Occupancy Code: how to relate to it?

[Grant Shipman]

The Scenario

• My investment specialization is buy-and-hold single family homes with 5-8 bedrooms and rent them out by the room, marketing specifically to professionals (rather than students or section 8). 
• My farm is Loveland, Windsor, & Greeley.
• Occupancy Code in Loveland is no more than 3 unrelated people living in the same single family home.
• Loveland does not require a disclosure of occupancy. (compared to nearby Fort Collins that does). 
• My investment specialization would put more than 3 unrelated adults in the same single family home, so my specialization would violate the occupancy code.

My Questions

• Would Loveland, like nearby Boulder, tolerate single family homes that violate this code for years until finally making them legal through a special permit (housing coops)?
• Could the occupancy code paired with the absence of a occupancy disclosure requirement, be taken as the code is there IF problems are caused due to over-occupancy BUT is ignored if there are no problems?
• Could the above question imply that, as long as I ensure my properties/tenants are not a nuisance to neighbors, I can proceed w/out concern?
• How have other investors in cities across the country related to scenarios like this?
• What BP members have actual experience with this and what do they think? 

My Proposed Plan(please critique)

Disregard the letter of the code and follow the spirit of the code, which is to make sure my investment properties are beneficial parts of the neighborhood not a perceived or actual nuisance in any way due to a higher occupancy.  In time, join efforts to create permits for Loveland and, when permits are available, attain proper permits. 

[Grant Shipman]

I really appreciate everyone who has chimed in so far.  Thank you for taking the time to not only share your knowledge/wisdom, but also taking the time to carefully explain what & why.   

If anyone else has anything helpful to chime in, please do.