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A Guide To Backyard Cottages: What They Are & Why You Might Want One

Creating a cozy new space in your very own backyard is easier than ever with backyard cottages. With housing prices skyrocketing, homeowners are turning to these adorable hideaways to serve as in-law suites, work-from-home offices, rentals for a little extra income and beyond. 

As experienced home builders with a specialization in tiny homes, we’re happy to answer your questions about backyard cottages. See our benefits, how to decide if a backyard cottage is right for your property, and learn a little about our ready-to-build cottage options while you’re at it. 

What Is a Backyard Cottage?

A backyard cottage is a type of detached accessory dwelling unit, also called an ADU. They are their own residential structures on the same lot as single-family homes, but stand apart.

Backyard cottages are complete tiny house units, containing a kitchen, bedroom and bathroom to function as a separate entity from the main home on the property. This makes backyard cottages ideal for guests, renters, family and friends who may want to stay over.

The Benefits of Backyard Cottages

There are many benefits to building a backyard cottage on your property.

Investment Returns

Backyard cottages add value to your property by increasing usable square footage and offering a unique feature that will charm potential buyers. Additionally, backyard cottages make fantastic Airbnbs or temporary rentals, providing you with the option for a secondary income source.

Affordability

Adding a backyard cottage to your home can be a more affordable alternative to a home addition or hunting for a new home. It adds square footage without disrupting your day-to-day function inside your home, and provides a fresh new slate to work with for your desires.

Your backyard cottage could be a financial boon to your family and friends, too. Backyard cottages can be cheaper than senior citizen living, keeping your elderly loved ones close but independent. They can also provide young adults with a cheaper way to establish their own personal space without moving into a costly apartment.

Flexibility

Backyard cottages offer flexibility to homeowners, making it easier than ever to accommodate their lifestyle with a separate building. They serve as excellent smaller-scale housing choices for young adults, elderly family members, and more.

You can use your tiny cottage house for whatever purpose you prefer. Not sure what you want? We have some ideas here:

  • Guest Rental: Provides a private space for short-term visitors or long-term tenants, generating additional income.
  • In-Law Suite: Offers a comfortable, independent living space for aging parents or relatives while keeping them close.
  • Young Adult Apartment: Gives young adults a transitional, affordable living space as they gain independence.
  • Art Studio: Creates a dedicated, inspiring space for artists to work on projects without distractions.
  • Personal Gym: Enables convenient, private access to workout equipment and a fitness area at home.
  • Work-from-Home Office: Provides a quiet, professional environment for remote work, separate from the main living areas.
  • Hobby Workshop: A place for hobbies like woodworking, crafting, or model building.
  • Kids’ Playroom: A dedicated area for children’s toys and activities, keeping the main house tidy.

How Much Does a Backyard Cottage Cost?

According to HomeAdvisor, the national average cost for building a stick-built backyard cottage is $100 to $500 per square foot. This typically translates to a total cost in the ballpark of $100,000 to $200,000, depending on factors such as your location and the size, design complexity, and materials for your backyard cottage. Local labor rates will also play a factor in your final price tag for a snug cottage.

How to Decide if a Backyard Cottage Is for You

Deciding whether a backyard cottage is the best option for you involves considering several key factors. Start by assessing your space: do you have enough room in your yard without infringing on your main living area or outdoor space? 

Next, think about your needs—whether you’re looking to accommodate family members, create rental income, or establish a dedicated work or hobby space. Evaluate the potential return on investment by researching local property values and rental rates. 

Additionally, check your local zoning laws and building regulations to ensure an ADU is permissible. Not sure about whether or not you can build an ADU where you are? If you’re in Colorado, we have a guide to where you can build tiny homes and ADUs in Colorado. Or, contact us, a dedicated design-build firm serving Colorado with personalized backyard cottages and tiny homes. We can answer whether or not your area allows detached ADUs.

Finally, consider your budget and financing options, as building an ADU can be a significant expense, but one that often pays off in increased property value and utility. If these factors align with your goals and resources, a backyard cottage could be an excellent addition to your home.

Backyard Cottage Models Available

Now that you know more about backyard cottages, you might know you want one of these little hideaways-at-home for yourself. Our team at Little Home Builder is ready to bring your dream tiny cottage home to life. 

We have two models of detached backyard cottages ready to build for you: Our Autumn model is a snug one-bedroom floor plan with 576 sq ft of space. It boasts a walk-in shower as one of its many prize features along with innovative storage solutions to help you make the most of your space.

Our other option is the David model, which provides two bedrooms and 742 sq ft of space. It boasts large windows to bring the sunlight indoors and was designed with the intention to let the outdoors inside. Its exterior doors and spacious windows beckon the fresh air inside, keeping the cottage’s vibe light and breezy.
If you’re based in Denver, Boulder, or Colorado Springs and their surrounding neighborhoods, get in touch with us today. We’re your ideal partners for a dream cottage right at home.

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