Littleton basement rental house hack

[Trace Adams]

Hi all,

I am currently under contract on a 4 bed 3 bath SFH in the Littleton area (Bowles and Wadsworth to be exact). There are 2 beds/2 baths/1 living room upstairs, and 2 beds/2 bath/1 living room down stairs in the fully finished basement with a separate walkout entrance. I plan to rent out the basement but have a couple of questions as this is my first house/house hack:

-Littleton rental law considerations (this might fall under JeffCo rather than city of Littleton, can't really tell)

-Thoughts on best lease strategy for that area (STR/MTR/LTR)? Thinking STR may be good given proximity to Red Rocks, although not sure of STR laws per above?

-Thinking about the long term, if I were to move out could I turn it into a duplex and rent out upstairs and basement separately? FYI, the house is in a PD (planned development) district

-Regarding homeowners insurance - do I need a special policy or add on to standard policy? Should I tell my insurance that I'm renting out basement?

-220v oven in basement or just a 110v cooktop?

Thanks all for your help! 

[Todd Norton]

Generally it's based on the city, but you'll want to check both city and county. For example, Denver allows STR w/ license if it's your full-time residence but if you plan to move out the STR ability disappears, has to be your full time residence (last time I checked). And anything over 31 (some cities do 30 so verify) days is considered MTR and typically has less regulations. - Short-Term Rental (STR) License - Littleton CO - The shorter the stay, normally the higher the revenue but also higher work with turnover, etc.

You'll also want to check zoning laws to see if you can legally have it be a duplex if you move out. The district and any HOA will have a say in this too.

Yes, you'll absolutely want above and beyond insurance.  Just in case but definitely worth it IMO.

If you separate the living areas with a wall and add in a 220v oven, this will be a red flag for assessors and inspectors that you're running a true duplex instead of just renting out the basement.  I've seen folks get around this by removing the oven if/when you get either of those scheduled.  

Hope this helps get you started!