If you’ve been looking around your home in Daly City thinking, We could really use one more space, you’re not alone. For a lot of homeowners, an ADU is the most practical way to add flexibility, without giving up the neighborhood you love.

Whether your goal is a comfortable place for family, a private work zone, or future ADU rental income, this guide walks through the basics: choosing the right ADU floor plans, understanding ADU zoning regulations, and finding ADU builders you can actually trust.

Benefits of building an ADU in Daly City

The biggest benefits of building an ADU aren’t just about square footage, they’re about options.

Create space for multi-generational living
Add a guest suite that feels separate and private
Build a dedicated home office or studio
Generate potential ADU rental income

A well-designed ADU can make your property work harder for you, while still feeling like it belongs.

Start with accessory dwelling unit design (it’s more than a layout)

Great accessory dwelling unit design is the difference between a unit that feels tacked on and one that feels like a real home.

When you’re planning, think about:

Privacy from the main home
Natural light and ventilation
Storage (always underrated)
A clear, comfortable kitchen and bath layout
A separate entry that feels intentional

The right design choices also make permitting and construction smoother.

ADU floor plans: what works best for real life

The best ADU floor plans don’t try to do everything, they do the right things well.

As you compare layouts, ask:

Is this for family now and rental later?
Do we need one bedroom or two?
Where will laundry go?
Does the living space feel open, or cramped?

A good team of ADU builders will help you choose a plan that fits your lot and your day-to-day needs.

Backyard ADU vs. converting garage to ADU

Most Daly City homeowners end up deciding between a new build or repurposing existing space.

Option 1: Backyard ADU (new build)

A new backyard ADU is a great choice when you want the most control over layout, light, and finishes.

It’s often ideal if you want:

A true stand-alone unit
Better privacy and separation
A layout that feels bright and open

Option 2: Converting garage to ADU

Converting garage to ADU can be a smart path when the existing structure is in solid shape and the location works.

It may help you:

Keep the footprint compact
Reduce some structural scope (case-by-case)
Turn underused space into something valuable

A qualified adu contractor should evaluate the slab, framing, utilities, and access early so you’re not guessing.

ADU zoning regulations: what to check before you fall in love with a plan

Before you commit to a layout, make sure you understand the ADU zoning regulations that apply to your property.

Items that commonly affect design and budget include:

Setbacks and lot coverage
Height limits
Utility connections
Fire separation and access requirements
Parking requirements (if applicable)

Because zoning and permitting details can change the direction of a project, working with an experienced adu contractor can save you time (and headaches).

Planning for ADU rental income (think like a tenant)

If you’re building with ADU rental income in mind, the goal is simple: make the unit feel easy to live in.

A few choices that help:

A real kitchen with storage (not just a kitchenette)
Comfortable bathroom spacing
Sound control (insulation, windows, doors)
Durable finishes that hold up over time
A private entry and outdoor space

The right ADU floor plans can make a huge difference in long-term demand.

Granny flat construction: a family-friendly way to add independence

Many homeowners still call an ADU a “granny flat” and for good reason. Granny flat construction is often about giving a loved one independence while keeping them close.

If that’s your goal, prioritize:

Minimal steps and easy access
Good lighting
Quiet separation
Storage that makes daily life easier

ADU financing options (how homeowners usually approach it)

There are several ADU financing options, and the right fit depends on your timeline, equity, and overall plan.

Common approaches include:

Cash savings
Home equity-based financing
Construction financing

The key is getting a realistic budget range early so your financing choice matches the actual scope.

How to choose ADU builders near me (and feel good about it)

A quick search for ADU builders near me will give you plenty of names. The difference is finding a team that can guide the process, not just show up with tools.

What to look for

A clear design + build process (not vague promises)
Transparent scopes and allowances
Experience with both new builds and converting garage to ADU
Strong communication and a single point of contact

Questions to ask

Do you handle accessory dwelling unit design and permitting?
What’s your typical timeline for a backyard ADU?
How do you estimate costs and manage changes?
Who is my day-to-day contact during construction?
Can you share examples of similar projects?

Ready to build an ADU in Daly City?

Whether you’re planning a backyard ADU, exploring converting garage to ADU, or building for future ADU rental income, the next best step is a site visit and a plan that fits your property.

If you’re looking for experienced ADU builders and a reliable adu contractor to take you from concept to completion, EDR Design Build can help you map out the right approach with a clear process and quality craftsmanship.