Why Would I Condo My DADU or ADU? (And What It Really Means)
If you’ve built — or are planning to build — a DADU (Detached Accessory Dwelling Unit) or ADU (Accessory Dwelling Unit) on your property, you may have heard about the option to “condo” your unit. But what does that mean? And why would someone do it?
Let’s break it down in simple terms so you can decide if it’s the right move for you.
🧠 What Does It Mean to “Condo” a DADU?
“Condoing” your DADU means legally turning it into a separate condominium unit — even though it’s still on the same lot as your main house.
This doesn’t mean you have to live in a condo building. Instead, it’s a legal designation that allows your DADU to be bought, sold, or financed separately from your main home — just like a traditional condo unit.
✅ Think of it as splitting your lot into two separate homes on paper, without physically subdividing the land.
🔑 Why Would You Condo Your DADU?
Here are some of the top reasons Pierce County homeowners are considering (or already using) this strategy:
💰 1. Sell It Separately
One of the biggest benefits of condoing your DADU is that you can sell it independently of your primary residence.
If you ever want to cash out or downsize, you don’t have to sell your whole property — just the backyard unit.
Example: Build a DADU in Tacoma, sell it for $275K, and stay living in your main house.
🏦 2. Easier Financing Options
When your DADU is part of your single-family lot, traditional financing options are limited. But once it’s a condo, buyers can use conventional loans (like FHA, VA, or Freddie Mac loans) to purchase it — opening the door to more qualified buyers.
This can also help you refinance or leverage equity more easily.
🧾 3. Separate Taxes & Utilities
Condoing allows you to set up separate utility meters and separate tax parcels, which can simplify accounting — especially if you’re using the unit as a rental or investment property.
🏘️ 4. Investment & Flexibility
Many savvy homeowners are using DADUs as a stepping stone into real estate investing. By condoing the unit, they maintain flexibility:
- Rent it short-term or long-term
- Sell it down the road for profit
- Use it as a starter home for a child or relative
Condo status = more options.
📜 Is Condoing Legal in Washington?
Yes! Thanks to House Bill 1337, Washington State has made it easier than ever to condoize your ADU or DADU. As of 2025, local jurisdictions must allow it — including cities like Tacoma, Puyallup, Gig Harbor, Lakewood, Spanaway, and more.
Each city has slightly different requirements, so you’ll want to work with a builder or real estate attorney familiar with the process.
🚧 What’s the Catch?
Condoing isn’t for everyone. Here are a few things to keep in mind:
- 🧾 There are legal and setup costs (attorneys, surveys, recording fees)
- 📋 You’ll need to create a condo declaration and homeowner association (HOA) documents — even for just two units
- 🛠️ You may need to upgrade utilities or infrastructure (like adding a separate water meter)
- 🏠 Your DADU needs to meet certain building code and livability standards
But for many homeowners, the long-term value and flexibility make it worth it.
🔨 We Can Help You Build (and Condo) Your DADU
Our team builds custom ADUs and DADUs across Pierce County — and we can guide you through the condo conversion process from start to finish.
Whether you’re in Tacoma, Puyallup, Gig Harbor, Bremerton, Lakewood, Spanaway, or Graham, we know the local rules, zoning, and permitting steps to help you make the most of your property.
Condoing your DADU isn’t just about splitting a property — it’s about unlocking value, creating flexibility, and planning for the future.
Whether you want to sell, rent, invest, or downsize, it’s a smart option to consider — and Washington’s newest laws are making it easier than ever.
With the new House Bill HB1337, condo’ing the property is a huge return on investment. Holding the DADU is absolutely valuable, but now you can condo and sell it separately from the existing home. It brings instant equity and allows for more home sales at a more affordable price. It’s just another benefit to building a DADU on your property.
Ready to move forward with your own DADU project in Tacoma? Our process begins with careful planning and honest communication. We have helped many families and property owners find the best fit for their spaces, and we know every home comes with its own set of challenges. Working with an experienced accessory dwelling unit contractor can take a lot of guesswork off your shoulders. At Tacoma DADU, we walk with you from design to build, so reach out when you’re ready to start a conversation that fits your goals.
