If you own a home in Encino, you are sitting on one of the most valuable pieces of real estate in the San Fernando Valley. But are you getting the most out of your lot? Building an Accessory Dwelling Unit (ADU) is the smartest way to add square footage, increase your overall property value, and create a brand-new living space without the hassle of moving.
At Silver Hammer Builders, we specialize in designing and building custom ADUs tailored specifically to Encino properties.
Why Build an ADU in Encino? Unlocking Your Property’s Potential
Adding an ADU is a major investment, but the financial and personal payoffs are massive. Here is why so many of your neighbors are choosing to build.
Maximize Rental Income in the San Fernando Valley
The demand for high-quality housing in the Valley is higher than ever. By adding an ADU to your backyard, you create a dedicated, private rental unit right on your property.
This allows you to generate significant passive income every single month. Many of our clients easily use this new rental income to pay down their mortgages faster or fund their retirements.
Multi-Generational Living & Luxury Guest Houses
Encino is known for its beautiful, sprawling estates and larger lot sizes. This makes it the perfect location for building a luxury guest house. Whether you want to keep aging parents safely close by or give adult children their own independent space, an ADU offers the perfect balance of family connection and total privacy. We design high-end units that perfectly match the architectural beauty of your main home.
Types of ADUs We Build for Encino Homeowners
Every property is unique, and so are your goals. We offer several different ADU options to perfectly fit your space and your budget.
Detached ADUs (Perfect for Large Encino Lots)
A detached ADU is a standalone structure built entirely separate from your main house. Because many Encino homes sit on larger, spacious lots, this is our most popular option.
It offers maximum privacy and feels like a completely separate, single-family home. It is the absolute best choice for a rental property or a private home office.
Garage Conversions (The Most Cost-Effective Option)
Do you have an old garage that is just collecting boxes and dust? Converting your existing garage into an ADU is the fastest and most budget-friendly way to add a living space.
Because the foundation, roof, and walls are already in place, we can transform the structure into a beautiful, functional apartment in a fraction of the time.
Attached ADUs & Junior ADUs (JADUs)
If you do not want to build a separate unit in your backyard, we can add an attached ADU by building a seamless extension onto your main house.
Alternatively, a Junior ADU (JADU) involves converting an existing space, like an attached garage or a large master suite, into a smaller, independent living area with its own private entrance and kitchenette.

Navigating City of Los Angeles ADU Regulations in Encino
Building an ADU is not just about construction, it is about navigating local laws. Many contractors struggle here, but our deep local expertise ensures your project moves forward without a hitch.
Zoning, Setbacks, and Permitting in 91316 & 91436
Because Encino falls under the jurisdiction of the City of Los Angeles, your new ADU must strictly follow LA’s specific building codes. Dealing with the Los Angeles Department of Building and Safety (LADBS) can be overwhelming and frustrating for homeowners.
Fortunately, we handle the red tape for you. We know exactly what the city requires for property setbacks (which are now typically just 4 feet from the side and rear property lines) and lot coverage limits in local zip codes like 91316 and 91436.
Our team manages the entire architectural and permitting process, ensuring your project gets approved faster and is 100% code-compliant from day one.
The Silver Hammer Builders ADU Construction Process
Building a new home in your backyard might sound stressful, but we make it incredibly easy. We handle the entire project from the first sketch to the final coat of paint. Here is our proven, stress-free process.
Step 1: Free Site Evaluation & Feasibility Study
We start by visiting your Encino property. We look at your lot size, check where your utility lines run, and assess your backyard access. We listen closely to your goals and tell you exactly what is physically and legally possible for your space.
Step 2: Custom Architectural Design & Engineering
You do not have to settle for a boring box. Our talented design team will create a custom floor plan that matches your vision and the style of your main house. We also handle all the heavy structural engineering math to ensure the building is safe and energy-efficient.
Step 3: City of LA Plan Check & Permit Expediting
Dealing with the city permit office takes time, patience, and technical knowledge. We submit all the blueprints to the Los Angeles Department of Building and Safety (LADBS) on your behalf. We manage all city communications and revisions to get your permits approved as quickly as possible.
Step 4: Seamless Construction & Final Handoff
Once the city says “yes,” our expert building crews get to work. We pour the foundation, frame the walls, run the plumbing, and install the beautiful final finishes. When construction is complete and the city passes the final inspection, we hand you the keys to a move-in-ready ADU.
How Much Does an ADU Cost to Build in Encino?
Because every ADU is custom-designed, the final price depends on the size of the unit and the quality of the finishes you choose.
- Garage Conversions: This is your most affordable option. Converting a standard two-car garage in Encino usually starts between $90,000 and $120,000.
- Detached New Construction: Building a brand-new, standalone unit from the ground up involves laying a new foundation and running new utility lines. These projects typically range from $150,000 to $300,000+ depending on the square footage and luxury details.
While the upfront cost is a significant investment, the return on investment (ROI) is incredible. A high-quality ADU instantly boosts your property’s resale value.
Ready to Transform Your Backyard? Contact Encino’s Premier ADU Contractors
Adding an ADU is one of the smartest financial moves you can make as an Encino homeowner. But you should not trust your backyard to just anyone. You need a local builder who understands City of LA zoning, strict building codes, and high-quality craftsmanship.
At Silver Hammer Builders, we turn empty backyards and dusty garages into beautiful, income-producing homes. Contact us today to schedule your free site evaluation and let’s start building your dream space!
Frequently Asked Questions
Can I build a two-story ADU in Encino?
Yes! The City of Los Angeles allows two-story ADUs in many residential zones, usually with a maximum height limit of 25 feet. However, specific neighborhood rules or property lines might affect your exact design. We can check your property’s zoning to be 100% sure.
How long does it take to get ADU permits in the City of LA?
On average, getting an ADU permit approved by LADBS takes anywhere from 2 to 6 months. If you use a highly custom design, it takes a bit longer for the city to review the engineering. We actively expedite this process for you.
Do I need to provide extra parking for my ADU?
Usually, no. If your Encino home is located within half a mile of public transit (like a major bus stop), California state law waives the parking requirement. Most properties in the Valley easily meet this rule, saving you precious yard space.



