Accessory Dwelling Units (ADUs) are residential units that can be added to single-family homes in California, providing additional living space for various needs and generating rental income. State laws encourage ADU construction by streamlining approval processes and limiting local regulations on size, parking, and utility fees. Local guidelines vary; for instance, Glendale allows a maximum 500 square feet, while Los Angeles permits up to 1,200 square feet without a homeowner covenant.