If you’re not familiar with the term “ADU,” know that today you will be equipped with a game plan to take advantage of this new offer in the housing market and development. ADU, known as Accessory Dwelling Unit, is known to be an attached or detached structure providing independent living facilities for one or more persons.

Many of us would also know these units as secondary units, granny units, in-law units or back houses. While adding an ADU in Los Angeles County is only permitted on properties with single-family homes versus multi residential zones; the addition or conversion of an ADU on your property is still permitted to rent. When referring to a conversion, this entails converting an existing garage into a dwelling unit. The unit can be rented out as another single-family dwelling, whether it be your own family or a college student looking for affordable housing.

The benefits of this process have grown through the past few years to make it easier for property owners to take on this project while staying in accordance with city regulations. By adding an accessory dwelling unit, new renters can have a separate mailing address, a great benefit for those looking for housing more on a long-term basis. This type of dwelling addition or conversion also includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated, as stated on the memorandum by the Department of Housing and Community Development – Division of Housing Policy Development (2018, Sacramento, CA).

However, that’s not where it stops! If you’re a homeowner with an existing dwelling unit already and can’t find a reliable renter – welcome to the era of the hospitality market. Since the entry of the existence of vacation and getaway masterminds, Airbnb & VRBO, rental conversion units have skyrocketed. With the legalization of home-sharing in Los Angeles, investing in registering your unit as an Airbnb or VRBO is a great way to pocket some income and bring more value to your property. According to Los Angeles ADU Ordinance Rules Codes & Regulations of California, states that an ADU cannot be sold separate from the primary residence but may be rented.


For those thinking of beginning short-term rental home conversion projects, a registration fee of $850 is required (must be citation-free) followed by a yearly renewal fee at a reasonable price of $89. To specify, the ordinance defines “short-term,” as a hosting agreement lasting no longer than 30 days at a time. The City of Los Angeles also implemented a new regulation where Airbnb owners are permitted to rent their units for no more than 120 days per year. An exemption of 180 days is permitted with the following criteria:

-Have had a home-sharing permit for 6 months or more
-Have had hosted for at least 60 Days with no verified nuisance violations

With EGN Builders, we are more than specialized and equipped to help homeowners execute this type of project. Our contractors are well rounded on new regulations and more than experienced on this service type. ADU conversions and additions have been one of our more popular specialties where we can provide various professional recommendations and plans for homeowners looking to take advantage of the new Los Angeles ADU Ordinance.

We also offer Residential Plans & Permits to get homeowners started on their ADU building process. If you are interested in learning more on how to get started click here.