Renting out Your Granny Flat in Los Angeles

If you are a homeowner in Los Angeles with a garage, you are looking at a potential money-making opportunity on your own property. That garage could easily be converted into a granny flat and rented out, making you money while helping with the housing crunch in the process.

Granny flats, or accessory dwelling units (ADUs), are a great way to monetize your property. And the best part about it, the process has become much easier for homeowners. Recent legislation has streamlined the process of converting your garage into a granny flat, or ADU. It’s never been easier to do, so what are you waiting for?

How much can I charge to rent my granny flat in Los Angeles?

The average rent for a granny flat is about $1700 in Los Angeles. After monthly expenses, including utility fees and upkeep costs, you can expect to net about $860 from your rental. However, how much you charge will depend on a few factors:

• Location: Check out the rentals in your area, especially one-bedroom and studio apartments. This will give you an idea of how much you can charge for your granny flat.

• Size: How big is your granny flat? If you have a single-car garage, that will rent for less than a two-car garage. 

• Attached or Detached?: Another thing to consider in pricing out your ADU is whether your garage is attached or detached.

While you may want to reference the rental prices in your neighborhood, you can also talk to a real estate agent about how much you can charge for your granny flat. Overall, you will be making money off this investment every month.

Will my Granny Flat in Los Angeles be under rent control?

The simple answer is...no. Your granny flat will not be eligible for rent control for at least 15 years after you build it.

Some homeowners decide to live in their granny flat and rent out their main house. In that case, if your main residence was built before 1978, it does qualify for rent control. That means, you can only raise the rent 5 percent per year, plus the local rate of inflation. 

The cities of Los Angeles, Santa Monica, West Hollywood, Inglewood, and Beverly Hills currently have their own rent control laws. It’s a good idea to check with the city or a real estate professional to better understand what rent control regulations your residence would fall under. 

How do I convert my garage to a granny flat in Los Angeles?

When considering converting your garage into a granny flat, please keep in mind that this is a major construction project that will take a few months to complete. With that in mind, there are certain steps that are involved in the planning of converting your garage into a granny flat. 

1. Design: Work with an architect to design your granny flat. This is when you decide if you want to go with a one-bedroom granny flat or a studio apartment. You get to decide how to lay out the kitchen, bathroom, and living areas. While you may build within the confines of your current garage, you may also change your mind during this phase.  

2. Pull Building Permits: Once you have your architectural designs in place, you will submit them to the Building and Safety department of your city. Once your plans are approved, you will be ready to go! But be warned -- the permitting process could take up to 4 months waiting for the city to get back to you.

3. Hiring general contractor: Once your building permits have been approved, it’s time to get started! Work with a licensed and bonded contractor to convert your garage. Be sure to consult with more than one contractor before settling down. Also, ask to see projects they are currently constructing to get a feel for the kind of work the contractor does. In addition, check references before getting started with a contractor. It takes a little extra work doing all these background checks, but it can save you from major headaches later on. 

What is the construction process in converting my garage to a Granny Flat in Los Angeles?

Once you have all these planning steps out of the way, it’s time for construction to begin! What can you expect when the construction crew descends upon your garage? 

1. Plumbing, footings, and foundations: Your new granny flat is only as strong as its foundation. That’s why the first thing your crew is going to do is to make sure your garage foundation is solid before getting started. If your foundation isn’t solid, you may have to repair or replace it. Your contractor is also going to check your footings. Footings support your foundation and the walls of your structure, so you want to make sure these are as well-built as possible. Your garage probably already has footings, but your contractor will make sure your footings will support your granny flat. During this process, your contractor will also start installing the major plumbing for your new dwelling.

2. Framing: This is where your granny flat starts to take shape. While you may be able to use the existing walls of your garage, you may also need to tear down those walls and rebuild new framing. 

3. Electrical: Your garage may already have some minimal electrical system in it, but it probably is not enough for a studio or one-bedroom apartment. Your contractor will rewire your structure to support the dwelling. 

4. Finish plumbing and water lines: Before any walls are installed, your contractor will install the rest of the plumbing and water lines.

5. Insulation/Drywall: Once the electrical and water lines are fitted, it’s time to install the insulation and drywall. This is when the dwelling will start to look less like a construction project and more like the actual granny flat with interior walls.

6. Paint/Finishing Touches: Once the walls are up, it’s time for the finishing touches. Choose your paint, your kitchen amenities, bathroom features, and other design details like a breakfast nook or even a Murphy bed.

Please note that throughout the entire construction process, a city inspector will be checking in on the project. The city inspector will have to check off on each step of the process before you can continue on to the next. 

Ready to convert your garage into a granny flat? Call the professionals at Granny Flats Design at 818-532-0482. We can help you through the entire process, from design to funding to construction.