Airbnb-ing an ADU in Los Angeles

Airbnb-ing an ADU in Los Angeles

New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes

Does anyone have any experience airbnb-ing a newly developed ADU in an uncorporated part of LA County? I am aware that ADUs permitted after 2017 can't technically be used for short-term rentals but is there a way around it? or does the city not actually care enough to inspect someone like me?

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Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
5y

You will know soon enough since from my understanding you have to self certify. I would imagine at some point the ruling will be statewide that you cannot use an ADU for STR due to the housing shortage. Therefore I would calculate the risk both ways.

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  • Rental Property Investor · Los Angeles, CA · Member since 2020 · 35 posts · 19 votes
    5y

    The unincorporated parts of the county are still fair game for ADU STRs. I believe that all cities within the county, including the city of LA, do not allow ADU STRs. There was a short term rental ordinance proposed in 2019 for unincorporated areas, but nothing has been passed thus far. Another thing to note is that in all neighborhoods I have researched outside of the unincorporated areas you must reside on the property to make it eligible for STR. If anyone has updated information/corrections please chime in.

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    5y

    @Chris Collins thanks Chris. I will be residing in the main house and Airbnb out the adu.

  • Los Angeles · Member since 2019 · 27 posts · 13 votes
    5y

    I know that for the City of LA you can only do a STR in your primary residence and you have to be living there. An ADU or empty duplex unit, according to the ordinance is not eligible for registration. I also know that Airbnb won't publish a listing without a valid reg #. It's a big bummer. Not sure about other platforms or how to best "evade" the system. People seem to be figuring it out somehow as I still see listings in areas near me (Venice) that supposedly wouldn't qualify. Not sure what applies to unincorporated areas.

    https://planning.lacity.org/or...

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    You will know soon enough since from my understanding you have to self certify. I would imagine at some point the ruling will be statewide that you cannot use an ADU for STR due to the housing shortage. Therefore I would calculate the risk both ways.

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    5y

    @Chris Collins I checked with the city snd they said STR for adu in my area unfortunately

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    4y

    @Chris Collins@Tracey Lane@Rick Albert


    Wondering if i can make my ADU my primary residence (to and then just do nothing with the main-house (on paper) or use it as my home office (i own a small business)

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Marcus Tam

    The concern might be that the main house will be subject to LA Rent Control if built prior to 1978. RSO units cannot be used for Airbnb. At least that’s my understanding.

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    4y

    @Rick Albert that is an excellent point... dont know why i forgot i was in an unincorporate part of la county and not hawthorne haha. 

    would the newly built ADU also fall under RSO? i wont be airbnbing the mainhouse.

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Marcus Tam

    The ADU does not. However, 15 years after it is built it will be subject to statewide rent control.

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    4y

    thats good to hear i have 15 years to play with. do you tihnk my strategy above would work? make the adu my personal residence, airbnb it out and do nothing with the main house 

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Marcus Tam

    As far as I know, the ADU cannot be used for Airbnb, whether you live there or not.

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    4y

    @Rick Albert

    You can Airbnb your adu if it’s your primary residence. I just wasn’t sure if I could do “nothing” with the main house

  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Marcus Tam

    Assuming that info is correct, then I would imagine you are good but check with the housing authority. However that sounds very expensive to leave a house empty.

  • Rental Property Investor · Los Angeles · Member since 2019 · 157 posts · 175 votes
    4y

    The city where my rentals are (in LA county) passed a local ordinance that put a moratorium on short term rentals, all Airbnb listing were changed to 31 night minimums so they were no longer short term rentals and this didn't seem to have any impact on bookings. Possibly an alternative for you but can't say for sure since I just own the properties and don't have any involvement in the operations.  

  • New to Real Estate · Los Angeles · Member since 2019 · 32 posts · 5 votes
    4y

    @David Arsene

    Interesting. Where abouts in la, if you don’t me asking. What was the difference in cash flow?

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