A “Gross” Shed Transforms into the Most Charming Little Storybook Cottage

Megan Baker DetloffDirector of Home Projects
Megan Baker DetloffDirector of Home Projects
I cover home upgrades, DIY projects, hacks, how-tos, and plants. I’ve written about home decor and renovations for more than a decade since earning my degree in Magazine Journalism from Northwestern University. Before AT, I was an editor at HGTV Magazine and This Old House Magazine.
published Jul 20, 2025
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Over the past few years, ADUs (accessory dwelling units) have been gaining popularity as a way for homeowners to add a little extra living space to their property, while also maintaining a sense of privacy. You can buy small ADUs as-is from places like Amazon, but if you’re lucky enough to already have a shed on your property, this is something you might be able to customize to exactly your liking.

For inspiration, check out this renovation from Kylie McKay (@kyliemckayinteriors), who transformed her old, run-down shed into the cutest little guest cottage for visiting friends and family. When she first moved into her 1918 home, Kylie says the backyard shed was a “very large, very dark, very dirty space.” Beyond that, it had some serious functional issues: The garage doors didn’t work, for one, and the old knob-and-tube wiring needed to be disconnected for safety.

Kylie wanted to create a space that would comfortably accommodate out-of-towners, so she knew a gut renovation was in order to turn this sizable (but more or less unusable) square footage into a cozy retreat. Inside, she created a quaint bedroom and bathroom, but the exterior of this little shed underwent a huge (mostly) DIY transformation, too. Here’s how Kylie pulled it off.

Credit: Kylie McKay
Credit: Kylie McKay

The first step was removing the garage doors.

To turn the shed into a cottage, the garage doors needed to go. Instead, Kylie filled in the space with fresh siding and added salvaged windows, which she restored herself. She also added in a door, which she scored on Facebook Marketplace. “I view owning an old home as stewardship, not ownership, so I took on this project with goals of respecting our historic district and creating minimal environmental impact,” Kylie says.

Aside from the spaces that needed to be filled in, all of the siding is the original wood, now painted in a creamy beige (Sherwin-Williams’ Steamed Milk). Kylie chose a two-tone scheme to highlight the door and windows: The outer trim is sage green (Sherwin-Williams’ Sage New Light) while the inner surfaces are light blue (Sherwin-Williams’ Dutch Tile Blue).

Credit: Kylie McKay

A few extra touches make it even more inviting.

Adding a portico helps complete the cottage look, and makes the entryway even more welcoming. Around the cottage, Kylie made room for outdoor hangouts. “I wanted the cottage to have its own dedicated garden space, not to just be part of the yard, so I carved out a corner to add a stone patio for seating and a bird bath,” she says. 

As for landscaping, Kylie’s been working on it herself. “I’m adding more and more as time goes on, and working to make the garden feel lush and full, like an English cottage garden,” she says. “It will take time for the plants to fill out, but all of my landscaping decisions are made with the goal of a low-maintenance, colorful, pollinator-friendly garden.”

What Kylie says was once a “gross” shed is now a cozy escape that looks completely at home among all the other historic houses in the neighborhood. “I love that it doesn’t feel like a new build,” she says. “I love the character and warmth. It has a distinct personality.”

Inspired? Submit your own project here.