Granny Pods | Everything You Need To Know 

What Are Granny Pods?

Granny pods are small, standalone homes placed on a family’s property to house an aging parent or relative. Depending on your location, they may also be referred to as ADUs, or accessory dwelling units, or granny flats. The most important thing to note about these homes is that they offer private, accessible living space close to aging loved ones. And when we say close, some municipalities require the home to be within a certain distance from the primary dwelling.

Are Granny Pods Legal? 

It depends on your local zoning laws.

Many states and cities now allow them as ADUs (Accessory Dwelling Units). However, permits and zoning restrictions may be different in the approval process when the unit is used for elder care, as it may fall under the ECHO Housing option.

We recommend that you always check with your local municipality before buying or building a granny pod. If Granny Pods fall under the ADU guidelines in your municipality, we have you covered with a list of ever-growing ADU regulations for each state that can be seen in the table below.

Alabama	Illinois	Minnesota	North Carolina	Texas
Arizona	Indiana	Mississippi	North Dakota	Utah
Arkansas	Iowa	Missouri	Ohio	Vermont
California	Kansas	Montana	Oklahoma	Virginia
Colorado	Kentucky	Nebraska	Oregon	Washington
Connecticut	Louisiana	Nevada	Pennsylvania	West Virginia
Delaware	Maine	New Hampshire	Rhode Island	Wisconsin
Florida	Maryland	New Jersey	South Carolina	Wyoming
Georgia	Mass.	New Mexico	South Dakota
Idaho	Michigan	New York	Tennessee

How Much Do Granny Pods Cost?

It’s really challenging to determine how much a Granny Pod will cost.

For example, some people will want a Granny Pod that is built from a converted shed, which may cost you $40,000.

However, that kind of granny pod would not be considered a permanent structure and has a high probability of being denied.  Or at the very least, they will not be able to last for an extended period of time.

When working with Psy Homes, all of our structures will cost more than $40,000. However, your Granny Pod will be a permanent structure. This means that your home will be built to meet the building requirements (like our Tiny Homes or Luxury Mobile Homes) or will be built to meet or exceed your local building code if you select one of our modular builds (like our ADUs, Modern Cabins, or Log Cabins).

What Kind Of Buildings Can Be Used For Granny Pods?

ADUs

ADUs are the most iconic way to have a Granny Pod added to your property. ADUs are modular homes that are built to meet or exceed your local building code, yet come at a smaller scale. These homes require a permanent foundation, such as a crawl space or a basement foundation. However, to guide you to which foundation is needed, we have a blog that looks at manufactured home foundations and costs.

Something else that makes ADUs an excellent option for a Granny Pod is that at Psy Homes, many of our popular park model tiny homes are also available as ADUs.

Park Model Tiny Homes

Park Model Tiny Homes are becoming an increasingly popular way to have a Granny Pod on your property. What makes tiny homes such an excellent option for this use is that they do not require an expensive foundation and require far less electrical demand.

All of the tiny homes that we have to offer at Psy Homes are built to RVIA standards, and your tiny house can be set up in 15 steps.

Luxury Mobile Homes

Luxury mobile homes are the most recognized version of Granny Pods, especially since they have become so popular for ECHO housing needs. However, unlike ADUs and Park models, these homes fit in a “sweet spot” for housing. Larger than a park model, and they do not require as much foundational work as an ADU or Modular cabin. However, These homes do need to have full service for their electrical needs.

Modern or Log Cabins

Modern and Log Cabins are great options for Granny Pods if you are looking for a larger home. Cabins, like ADUs, need to be on a permanent foundation. However, the greatest feature about these homes is that you can customize them to fit the needs you have.

Larger Doorway? No problem!

More Closet Space and a smaller Guest room? We have you covered.

If you are looking for a Granny Pod that has nearly endless possibilities, we have you covered.

Do I need a Permit For A Granny Pod?

Yes.

In most areas, you will be required to have permits for your Granny Pod construction, utility connections, and sometimes occupancy. However, what makes working with Psy Homes better than having something stick-built is that everything is built to meet code before delivery. Once it is delivered and connected, all you will need is a final walk-through for occupation.

No mess, no fuss, and easy living for those you care about.

Are Granny Pods and ADUs the same thing?

Generally speaking, yes, Granny Pods and ADUs are the same thing, at least when it comes to zoning.

However, the way that your local government looks at the structures may be different. Some locations are concerned about letting general ADUS in the area, as they can be rented out to anyone regardless of their age. Yet, they may be more friendly to Granny Pods if they have specific use cases in mind, like caring for elderly parents; they may be a bit more lenient. (Let’s face it, no one wants to be mean to someone’s Granny!)

Do Granny Pods increase the value of my property? 

It depends on whether the Granny Pod can be used as a standard ADU or if it needs to be used only for elder care.

If the granny pod can be used as a standard ADU, this structure will typically increase the value of your home, as the building can be used to produce additional rental income. If your Granny pod can only be used for an elderly family member, it may be a detractor because of the limited use case. 

Are There Benefits to Having a Granny Pod on My Property?

Financial Security

When we say financial security, we don’t just mean an increase in property value. 

Let’s take a deeper look at this. 

A granny pod also helps reduce the costs associated with long-term elder care solutions. For example, the typical independent retirement home can easily cost you $560,000 for the first year alone. And over $60,000 a year after that.

This means that if your parent were to move in at 65 and would die at the average age of 78 years old you could easily spend $1,000,000 for the last 13 years of life.

This does not include any kind of medical expenses, nursing home stays, or doing anything for enjoyment during your golden years.

On the other hand:

Having a Granny pod on your property will cost far less than the $560,00 for the first year. Given that most people do not require extra help until the age of 75, even if you need to have hired help for $45hr/40 hours a week for the last 3 years of their life, it would not cost you more than $280,800 for that care. 

So let’s say your Granny Pod cost you $250,000 to have it installed and approved by your zoning ordinance. Then you spend $280,000 for the last 3 years of your parents’ life for private care, you are still spending about $30,000 less than it would cost for an independent retirement living situation in its first year, saving you about, $469,200 in those 13 years. 

And that is not even including the increased value that is brought to the property of the Granny Pod, especially if it can be used as an ADU to rent out later.

Independence

Remember that feeling of moving out and being on your own? We all crave that feeling and the desire for independence. A Granny Pod allows your loved ones to have a sense of independence, while knowing that you are just a few hundred feet away in case of an emergency.  

Truly, a Win-Win.

Child/Elder Care Assistance

Granny pods are a great way to allow for child care and elder care, depending on the season of life you are in. Think about it like this:

Let’s say you have a granny pod placed on your property, and your parents move in at 60 and plan to offer assistance with your 4 and 2-year-old children, as you or your spouse re-enters the workforce.  

Your help is literally just a few steps away. Now, let’s look at this about 10 years out.

Your parents are now in their 70s, you’re in your 40s, and you have two teenagers with lots of energy. Now you are in a place where you and your family can help them when they need it, and no one is stuck spending the whole weekend at each other’s houses with chores. 

Affordable Care

Between parents helping with kids and you helping with your parents, the care for one another becomes far more affordable. If parents help you with the kids, you can save over $11,000 per year per child. And if you can help your parents as they age, you can save around $93,000 per year per parent. 

Are there negatives to having a Granny Pod on My Property?

Large Upfront Cost

Let’s face it, buying a Granny Pod is no small feat. We understand that, but what you gain is added value to your home and property.  So it is not an apples-to-apples comparison of dollars; you need to look at how it will be a financial impact for the long haul.

And remember that the overall cost will save you and your family hundreds of thousands of dollars in care.

Space Limitations

When you are getting ready to put in a Granny Pod, you need to think about the space you need. If you are looking to have a Granny Pod placed as a small one-bed one-bath traditional ADU to rent out to a young professional, you probably have far less to worry about with the overall size of rooms and doorways.

However, if you are having your Granny Pod placed to care for aging parents, it’s essential to consider the overall space of the unit.

Do they need specialized lifts to get from the bed to a wheelchair?

What about wider hallways for better accessibility?

How about low tread carpet so they don’t trip?

What about outlet placement for installing security Cameras to keep an eye on them? (At their request, of course.)

All of these are things that need to be considered when creating and building a Granny Pod.

Maintenance Responsibility 

Let’s face it, as the saying goes, “no good deed goes unpunished.” And by adding a granny pod to your property, the “punishment” is having some additional maintenance responsibilities.

Now, because this is a new home, there are typically no issues for the first decade or so. However, because everything is purchased at the same time, you may feel like everything needs to be replaced or repaired at the same time.

For example, appliances typically have a 10-year obsolescence. So, it may feel that 10 years after purchasing your granny pod, “that every appliance is breaking”.

However, this is just the normal maintenance on the normal wear and tear of home ownership.

ADA Compliance Issues

Depending on your location, Granny pods may need to meet ADA compliance, or you simply may want to incorporate that idea into your build. With this in mind, it may affect the size of the build or how you need to lay out the structure as a whole. This idea isn’t so much of a con as it is something to be aware of. 

Local Restrictions

The biggest disappointment about trying to plan your Granny Pod is finding out at the last minute that it cannot be done. Some municipal governments may create numerous hurdles or outright deny these structures. This is why it is essential to look at all your local municipal codes and regulations to see if your desire for a Granny Pod can be approved.

However, don’t give up hope. Just because a stand-alone Granny Pod may be denied does not mean that creating an interior ADU for your loved one is not feasible.

Are Granny Pods and Granny Flats The Same Thing?

Yes, and no.

The idea of a granny pod and granny flat is the same, offering housing for aging loved ones. However, a granny flat is typically an attached ADU that is more of an apartment-sized home.

On the other hand, a Granny Pod is a standalone more like a detached ADU. 

Now, unlike granny flats and ADUs, another option for a Granny Pod may be creating a temporary housing solution known as ECHO housing. 

Are There Size Restraints For Granny Pods?

Yes.

Generally speaking, there are size requirements for a granny pod. Typically, the home cannot be larger than half the size of the primary residence or 1,200 square feet. Since Granny pods often fall under ADU rules, you will need to check with your local zoning board’s requirements to ensure that you are in compliance with your desired plans.

If you want to have a Granny Pod that can be bigger than the maximum square footage allowed as an ADU, you may consider selling a portion of the land to your family member who wants to build the Granny Pod. It would still be on your “property,” so to speak, but may allow you to have a larger unit.

How Long Does It Take To Have a Granny Pod Installed?

To have a Granny Pod installed on your property will typically take a few days, depending on your selected building style. However, when working with Psy Homes, the process from order to delivery will typically take less than 1 year.  

Do Granny Pods Need To Be Hooked Up To The Primary Electrical? 

Generally speaking, yes, Granny pods need to be hooked up to the primary electrical system. To do this, contact a trusted electrician. They will be able to help you with the ins and outs of the connection to your electrical system.

What Are The Tax Implications Of Granny Pods? 

Generally speaking, a granny pod will increase the value of your property, which will typically result in a higher total tax assessment.  This translates to the potential of higher tax payments for your local municipality. To understand how the ADU may impact your tax implications, True Blue Remodeling has a blog to help you determine its effect on your finances. 

As with anything related to finances, we strongly encourage that you talk with your tax professional or financial planner.

How Does Insurance Work For Granny Pods?

It depends on who your insurance provider is. In some cases, your insurance may not increase if you are housing a family member in your granny pod. However, if you are using your Granny Pod in a more traditional ADU sense and renting it out, you may need to seek additional coverage.

The best practice is to contact your insurance provider prior to constructing your Granny Pod to cover your bases for what may be needed from insurance.  

Can HOAs Deny My Request For A Granny Pod?

Generally, no, HOAs can not refuse a Granny Pod per ADU laws. However, they can require certain stylistic criteria to meet the HOA regulations. So if you live in an HOA area, it is best to contact them to have a clear set of guidelines for design prior to selecting the building that you will be using for your HOA.

How Can Granny Pods Be Financed?

The financing options available for Granny Pods depend on your building selection. However, if you are planning to do a modular home for your Granny POD, you may be able to do a construction loan. However, if you are trying to use different buildings, like a shed, financing options may be difficult.

Conclusion…

Granny pods can be a great way to bring those you love close to home. So whether you choose a tiny home or a full-sized cabin, at Psy Homes, we are here to help make your dreams a reality. To help you get started on your Granny Pod journey, we have an entire page dedicated to ADU regulations. Once you figure out your local requirements, contact us, and we would be happy to help you get started on creating a Granny Pod that helps your loved ones Dwell Beyond The Ordinary.