London Daily

Focus on the big picture.
Monday, Oct 05, 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
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
France and Germany Coordinate Military Response After Russian Strikes on Kyiv Infrastructure
UK Police Release Six Iranian Nationals on Bail After RAF Fairford Security Alert
UK Business Confidence Falls as Energy Costs and Tax Uncertainty Rise
Cornwall Insight Warns UK Energy Bills Could Rise 16% in January
UK Introduces Zero VAT on Household Electricity Bills
UK 30-Year Gilt Yield Hits 6% as Bond Market Pressures Intensify
UK Introduces Stricter Subcontractor Checks and Expanded Trade Union Access
Green Party Proposes Three-Year Emergency Freeze on Private Rent Increases
UK Treasury Committee Seeks Tax Clarification Over Manchester City Investigation
Royal Marines Deploy to Faroe Islands for Northern European Security Exercise
UK Business Confidence Weakens as High Costs Delay Investment
UK GDP Growth Revised Up to 0.5% in Second Quarter
Bank of England Warns of Financial Stability Risks From Autonomous AI
UK Expands Early Prisoner Release Scheme to Ease Overcrowding
UK Records Worst Bluetongue Outbreak on Record Across Livestock Farms
UK Government Faces Shrinking Fiscal Headroom Ahead of October 28 Budget
UK 30-Year Gilt Yield Reaches 6% as Energy Shock Drives Borrowing Costs Higher
×