LA Garage Conversion - ADU/guest house/extra room and AirBnB?

Question

We're in the early stages of planning a garage conversion in Los Angeles. I'm gleaning info from all over the place, but maybe this post can help clear up a few things.

We want to convert our garage to a guest house, extra room, whatever you want to call it. Essentially, we want an extra room with a bathroom and a small kitchen primarily for our own use and for extended family to use. Our detached garage is about 325 square feet now and half of that space was legally converted to a recreation room with a bathroom in the 80s. I want to gut it all and add about 90 additional square feet - 415 sq ft total - for an open space guest suite. But we do want the option to use it as a short term rental in the future.

Do I need to go the ADU route - separate address, utilities, etc? We live in the main house which along with the garage was built in 1927. Does that (and rent control) screw us from renting on AirBnB? I've seen a lot of different answers to this. We wouldn't have any plans to rent the garage conversion out long term, it's just mostly extra space for us.

Or (in theory, if zoning/permits line up) can I convert the garage to a guest suite without the separate address/utilities? Like I'm just adding a new, separate room to the house. And what are the limitations for this? I've seen some comments state that it's all about the kitchen - only a small kitchenette with no stove is allowed (which would be perfectly fine). And if this was all good, couldn't I just rent the space out as a "room" on AirBnB, not a separate residence? Or even rent the room out long term if I ever decided to.

Just trying to get as much info from as many minds as possible before starting the process. Trying to eliminate surprises. Thanks in advance for the advice.

Maina Cioni · Answer

I'm not sure if posting on an older thread will get any replies, but I am also trying to learn what the difference is between a guest house and an ADU? What is the zoning/permit terminology for just a guest house whose utilities are completely attached to the main house.

Will Barnard · Answer

Please note that the link to the article above was written in 2019 and as such, does NOT take into account the new laws passed in CA, i.e. Assembly bill 68, Assembly Bill 881, and Senate Bill 13.

In senate bill 13, it specifically states the following:(i) The accessory dwelling unit may be rented separate from the primary residence, but may not be sold or otherwise conveyed separate from the primary residence.

I have not seen anywhere in this bill or the AB bills where it prohibits or allows prohibition of short term rentals. If anyone can point me to specific language in the laws passed that does so, that would be helpful as I am operating under current knowledge that short term rentals can be had with ADU's.

That said, since the bill does not appear to prevent local municipalities from adopting no short term rental policies, I suppose they can.

Rick Albert · Answer

Hey Matt,

I would talk with an architect to see what your options are.  People converted their garages in the past but it was done illegally. Knowing you can do it the right way now, I would advise against it.

If you convert it into a legal rec room, that would only be a half bath and the City may require you to have two covered parking spots (like a permanent carport).  The City would likely not want you to have any sort of kitchenette and definitely won't want you to have a shower.

Junior ADUs don't have their own address, the owner must live somewhere on the property, and may be less expensive to convert.  However, I don't know if you can use it for Airbnb.  My hunch is no but double check.

Best of luck,

Rick

Matt Wood · Answer

We'd definitely go all electric if we can. We don't have gas out there now, but we do have power and sewer/plumbing in the garage because of the permitted rec room and bathroom.

My biggest question is the ADU designation. If I can't use an ADU as a short term rental, can I use a converted garage guest suite as a short term rental if it doesn't have its own utilities and address?  Can I just convert the garage into an extra room and potentially rent it, just like I would with a spare room in our main house.

Is there a difference between a guest suite and ADU? There has to be. A fair amount of houses in my neighborhood converted their garages years ago for extra space, before the easing of ADU restrictions and the advent of AirBnB. And I see some on AirBnB listed as guest suites. I'm almost certain they don't have separate addresses, they're just extra space they're renting. None of them have full kitchens either - sink, fridge, appliances, but no stove. I've heard the stove can be the deal breaker when it comes to classification as ADU.

In your area, Sherman Oaks, a friend of mine bought a house last year with a completely permitted garage conversion (done by the previous owner a few years ago). It's about 400 sq ft with full kitchen (even a stove), but it doesn't have a separate address or utilities. The square footage is applied to the main house as well. And he is able to rent it legally through AirBnB. So I'm guessing it's just designated as an extra room rather than an ADU. This what I need to get to the bottom of.

Rick Albert · Answer

It is my understanding that you cannot use the ADU for short term rentals in Los Angeles.

https://therealdeal.com/la/2019/10/29/while-you-were-sleeping-la-bans-granny-flats-as-airbnbs/

If you make the ADU all electric (like I did on mine), then you don't need to worry about splitting the gas.  If you want to spend the money, you can split the water.  If you don't, your water rates will go up because now it is considered multifamily.  If you do split it, double check with LADWP but when I spoke to them a year ago they said if the units were split then you wouldn't be subject to the higher rates.

Julie McCoy · Answer

There is an organization in LA that will help you navigate the permitting process and provide some advice/guidance *before* you go to the permit offices and let the cat out of the bag.  I think they mainly help people determine if unpermitted additions can (likely) be made legal or not, but seems like they could be useful in your situation as well.  However, I cannot recall their name, I'm afraid - it's been a few years.  But hopefully knowing they're out there can point you in the right direction!