Short answer: Before you write an offer on a Redondo Beach house with an ADU, confirm six things: the unit is permitted and finaled in City records, how it is metered and addressed, what the City's rental rules allow (no stays shorter than 30 days, per the City's ADU page, October 2026), how your insurer covers it, how your lender and appraiser treat it, and how you plan to use it.
I am about to co-list a new-construction home in Redondo Beach with Jenna Christensen of Compass: a 4 bed, 4 bath main house plus a 2 bed, 2 bath ADU. You can follow it at beckyhomes.com/new-construction. Getting it ready meant reading the City's ADU rules line by line, and the same questions apply to a garage conversion as to a new detached unit.
Here are the six questions I ask before a client offers.
1. Is the ADU permitted, and was the permit finaled?
A listing that says "ADU" does not tell you whether the City agrees. Start with the City of Redondo Beach Building and Safety permit search, which is online. Look for the ADU permit, the inspections and the final. For new construction, ask for the certificate of occupancy. If the records are thin, ask the seller for plans.
The Planning Division is at 415 Diamond Street, (310) 372-1171. I do this before contingency removal, not after. An unpermitted unit changes what your lender, appraiser and insurer will do with it, and it changes what the seller has to disclose.
2. Does the ADU have its own meters and address?
Ask four specific questions and write down the answers:
- Is there a separate electric meter, or does the ADU run off the main panel? If shared, how big is the panel and how is the bill split?
- Is gas and water separately metered, or shared?
- Does the unit have its own address or unit letter with the City and the post office, and its own mailbox?
- Separate internet, or a shared router?
None of these make or break a purchase. They decide how easy it is to rent the unit later and how you split costs. Shared meters get complicated with a tenant.
3. What do Redondo Beach's ADU rules say about renting it?
The City of Redondo Beach publishes its ADU rules on its Planning Division ADU page. I pulled these on October 29, 2026:
| Rule | What the City's ADU page says |
|---|---|
| Short-term rental | "ADUs cannot be rented for stays shorter than 30 days." |
| Current ordinance | Ordinance No. 3264-23, which amended the earlier Ordinance No. 3210-20 |
| State law | California Government Code Section 66310 et seq. |
| Review time | 60 days for a complete application; streamlined approvals need no public hearing |
| Streamlined detached ADU, single-family lot | New construction up to 800 sq ft, 16 ft height baseline or 18 ft near transit, 4-foot side and rear setbacks |
| Junior ADU | Inside the house, no larger than 500 sq ft, with a recorded deed restriction |
| Coastal zone | Coastal Act policies still apply; the City cites California Coastal Commission ADU guidance dated July 1, 2026 |
The 30-day rule is the one buyers most often get wrong. If your plan depends on nightly rentals, the City's page says no. Also ask the Planning Division whether any owner-occupancy covenant or deed restriction is recorded against the lot. Rules change often, so read the City's current page, not the listing description.
4. Will your insurance cover two households on one lot?
Call your insurer before you remove contingencies and ask in writing: is a detached unit covered under the main policy, or does it need its own schedule? If a tenant lives there, do you need landlord coverage, and will the insurer require the tenant to carry renter's insurance? I have seen quotes change once an insurer learns there is a second kitchen on the lot, so ask early.
5. How will the lender and appraiser treat the ADU?
Two different people answer this. The appraiser decides what the ADU is worth to the property. The lender decides whether the ADU's rent can help you qualify.
On the appraisal side, ask your lender how the appraiser will count the unit. Appraisers need closed sales of comparable homes with ADUs, and in some neighborhoods those are scarce, which can leave the appraised value below what the list price assumed for the ADU.
On the income side, Fannie Mae's Selling Guide section B3-3.1-08, updated September 2, 2026, says rental income generally cannot be used to qualify when it comes from the home you live in, then carves out an exception for rental income on principal residence properties with accessory units. Whether your loan allows it is your lender's call. Ask before you offer.
6. Who will live in each unit, and what happens when that changes?
Write your plan down. The common ones I see are a parent in the ADU, an adult child, a long-term tenant, or an office that may become a rental later. Each one leads to different questions: lease terms and the 30-day minimum for a tenant, accessibility and a step-free entry for a parent, soundproofing and separate outdoor space for anyone.
Then plan for change. If a tenant is in place when you sell, the lease and California tenant rules follow the property, so talk with an attorney before you sign one. If a parent moves out, can the unit be rented under the City's rules? The 4 bed, 4 bath plus 2 bed, 2 bath home we are bringing to market was designed for that kind of change.
Questions I get asked
Can I sell the ADU separately from the house later?
In most cases, no. The house and the ADU sit on one parcel under one deed, and the City's ADU page does not describe a program for separate sale. State law has changed in this area more than once, so if a separate sale matters to your plan, ask the Planning Division and a real estate attorney before you buy, not after.
Is a converted garage an ADU?
Only if the City permitted it as one. A garage with a bed and a hot plate is a garage with a bed and a hot plate. Check the permit history for a conversion permit, a final inspection, and whether the unit has a kitchen, bathroom and its own entrance. Also ask where the cars park now, since the conversion removed the covered parking.
Should I inspect the ADU separately?
Yes. Have your general inspector treat it as a second house: its own water heater, electrical panel capacity, plumbing connections to the main sewer line, drainage around a new slab, and smoke and carbon monoxide detectors. For a garage conversion, pay attention to insulation, moisture at the old slab, and how the roof and gutters were tied in.
If you are looking at a Redondo Beach property with an ADU, send me the address and I will pull the permit history with you before you write. Start at beckyhomes.com/buyers.
This post is general information, not legal, tax or lending advice. Talk with a California real estate attorney, CPA or lender about your situation.
Becky Davidson is a REALTOR® with Estate Properties in Riviera Village, Redondo Beach (DRE# 01894087). She has lived in the South Bay since 1993, taught elementary school before earning her license in 2011, and has sold 240+ homes and $205M+ across the South Bay and Los Angeles. She lives in Seaside with her husband and daughter and often co-lists homes with her mother, Jenna Christensen of Compass (DRE# 01341901). Call or text 310.920.9287.
