Thinking about turning part of your property into steady rental income? In El Dorado Hills, an accessory dwelling unit can be a smart way to add value and monthly cash flow. With California’s pro‑ADU laws and El Dorado County’s homeowner tools, the path is clearer than you might expect. In this guide, you’ll learn the local rules, costs, timelines, and steps to build an ADU designed for long‑term rental income. Let’s dive in.
Why ADUs work in El Dorado Hills
California makes ADUs easier with ministerial approvals, size and setback protections, and limits on certain fees. The state’s ADU Handbook explains the baseline rules you can count on across cities and counties. For a quick overview, review the California Department of Housing and Community Development’s guidance on ADUs and how local standards must align with state law. State ADU basics from HCD.
El Dorado County manages ADUs for unincorporated El Dorado Hills. The county provides checklists, application forms, and pre‑reviewed plan sets that can cut time and design costs. Start with the county’s ADU hub to see what applies to your parcel and how to get your submittal right the first time. El Dorado County ADU page.
What you can build and where
Size, setbacks and height
State law guarantees a path for an ADU up to 800 square feet with 4‑foot side and rear setbacks for many lots. Larger units are often possible depending on zoning, with some parcels allowing up to about 1,200 square feet. Always confirm your parcel’s maximum area and height before you design. State statute reference.
Parking
El Dorado County generally requires one off‑street parking space per ADU unless you qualify for an exemption. Exemptions may include being near transit, converting existing space, or other listed conditions. Garage conversions typically do not require replacement parking. Local parking FAQs.
Utilities and septic/well
If you have public water and sewer, connection and capacity rules are constrained by state law, and fees must be proportional. Properties on septic or well need Environmental Management review, which can require perc tests, capacity reports, and possible system upgrades. Start this process early to avoid costly surprises. Septic and well guidance | State fee rules.
Wildfire, access and sprinklers
Many El Dorado Hills parcels lie in fire hazard zones that trigger added review for defensible space and safe access. An ADU does not require sprinklers if your main home was not required to have them, although the fire district can require them in special cases. Ask your local fire agency about access and hose‑pull distances early in design. County ADU page | State statute reference.
Rental terms and owner occupancy
El Dorado County treats ADUs as long‑term housing. Expect minimum 30‑day rental terms, not short‑term rental use. State law also limits local owner‑occupancy requirements for most standard ADUs, although Junior ADUs often still require an owner occupant. Verify the current rules before you apply. Local rental FAQs | Recent state law summary.
Your step‑by‑step plan
Confirm your jurisdiction. Most El Dorado Hills addresses are in unincorporated county jurisdiction. If a parcel is within the Tahoe Basin, different TRPA rules apply. County ADU hub | TRPA ADU page
Talk with County Planning, Building, and your fire district. Ask about fire hazard zones, access standards, and whether sprinklers are likely. This early guidance shapes your design and timeline. Agency contact list.
Check water and sewer. If you use a septic system or well, start Environmental Management reviews right away and gather required reports. Some sites need capacity upgrades to move forward. Septic and well FAQs.
Choose a design path. Review the county’s pre‑reviewed ADU plans to save time and design expense, or work with a designer for a custom plan if your site needs it. Pre‑reviewed ADU plans.
Coordinate with utilities early. Electrical service upgrades and new meters can carry long lead times. Contact your providers for estimates and scheduling before you submit plans. Utility delay context.
Prepare your budget. Plan for permits, plan check, inspections, possible school fees for units over 500 square feet, proportional impact fees for units over 750 square feet, and any septic, well, utility, or fire mitigation costs. State rules limit certain fees, but project specifics drive totals. State fee rules.
Submit a complete application. Include site and floor plans, energy and solar documents, and any required reports. State timelines can move faster when submittals are complete. County ADU page | Recent state timeline updates.
Permits, timing and costs
State law compresses review timelines, and many complete applications must be acted on within 60 days. El Dorado County also supports quicker processing when you use pre‑reviewed plans and meet objective standards. Actual timelines vary with referrals to fire, utilities, and Environmental Management. County ADU page | State law updates.
Costs span plan check and permit fees, inspections, possible school fees, and utility or septic work. Impact fees are not allowed for ADUs under 750 square feet, and connection fees must be proportional under state law. Construction ranges vary by scope and site conditions, with detached builds commonly in the low six‑figure range and higher when upgrades are needed. Always get project‑specific bids and utility estimates. State fee rules | Context on fire‑related requirements.
Financing your ADU
The CalHFA ADU Grant has provided up to $40,000 for pre‑development costs in previous rounds. Funding is limited and may pause between allocations, so check current status. You can also explore HELOCs, renovation loans, or construction‑to‑permanent options with lenders familiar with ADUs. CalHFA ADU resources | CalHFA homeownership programs.
To save money, consider the county’s pre‑reviewed plans, align the ADU build with other home upgrades, and evaluate a garage or interior conversion if your site allows it. Some local incentives may exist if you agree to certain affordability terms. Confirm details with the county before you apply. Pre‑reviewed ADU plans.
Renting your ADU for income
El Dorado County requires longer rental terms for ADUs, generally a minimum of 30 days. Build your lease, maintenance plan, and utility billing approach around that standard. If you plan to share utility meters, include clear submetering or reimbursement language in the lease. Local rental FAQs.
State law has limited owner‑occupancy requirements for most standard ADUs, which gives you flexibility if you later move. Junior ADUs usually still require an owner occupant. For taxes and insurance, talk with your CPA and insurance carrier about rental income, depreciation, and coverage for a separate unit. Recent state law summary.
Local resources you can trust
- El Dorado County ADU overview and forms: County ADU page
- County pre‑reviewed plan sets: Pre‑reviewed ADUs
- Jumpstart ADU (local nonprofit guidance): Learn the rules
- HCD statewide guidance: HCD ADU Handbook and resources
- CalHFA financing and grant updates: CalHFA ADU resources
- Fire districts and special districts: County district contacts
Ready to map out your ADU strategy, including rent projections and resale value impacts? Reach out for local guidance that puts your goals first. Connect with Tiegen Boberg to get started.
FAQs
Are short‑term rentals allowed for ADUs in El Dorado Hills?
- No, ADUs in El Dorado County are intended for long‑term housing and typically require minimum 30‑day rental terms. Local rental FAQs
Do I need to live on the property if I add an ADU?
- State law limits owner‑occupancy rules for most ADUs, while Junior ADUs often require an owner occupant, so confirm current county practice before you apply. Recent state law summary
Will an ADU force sprinklers in my main home?
- Generally no, adding an ADU does not trigger sprinklers for the primary dwelling, though the fire district may require ADU sprinklers in special cases. State statute reference
Can I build an ADU if I’m on a septic system?
- Possibly, but you will need perc tests and capacity reviews, and some parcels require system upgrades or may not pencil without them. Septic and well guidance
How long do ADU permits take in El Dorado County?
- With complete plans and pre‑reviewed designs, many applications move within 30 to 60 days, but referrals and site conditions can extend timelines. State law updates
