What is an
Accessory Dwelling Unit (ADU)?
An Accessory Dwelling Unit (ADU)—also frequently searched as a granny flat, mother-in-law suite, backyard cottage, or casita—is a secondary residential unit that can be used as houses, rec rooms, offices, or many other things.
Who can build an ADU on their property?
The city of Durham, NC recently passed new regulations that allows many property owners to add another dwelling on their property.
Chapel Hill, Raleigh, Hillsborough and other NC cities also permit these structures and are looking to make them easier to build.
These regulations allow real estate investors to actually add more tenants to their existing rental property, with the addition of an Accessory Dwelling on the same lot. They also allow homeowners to add structures that can function as additional living spaces for family members, offices, or rec rooms.
We specialize in building small, affordable residential structures on your property. The small houses can go in your existing property’s backyard.
Investment Property Owners
By adding an accessory dwelling on your existing rental property, you can rent an additional house to another tenant without actually having to purchase a new property. Some cities (Such as Durham, NC) often even allow for duplex ADUs to be built…adding even more tenant space!
Our turn-key service is easy, fast, affordable and it can be done with little to no disruption to your current tenants. This is the perfect stress free opportunity to wisely invest more money in real estate, lots of times with instant cash flow and property value appreciation…even if you use financing.
There are many benefits to new construction rental properties. New construction offers delayed maintenance…meaning you can save up for repairs down the road and not have to come out of pocket. Also, tenants LOVE new construction.
Homeowners
Our small accessory dwellings offer an opportunity to expand your current home with the addition of a small residence for family members. ADUs can also be used as detached offices, rec rooms, ‘man caves’, and ‘she sheds’. Construction of accessory dwellings is cost effective and less disruptive than additions.
Our homes are built on site just like traditional homes. Built to current building codes. These are not pre-fab or mobile homes.
We are NC Licensed General Contractors and offer several options to allow for studio, one-, and two-bedroom units to be built on your current lot.
If you would like to learn more about this opportunity please call or email us.
We are a no pressure company that would love to help you achieve your goals.
Navigating ADU Zoning Laws in Raleigh & Durham
Building an Accessory Dwelling Unit (ADU) in North Carolina has never been easier. Both Raleigh and Durham allow ADUs "by-right." This means as long as your project meets local building rules, you do not need special zoning variances or public hearings—just standard building permits.
While regulations have eased to encourage new housing, the specific technical requirements differ depending on where your property sits.
Two Crucial Details to Check Before You Build:
HOA Restrictions Override City Rules: Even though Durham and Raleigh zoning boards permit ADUs, private Homeowners Association (HOA) covenants or deed restrictions can still legally ban them. We always review your neighborhood bylaws first.
Utility Taps & Metering: Utility layouts change by city. Raleigh requires separate electrical meters unless utilities are packaged into a flat rental lease. Durham charges capital facility fees for brand-new water lines, meaning we need to map out your plumbing hooks early to maximize your return on investment.
| Zoning Requirement | Durham, NC Regulations | Raleigh, NC Regulations |
|---|---|---|
| Maximum Size | Up to 1,200 sq ft (Capped at 1,000 sq ft for single-story layouts; must be smaller than the main house). | Up to 800 sq ft (Can increase up to 1,000 sq ft only if your total lot size exceeds 40,000 sq ft). |
| Maximum Height | 2 stories / 32 feet maximum height. | 26 feet maximum height. |
| Property Setbacks | Must be 5 feet from side and rear property lines (drops to 3 feet in specific urban RU and RC zones). | Must be 5 feet from side and rear property lines. |
| Additional Parking | 0 spaces required. You do not need to pave or add parking for your tenant. | 0 spaces required. No extra parking mandates apply. |
| Owner-Occupancy | Not required. Investors can legally rent out both the main home and the backyard ADU. | Not required. Both units can be rented independently. |
| Multi-Unit Bonuses | Allows "Duplex ADUs"—building two distinct rental units inside one 1,200 sq ft footprint. | Allows up to 2 ADUs on a single lot only if the property falls within designated Frequent Transit Areas. |
Steve Frasher, NCGC
Steve has lived in Durham, NC since 2002. He is a Licensed NC General Contractor and Builder, with 22 years in the construction, renovation, and real estate industries as owner of S.L. Frasher, LLC. Steve is knowledgeable in the world of design and construction as well as energy efficient construction. He constructed the first LEED Certified single-family home in Durham. The house received a LEED GOLD rating from the US Green Building Council.
Steve holds an economics degree from Wake Forest University, is a Licensed NCGC, and NC Licensed Real Estate Broker. His combination of experience and education helps him guide homeowners and investors with regard to the value of real estate as investments.