The Definitive Guide to ADU Rents in Los Angeles 2024

ADU Rentals 101: The Basics

Can I rent out my ADU in LA?

The short, straight-to-the-point answer is: yes, you can rent your Accessory Dwelling Unit in Los Angeles. 

Understanding the fundamental requirements and guidelines before starting your ADU rental project in this city is crucial. It ensures compliance with all regulations, even though homeowners are typically allowed to rent out their ADUs. This adherence includes obtaining necessary permits and ensuring safety and building code compliance alongside local zoning ordinances, which we’ll review in detail.

Short-term rentals

The City of Los Angeles introduced an Ordinance in July 2019, opening avenues for homeowners to engage in short-term rental activities with their ADUs and properties. In order to participate, hosts are mandated to register with the City, displaying their unique registration number on all rental advertisements. This process involves strict compliance with the requirements outlined by the City’s Home-Sharing Ordinance, and hosts must complete the registration via the online portal.

Only ADUs with an occupancy certificate issued by the Los Angeles Department of Building and Safety (LADBS) before January 1, 2017, are eligible to register. Additionally, if you intend to host for 1 to 29 days, you must obtain a home-sharing permit before publishing your listing.

Further criteria for the Ordinance are the following, as mentioned on the official website: 

• Primary Residence: To register a short-term rental property online, you need to prove that the apartment or home is your primary residence, where you live for more than six months of the year. To do so, you must provide proof of identification, including a photo ID and proof of residence. The Administrative Guidelines provide a list of acceptable documents that can be used for this purpose. Non-primary homes, however, are ineligible for registration.
• Restrictions on Affordable and RSO Housing: Note that the property should not be subject to the Rent Stabilization Ordinance (RSO) of the City, which applies to most multi-family units built before 1978. Additionally, it should not have any other affordability provisions, such as an affordable housing covenant. To confirm whether a property is subject to the RSO, please search the City’s web-based mapping tool.
• Residential Use: Home-sharing is prohibited in non-residential structures (such as parked vehicles, trailers, etc).
• No Pending Citations: The primary residence or property cannot have any outstanding citations, orders, tickets, or similar violation notices from any City enforcement agency.
• Landlord Approval: Anyone renting must obtain written approval from their landlord. The written authorization must be signed, notarized, and submitted with the application. The required Affidavit form is available here.
• Transient Occupancy Tax (TOT) Registration: To avoid registering to pay TOT directly with the Office of Finance in Los Angeles, applicants must exclusively list their primary residence on Hosting Platforms that hold a Platform Agreement with the City (check the Ordinance’s official site for the available platforms). If not, you must complete the Transient Occupancy Residential Certificate requirement through the Online Registration Portal.
• Registration Number: Beginning November 1, 2019, hosts must possess a valid Home-Sharing registration number. Failure to list with a valid registration number may lead to fines.

If you’re looking to rent year-round, short-term rental opportunities, you can apply for an Extended Home-Sharing permit (EHS), allowing the activity for 365 days a year. This special permit requires hosts to have either registered for six months or hosted for 60 days previously. The EHS comes with a one-year validity and necessitates an annual renewal with a fee of $982.

It’s important to determine the availability of Short-Term Rentals (STRs) in your area to determine whether the city or region falls under an incorporated or unincorporated area.

For areas categorized as unincorporated, the Short-Term Rental Ordinance of Los Angeles County has been enacted, restricting cities within this jurisdiction from offering short-term rentals. It’s advisable to consult local authorities to confirm if you can engage in Short-Term Rental activities in your area.

Long-Term Rentals

For the City of Los Angeles, the Los Angeles Housing Department confirms that if your unit complies with the Rent Stabilization Ordinance and the respective fees are paid on time, you should not face any other issues or requirements. 

However, it’s essential to note that if your property has an ADU/JADU and falls under the RSO jurisdiction, you must pay an annual registration fee of $38.75 per unit. The RSO has specific regulations regarding parking, housing services, rent deductions, and more. To ensure compliance with the Ordinance, it’s best to consult with your local authorities and determine if your ADU is subject to its regulations.