Use detached garage with permitted bathroom from the 60s as Airbnb?

Question

My partner and I are in escrow for a property that's part of the coastal area of Los Angeles and we are wondering about our best strategy for the detached garage. We are planning to live in the main structure ourselves.

The 2-car detached garage has a bathroom that was permitted in the 60s. The full structure is pretty much converted to living space already but the conversion was never permitted - it has drywall, electricity, flooring, separate entry door and a few windows. That was supposedly done decades ago based on the wear and tear on the floor. There is no insulation though and the electric garage door is still functional.

I am wondering about options to utilize this space - preferably as a short term rental but I would consider mid- and long-term as well. Any recommendations on the best path forward? My understanding is that I may have the following options but don't fully understand the process overhead and short-term implications yet.

(1) Convert to an ADU

(2) Convert to a guest house

(3) Convert to a 2-story ADU to create more living space

(4) Leave as is and rent out as long as I don't put a kitchen in there (?)

Would appreciate any advice!

Thanks!

Rick Albert · Answer

Are you in the City of Los Angeles? That plays a role.

ADUs cannot be used for short term rentals. Only mid and long term. The idea behind ADUs is that they are to create affordable housing. From what people have told me with ADUs, Airbnb will put a stop to it as they ask during the host process.

Typically the numbers don't make sense to build out a 2 story versus just buying another investment property.

I wouldn't rent it as is. This is a tenant friendly area and the last thing you want is to be ratted out by a disgruntled occupant.

I would consider just getting everything permitted as an ADU and do mid or long term rental. If your location is stellar, you will get people coming from the east coast who may want a change of scenery.

Sarah Kensinger · Answer

If you haven't started with the city, you better call or visit the city hall.... especially if you're in LA city limits. After you find out all the do's and don'ts, you can decide the best course of action.

Nabil Suleiman · Answer

@Daniel Loane

I would really want to ask a few more questions before saying yes or no to certain things, aka; whats your zoning, lot size, Sb9 qualifications, and with this are you committed to short term as your primary goal, if so the questions above can assist in providing those opportunities. Along side the short term goal creating an ADU that is sizable enough for you to rent the front house can always be the next alternative option. My team and I have done different variations of ADU's small multi, and SB9 projects so am happy to help you further if you wanted to dive deeper into it.

Michael Baum · Answer

Hey @Daniel Loane, I think you get the drift of what you can and can't do.

Long term rental is your best bet or maybe a mid term rental.

Just call the city/county to see what they say you can do to get up to snuff. Then decide on how to move forward.

Henry T. · Answer

Nope. But you might get away with living in the garage and renting out the house.

Karen Cravacuore · Answer

I would suggest getting it permitted as an ADU to rent out unless you just need the additional space and would like to keep it as is unpermitted. For permitting however you will have to remove the existing drywall for insulation to meet energy code requirements and new windows/floors. With a detached 2 car garage you have enough space to build a 1 bed/1bath apartment for mid term and/or long term rentals only. ADU's cannot be rented short term.. and if you have the option to provide some outdoor/patio space it'll be even easier to rent out. I have a lot of experience building and permitting ADU's and can connect with you for if you have any more questions.

Use detached garage with permitted bathroom from the 60s as Airbnb?

Use detached garage with permitted bathroom from the 60s as Airbnb?

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