Aurora, CO · Member since 2016 · 31 posts · 37 votes
Hello BP,
I am looking at purchasing a property that would be perfect for a house hacking situation. The property has a walk-out basement with a room, living room-like area and a space for a kitchen/kitchenette. It would only need minor renovations to make the space ready to rent. However, I am not sure that if this space is converted, it would be considered an Accessory Dwelling Units (ADU), which the city prohibits.
I am trying to understand from a legal standpoint, where does a roommate scenario end and an ADU scenario begin? Is it based off of features (like having a fully functional kitchen and separate entrance), the share of utilities, intent, or all/none of the above?
Specialist · San Francisco, CA · Member since 2018 · 19 posts · 13 votes
7y
In the Bay Area a lot of people rent out spaces like that as a house share/ roommate situation. An ADU would need a separate address and would legally be recognized as a separate unit by the assessor. The person renting that space from you wouldn't have a standard apartment lease, you'd want to create a sublet agreement that explains how utilities are split etc. The space may not be legal if all the work (kitchen etc) we're not done with permits.
I don't know the exact law in Colorado so you'd want to talk to someone local since there are definitely gray areas here.
Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
7y
@Reese C. I have constructed both ADUs and true Duplexes. Your county building dept will have physical requirements for a separate dwelling unit (such as thermostatic control, accessibility to the breaker box, basement window egress and fire separation. You say the City of Aurora doesn't allow ADUs? Seems pretty restrictive to me considering the metro area affordable housing shortage. Make sure you truly understand the rules & codes. If not an ADU a Duplex? Does zoning allow? I'd explore it a little more fully.
@Teri Feeney Styers The city is Centennial. Apparently there is a big push going on now to allow ADU's in the city as a part of the Centennial NEXT initiative. They are opening up to public comments on whether they should allow them or not. However, like you mentioned, affordable housing is in short supply, so I would expect them to move in that direction. The local HOA's may be a different story...