Denver STR Rules - Occupancy Limit?

Question

Howdy - I have a question about STRs in Denver proper - If I buy a home, and occupy the main residence, I understand that per the rules, I can rent out the ADU, no problem, on a STR platform like AirBnB.

But, is there an occupancy limit? For example, do I cap out at renting it out 75% of the time? Or can I theoretically get up to 100% occupancy if I could crush it?

I could not find any occupancy limits in the rules on the county website:

https://denvergov.org/Governme...

Anyone know about this?

James Carlson · Answer

@Scott Trench

There are no limits on the number of days you can Airbnb or STR your Denver home ... that's if it's your primary residence. Denver's short-term rental rules allow you to rent the ADU full time on Airbnb. (You can NOT live in the ADU and rent the main house, however.)

That said ... even for someone like me who thinks regulation is needed for STRs, I think Denver's gone a little bonkers with its enforcement. I have several Denver STR clients who have had the city excise and license department tell them their ADU wasn't permitted correctly, or that their separate basement rental was out of code.

I definitely see newer builds that have new-build ADUs in Denver, and those are obviously permitted and will fit the Denver STR law criteria. Just make sure that if you're buying an older house with an older carriage house that excise and license won't come knocking.

Happy to chat more or put you in touch with people who've run into enforcement issues like this.

Ben Einspahr · Answer

@James Carlson, interesting that you can not live in ADU and rent out primary as STR. Denvers seems to have the most strict STR laws out of all the Denver Metro Cities- almost as if they have one person dedicated to making sure all Denver STR's are following code and have licenses. One of the main reasons I avoid Denver County.

@Scott Trench, yes living in the primary and renting out the ADU as STR is an excellent model while living there. However, what is your business plan after moving out? If you live in the home for 1-2 years but have it as a stabilized rental for 8-10 years, that 8-10 years is much more important from a wealth building prospective than the short one to two years.

When I look at HH's I first look to see if it passes the sniff test of being a stabilized rental. If yes then great, now how does it look as a HH?

Nathan Gesner · Answer

I've never come across a law that says you can only rent a unit XXX days per year. The only occupancy limits I've seen are for the number of occupants at any given time.

As suggested, the easiest solution would be to call the City and ask.

Michael Baum · Answer

Hey @Scott Trench, so there is a couple of things that pop up to me when I did a dive:

Section 33-53 Issuance or Denial

(5)
                  
               
                  Whether the amount of time that the short-term rental has been, or will be, rented
                  within the calendar year indicates the short-term rental is or is not the applicant's
                  primary residence;

So that could be an issue with high occupancy on the ADU. You would have to prove that you were in residence while the ADU was being rented.

That was all I could find about occupancy. Now Article 11 which covers pretty much everything is a long document so I didn't see too muchDivision 11/7 Accessory Use Limitations covers everything about ADU's. It doesn't say anything about occupancy percentages. It doesn't even restrict the size of the ADU (says no maximum) but section 11.8 restricts the ADU's size by lot size to a maximum of 1000sqft if the lot is 7000sqft or more.

Now Section 11.8.10 covers STR's.  J. Shall not be subject to a maximum number of guests per night. Not really occupancy, but?

So I think you are in the clear for occupancy as long as you can prove you are in residence the whole time. There are some interesting provisions about being in residence. If you have another vacation house and you spend a month there with the family, that could have repercussions. It is kinda weird.

Michael Baum · Answer

Well @Scott Trench, I would still give a call to the city to double check. Especially if you find a place as there are multiple zoning sections that overlap and the rules are different. At least that is the way I interpret it. Some of that data could be wrong based on zoning.

Scott Trench · Answer

Thanks! I figured I’m good. I’m considering buying a house with an ADU, and Airbnbing the ADU, consistent with county rules. Just wanted to make sure there were no occupancy limits as I know is the case in other cities.