London Daily

Focus on the big picture.
Thursday, Mar 26, 2026

This New Company Wants to Help Homeowners Turn Their Unused Spaces Into Rentable ADUs

This New Company Wants to Help Homeowners Turn Their Unused Spaces Into Rentable ADUs

The Los Angeles–based design-build company, Homestead, converts underutilized garages or backyard sheds into ADUs that can be rented out or lived in.

"From the moment we met, Sean and I had a shared vision of trying to use architecture to create high-impact social outcomes," says Homestead cofounder Sam Schneider about how he and Sean Phillips conceived of their accessory dwelling unit (ADU) conversion start-up. Schneider and Phillips first came together while studying at the Massachusetts Institute for Technology’s School of Architecture and Planning. The two founded Homestead in early 2020 with a vision of changing lives by "using the home-most Americans’ largest asset-as a source of income and stability," Schneider says.



Homestead seeks to improve affordable housing options in California by providing services to convert existing structures into ADUs that can be rented out or lived in.

Indeed, it was at MIT’s M.Arch program that the Homestead cofounders became smitten with the idea of making affordable housing accessible. During their last year in graduate school, the duo worked on a project to address homelessness and a lack of affordable housing on Martha’s Vineyard. Disappointed with the local community’s feedback-while simultaneously witnessing the growing popularity of ADU legislation across the country-the pair became enthusiastic about making ADUs part of a solution to the nation’s housing crisis.



"I think using your home as a source of income and stability is the future of homeownership and affordable housing," says Homestead cofounder Sam Schneider.

Schneider and Phillips eventually moved back to their native Los Angeles and established a design consultancy geared toward nonprofits. After examining the world of residential construction more closely, they realized that there was a fundamental problem with ADUs.

"For everyone to [be able to] take advantage of ADU laws, managing a construction project can’t take up all of your time, or even a lot of it," Schneider explains. "The same people who need the income from [renting out] an ADU already are busy: They work full-time, are parents, or act as healthcare providers to family members."



One- or multi-car garages and backyard sheds can be converted into housing that homeowners can rent out for additional income.

The Homestead cofounders decided to create a one-stop shop that would enable their clients to "upcycle an existing space into new housing and passive income" with effective project oversight from start to finish-without placing the burden of finding a contractor, designer, and lender on the homeowner.

Schneider and Phillips embarked on a handful of inaugural ADU conversions, taking on old garages and adapting them into rentable, income-producing housing in Los Angeles. They soon realized it would be highly beneficial to join the design and pricing options together, in part by focusing on "tailoring"-where homeowners can choose among preselected finishes, layouts, and appliance options-rather than customization.



One of Homestead’s earlier projects was the conversion of this former garage into an ADU.



The design of the garage–turned–ADU emphasizes natural daylight through carefully selected finishes and deliberately placed windows.

At the moment, Homestead offers four West Coast–inspired finish options: California Classic, Desert, Coast, and Mountain. The ADUs follow an aesthetic that marries traditional design with a minimalist approach, focusing on efficient spatial layouts and window arrangements that take advantage of daylight and site conditions.

The Homestead team takes care of everything from design, financing, and permitting, to contractor selection and code inspection. The Los Angeles–based company also completes an initial site visit to examine the existing conditions, and team members carry out consultations with homeowners to determine things like floor plans and finishes.



"Housing prices continually exceed wage growth," says Schneider. "At the same time, home sizes have increased 60 percent over the past 40 years, while family size is decreasing. Upcycling an underused space into a rental unit is a clear fix," he continues. "It’s the cheapest way to add new housing, and the simplest way to add much needed income to most homeowners’ lives."



Homestead’s layout options include studio-style plans for a one-car garage, as well as separate bedrooms for larger garages that fit two or more vehicles.

Homestead’s tailored–not–customized approach offers the added benefit of ensuring guaranteed pricing for clients, Schneider notes. The team combines information gleaned from each on-site analysis with data gathered from similar projects to understand and identify the most effective contractors for the job.



"Ideally, we’ll be building more units than any developer to the nation’s housing stock at the end of the decade, without problematic land use or displacing community members," says Schneider. "One can dream, right?"

Since it was founded, Homestead has grown from just Schneider and Phillips to a seven-person team that includes architectural designers, construction specialists, and general operations managers and planners. The company also owns a licensed general contracting subsidiary that executes construction, and the founders are working on getting their brokerage licenses. (At the moment, the company provides homeowners with contacts for lenders who specialize in ADU conversions.)



By simplifying their offerings in both layout and finish options, Homestead has managed to corral the challenges of working with contractors and homeowners, finding a balance that satisfies the majority of their clients and collaborators.



"After speaking to hundreds of homeowners, we realized that our vision of converting garages into housing couldn't be done at scale without revisiting the way we approach renovation as a whole," says Schneider.

"ADUs are not-and cannot be-the only solution for affordable housing," admits Schneider. But the team at Homestead still believes they can have a positive impact on the housing market and income growth. "If we can help homeowners have a higher quality of life-and contractors have an easier time operating-we can create more housing at scale and affordably," he continues. "It’s why Homestead started, and why we’re in it for the long run."



By renting out their ADU conversions, Homestead’s clients have earned income that has helped the homeowners finance their children’s college educations and pay off bills.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
UK Fuel Prices Face Upward Pressure as Global Oil Trends Raise Cost Outlook
Girlguiding UK Sets September Deadline for Membership Policy Change Affecting Trans Participants
Germany and UK Accelerate Wind Power Expansion to Strengthen Energy Security
UK Moves to Ban Cryptocurrency Donations to Political Parties Over Foreign Influence Concerns
UK and Turkey Finalise Major Air Defence Agreement Worth Billions
Apple Introduces Mandatory Age Verification for iPhone Users in the UK
Diverging Views Emerge Over Meghan Markle’s Planned Australia Appearance
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
×