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Scottsdale guest house vs ADU: the 50% rule, the deed restriction since 2025, and what guest houses were filed at

Scottsdale treats a guest house and an accessory dwelling unit as different things: a guest house cannot be rented, can total up to half the main house's floor area, and since 1 January 2025 needs a recorded deed restriction; an ADU can be rented, is capped at 1,000 sq ft or 75% of the house, and needs its own electric and gas meters (City of Scottsdale, read 23 October 2026). Builders filed 272 guest house permits in Scottsdale from October 2023 to September 2026, usually at $160,813.

By Contractor Records · data through October 22, 2026

Guest house or ADU

Guest house ADU
Rent it separately No Yes; owner must live on site if it is a vacation or short-term rental
How many No limit; capped by total size 1 attached + 1 detached; a third detached on 1+ acre if one is affordable
Configuration Detached only Attached or detached
Size All guest houses together up to 50% of the main house First ADU up to 1,000 sq ft or 75% of the main house, whichever is less; second and third up to 500 sq ft
Utilities Shared with the main house Separate electric and gas meters; water and sewer branch on the lot
Deed restriction Yes, for any guest house built after 1 January 2025 Only for a Restricted-Affordable ADU
Approval Construction plans for permit Pre-application, administrative approval, then construction plans

From the City's Guest Houses and ADU pages. Other ADU rules: no more than six adults in total across the house and ADUs, a detached ADU may not sit in a required front or side yard but can be 5 ft from a side or rear line in the rear yard, 10 ft between buildings, a 50 sq ft private outdoor space per ADU, its own entrance and its own address.

Why the choice changes the job

  • The meters. An ADU needs its own electric and gas meters and separate water and sewer branches on the lot; a guest house shares the main house's service. Ask each builder to price the utility work as a separate line.
  • The deed restriction. For a guest house the owner records it before the permit is approved, so the builder's schedule cannot start until you have.
  • The process. An ADU starts with a pre-application meeting and an administrative review before plan review; a guest house goes straight to construction plans.
  • Airports. Parts of Scottsdale sit in the operating vicinity of Sky Harbor and Scottsdale Airport. The 2025 state law shrank the areas where ADUs are restricted, but check your lot early.
  • HOAs can be stricter than the City, which says so on its ADU news release.

The City Council amended the ordinance on 30 September 2025 to follow HB2928; by then, the City said, it had received one formal ADU application. Guest houses remain the common route here.

What 272 Scottsdale guest house permits show

Measure Scottsdale guest house
Permits, October 2023 to September 2026 272
Firms / active in the last year of data 182 / 87
Usual filed value $160,813
Middle half of builders' usual value (17 builders) $129,332 to $197,410
Closed (permits a year or more old) 67.5%
Builders with a single permit 155 (85.2%)
Busiest / quietest month February (173) / November (60)
For comparison: usual addition $85,573

85.2% of the builders on these permits filed just one guest house, so a builder's guest house record is usually a single job; look at their additions and new homes too. A guest house usually runs well above an addition ($160,813 against $85,573), because it is a whole detached building. Filed values by builder are on Scottsdale guest house cost.

Compare Scottsdale guest house builders →

Related

Other job prices: Scottsdale home improvement costs. Licenses: Scottsdale contractor license lookup and checking a contractor license in Arizona. Finding a permit: Scottsdale building permit search. North Scottsdale lots: Scottsdale ESL and NAOS rules.

What this does not tell you

We count permits the City classified as guest houses; an ADU filed under another type may not appear here, and we cannot see deed restrictions. Filed values are the builder's estimate on the application. Zoning district and HOA rules can narrow what fits on your lot.

How we know this

Rules are from the City of Scottsdale's Guest Houses and Accessory Dwelling Units pages and its 6 October 2025 news release on the ordinance amendment, read 23 October 2026. Permit counts are City of Scottsdale permits classified as guest houses, October 2023 to September 2026; the closed share uses permits a year or more old.

Numbers come from City of Scottsdale building permits (the City's open-data permit file up to January 2026, and the City's SPUR permit system since), with the contractor named on each permit, data through October 22, 2026. Nobody paid to be on this page and nobody can.

Questions

  • Can I rent out my guest house in Scottsdale?

    No. The City says a guest house may not be rented separately from the main house, and any guest house built after 1 January 2025 needs a recorded private deed restriction limiting it to guest house use. To rent a unit you need an ADU, which may be rented; if it is a vacation or short-term rental the owner must live on site.

  • How big can a guest house be in Scottsdale?

    All guest houses on a lot together can total no more than half the gross floor area of the main house. There is no limit on the number. A first ADU is capped at 1,000 square feet or 75% of the main house, whichever is less; a second or third ADU at 500 square feet.

  • Does a Scottsdale ADU need its own meter?

    Yes, separately metered electric and gas. Water and sewer use the existing public tap but branch on the property into separate connections. A guest house shares utilities with the main house.

  • How much does a guest house cost in Scottsdale?

    On the permit, the usual Scottsdale guest house was filed at $160,813 (272 permits, October 2023 to September 2026), and the middle half of builders with three or more usually filed between $129,332 and $197,410.

  • How many ADUs can I build in Scottsdale?

    One attached and one detached ADU per single-family lot, plus a third detached ADU on a lot of one acre or more if at least one unit qualifies as affordable, under the ordinance the City Council amended on 30 September 2025 to follow state law HB2928.

Build your own list

Every firm with that kind of permit on record. Pick what you value. The list moves.