Renting out Nonconforming Duplex Denver

[Eric Buras]

New to posting, but have read forums and podcast for a while. Three of us (engaged couple + sister) are looking to buy a duplex in Denver proper that is zoned U-SUB aka urban single unit as opposed to U-TUB (urban two unit). This duplex has two addresses and is listed in the property description (denver.gov) as a duplex. We believe it is grandfathered in as legally nonconforming. It has been owned by one woman but rented out separately for a while (need more info on prior leases as 12 months of vacancy can terminate legal nonconforming use). We plan to live in both units for a while, but part of the value prop for us is renting out one or both sides down the road. Does anyone have experience with renting out a nonconforming duplex in Denver (or anywhere else similar)? From a lot of research it seems that there are tons of nonconforming multifamily on single family zoned lots. And presumably tons of these are rented out legally. So we think we are safe, but are also consulting experienced agents, lawyers, and the city zoning office.

Thanks!

[James Carlson]

@Eric Buras Never too late to get a new agent ... ;)

Kidding aside, this is a great example of why if you're buying in hot markets like Denver or Colorado Springs and are trying to get creative, you need a solid agent that understands this stuff ... or at least feels comfortable talking to the planner of the day about legal non-conforming uses and zoning. (Yeah, that's a self-serving statement, but it's also true.)

In a lot of cities, a legal non-conforming use is a use that's allowed because it was legal under an old ordinance. I just had this conversation with a planner in Arvada about the new Airbnb laws that allow short-term rental investment properties. I've seen how this played out in Colorado Springs. (They passed a law to allow investors to buy short-term rentals, and just a year later, the city then passed a new law nearly banning the STRs.) The planner of the day was telling me that if Arvada ended up reversing course, STR investment properties would be considered a legal non-comforming use and that as long as there was never a 12-month period of non-use, that will continue to be allowed.

This is all to say, this is likely the case with your non-conforming duplex. But I'd check it out just to be sure. (And yeah, there's a difference between what is allowed and what 9 out of 10 people get away with.)

Good luck!