For a guest house, you’ll need to create a functional floor plan that includes all the necessary amenities. Plan the layout first, so you can determine where electric and plumbing lines will go. You should optimize the space you have and create a comfortable environment that enhances the livability of the space. Ideally, you’ll need enough room in this space for a bedroom, bathroom, kitchenette, and living area.
How to Turn a Detached Garage Into a Guest House
Jon Lantz • August 4, 2025
Detached garages are excellent additions to your property, as they can serve a variety of purposes. One of the best ways to use a detached garage is to turn it into a guest house. Using a detached garage from Jed’s Sheds to create a versatile living space will increase your New Jersey home’s resale value. Creating a guest house from your new detached garage requires detailed planning to ensure it is a functional space. Here's everything you need to know to transform your detached garage into a guest house.
Obtain the Right Permits
Before building your detached garage guest house, you must obtain the necessary permits. You will be converting your garage into an Accessory Dwelling Unit (ADU), which can require structural changes to make it more durable for living. You will need building, electrical, and plumbing permits to ensure the project meets safety standards to be a living space. You are required to tell your city that you are converting your garage into an ADU and provide site plans and dimensions for the project. Contact your local New Jersey municipality for zoning regulations and permit requirements for garage building and conversion.
Install Utilities
When converting your detached garage into a guest house, you will need essential utilities, such as electricity, plumbing, and HVAC, to make the space livable.
Plumbing
You will likely need a bathroom in this new space. Connect your garage to your home’s water and sewer lines to add plumbing to the guest house, so you can install the necessary bathroom fixtures.
HVAC
We recommend expanding your home’s HVAC systems to the guest house to have climate control. If you don’t want to install a whole HVAC system, you can install ductless mini-split systems instead.
Electric
Finally, you will have to run electricity to your guest house to make it a functional living space. You will need a thorough plan for electrical wiring, which can include additional circuits and underground conduits.
The electric, plumbing, and HVAC systems must all be installed by professionals to ensure the project is completed safely.
Insulate the Structure
Since you’re using the garage as a living space, we recommend adding insulation to make the space more comfortable and energy efficient. Before you install new drywall and floors in the garage, add insulation to the walls, ceiling, and floor to regulate the inside temperature. In our experience, this is essential for maintaining a comfortable temperature inside the guest house, both in New Jersey summers and winters. You can use fiberglass or spray foam insulation for this project.
Create a Functional Layout
Creating a Kitchenette
In our experience, a kitchenette will need a mini fridge, microwave, sink, and a hot plate for cooking. These are compact and won’t take up too much space; you’ll have all you need for a basic kitchen. Have some shelving or cabinets built on the walls for simple food and dining storage.
Jed’s Sheds Garages
At Jed’s Sheds, we can build beautiful two-story detached garages in New Jersey that are perfect for creating an additional living space. These structures provide enough space for a functional guest house layout. You can use the downstairs garage section to store your guest’s car, or use the downstairs as a living and kitchen area, and the upstairs be the bedroom and bathroom.
Our structures are fully customizable. The Double-Wide Two-Story Garage has two garage doors, which you can customize to have one side be car storage and the other be a living area. We can even remove all garage doors and just have an entry door for your guest house. Our 3D Designer allows you to fully personalize the structure to your specific needs.
Design the Space
Once you have the layout determined, now’s the time to design your space to create a welcoming environment. Install durable floors, like hardwood, that will enhance the space and make it more homey. Find lighting fixtures, both functional and accent, to brighten the space and allow it to be functional at nighttime. For entertainment, get a TV, movies, games, and books added to the guest house. Finally, decorate the space by adding artwork, rugs, and curtains to add a touch of your personal style.
Furniture
To finish everything off, furnish the space. You will need durable and comfortable furniture for the guest house’s bedroom, living room, and dining area. For a functional space, we recommend including a bed, nightstand, dresser, couch, coffee table, and small dining set to get started. If space permits, add a desk, end tables, and a larger dining table for more convenience.
Build a Detached Garage with Jed’s Sheds
Jed’s Sheds detached garages are great structures to add to your New Jersey backyard when creating a guest house space. We can easily help you convert the detached garage into a guest house. Designing a custom garage with us is easy, just check out our 3D Builder to create a building that has all you need for your guests. If you’re ready to get started, contact us today. We look forward to working with you!
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