Thinking about turning your basement into an apartment you can rent out? That is called an internal ADU, and it can be a smart use of space you already own. But there are rules, and they are not the same in every Utah County city. Here is what an ADU is, the common rules you will run into, and why it pays to build it the right way.
What is a basement apartment, or "internal ADU"?
ADU stands for accessory dwelling unit. That is a fancy way of saying a second, smaller home inside or next to your main home.
An internal ADU is one built inside your house, usually in the basement. It has its own kitchen, its own bathroom, and a place to sleep and live. A real apartment, not just a finished basement.
People build them to rent out for extra income, to house a parent or a grown kid, or to give guests a private space. Done right, it can add real value to your home.
The common rules you will run into
Most Utah County cities allow basement apartments, but they ask you to follow a set of rules. The exact rules change from city to city, but these are the ones that come up the most.
- The owner usually has to live in the home. Many cities only allow a basement apartment if the owner lives on the property. You cannot always buy a home just to rent out both halves.
- Off-street parking. A renter needs somewhere to park that is not the public street. Cities often ask for an extra parking spot for the apartment.
- A separate, legal entrance. The apartment usually needs its own door so the renter can come and go without walking through your part of the house.
- Egress windows for bedrooms. Any bedroom needs an egress window. That is a window big enough to climb out of in a fire, with a window well outside.
- Utilities. Some cities want separate meters for power, water, or gas. Others let the apartment share yours. It depends on the city.
- Permits and inspections. An apartment is real living space, so it needs a building permit and city inspections, just like any finished basement.
Rules change from city to city
This is the most important thing to understand. There is no single rulebook for all of Utah County. Each city sets its own.
One city might let you rent a basement apartment with no owner living there. The next city over might say the owner has to live on site. One might want a separate power meter. Another might not. The size you are allowed, the parking, the entrance, all of it can be different.
So always check with your own city first. The answer for your neighbor in another town may be the wrong answer for you.
Provo has its own rule worth knowing
Here is a good example of how cities differ. In Provo, the city specifically requires the owner to live on site to have an internal ADU. With a lot of students and renters in town, Provo watches this closely.
That does not mean Provo says no. It means you need to know the rule before you start, so you build something that is actually legal to rent. This is exactly why we tell every homeowner to confirm the rules with their own city first.
"I had Dakota with Lynnwood Construction do multiple things for us in one of our duplexes. Dakota showed up when he said he would, finished in a timely manner, and was excellent at sending pictures of the finished product to me. His prices were great and his work was top notch. I am planning to use Dakota on our other rental properties."
Craig Madsen · Rental property workWhy building it to code matters
It can be tempting to throw up a few walls and a kitchen and call it an apartment. Do not do this. An apartment that is not done to code can cause real problems.
A bedroom without an egress window is not a safe, legal bedroom. An apartment with no permit may not count as real space when you sell or refinance. And if the city finds work that was never permitted, they can make you tear open finished walls so an inspector can look behind them.
Built right, a basement apartment is safe for your renter and counts as real, sellable square footage. That is the whole point. A little care up front protects the money you put in.
How Lynnwood builds basement apartments
This is what we do. We turn cold basements into finished, legal living space all over Utah County, and a basement apartment is just a finished basement with a kitchen and its own entrance.
We help you check your city's rules, pull the permit, and build to current code. We frame, wire, and plumb the apartment, install the egress windows and the separate entrance, and meet the inspectors at each stage. You can see everything we build downstairs on our basement finishing page.
If you want to add living space a different way, like a home addition or a unit above a garage, we build those too. Either way, you get one honest price in writing, and Dakota runs the whole job.
"After a flood in our basement, they completely transformed the space. Dakota coordinated everything and made the process so smooth. Their pricing was honest and fair, no surprises, just great work at a reasonable cost, especially since we were on a tight budget to begin with."
Misty Gallegos · Basement finish