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Get ADU QuoteOr call: (323) 591-3717Accessory Dwelling Units (ADUs) have become a hot topic in Los Gatos, as more homeowners look for ways to add housing, support family members, or generate rental income. But as promising as ADUs sound, many people are surprised by just how difficult and expensive the process can be—even in a town as beautiful and resource-rich as this one.
If you’re thinking about building an ADU, this post is for you. We’ll walk through what’s allowed under current rules, and then get into the real stories and common problems that people in Los Gatos have run into. Nothing here is exaggerated. These are the kinds of issues I hear about regularly—frustrations with utilities, design constraints, neighbor objections, and mounting costs.
Before we dive into the headaches, here’s a quick overview of the local ADU rules:
At first glance, it all seems pretty manageable. But then real life kicks in.
One local couple I spoke within live in the Almond Grove area. They wanted to turn their detached garage into a simple rental unit. It was a pretty basic plan: 1 bed, 1 bath, around 600 square feet. They hired a local architect who knew the town’s process, submitted everything, and waited.
“We were told it would take maybe 8–10 weeks to get through plan review,” they said. “It ended up taking five months.”
What happened? First, the Planning Department requested revisions to match the “neighborhood character,” even though it was in the backyard. Then the Fire Department flagged the need for sprinklers, adding over $10,000 to their budget. Back-and-forth resubmissions stretched everything out.
“It was like we’d finish one hurdle and immediately get hit with another,”, “I work full-time, my wife’s semi-retired—we didn’t have time to babysit it every week.”
Their story isn’t unusual. Even if you follow all the steps, delays are common—especially when multiple departments weigh in.
Another family shared their experience with PG&E when they tried to power their detached ADU near Kennedy Road.
“We were told by our contractor that electric hookup would be maybe $5,000 max.” “PG&E came back saying our street’s transformer couldn’t handle it. We’d need to trench across our property and upgrade the panel—$37,000.”
That quote didn’t include the timeline: six to nine months just to schedule the work.
Their unit was finished but sat empty for weeks because there was no power. They ended up using a generator temporarily just so they could start furnishing it.
This kind of delay isn’t unique to them—PG&E has a reputation for slow turnaround on ADU-related requests, and the costs are often much higher than expected.
Another homeowner wanted to build an ADU for his elderly mom so she could live nearby but still have her own space. He lives in the Blossom Manor neighborhood and hired a design-build firm that gave him a $260,000 estimate.
“Seemed reasonable,” he said. “But by the end, we were closer to $390,000.”
Here’s what added up:
And one of the biggest costs? Time.
“Every delay meant paying the crew for longer. Every surprise meant change orders. It just adds up,” he said. “If I had known, I would have budgeted at least 25% more from the start.”
Even if your plans meet all code requirements, neighbors can still create challenges. Our other client, who lives near Los Gatos High School, had a rough experience when she proposed an ADU above her garage.
“I submitted the plans, everything was legal, and I even checked with Planning ahead of time,” she said. “Then my neighbor got wind of it.”
What followed was months of passive-aggressive behavior—letters to the town, calls to the Planning Department, even objections filed about “sunlight loss” and “privacy concerns.” They ended up modifying her window layout and roof height just to get her project through.
“I still built it, but it wasn’t the design I wanted. And I spent an extra $15,000 on changes,” she said. “We don’t talk anymore.”
Some Los Gatos neighborhoods are subject to stricter design oversight because of historical status. If your home or neighborhood falls under this umbrella, you might find yourself going to extra meetings—or redesigning your project entirely.
A young couple on Glenridge Avenue told me about this after trying to add a small studio above their existing garage.
“The committee was concerned about roofline matching and ‘visual compatibility’ with the 1920s look of the block,” they said. “We thought, ‘it’s behind the house—who cares?’ But it still mattered.”
They ended up hiring a historic preservation consultant and submitting three versions of the design before getting it approved.
“It delayed us about 7 months total,” they said. “In hindsight, we should have just done a ground-level ADU and avoided the height issues.”
Junior ADUs (JADUs) are appealing because they involve interior conversions—typically less construction and fewer headaches. But even these can come with unexpected hurdles.
A homeowner off Loma Alta Avenue, decided to turn part of his house into a JADU for his daughter, who was moving back home after college.
“I thought it would be easy,” he said. “We were just carving out a bedroom and putting in a kitchenette.”
But the town required:
He still got it done, and he’s glad he did. But it ended up costing over $65,000 and taking nearly 9 months from idea to final inspection.
If you’re planning to build an ADU in Los Gatos, go in with a realistic mindset. The rules might seem straightforward, but once you start the process, you’ll realize how many layers there really are—especially around permitting, utilities, design standards, and neighbor relations.
A few quick tips:
ADUs are absolutely worth considering. They can increase your property value, support multigenerational living, and even bring in rental income. But the road isn’t easy—especially in a town like Los Gatos where aesthetics, planning, and infrastructure all carry a lot of weight.
If you’re up for the challenge, go for it—just be ready for the ride.
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