How Do Rent Control Laws Affect ADUs in Los Angeles? Complete Guide for 2025

Accessory Dwelling Units (ADUs) — commonly known as granny flats, in-law units, casitas, or backyard cottages — have become increasingly popular among Los Angeles homeowners seeking additional rental income or housing solutions for family members. However, one of the most frequently searched questions is: Do ADUs fall under rent control laws in Los Angeles?

The answer isn't straightforward and depends on several critical factors: the construction date of your primary residence, whether your ADU is detached or attached, and which specific Los Angeles ordinance applies to your property.

Understanding Los Angeles Rent Control: RSO vs JCO

Los Angeles operates under two primary tenant protection frameworks:

Rent Stabilization Ordinance (RSO): Applies to rental properties built before October 1, 1978, limiting annual rent increases and providing eviction protections. Properties under RSO can typically only increase rent by 3-8% annually, depending on the Consumer Price Index.

Just Cause Ordinance (JCO): Covers most rental properties regardless of age, requiring landlords to have valid reasons for evictions and provide relocation assistance for no-fault evictions.

How ADU Type Affects Rent Control Status

Detached ADUs: Generally RSO-Exempt

New detached ADUs — standalone structures built separately from your main house — are typically not subject to RSO rent caps. This means you can set market-rate rent and adjust it more freely than RSO-controlled properties.

Important caveat: If your main house was constructed before October 1, 1978, and you decide to rent it out along with your ADU, the primary residence may fall under RSO protections, even if the ADU remains exempt.

Attached ADUs: Complex RSO Implications

Attached ADUs connected to pre-1978 single-family homes create more complicated scenarios. When you add an attached ADU to a pre-1978 residence, both the main house and ADU may become subject to certain RSO protections.

However, due to the Costa-Hawkins Rental Housing Act, a state law that limits local rent control, the ADU portion may not face rent increase restrictions. Tenants still receive eviction protections under RSO guidelines.

Converted ADUs: Full RSO Coverage

Converting existing space in a pre-1978 house — such as transforming a garage, basement, or unused room into an ADU — typically subjects both the main residence and converted unit to full RSO protections. This includes rent increase limitations and comprehensive tenant protections.

Just Cause Ordinance: Universal ADU Protection

Even when ADUs are exempt from RSO rent caps, they remain covered by Los Angeles' Just Cause Ordinance. This means:

  • Landlords must provide valid reasons for evictions (non-payment of rent, lease violations, owner move-in, etc.)

  • No-fault evictions require relocation assistance payments

  • Tenants receive enhanced protection against arbitrary evictions

Financial Impact on Los Angeles Property Owners

Building an ADU can unintentionally trigger stricter rent control regulations on your primary residence if constructed before 1978. This affects:

Rental Income Potential: RSO properties face annual rent increase limitations, potentially reducing long-term income compared to market-rate properties.

Property Value: Rent-controlled properties may have different resale valuations due to income restrictions.

Investment Strategy: Long-term rental planning requires understanding these regulatory implications before construction begins.

Frequently Asked Questions About LA ADU Rent Control

Can I charge market rent for my new ADU? If detached and your main house isn't rented, typically yes. Attached or converted ADUs in pre-1978 homes may face restrictions.

What happens if I sell my property with an ADU? New owners inherit the same rent control status. RSO protections transfer with the property.

Do short-term rentals (Airbnb) face the same restrictions? Short-term rentals under 30 days have different regulations and may not fall under traditional rent control, but check current Los Angeles ordinances.

Before Building: Essential Considerations

Research your property's construction date through Los Angeles Department of Building and Safety records.

Consult with experienced real estate professionals who understand local ADU and rent control intersections.

Consider long-term financial implications beyond immediate rental income potential.

Review current zoning and permit requirements which may affect your ADU's rent control status.

Expert Guidance for Los Angeles ADU Decisions

Navigating Los Angeles rent control laws while maximizing your ADU investment requires specialized knowledge of local regulations, market conditions, and long-term strategic planning.

Thinking of adding or renting out an ADU in Los Angeles? The Borges Real Estate Team specializes in helping property owners understand rent control implications before construction or leasing decisions. Already own a home? Get an instant property value assessment here: https://justin.lametrohomefinder.com/seller

Understanding these complex regulations now can save thousands in potential income losses and legal complications later.

Author: Justin Borges
Justin Borges is the Team Leader of The Borges Real Estate Team at eXp Realty and widely recognized as the best realtor in Los Angeles. With over a decade of experience and more than $200 million sold, Justin leads one of the top-performing real estate teams in Los Angeles County. Known for his advisor-first approach, he helps homeowners, buyers, and investors make confident real estate decisions—focusing on strategy, clarity, and long-term success rather than just transactions.