From backyard to best use.
Building a Detached Accessory Dwelling Unit “ADU” is a great way to earn extra income, boost your property value, and enjoy more flexibility.
Are you sitting on free land?
Tired of mowing all that grass?
Need room for an aging parent or boomerang kid?
Wish you could boost your property value?
Need help paying your mortgage off?
Turn your empty space into extra income.
CASE STUDY
70 Stewartdale Ave, Hamilton
To All You Stewards,
In Canada, the demand for housing is soaring, but new homes aren't being built fast enough. To tackle this, Ontario introduced the "More Homes, Built Faster Act" in 2022, allowing up to 3 units on a single residential lot. Yet, many homes can't easily be converted.
That's where Detached Accessory Dwelling Units (ADUs) come in.
Imagine having a standalone living space on your property. Not only could you earn extra income, but you could also increase your property's value and enjoy more flexibility.
We know the process can seem daunting, but we're here to help. With our experience, we can guide you through building an ADU, so you can unlock your property's full potential and achieve its "highest and best use."
Let us help you make the most of your investment and meet the housing demand head-on.
Brent Vanderwoude
Good Stewards Inc.
Design:
Achieve the highest and best use for your lot.
Comply with zoning & OBC regulations.
Attract and maintain great tenants.
Build to enhance your property value.
Site Plan
The footprint of the ADU is limited to the lesser of 75 square metres (807 sq. ft.) or 70% of the gross floor area of the principal dwelling. In this case our maximum footprint was 75 sq. m. We opted for a smaller footprint to allow for more outdoor amenity space.
At the time of submission, two (2) parking spaces were required. One (1) for the existing duplex, and one (1) for the detached ADU. A double-wide driveway comfortably accommodates parking requirements and ensures tenants have adequate space for their vehicles.
An unobstructed path from the street 1 metre wide is required for emergency access.
Lot Grading
A grading plan is required for any ADU larger than 55 sq. m. (592 sq. ft.). Once constructed, an as-built grading plan must be submitted and the site must pass a field review to ensure compliance with the grading plan. Our grading plan is shown >
Zoning bylaws specify landscaping guidelines for ground cover and permeable hardscaping to ensure runoff is handled properly.
Utilities
The ADU is equipped with its own hydro meter and operates entirely on electricity. Natural gas was not supplied, but sewer and water connections were linked to the primary dwelling.
The distance for running utilities to the ADU and connecting them to the existing dwelling is a significant cost factor. Minimizing disruption inside the home, as well as trenching and remediation work, can help control these costs.
Foundation
While a full basement was allowed, we found that it adds significant cost without enough income benefit to justify it. An engineered slab-on-grade foundation is a more cost-effective solution for this size/type ADU.
This engineered slab is insulated and reinforced to exceed building standards and last the test of time.
HVAC
For permit, an HVAC design was required - demonstrating proper heating, cooling and ventilation. We opted for an electric minisplit system for heating and cooling and had to install an HRV for air circulation.
It is important to consider where and how your HVAC appliances will be installed for improved aesthetics as well as easy access for future maintenance.
Construction:
Build to attract A+ tenants for years to come.
Know where to spend and where to save.
Communicate your expectations carefully.
Prepare for delays and setbacks!
Site Prep
We began by preparing the site for the new build. This included clearing trees and debris, and light excavation. Wooden forms were set up to mark the footprint and mechanical rough-ins trenched to the correct spots in the forms.
Sewer, water, and hydro were extended through the newly renovated principal dwelling, making utility connections easier.
Slab Foundation
The engineered slab foundation includes a compacted gravel base with insulation below and rebar throughout. After inspections, we poured and finished the pad.
Keep in mind that site access significantly affects the ease of construction!
Framing
The design featured a straightforward 2x6 perimeter wall with a vaulted ceiling, allowing for quick onsite framing. Adding complexity to the framing design can increase costs, so it's best to avoid unnecessary details to streamline your build.
Building Envelope
We prioritize touch-points like doors and windows to enhance tenant experience. A simple siding exterior saves costs, while Douglas fir beams and stone accents enhance aesthetics. Numerous windows with good sight lines bring in natural light while maintaining privacy.
Interior
Inside, maximize every inch! A small footprint means each space serves multiple functions to ensure tenants love living here. Vaulted ceilings add a sense of spaciousness and allow for extra storage above the bedroom and bathroom.
Millwork
Millwork is key! Custom-built features are a bit of a splurge, but they're worth it for maximizing storage and functionality in a small space. When everything has its place, tenants are more likely to treat the space with care. Plus, adding low-voltage lighting throughout adds that extra touch of luxury.
Landscaping
Landscaping makes a big difference! It boosts curb appeal, raises property value, and adds to tenant enjoyment by creating dedicated outdoor areas. We invested extra in landscaping to ensure every tenant has their own private amenity space.
Interior Finishes:
Minimize maintenance with durable materials.
Pick finishes that look good and work good.
Leave room for tenants to personalize their living space.
Kitchen
Matte black cabinets (oops)
Full size stove & dishwasher
Dimmable under-cabinet lighting
Large island with 3-seater dining space
Tiled backsplash
Living Area
Vaulted ceilings - w/dimmable gimbal pots
Large windows with good sight-lines
Sliding door access to the private rear patio
Electric fireplace for supplemental heat (and looks)
Bedroom + Storage
Spacious bedroom fits queen bed comfortably
TV hookups where appropriate
Additional mini-split head for different room temp
Built in his/hers closet with plenty of storage
Bonus bulk storage above the bedroom with ladder access
Bathroom + Laundry
Beautiful tiled shower with glass doors
Apartment-sized laundry in the bathroom
Dimmable low voltage lighting in niche and below vanity
Where did all the money go?
THE NUMBERS
The numbers below represent build costs for 70R Stewartdale. If you are building an ADU, your costs may vary due to specific project requirements and unforeseen circumstances. Good Stewards Inc. is not liable for any losses or damages from reliance on this information. This document and its contents are copyrighted property of Good Stewards Inc. and may not be used or reproduced without prior written consent.
How do we get the money back?
PRO FORMA
Given the novelty of ADUs as a housing option, there is limited comparable data available. Few, if any, properties with ADUs have been sold, posing challenges for appraisers, lenders, and mortgage brokers in accurately assessing their value and viability for lending purposes.
The numbers below demonstrate hypothetical income, expenses and loan amounts. These assumptions were made with the intention of illustrating potential returns on an ADU build.
Dig up some additional income with our Backyard Suite Treasure Map.
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065 - How We Built Our First ADU
Welcome to The Two Stewards Show!
Mark interviews Brent about the design/build process on their first detached ADU in Hamilton, ON. We cover design choices, project costs, and finding the ideal tenants. Tune in for valuable insights!"
Are you sitting on free land?
Securing permits and developing quality rental units can be frustrating and complex. Good Stewards helps simplify the process into three easy steps so you can invest with confidence. Here’s how:
1
Schedule a call.
We take the time to review your project together and form a customized development plan.
2
Develop with ease.
Good Stewards will efficiently manage your entire development from start to finish.
3
Launch your rental units.
Enjoy purpose-built rental units that are ready to attract high quality tenants.
Ready to build wealth through real estate investing? Getting started is easy.
Simply fill out the form with your contact details and we’ll get back to you to book a call. You can also email Brent Vanderwoude directly at brent@goodstewards.ca.
Everything you need to source, develop, and launch rental properties.
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