Reasonable to turn a garage into a STR to house hack in Austin?

Question

I'm exploring the idea of buying a single-family home in South Austin and turning the garage into a self-contained living space that I would live in and rent out the main house. The idea would be to use that space as a STR after I moved out. I'm curious if there are experienced investors in Austin that can tell me how complicated the process would be to do this in terms of permits, zoning, etc. Also, any general ideas about this strategy in general.

Wale Lawal · Answer

@Robert Johnson

Converting a garage into a self-contained living space can be a viable strategy, but it's important to navigate local regulations, permits, and zoning requirements. In Austin, as in many other cities, the process can be subject to specific rules. Here are some general considerations:

1. Local Zoning Regulations: To learn about the rules governing garage conversions, accessory dwelling units (ADUs), and short-term rentals (STRs), get in touch with the local zoning department. Neighbourhood zoning laws might differ, so it's critical to understand the requirements that apply to your particular property.
2. The Permitting Procedure: Recognise the garage conversion permission process. For any kind of alteration, including plumbing, electrical, and structural, you could require a permission. Make sure that the construction codes are followed in your blueprints.
3. Inspections: Both during and after the conversion process, be ready for inspections. Usually, inspections are carried out to make sure the work complies with safety and code standards.
4. Rules of the Neighbourhood Association: Find out whether the neighbourhood association that oversees your property has any specific regulations or limitations. Certain neighbourhoods may have covenants that restrict the kind of property alterations allowed.
5. Parking Requirements: Take into account the parking needs. There may be less parking available if a garage is converted into a residential area, and there can be restrictions on the number of parking spaces per unit according to local laws.
6. Professional Assistance: Seek advice from experts, such as contractors, architects, and legal counsel who are knowledgeable with regional laws. You may negotiate the intricacies of the conversion procedure with their assistance.

Before proceeding, it's crucial to do thorough research, seek professional advice, and ensure that your plans align with local regulations and zoning requirements. Local government offices, such as the Austin Planning and Zoning Department, can provide specific information about the regulations applicable to your property.

Bruce Woodruff · Answer

I would only add that it is important to know before you jump in what the local regulations are. Both Building Code and Zoning.

I would visit the City first and ask them what you might be getting into. As an example, some garages cannot be converted into 'living space'....usually the slab is not anywhere near today's code requirements (no steel, not thick enough, PSI inadequate)

No point in buying a house and then finding out that you cannot convert the garage.....

Aaron Gordy · Answer

There are many examples all throughout the metro of garage conversions especially in 44. The catch is that one will need to do it properly with an eye on resale eventually. If one doesn't pull permits and the garage conversion is out of code then its very likely that the property won't allow for typical financing such as fha, etc. Financing will have an effect upon maximizing gains on the resale, probably.

I know that firsthand btw. I remodeled a duplex in 78741 and converted the garage (without permits but with skilled licensed tradesmen friends) once I found out that there was a big demand for 3 bedrooms vs 2 bedrooms in that submarket, then. When I eventually hit the resale market, one end buyer tried to buy with va loan owner occupant and had difficulty with the loan and eventually backed out. I sold it to an investor who recognized the cash flow with a purchase price of a little less than the va buyer. I did make quite a bit more in cash flow over the hold period though that exceeded that small variance in pricing at resale.

Ryan Kelly · Answer

@Robert Johnson you may not legally be able to do that YET, as you would be converting a single family home into a duplex, which would likely go against your zoning and/or deed restrictions. However, read up on the city of Austin HOME initiative. The city counsel just passed a version of it, and now we’ll go through some legal hurdles to see if it can be implemented. It would allow much more flexibility with single family zoned properties including ADUs, tiny homes, and developing up to three units on one lot.

Ryan Thomson · Answer

Here are some items I think through for turning a garage into a good apartment:

• Local Permitting: you’ll want to check with your building department to see if a conversion like this is allowed in the current zoning of your home. You don’t want to spend all the money to convert a garage just to have it be illegal.
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• Structural integrity: One of the most important considerations is the structural integrity of the garage. If the garage is not built to support the weight of additional floors or is not adequately reinforced, it may not be suitable for conversion.
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• Insulation: Another important consideration is insulation. A garage that is not properly insulated may be uncomfortable to live in and may not meet local building codes for habitation.
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• Heating and cooling: In order to make the garage comfortable to live in, you will need to install heating and cooling systems. This may involve adding ductwork, installing a separate
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• HVAC unit, or using portable heating and cooling units.
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• Electrical: Another important consideration is the electrical and plumbing systems. You will need to install outlets, switches, and lighting fixtures as needed,
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• Plumbing: You will almost certainly need to connect all drains to the sewer and bring in water lines.
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• Windows and doors: To provide natural light and ventilation, you will need to add windows and doors to the garage. This may involve cutting through the exterior walls and installing new openings.
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• Shower: To add a shower, you will need to install a drain in the floor of the garage and run plumbing lines to the location of the shower. You will also need to install a shower pan, a shower enclosure, and a showerhead.
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• Kitchenette: To add a kitchenette, you will need to install plumbing lines to the location of the sink and any appliances you plan to include, such as a mini-fridge or microwave. You will also need to install cabinetry and countertops, and you may want to consider adding a small stove or oven if you plan to do more extensive cooking in the space.

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• Finishes: Finally, you will need to finish the interior of the garage to make it suitable for habitation. This may involve installing drywall, flooring, and ceiling materials, as well as painting and decorating to your taste.

Ryan Thomson · Answer

@Robert Johnson if the city and zoning allows it then go for it!

I did a garage conversion at my first two house hacks in Colorado Springs. I think it was certainly worth doing!

Jake Andronico · Answer

@Robert Johnson

Good advice here. Asking the city is the first place to start. When you change a standard SF home and want to sell, it does shrink your buyer pool. But, it can also make it more attractive for investors who are looking for income.

Best of luck to you!!

Andrea Longoria · Answer

Hi Jeremy, we converted our Garage into another room no issue. It doesn't require rezoning the home to a duplex what so ever. It would just be a SFR that now has another bedroom. A duplex rezoning would require it to have a full kitchen, closet and bathroom and that would be pretty crammed for 1 or 2 car garage conversion. It also wouldnt be considered an ADU either it merely would be a converted garage. ADU are typically separate from the main home and has it own minimum requirements.

Our tenants actually really love the garage space because there is so much room. They can create their own living area and bedroom area so they arent contained to just a bedroom. Of course they still have full access to the home for the kitchen and bathroom. This actually worked in our favor as the home is a 3bed 2.5 bath and adding the garage to a room really made a difference in our investment and saw a lot more profit once we vacated the home. The process was fairly easy as Austin doesnt have very strict renovation codes like many other cities such as San Antonio.

Jeremy Jareckyj · Answer

I don't know about your local Austin market but I have done this in Salt Lake City and here they are very ADU friendly. Due to the housing shortage the city wants people to build ADU's. The biggest hurdles you have to get through is running utilities to your ADU if there aren't any there currently. That is usually the most challenging especially if it involves ripping up a good portion of your yard. BUT IT IS WELL WORTH IT!

Reasonable to turn a garage into a STR to house hack in Austin?

Reasonable to turn a garage into a STR to house hack in Austin?

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