Renting half of my house, with an non permitted kitchen.

[Kevin Lefeuvre]

Hi everyone!

I am buying a 2 stories SFR in a R1 zone in LA. It's a "faux" duplex and the price does reflect that fact. 2Bd/1Ba upstairs 2Bd/2Ba downstairs. Each floor has it's separate entrance, and living spaces (including kitchen). It appears obvious that former owners have used it as 2 separate units for over a decade. Utilities are common though. Previous owners had obtained permit for all the structure and the bathrooms, (sqft tax/MLS/real are all matching) but I don't see any permit for the 2nd kitchen while checking at the city. Also the seller does warn "Buyer to check permits", as usual. I conclude that one kitchen is not permitted. Property got foreclosed last year and a builder remodeled it entirely and is now selling to me. General inspection came very good except for electricity panel which has not been updated that I will update (got discount for it). I intend to live in the upstairs unit and rent downstairs.
Here's my question:
What is my risk if I rent the lower unit? What if , in the lease agreement, I disclose the inspection report to the tenant, in writing, and the fact that the kitchen might not be permitted but it's safe according to the inspection?

Do you see any difference between a long term rental (standard) and a short term, in regards with the risk attached to the non permitted kitchen?

Sorry for the long question and thanks for your feedback.