The Ultimate Guide to ADU Types: Which One is Right for Your Los Angeles Lot?

If you're a Los Angeles homeowner, you've probably heard the buzz about ADUs. Accessory Dwelling Units have become one of the smartest investments you can make on your property: whether you're looking to generate rental income, create space for aging parents, or simply add long-term value to your home. But here's the thing: not all ADUs are created equal, and the right choice for your neighbor might not be the best fit for your lot.
So how do you figure out which ADU type works for you? That's exactly what we're here to help you understand.
At Coleman Build, we believe that every detail matters: especially when you're making a decision that could transform how you use your property for decades to come. Let's walk through the five main ADU types we specialize in and help you discover which one aligns with your space, budget, and lifestyle goals.
What Exactly is an ADU?
Before we dive into the specifics, let's cover the basics. An Accessory Dwelling Unit is a secondary housing unit on a single-family residential lot. It has its own entrance, kitchen, bathroom, and living space: making it a fully functional home within your property.
Los Angeles has become one of the most ADU-friendly cities in California. The city requires no discretionary approvals for most ADU projects, which means you can move forward with your plans as long as you meet established building guidelines. Most residentially zoned lots can build an ADU regardless of size, provided an existing home is already on the property.
Now, let's explore your options.

1. Garage Conversion ADUs
Garage conversions are one of the most popular ADU types in Los Angeles: and for good reason. If you have an existing garage that's primarily being used for storage or collecting dust, converting it into a livable space can be a game-changer.
Why homeowners love this option:
- Lower construction costs compared to building from scratch
- Faster completion timeline since the basic structure already exists
- No loss of backyard space
- Ideal for properties near public transit where parking requirements are relaxed
A garage conversion ADU in LA typically transforms a two-car garage into a comfortable studio or one-bedroom unit. With Metro expansion reducing car dependency in many neighborhoods, more homeowners are realizing their garage space might be more valuable as a rental unit than a parking spot.
This option works especially well in areas like Hollywood, Koreatown, and Mid-City where street parking is readily available and lot sizes can be tight.
2. ADUs Above Garages or Workshops
Want to keep your garage functional while still adding an ADU? Building above your existing garage or workshop gives you the best of both worlds.
This type of ADU: sometimes called a two-story ADU or garage-top unit: maximizes your vertical space without eating into your yard. You maintain parking or workspace below while creating a completely separate living area above.
Key benefits include:
- Preserves ground-level parking and storage
- Offers excellent privacy for tenants since the unit is elevated
- Creates a distinctive architectural feature that can enhance curb appeal
- Often generates higher rental income due to the standalone feel
Building upward does require more structural planning to ensure your existing garage can support the additional load. That's where working with an experienced residential construction team becomes essential. We assess your current structure and determine exactly what's needed to make this vision a reality.

3. Addition ADUs (Bump-Out)
An addition ADU: often called a bump-out: extends your existing home's footprint to create a new attached living space. Think of it as adding a small wing to your house that functions as its own independent unit.
This option is particularly appealing if you:
- Have limited yard space but room to expand your home's footprint
- Want the ADU to feel connected to the main house while maintaining separation
- Plan to use the space for aging parents or adult children who want proximity
Attached ADUs share at least one wall with your primary residence and can reach up to 1,200 square feet under current LA regulations. They're ideal for multi-generational living situations where families want to stay close while respecting everyone's need for independence.
The bump-out approach also allows for creative design opportunities. We can match the addition seamlessly to your existing architecture: or use it as an opportunity to refresh your home's overall look. For inspiration on maintaining design cohesion, check out our guide on how to create a cohesive design throughout your home.
4. Basement Conversion ADUs
If your Los Angeles home has a basement: which is less common here than in other parts of the country but certainly exists: you might be sitting on untapped potential.
Basement conversion ADUs transform below-grade space into fully livable units. This option can be incredibly cost-effective since the shell of the space already exists. The primary considerations involve:
- Ensuring proper egress windows for safety and natural light
- Addressing moisture control and ventilation
- Meeting ceiling height requirements
- Creating a welcoming entrance that doesn't feel like an afterthought
A well-designed basement ADU can feel surprisingly spacious and comfortable. Natural light wells, thoughtful lighting design, and strategic layout planning all contribute to a space that tenants genuinely want to call home.

5. Internal (Carve-Out) ADUs
Sometimes the best ADU opportunity is already inside your existing home. An internal ADU: also known as a carve-out or Junior ADU (JADU): converts part of your primary residence into a separate living unit.
This might involve transforming:
- A large master suite into a studio apartment
- An unused family room or bonus room into a one-bedroom unit
- A section of your home that's become wasted space
JADUs can be up to 500 square feet and require minimal construction compared to other options. They're perfect for homeowners who want to add rental income with the least disruption to their property and daily life.
Internal ADUs shine when:
- Your lot cannot accommodate external construction
- You need a faster, more budget-friendly solution
- You're in an expensive neighborhood where construction costs are high
- You want to provide space for a family member who needs proximity
This option also supports aging-in-place scenarios beautifully. Creating an internal ADU for elderly parents means they can maintain independence while staying close enough for you to provide support when needed.
Choosing the Right ADU for Your Los Angeles Lot
With so many options, how do you decide? Start by considering these key factors:
Available space. Walk your property with fresh eyes. Do you have unused backyard area? An underutilized garage? Rooms inside your home that rarely get used? Your existing space often points toward the most practical solution.
Budget and timeline. Conversions and carve-outs typically require less investment and time than new construction. If you need faster returns, these might be your best bet. Detached or addition ADUs cost more upfront but often generate higher long-term rental income.
Your goals. Are you primarily focused on rental income? Multi-generational living? Future flexibility? A detached ADU maximizes rental potential, while an internal carve-out keeps family close. Think about what matters most to you five, ten, even twenty years from now.
Rental income potential. In high-demand LA neighborhoods, detached ADUs can generate $2,000–$4,000 in monthly rental income. Garage conversions offer lower income potential but faster payback due to reduced construction costs.
Let's Build Something That Works for You
Choosing an ADU type is just the beginning. The real magic happens in the details: the layout that maximizes every square foot, the finishes that attract quality tenants, the design choices that complement your existing home.
At Coleman Build, we specialize in helping Los Angeles homeowners navigate every step of the ADU process. From initial consultation through final walkthrough, we're committed to craftsmanship and communication. Because when it comes to your home, every detail matters.
Ready to explore what's possible on your lot? Reach out to our team and let's start the conversation. Your property has potential (we'd love to help you unlock it.)
