Building an ADU... Steps to securing a permit?

Question

We are adding an ADU to our property as a potential Airbnb project. We checked zoning and it is good to go. We now need to start the permit process with the city but are unclear who to talk to and what to ask. Does anyone have experience with this? Would love a quick run-down on how to start the process.

Dorothy Ma · Answer

@Rebecca Baggett - I know you said you found a builder you like, but having a builder that is familiar with the City of Denver process is sooooo important.  Hiring an architect or builder who is not familiar with Denver process could cost you money and time in delays, not to mention plenty of frustration.  @Mike Garrett had some great feedback if you want to tackle this process on your own.  Go to the link I sent you.  Make sure you have a survey, you can always take the survey in to the city and speak to someone at the zoning counter to have them answer these questions and give you a good idea of the process.  Just be aware the wait is usually long and plan on being there for a few hours.

Dorothy Ma · Answer

Your builder should be the one getting the permits through the city. You'll need drawings (plans, elevations, etc) to submit for permit, I would highly recommend you work with an architect or designer rather than the builder for the drawings unless the builder is design/build. Here is the city website that provides all the info for Permitting process for ADU.

https://www.denvergov.org/content/denvergov/en/denver-development-services/home-projects/building-expanding-a-home/detached-dwelling-carriage-house.html

Matt M. · Answer

I just spoke with the guy that is building a garage for me today about ADUs. He is building them at $125k to start which includes basic finishes, etc(and garage). Let me know if you want his info.

James Carlson · Answer

@Kevin Grinstead

ADU builders I have contacts in Denver who can help build an ADU (or mother-in-law suite, granny flat, whatever you want to call the accessory dwelling unit). The two that I know are opposite ends. One is is a high-end builder who is carving out a niche in ADUs -- even advertising to the small pockets Denver that are zoned for ADUs. The other is a small operation who did a low-fi garage conversion for someone in Sunnyside. PM me if you want those names.

Airbnb laws in Denver/ADUsYes, Denver allows Airbnb or short-term rentals (STRs) only in your primary residence. But in my talks with the excise and license guy who oversees STRs, he has explicitly said that a basement apartment, mother-in-law suite/carriage house are considered accessory uses to your primary residence and can be rented full-time, all-the-time on Airbnb (or VRBO or pick your STR platform). This view has been reinforced at the Short-Term Rental Advisory Committee and is laid out on the city's Airbnb FAQ pageas well.

I work with a lot of buyers who are trying to find that basement apartment because if done right -- good furnishings, well-designed, bright photographs, and good customer service -- you can make a killing doing this on Airbnb.

Rebecca Baggett · Answer

@James Carlson We are planning on renting short-term Airbnb so we can still use it for our out of town guests! We found a builder that we like. However, if it does not work-out, I will definitely ask for your contact.

Mike Garrett · Answer

Hey @Rebecca Baggett, I have a few things that you can ask the potential team members (the city is your team member as well) so that you can be sure that you have the right team assembled.  As far as the city is concerned ask:

What contractors can pull their own permits (called deferred submittals) electrical, mechanical, plumbing?

Is this a over the counter review?

Do you have a process for pre-application meetings? What is the cost/ process?

Can we do preliminary work prior to the permit (any demo or framing of walls)?

What does the inspection process look like?

As far as your design team (I would hire an architect but understand that a house designer is less expensive- but there may be more information left out of the plans) ask:

What kinds of preliminary investigation report do you need to begin design: geotechnical report, wetland biologist report, ALTA survey, title report, etc?

What does the design process look like in your office? (we all have the following phases: schematic design, design development, construction documents, bidding and negotiation, construction administration- you want to know timelines and deliverables)

Do you engage with contractors to provide preliminary construction estimates for your designs? At what phases? (you want the first one after the schematic phase- granted it is super rough, but you will know if you are in the cost per square foot ballpark)

What process do you usually use to find a contractor for a project like this? (architects call this phase procurement or bidding and negotiation)

What is the biggest value that your firm brings to my project?

Do you currently have the capacity to take on a project like this?

How long would the design phase of a project like this take?

Will you put together a proposal that outlines what you provide in each phase, the deliverables, and the cost per phase as well as a total for the project?

Best of luck on this!

Wesley Jeanette · Answer

L&D Construction in Denver has been establishing themselves as great ADU folks. They have been having monthly meetups to answer questions and share knowledge. David Schultz, the owner, actually just finished building one in his backyard. I would highly recommend them.

Kevin Grinstead · Answer

Hi all. Great feed. I know a few people interested in adding an ADU to their property. I would love some construction referrals for those clients.

Does anyone know how ADU's work with the AirBnB rules in Denver? It seems that the ADU wouldn't fit the regulations of AirBnb to be your "Primary Residence"

Matt M. · Answer

I'd get a GC unless you were planning on subbing the entire thing out yourselves and know construction. Maybe @Dorothy Ma can chime in and even help with your project.

A neighbor on one of my projects did one to the tune of $150k.

Building an ADU... Steps to securing a permit?

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