Permitted vs. Non-Permitted ADUs: Key Differences, Risks & Benefits

What is a Permitted ADU?

A permitted ADU is one that has been built or converted in compliance with local building codes, zoning laws, and other regulations. In San Diego, a permitted ADU follows the city’s specific guidelines, ensuring it meets safety standards, structural integrity, and design requirements.

Key Features of a Permitted ADU:

• Building Permits: All necessary permits have been obtained before construction or conversion begins.

• Inspections: The ADU has passed all required inspections during and after construction.

• Compliance with Zoning Laws: The ADU meets local zoning laws, including space, height, and setback requirements.

• Safety Standards: The unit adheres to safety standards, including electrical, plumbing, and fire regulations.

• Legal Rental: A permitted ADU can legally be rented out to tenants or used for short-term rentals (e.g., Airbnb) in compliance with local regulations.

What is a Non-Permitted ADU?

A non-permitted ADU is an accessory dwelling unit that was built or converted without the necessary permits or approval from local authorities. This can happen if a homeowner decides to bypass the approval process to save time, costs, or hassle. However, building an ADU without the proper permits comes with significant risks.

Key Features of a Non-Permitted ADU:

• No Building Permits: The unit was constructed without obtaining required permits.

• No Inspections: The unit has not been inspected for compliance with safety or building codes.

• Risk of Non-Compliance: The ADU may not meet local zoning laws or building codes, potentially violating city ordinances.

• Legal Risks: Renting out a non-permitted ADU may violate local rental regulations, and the unit may not be eligible for short-term rentals like Airbnb.

Pros and Cons: Permitted ADUs vs. Non-Permitted ADUs

Permitted ADUs: Pros

1. Legal Compliance: A permitted ADU is fully compliant with zoning laws and building codes, ensuring it is safe and up to code.

2. Higher Property Value: Having a permitted ADU can significantly increase the resale value of your property.

3. Easier Financing: Lenders are more likely to approve loans or financing for properties with permitted ADUs.

4. Legally Rentable: A permitted ADU can be rented out legally, whether on a long-term or short-term basis (e.g., Airbnb).

5. Insurance Coverage: A permitted ADU is covered by homeowners' insurance in case of damage or liability.

Permitted ADUs: Cons

1. Upfront Costs: The process of obtaining permits and meeting all building code requirements can increase upfront costs and delays.

2. Time-Consuming Process: Navigating the permitting process can take time, especially in busy cities like San Diego.

3. Regulatory Restrictions: A permitted ADU must adhere to strict local zoning laws and building codes, which may limit design options.

Non-Permitted ADUs: Pros

1. Lower Initial Costs: Skipping the permitting process can save money on permits, inspections, and other related expenses.

2. Faster Construction: Without waiting for approval, construction can begin immediately, potentially speeding up the process.

3. Flexibility: Homeowners may have more flexibility in terms of design, size, and layout for a non-permitted ADU.

Non-Permitted ADUs: Cons

1. Legal and Financial Risks: A non-permitted ADU can be subject to fines, forced demolition, or legal action if discovered. It is also impossible to rent out a non-permitted ADU legally.

2. No Protection from Insurance: Without permits, your insurance provider may refuse to cover damage or liability related to the non-permitted ADU.

3. Decreased Property Value: If discovered, a non-permitted ADU could lower your property’s resale value, as potential buyers may view it as a liability.

4. Lack of Protection for Tenants: Renting out a non-permitted ADU leaves tenants vulnerable, as the property may not meet safety standards.

Legal Considerations for Permitted vs. Non-Permitted ADUs

In San Diego, building an unpermitted ADU can lead to significant legal consequences. If authorities discover that an ADU was built without a permit, the homeowner may face fines, forced removal, and a possible lien placed on the property. Renting out a non-permitted ADU can result in eviction of tenants, as well as further penalties.

For permitted ADUs, as long as they are built according to the city’s guidelines and approved permits, there are minimal legal concerns. Homeowners with permitted ADUs can rent out their units legally, and even operate short-term rentals if they meet the necessary requirements.

How to Convert a Non-Permitted ADU to a Permitted One

If you have a non-permitted ADU, there are steps you can take to bring it into compliance with local laws:

1. Consult with a Professional: A licensed contractor or architect can help assess whether your ADU can be brought up to code and what changes may be required.

2. Apply for Retroactive Permits: In some cases, you may be able to apply for retroactive permits. The city will inspect the ADU, and if it meets current building codes, it may be allowed to remain as a permitted structure.

3. Make Necessary Repairs: You may need to make modifications or repairs to bring the ADU up to current building codes.

4. Schedule Inspections: Once the required work is completed, an inspection will be scheduled to ensure the ADU meets all safety and building standards.