A second home on your property. For family, for income, for flexibility. Here's what you need to know.
An Accessory Dwelling Unit is a small, self-contained home built on your existing property. It has its own kitchen, bathroom, bedroom, and entrance.
Colorado's HB24-1152 requires cities and counties to allow accessory dwelling units on most single family residential lots — and as of 2025, those rules are in effect across Douglas County and South Denver. This means you now have the legal right to build a second home on your property, whether that is a detached backyard unit, a garage conversion, or an attached addition with its own entrance.
Not sure if your property qualifies?
An accessory dwelling unit can serve almost any purpose. Here are the four most common reasons homeowners in Colorado build one.
ADU rentals in South Denver range from $1,950 to $3,650 per month depending on size, finish level, and location. Many homeowners use that income to offset their mortgage, fund retirement, or build long term equity. Because the unit sits on your existing lot, you avoid the costs and complexity of buying a separate investment property.
Keep aging parents or adult children close without sharing walls. A separate unit on your property gives everyone privacy and independence while keeping family within walking distance. Many families find this arrangement works better than assisted living or renting a separate apartment across town.
A dedicated workspace on your lot means you can close the door at 5 PM and actually be home. Unlike a spare bedroom repurposed as an office, a separate structure gives you a clear boundary between work and personal life.
Give visitors their own space with a full kitchen, bathroom, and living area. No more blowup mattresses. No more sharing a single bathroom. A guest ADU also doubles as a short term rental when you are not hosting, giving you flexibility to earn income between visits.
A permitted ADU can raise your property value by an estimated 24–32% in South Denver. When it's all said and done, every penny you put into an ADU is an investment; not an expense.
Rent and property value figures are estimates based on publicly available market data for the South Denver metro. Actual results vary by location, unit size, and market conditions.
Building an ADU involves design, permits, and construction. With the right team, the entire process runs on a clear timeline with a single point of contact.
We review your lot, zoning, and goals on a 20 minute call. You will know if an ADU is feasible and get a rough budget range before spending anything.
We create a design that fits your lot and handle every permit application and HOA coordination step so you do not have to manage multiple contractors or city offices.
Construction starts with weekly progress updates. When the final inspection passes, you get the keys. We stay available after move in for any questions or warranty items.
Every project is different. Here are a few recent builds from the South Denver area.
An addition expands your existing home. An ADU is a separate, self-contained dwelling on the same lot. The key difference is that an ADU has its own kitchen, bathroom, bedroom, and entrance, making it a complete independent living space. Additions share systems with the main house. ADUs have their own utilities and can be rented out or occupied by someone who lives independently from the main household.
Owner occupancy requirements vary by jurisdiction. Some Colorado municipalities require that the property owner live in either the main house or the ADU. Others have no such requirement. Under HB24-1152, local governments are limited in the restrictions they can place on ADUs, but occupancy rules still differ city by city. We check your specific municipality's rules during the feasibility review so you know exactly where you stand before committing.
Most ADU projects in the South Denver area fall between $200,000 and $350,000. The total depends on unit size, site conditions, finish level, and whether you go with a factory built or stick built approach. Factory built units tend to cost less and build faster because major components are assembled in a controlled environment. Site built units offer more customization. During your free consultation we provide a rough budget range specific to your lot and goals.
Yes. Long term rentals are permitted in most South Denver municipalities. Short term rentals (under 30 days) are subject to local regulations that vary by city. Some areas allow them with a permit, others restrict them. A permitted ADU with a separate entrance, kitchen, and bathroom is treated as a legal rental unit, which means you can list it on standard rental platforms. We help you understand the rental rules for your specific location during the planning phase.
Colorado's HB24-1152 limits how much HOAs can restrict ADU construction on single family lots. HOAs can still regulate design standards like exterior materials, colors, and landscaping, but they generally cannot outright ban ADUs. The law was specifically written to prevent blanket prohibitions. We handle HOA coordination as part of our permitting process and know which design adjustments satisfy typical HOA requirements without compromising your unit's livability.
From signed contract to move in, plan for 8 to 14 months total. Permitting typically takes 2 to 4 months depending on your municipality. Construction runs 6 to 10 months for site built units and 4 to 6 months for factory built. The timeline depends on your city's permit review process, weather conditions, and the complexity of your build. We walk you through the full timeline during your consultation so there are no surprises.
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