insurance. However, if you are housing extended family in your laneway homes, your insurance may cover them. If you are unsure what your insurance will cover, please reach out to your agent to clarify the coverage details.   

Additionally, if you are renting your laneway home out to someone else, it is best practice for them to have renters’ insurance. You can make it a contingency for renting a Laneway Home from you.  

How Are Laneway Homes Delivered?

Laneway homes are delivered via semi-trucks and are craned onto their finished foundation on-site.  In some cases, the entire modular home is finished and only needs to be attached to the foundation, as is the case with our smallest A-Frame ADU. In other cases, like our Rivara, it will be delivered via semi truck, but then put together on your finished foundation. To understand what we mean by this, take a look at the videos below

A-Frame ADU Set

Homestead Set Farmhouse Set

While the Homestead is one of our full-sized modular homes, the same construction principles apply. Some homes will come in “boxes” that are then connected on-site.

How Can I Create Privacy Between My Laneway Home and Primary Residence?

If you are going to have a Laneway home added to your property, you may be worried about privacy. And that is a valid concern. Some people may say that a fence is all you need. However, if your Laneway home is going to be on the second floor, essentially 9being placed on a garage height foundation, you may want to have additional privacy. For that, we highly recommend a natural privacy fence from fast-growing tall plants.

Conclusion…

Laneway homes are great ADUs, especially if you are looking to have an ADU that is not directly beside your house. When you are ready to get started with your project, we would love to help you create the solution that you have been longing for. At Zook Cabins, we strive to help you and your loved ones create an experience. That enables you to Dwell Beyond The Ordinary.