Is building an ADU a good investment in Santa Monica?

Santa Monica offers property owners an excellent opportunity to build Accessory Dwelling Units (ADUs). Whether the goal is to capitalize on the increased rental income potential in this high-demand area or to enhance the home’s value while adding extra space, building an ADU in this town is like printing money.

General ADU requirements

Detached, attached, and conversion ADU types, along with JADU’s are all allowed in Santa Monica. 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

Building Size

  • JADU, maximum 500 SF
  • Lots under 10,000 SF maximum ADU size 1,000 SF
  • Lots more than 10,000 SF maximum ADU size 1,200 SF

Building Height

  • Detached and attached ADUs in Santa Monica can be 2 stories.
  • Height limited to 24 feet for both detached and attached ADUs

Setbacks

Minimum 4 feet setback from property lines at side and rear yards.

Parking

One parking spot is required unless ADU is exempt. 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
  • School Impact Fees
  • Building Code and Green Code Fees
  • Permit Fees
  • Utility Connection fees

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.

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 in Santa Monica.