| Table of Contents |
| 1. What is an ADU? |
2. Benefits of Building a Permitted ADU in Los Angeles |
| 3. A Real ADU Journey in Los Angeles: From Permit to Move-In |
| 4. Common Challenges They Faced |
| 5. Costs & ROI Breakdown |
| 6. FAQ's |
What is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary residential unit built on the same property as a primary home. It can be a converted garage, backyard cottage, basement apartment, or attached suite. ADUs are complete with their own kitchen, bathroom, and entrance, and are designed to provide independent living spaces.
In Los Angeles, ADUs have become increasingly popular as a way to combat the housing crisis, support multigenerational families, or generate passive rental income.
Benefits of Building a Permitted ADU in Los Angeles
✅ Rental Income Potential: Rent your unit legally to offset your mortgage.
✅ Boost in Property Value: A permitted ADU can significantly increase resale value.
✅ Code Compliance: Avoid costly code violations, legal issues, or forced removals.
✅ Safety and Insurance: Permitted units meet fire, seismic, and structural safety codes.
✅ Flexible Use: Great for guests, aging parents, college kids, or home offices.
🏗️ A Real ADU Journey in Los Angeles: From Permit to Move-In
Let’s follow the journey of Karen & Michael, a couple living in Highland Park, Los Angeles, who decided to build a detached backyard ADU on their 5,000 sq. ft. lot.
🔹 Step 1: Research and Planning (Month 1)
Karen and Michael started by:
Researching ADU options online
Attending an LA Department of Building and Safety (LADBS) webinar
Consulting a local ADU designer
They decided on a 450 sq. ft. detached studio unit to be used as a rental property.
Tip: Check your local zoning and talk to professionals early on!
🔹 Step 2: Design and Permit Application (Months 2–3)
They hired a licensed architect to:
Draft plans
Ensure compliance with setback, height, and FAR limits
Submit applications to LADBS and the Department of Water and Power (DWP)
Within 50 days, they received their permit approval (thanks to California’s 60-day rule for ministerial review).
🔹 Step 3: Construction Begins (Months 4–7)
They chose a local ADU builder with experience in LA city codes. The timeline included:
Site prep and foundation: 3 weeks
Framing and roofing: 1 month
Electrical, plumbing, and HVAC: 1 month
Interior finish and inspection: 1.5 months
They passed all inspections by Month 7.
🔹 Step 4: Move-In and Rent-Out (Month 8)
The couple listed the ADU on Zillow and Craigslist, and within a week, had a long-term tenant paying $2,100/month.
They used a portion of the rent to refinance and update their main home—a smart financial move.
⚠️ Common Challenges They Faced
Dealing with utility connection delays from LADWP
Navigating the objective design standards required by the city
Managing material cost increases post-COVID
Coordinating final inspections during the holidays
📊 Costs & ROI Breakdown
| Item | Cost |
|---|---|
| Design + Permits | $9,500 |
| Construction | $160,000 |
| Utility Connections | $6,000 |
| Landscaping + Fencing | $5,500 |
| Total Cost | $181,000 |
| Monthly Rent Income | $2,100 |
| Projected ROI | Full payback in ~7 years |
