Airbnb Your ADU: Short-Term Rental Rules in Los Angeles 2026

Can You Airbnb Your ADU in Los Angeles?

Building an Accessory Dwelling Unit is a significant investment, and many homeowners wonder if they can maximize their return by listing it on Airbnb or other short-term rental platforms. The answer in Los Angeles? It's complicated—but possible in certain situations.

Los Angeles has some of the strictest short-term rental regulations in California, and ADUs face additional restrictions. This comprehensive guide will explain exactly what you can and can't do, the permits required, and strategies to maximize your ADU's rental income.

Los Angeles Short-Term Rental Regulations

Los Angeles implemented its Home-Sharing Ordinance (HSO) in July 2019. The LA Department of City Planning oversees compliance, and violations can result in significant fines.

Key LA Short-Term Rental Rules

Special ADU Restrictions in Los Angeles

Here's where it gets tricky for ADU owners. California Government Code Section 65852.2(d)(1) and LA's local ordinances impose additional restrictions:

What This Means for Your ADU

*Interesting Loophole: If you live in your ADU as your primary residence, you may be able to use your main house as a short-term rental. The ADU becomes your primary residence, and the main house becomes the rentable unit.

The Medium-Term Rental Alternative

While nightly Airbnb rentals are restricted, medium-term rentals (30+ days) are completely legal for all ADUs in Los Angeles. This is actually a lucrative market segment:

Medium-Term Rental Income Comparison

*Hypothetical - restricted to 120 nights/year when not present

Medium-term rentals often target:

• Traveling nurses and healthcare professionals
• Corporate relocations
• Film and entertainment industry workers
• Graduate students and visiting professors
• Families in transition (selling/buying homes)

Platforms like Furnished Finder, Airbnb (30+ day filter), and VRBO cater to this market.

How to Register for Home-Sharing in LA

If you have a qualifying pre-2020 ADU or plan to rent your main house while living in the ADU, here's the registration process:

1. Create account at LA Home Sharing Portal
2. Submit proof of primary residence (utility bills, ID)
3. Provide property information and APN
4. Pay annual registration fee ($89)
5. Receive registration number
6. Display registration number on all listings

Processing time is typically 2-4 weeks. You cannot list the property until registration is complete.

Tax Implications of ADU Rentals

Understanding the tax implications helps you maximize your ADU rental income:

The IRS allows deductions for rental expenses including depreciation, insurance, utilities, repairs, and property management fees. Consult a tax professional for specific advice.

STR Rules in Other LA-Area Cities

Regulations vary significantly across LA County:

Always verify current regulations with your local planning department before assuming STR is allowed.

Strategies to Maximize ADU Rental Income

Even with STR restrictions, you can maximize your ADU investment:

1. Furnished Medium-Term Strategy

• Invest in quality furniture and appliances
• Target corporate housing platforms
• Charge 40-60% premium over unfurnished rates
• Include utilities for simplicity

2. Niche Market Targeting

• Partner with local hospitals for traveling nurses
• List on film industry housing sites
• Contact local universities for visiting scholar housing

3. Premium Amenities

• Private entrance and outdoor space
• In-unit laundry
• High-speed WiFi included
• Keyless entry
• Smart TV with streaming

4. The Owner-Occupancy Strategy

Live in the ADU yourself and use your main house for STR. This is legal because:

• The ADU is your primary residence
• The main house isn't an ADU, so state restrictions don't apply
• You must register under LA's HSO

Enforcement and Penalties

Los Angeles actively enforces STR regulations:

Platforms like Airbnb are required to remove listings that don't display valid registration numbers and share booking data with the city.

Frequently Asked Questions

Can I rent my ADU on VRBO or Airbnb?

If your ADU was permitted after January 1, 2020, you cannot rent it for less than 30 days. Pre-2020 ADUs may qualify under LA's home-sharing rules if it's your primary residence.

What if I don't get caught?

Los Angeles has sophisticated enforcement, including booking data from platforms, neighbor complaints, and address matching. Fines can quickly exceed any rental income, and repeat violations can result in criminal charges.

Can I list for 30+ days on Airbnb?

Yes! Medium-term rentals (30+ days) are fully legal for all ADUs. Set your Airbnb minimum stay to 30 days to comply.

Does the ADU rule apply statewide?

Yes. California Government Code Section 65852.2 prohibits STR for ADUs built under state law, regardless of local ordinances. However, some cities have additional restrictions.

Can I appeal the ADU restriction?

The restriction is state law, not a local rule. It would require legislative action to change. There are no exemptions or appeals available.

Conclusion

While Airbnb-style short-term rentals are restricted for newer ADUs in Los Angeles, there are still excellent income opportunities through medium-term rentals and strategic use of your property. The 30+ day furnished rental market is thriving, often generating comparable or higher net income than nightly rentals.

Key takeaways:

• ADUs built after 2020 cannot be used for STR (under 30 days)
• Medium-term rentals (30+ days) are fully legal and lucrative
• You may STR your main house while living in the ADU
• Registration is required for all LA short-term rentals
• Enforcement is active—comply with all regulations

Need help planning your ADU rental strategy? Our team can guide you through the regulations and connect you with property management resources.