STR Regulation Questions

[Dana Nicole Webster]

Hi BP Forum!

I recently moved to Denver and have been looking for a house hacking opportunity. In doing so, I have become very familiar with the zoning code and STR regulations, but had a few questions I was hoping this group could help answer with personal experiences dealing with getting rental licenses.

I have been looking for a SFH zoned for an ADU to use the ADU as a STR while I live in the primary residence. My understanding, based on research and a few email exchanges with the City, is the following:

- I can use or build a detached ADU if the property has the right zoning designation (B1, C1, etc) and meets the minimum lot size requirements (while I am living in the primary residence). If in the future I move out and decide to long term rent the primary residence, I cannot also rent out the ADU as the lot would not have a TU zoning and meet those requirements. Does anybody have experience with having a renter in the primary residence pull the STR license for the ADU if the property owner is not living in the primary residence? Or any other creative ideas on how the ADU could be used?

- If the property is zoned for an ADU, but does not meet the minimum lot size requirements, I could still have or build an attached ADU (i.e. basement apartment). My understanding is that for these situations, I do not have to have the basement apartment designated as an ADU if it has continuous access to the primary residence (i.e. no door to separate the two units). This wouldn't be a feasible option for me, so in going the route of having the basement apartment designated as an ADU it seems in addition to the typical requirements (bedroom egress, independent egress, kitchen, bathroom, etc) I have also been told the building requirements for fire separation between units will be required (as per 2018IRC, R302.3). Has anyone actually been flagged for this? To me that defeats the purpose of buying a finished basement/MIL suite knowing it's unlikely the original structure will meet fire code separation between units.

Appreciate any insight anyone has on this!
 

[Ryan Williams]

Hi Dana, 

You are on the right track on how you are thinking about this. I currently am in a house hack/airbnb (you can check that out here) and our plan when we move out is to try to rent the half we live in currently, have the renter take out a new airbnb license in their name and for us to be "co-host/managers" on the same property with them taking most of the profits. Reading the regulations it should work, and be in line with the laws. Obviously you would want to have a great relationship with that tenant in order to do that, and it would be smart to have a back up plan in case that got shut down for whatever reason. 

For the basement units, or house hack houses that are connected continuous access as you have described, the city is a lot more lenient. There has been some rumblings of people getting denied STR licenses for some code/zoning infractions posted on another BP forum post.  These kind of house hacks would have more options to rent out as a contingency plan though if an STR fell through. You could rent by the room, or rent the basement unit out. 

I hope this is helpful!