Is building an ADU a good investment in Los Angeles City?

Certainly! ADUs in Los Angeles City offer a great chance for extra rental income, especially since owner occupancy is not mandatory. With construction costs ranging from $250 to $400 per square foot, and considering additional development fees, the present average market value for a square foot of living space in Los Angeles City is approximately $647. This makes ADUs a compelling and profitable investment.

Los Angeles City Accessory Dwelling Unit Requirements.

ADU permits are rapidly increasing in Los Angeles City. Here is a breakdown of ADU requirements in Los Angeles for 2023.

General ADU requirements

Detached, attached, and conversion ADU types, along with JADU’s are all allowed in Los Angeles city. Both, single and two-story ADU’s are permitted.

For independent living your ADU must be equipped with: Exterior access separate from primary residence, Living, Sleeping, Dining, Cooking, and Bathing.

The kitchen must have at minimum the following: A sink, a refrigerator, a cooktop or range and cabinetry.

JADU can share a bathroom with the primary residence.

Zoning

All zones single-family and multi-family most probably are eligible for ADU’s.

Number of Units

  • One ADU + One JADU in lots zoned single-family
  • Two detached ADU’s in lots zoned multi-family

Building Size

  • JADU, maximum 500 SF
  • Minimum 150 SF for ADU’s and JADU’s
  • Detached ADU’s maximum 1,200 SF
  • Attached ADU, Maximum 50% of primary residence.
  • Attached ADU’s with more than 2 bedrooms can reach1,000 SF

Building Height

  • Detached ADUs in Los Angeles city have a limit of 2 stories.
  • Attached ADU’s follow local zoning height limit.

Setbacks

Detached ADUs must maintain minimum setbacks of 4 feet from the side and rear lot lines, and 6 feet from any existing structures. These ADUs are not allowed to be positioned between a proposed or existing dwelling unit and the street adjacent to the front yard, except in the case of a Through Lot or when the ADU is an addition to a lawfully existing garage or accessory structure.

Parking

Your ADU is exempt from parking in the following situations:

  • Your property is situated on a street where a parking permit is mandatory.
  • You property is within 1/2 mile of public transportation.
  • Your property is less than a block away from a care share area.
  • Your property is situated in an area of architectural or historical significance.
  • The ADU is part of the proposed or existing primary residence or an accessory structure.

Fees

The exact number of fees depends on the zoning of your lot and the overall scope of your ADU project. This is a list of some of the typical fees you can expect to pay.

  • Plan Check fees
  • City Impact Fees (ADU’s 750 SF and more)
  • School Impact Fees
  • Building Code and Green Code Fees
  • Permit Fees
  • Utility Connection fees

Sprinkler System

If you do not have or were not required to add a sprinkler system to your primary residence, then most probably you will not need one in your ADU. However if you do not have a sprinkler system in place, in high fire hazard zones you may need to make other fire safety accommodations.

Basements

You can convert an existing unfinished basement space to an attached ADU.

Owner Occupancy

Owner occupancy is not a requirement for permitting an ADU. Owners are required to live on the property only if a JADU has been constructed on it.

Taxes

Building an ADU does not trigger a reassessment of the value of the primary residence. However property taxes are based on property values and an ADU does increase the value of the property.

Rental Limitations

Short-term rentals under 30 days are not allowed Los Angeles.

< All ADU Regulations