By David Parks · eXp Realty · The Apollo Group · 2 min read
An ADU is a smaller, separate living space on the same lot as a primary home, such as a basement apartment, garage apartment, or backyard cottage. Rules depend on the city and zoning, so verify before you buy or build.
ADUs can provide space for family, rental income, or a home office. Some buyers look for homes with space to add one.
Many Denver-area cities have updated their zoning to allow or encourage ADUs, but requirements like lot size, parking, owner occupancy, and rental limits differ. Check with the local planning department.
Lenders and appraisers may treat legal ADUs and unpermitted units differently. Ask your lender early.
An ADU can add flexibility and value, but only if it is legal and safe. Get documentation and inspections.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
Denver market updates, new listings, and local tips — no spam, unsubscribe anytime.
