Can I rent out my ADU on Airbnb?
Answered by Netanel Presman, General Contractor (CSLB #1105249) · Updated
Short answer
It depends on the city. Many jurisdictions that legalized ADUs prohibit short-term rental (under 30 days) of that specific ADU. Los Angeles requires both a Short Term Rental Registration and a Home Sharing permit, and the LA ADU must be the host's primary residence to qualify. Other cities (San Francisco, Portland, NYC) have stricter rules or outright bans on short-term ADU rental.
In detail
Short-term rental (STR) rules are set at the city level, not the state level, and they are the single most enforced restriction on ADU use.
Los Angeles — Under the Home Sharing Ordinance, the property must be the host's primary residence (meaning the host lives there at least 6 months per year), the host must register with LA Housing + Community Investment Department, and the ADU must have a valid Certificate of Occupancy. Non-primary-residence STRs in LA are prohibited. Penalties for unpermitted STRs include fines up to $2,000 per violation and removal from Airbnb's LA listings.
San Francisco — STR is prohibited in in-law units and ADUs that were legalized under the Accessory Dwelling Unit Ordinance unless registered with the Office of Short-Term Rentals.
New York City — Local Law 18 (2023) prohibits most stays under 30 days unless the host is present and registered.
Portland, OR — Type A short-term rental permit requires primary residence + occupancy tax registration.
Check before you build — Your city's STR ordinance will usually be administered by a housing or planning department separate from the building department that issued your ADU permit.
Financial reality: most ADU economics work at standard long-term rental ($2,000-$4,500/month in LA depending on size). STR income can be higher gross, but subtract 15-25% for the platform fee, 15-25% for cleaning and turnover, plus tax compliance load and vacancy seasonality — and the premium over long-term rental shrinks considerably.
AskBaily's ADU scoping asks whether you intend long-term or short-term rental and flags the applicable city rules up front so the build can include the requisite egress, fire separation, and parking that STR regulations often require.
Sources
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