Can I Rent Out My Los Angeles Home with an ADU? Understanding Rent Control Implications

If you own a single-family home in Los Angeles and have added—or are considering adding—an Accessory Dwelling Unit (ADU), you might be wondering how rent control laws apply. The answer can be surprisingly complex, as adding an ADU can change your property’s legal status and trigger rent control rules under the city’s Rent Stabilization Ordinance (RSO) or eviction protections under the Just Cause Ordinance (JCO).

What Is an ADU?

An ADU—sometimes called a “granny flat,” “in-law unit,” or “back house”—is a secondary housing unit on the same lot as a primary residence. It can be:

• Detached (separate from the main house)

• Attached (connected to the main house)

• Converted (created by repurposing part of the existing home, such as a garage)

The City of Los Angeles encourages ADUs to help ease housing shortages, but their presence affects how rent control laws apply.

How ADUs Affect Rent Control in Los Angeles

Whether your property becomes subject to rent control after adding an ADU depends on when the main house was built and the type of ADU.

1. Detached ADU

• If your main house was built before October 1, 1978 and is rented out, adding a detached ADU can trigger RSO coverage for the main house.

• The ADU itself is usually exempt from RSO rent caps but will still have eviction protections under the JCO.

2. Attached ADU

• If attached to a pre-1978 home, both the ADU and the main house fall under RSO protections.

• However, due to the Costa-Hawkins Rental Housing Act, the ADU’s rent may not be subject to RSO limits if it’s a newly built unit—but eviction protections still apply.

3. Converted ADU

• If you convert part of a pre-1978 single-family home into an ADU, both the main home and the ADU become fully subject to RSO rent caps and eviction rules.

State & Local Rules at Play

• RSO (Rent Stabilization Ordinance): Applies to most rental units built before October 1, 1978, with strict rent caps and eviction rules.

• JCO (Just Cause Ordinance): Covers most properties not under RSO, requiring legal reasons for eviction.

• AB 1482 (Statewide Rent Cap): Caps rent increases for certain properties built before January 1, 2005, at 5% plus inflation, up to 10%.

Practical Landlord Considerations

• Changing Your Property Status: Adding an ADU can transform an exempt single-family home into a multi-unit property subject to stricter rent control.

• Rent Caps: RSO rent limits for 2025–2026 are 3% (plus 1% if you provide gas or electricity).

• Eviction Protections: Even if your ADU is rent-control-exempt, you must still comply with JCO rules for tenant removal.

• Registration: If your property becomes RSO-covered, you must register it with the Los Angeles Housing Department (LAHD) and pay annual fees.

How to Check Your Property’s Status

1. Visit ZIMAS and enter your address.

2. Look for the “Housing” tab to confirm RSO coverage.

3. For questions, call LAHD at 1-866-557-7368.

Adding an ADU can boost your rental income, but it can also change your rent control obligations. Before building or renting out, understand how your property’s construction date and ADU type affect RSO and JCO coverage. The right strategy can protect your investment while keeping you compliant with Los Angeles law.

Thinking about renting out your home or ADU in Los Angeles? The Borges Real Estate Team can help you navigate rent control rules and maximize your property’s potential. Instantly check your home’s value here: https://justin.lametrohomefinder.com/seller