As a homeowner, you might be interested in utilizing your property to the fullest. Whether you’re raising a family and want to bring a parent to live with you, you’re an empty-nester trying to figure out what to do with extra space, or you’re looking to earn passive rental income, accessory dwelling units (ADUs) are a great option to explore.
There are plenty of creative ways to make additional space on your property work for you with an ADU. Before you start renovating or building a new structure to create an independent granny flat or rental unit, though, you may have many questions about the process. Here are some key things you should know.
What Types of Accessory Dwelling Units Are Available?
An accessory dwelling unit offers a complete living space independent from the primary residence on a property. It must have its own dedicated areas for cooking, sanitation, and sleeping. There are a few ways to create this unit on your property.
If you have unused space in your primary residence, such as a garage, a large basement, or even an upper story with outside access, you could convert it into an integrated, apartment-style living space that’s separate from the home. Building a new ADU is also an option, and there are typically two ways to do it.
For example, you could add to your existing structure with an attached ADU that takes advantage of exterior walls and proximity to utilities like water, gas, and electricity. Alternatively, you might consider detached ADU models that are completely separate from the primary residence, offering additional privacy.
Is My Area Zoned for Building an ADU?
Whether you want to build a home office, a granny flat for an elderly parent, or a rental unit that delivers passive income, you must first ensure ADUs are allowed in your area. Different Colorado jurisdictions have their own rules and regulations regarding ADUs, so you’ll have to check with the city or a regional building department.
It’s important to note that HB24-1152, which goes into effect June 30, 2025, should make it easier to build ADUs in jurisdictions that already allow single-unit detached dwellings. These jurisdictions must have an approval process, and there are limits to how much they can restrict building plans.
You may encounter some exceptions, so it’s important to fully understand the parameters and gain approval before building.
How Do I Apply to Build an ADU?
Once you’ve determined that accessory dwelling units are allowed in your city/county, you’ll have to apply with the appropriate administrative organization in your jurisdiction. You may need to attend pre-application meetings to discuss the project before submitting an application with site and architectural plans. A public notice may also be required.
Is an ADU Right for You?
Accessory dwelling units can offer an ideal way to house an elderly parent or college student independently or earn passive income from your property. Whether you’re converting a daylight basement or building a detached unit, it’s important to understand the options available, the zoning for your area, and how to successfully apply for permits.
Consulting with an ADU specialist can help you get answers to all your questions. Contact StreamHome Construction LLC today to learn more.
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