
If you own an accessory dwelling unit (ADU) in Los Angeles, you may be wondering whether you can list it on Airbnb or VRBO for extra income.
The short answer is no, you cannot legally use an ADU as a short-term rental in Los Angeles. The City's Home-Sharing Ordinance specifically excludes ADUs from short-term rental eligibility, and California state law adds further restrictions on newer units.
Below, we break down the current rules so you know exactly where you stand and how to maximize your ADU investment through legal rental strategies.
If you're unsure of how to plan your ADU so that it will provide you with decades of rental income, the Design Services team at LADU can help. Once we understand your vision and long-term goals, we'll plan and design a custom ADU that will exceed your expectations.
With LADU, streamlined permit approvals, faster construction timelines, and beautiful results are standard, and satisfaction is guaranteed. Call (213) 855-3334 to speak with an ADU expert or schedule your free site visit today.
What Is Considered a Short-Term Rental in Los Angeles?
A short-term rental (STR) is any residential rental of 30 consecutive days or fewer. This includes listings on Airbnb, VRBO, Booking.com, and similar vacation rental platforms.
The City of Los Angeles regulates these stays through its Home-Sharing Ordinance (HSO), which sets strict eligibility requirements for hosts.
Los Angeles Home-Sharing Ordinance: Why ADUs Are Excluded
The Home-Sharing Ordinance is the primary law that governs short-term rentals in the City of LA. Under the HSO, only a host's primary residence qualifies for short-term rental use.
To be eligible, a host must live in the home for at least six months per year and may operate only one home-sharing unit at a time.
ADUs are explicitly excluded from eligibility. Even if you live in the main house on the same property, your ADU does not qualify as your primary residence for home-sharing purposes. This prohibition applies to all ADUs regardless of when they were built or permitted.
Key rules under the HSO:
- Primary residence only: Hosts must live in the unit being rented short-term for more than six months per year.
- One unit at a time: You may only operate one home-sharing listing at a time.
- 120-day annual cap: Un-hosted short-term rental nights are limited to 120 per calendar year, but this cap only applies to eligible primary residences, never to ADUs.
- Registration required: All legal STR hosts must register with the City of LA, obtain a Host Registration Number, and display it on every listing.
- Transient Occupancy Tax (TOT): A 14% tax applies to all stays of 30 nights or fewer. Hosts must obtain a TOT Registration Certificate or use a platform that collects the tax on their behalf.
- Per-night enforcement fee: Platforms collect a $3.20 per-booked-night fee on behalf of the City.
- RSO and income-restricted units barred: Units covered by the Rent Stabilization Ordinance or designated as income-restricted housing are also ineligible.
California AB 2533: Additional Restrictions on New ADUs
California Assembly Bill 2533, signed into law in 2024, adds a statewide restriction on ADUs built after January 1, 2025. Under AB 2533, newly constructed ADUs cannot be used as short-term rentals for at least the first year after receiving a Certificate of Occupancy.
This law applies even in cities that might otherwise allow ADU short-term rentals, which reinforces the state's intent to preserve ADUs as long-term housing.
In Los Angeles, this law layers on top of the existing HSO prohibition, meaning ADUs are restricted both by local and state regulations.
What About Junior ADUs (JADUs)?
Junior accessory dwelling units (JADUs) face the same restrictions as standard ADUs in Los Angeles. A JADU cannot be listed on Airbnb or any other short-term rental platform. The same primary residence requirement applies, and a JADU does not qualify.
City of LA vs. Unincorporated LA County
It is important to distinguish between the City of Los Angeles and unincorporated areas of LA County, as they operate under different regulatory frameworks:
- City of Los Angeles: ADUs are prohibited from STR use under the Home-Sharing Ordinance. Registration and permitting are managed through the Los Angeles Housing Department (LAHD).
- Unincorporated LA County: The County has its own short-term rental registration and permit system managed through the Treasurer and Tax Collector. While some unincorporated areas allow STRs with proper permits, ADU-specific exclusions typically still apply. Always verify with the County planning department.
- Other cities (Pasadena, Glendale, etc.): Most surrounding municipalities maintain similar ADU short-term rental restrictions aligned with the City of LA's policies.
ADU Airbnb Enforcement and Penalties
Los Angeles actively monitors short-term rental platforms for compliance. The City uses automated systems to cross-reference listings with permit databases, making illegal ADU rentals detectable. If you list an ADU as a short-term rental, you risk:
- Fines ranging from $500 to $12,000 per violation
- Mandatory listing removal from platforms
- Potential legal action requiring immediate cessation of the illegal activity
- Loss of future permitting eligibility
The City requires hosts to maintain booking records for three years, and platforms are required to share data with enforcement agencies.
Legal Ways To Earn Income From Your ADU
While short-term rentals are off the table, ADUs remain one of the best investments a Los Angeles homeowner can make. Here are your legal options:
- Long-term rentals: Lease your ADU for 30 days or longer. Depending on size and location, how much rental income you can earn from an ADU in Los Angeles ranges from $1,500 to $3,500 per month or more.
- Medium-term furnished rentals: Furnished rentals of 30+ days are fully legal and can command higher per-night rates than traditional leases. These are popular with traveling professionals, medical workers on rotation, and relocating families.
- Dual-income strategy: Rent your ADU to a long-term tenant while using your primary residence for Airbnb within the 120-day annual cap. This approach lets you earn income from both units while staying fully compliant.
- Multigenerational housing: Use your ADU for family members while maintaining your primary home's rental flexibility. Learn more about building an ADU for multigenerational living.
Before renting your ADU at all, make sure it has a valid Certificate of Occupancy from LADBS, working smoke and carbon monoxide detectors, and meets all habitability standards.
To learn more about ADU costs and whether the investment makes sense, see our guide on how much it costs to build an ADU in Los Angeles.
Build Smarter: Design an ADU That Maximizes Legal Income
If short-term rentals aren't allowed, the real opportunity lies in designing an ADU that performs within the rules.
The most profitable units in Los Angeles are intentionally built to attract long-term or 30+ day tenants, with smart layouts, private entrances, and features such as in-unit laundry or outdoor space that boost rental value.
Just as important, a well-designed ADU gives you flexibility as your needs change over time.
LADU can help you design and build an ADU that's optimized for income, efficiency, and long-term value.
If you're planning an ADU and want to make sure your project is set up for maximum ROI, schedule a free site visit with LADU today or call (213) 855-3334 to speak with an ADU expert.
Frequently Asked Questions About Accessory Dwelling Unit Airbnb Rentals
Can I Airbnb my ADU if I live in the main house?
No. The City of LA requires the unit being rented short-term to be the host's primary residence. An ADU does not qualify regardless of whether you occupy the main dwelling on the same property.
Does the age of my ADU affect its Airbnb eligibility?
No. Whether your ADU was built in 1980 or 2025, the same prohibition applies under the Home-Sharing Ordinance. Additionally, ADUs built after January 1, 2025 face extra restrictions under California AB 2533.
What if my ADU is in unincorporated LA County instead of the City of LA?
Rules differ by jurisdiction. Unincorporated LA County has its own STR permit system, but ADU-specific exclusions generally still apply. Contact the County planning department to confirm the rules for your specific location.
Can I rent my ADU as a medium-term rental (30+ days)?
Yes. Rentals of 30 days or longer are not considered short-term rentals and are fully legal for ADUs in Los Angeles. Many ADU owners earn strong returns through furnished 30-day-minimum leases.
What happens if I list my ADU on Airbnb anyway?
You face fines of $500 to $12,000 per violation, mandatory listing removal, and potential legal action. The City actively monitors platforms and cross-references listings with permit databases.
Contact us or schedule a free consultation to learn more about financing an ADU on your property.