Homeowners throughout Los Angeles County are increasingly adding Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) to their properties as a way to generate rental income, increase property value, or house family members.
But one of the most common questions we hear at Boutique Property Management is:
“If I build a JADU on my property, does my main house become subject to the Los Angeles Rent Stabilization Ordinance (RSO)?”
The answer depends on several important factors — including when your main home was built, how the JADU is constructed, and whether your property becomes classified as a multi-unit rental under Los Angeles Municipal Code (LAMC).
Let’s break it down.
Understanding the Los Angeles Rent Stabilization Ordinance (RSO)
The Los Angeles Rent Stabilization Ordinance, commonly known as RSO, applies to most rental properties built on or before October 1, 1978 that contain two or more dwelling units on the same parcel.
If your property consists of only one single-family residence, it is generally exempt from RSO. However, once you add a second dwelling unit—such as an ADU or JADU—your property may lose its single-family exemption and become subject to rent control.
How ADUs and JADUs Affect RSO Coverage
The Los Angeles Housing Department (LAHD) provides specific guidance on how adding an ADU or JADU can change the RSO status of your property. Here’s how it typically breaks down:
1. Detached ADU or JADU
If the accessory unit is fully detached from the original home:
- The new unit is usually not subject to RSO (since it was built after 1978).
- However, if your main house was built before October 1, 1978, it may now become subject to RSO because the property now has two units on the same parcel.
2. Attached ADU or JADU
If the new unit is attached to the main residence:
- The original structure (if built before 1978) will fall under RSO regulations.
- The newly added attached unit is typically exempt from rent stabilization but may still fall under Just Cause eviction protections.
3. Interior Conversions or Carve-outs
If you convert part of your existing home into a JADU—for example, transforming a large bedroom or garage into a self-contained unit—then both the main house and the JADU may be subject to RSO regulations if the home was constructed before 1978.
What This Means for Property Owners
If your main dwelling was built before 1978, adding a JADU or ADU could change the property’s classification and bring it under RSO coverage.
That means your rental will now be subject to:
- Annual rent increase caps
- Mandatory registration with LAHD
- Strict eviction procedures
- Additional tenant protections and disclosure requirements
If your home was built after October 1, 1978, you’re likely exempt from RSO but may still be covered under California’s statewide rent cap (AB 1482) or the Los Angeles Just Cause Ordinance (JCO).
Example: Pre-1978 Home in Los Angeles
Imagine your main house was built in 1965 and you decide to add a 400-sq-ft JADU within the structure. Because the property now contains two residential units on a single parcel, the main home becomes subject to RSO.
While the new JADU itself is likely exempt, both units would still need to comply with the City’s Just Cause and tenant protection rules.
Key Takeaways for Homeowners
- Adding a JADU can trigger RSO coverage if your home was built before 1978.
- Detached ADUs may not be rent-controlled themselves but can still cause your main house to become subject to RSO.
- Newer properties (built after 1978) are usually exempt from RSO, but still regulated under state rent control and eviction protections.
- Always check your property’s Certificate of Occupancy and confirm your RSO status with the Los Angeles Housing Department before listing any units for rent.
Final Thoughts
Building an ADU or JADU is one of the best ways to increase your property’s income potential in Los Angeles County. However, it’s critical to understand how doing so could change your property’s legal status under local rent stabilization laws.
At Boutique Property Management, we help homeowners and investors navigate RSO compliance, registration, and leasing — ensuring you stay protected, profitable, and fully compliant with Los Angeles housing laws.
📞 Schedule a Complimentary Consultation
If you’re considering adding an ADU or JADU to your Los Angeles property, contact Allen Brodetsky directly at (818) 696-4498 or visit BoutiquePropertyMgmt.com for a complimentary consultation on RSO compliance and property management strategies.