Considering Building an ADU in Durango? Here's What to Know
- Teague
- Jan 21
- 3 min read
Updated: Jan 21
Building an Additional Dwelling Unit (ADU) is a popular trend in Durango and other mountain towns. ADUs provide flexible living arrangements, rental income opportunities, and creative ways to maximize property value. If you're thinking about building one, here’s a roadmap to guide you through the process.
Permitting: The First Step
Before diving into design or construction, you’ll need to understand the permitting requirements in your area.
Check with your local jurisdiction. Each municipality has specific rules about ADUs, including where they’re allowed and how they can be used.
For Durango: Research zoning laws, restrictions, and size limits for ADUs in your neighborhood. Some areas may limit square footage, require off-street parking, or regulate whether the ADU can be used as a short-term rental.
Key questions to ask:
When and where are ADUs allowed?
What size restrictions exist?
Are there design regulations I need to follow?
Renting: Short-Term vs. Long-Term
ADUs can provide rental income, but how you rent them matters.
Short-term rentals: These are often restricted in certain neighborhoods or under HOA rules. It may be possible in Durango city limits, but you’ll need a license from the city to do so. Outside the city and HOAs, there are fewer restrictions and more freedom to rent as you like
Medium-Term rentals: Sometimes in areas with strict short-term rentals a minimum rental period of two to four weeks. This means you could still offer furnished medium-term rentals that may offer a premium over long-term leases.
Long-term rentals: Typically less regulated, making them a more straightforward option for homeowners seeking consistent income. This option also is less work as a landlord since you have much less turnover.
Other considerations: Do you want to live in the ADU and rent out your main home, or vice versa? Each scenario offers unique financial and lifestyle benefits.
Attached or Detached?
One of the first big decisions is whether to build an attached or detached ADU.
Both options have pros and cons:
Attached ADUs:
Often more affordable due to shared utilities and structural elements.
May involve building above an existing garage or adding a second story to your home.
Less disruption to your yard or lot.
Detached ADUs:
Provide more privacy for both you and potential tenants.
Perfect for larger lots or properties where space isn’t an issue.
Minimizes disruption to your main living space during construction.
Could be combined with adding a detached garage for more storage and parking.
Think about your lot size, current house layout, and how the ADU will fit into your long-term plans.
HOA Rules and Neighborhood Considerations
If you live in a neighborhood with a Homeowners Association (HOA), review their regulations to ensure an ADU is allowed. Some HOAs have restrictions on rental properties, detached structures, or architectural styles. It’s better to address potential conflicts early on.
Why Are ADUs a Hot Topic in Durango?
Mountain towns like Durango are ideal for ADUs due to unique factors:
Rental demand: With high housing costs, both long- and short-term rentals are in demand.
Profitability: An ADU can generate significant income, whether for monthly expenses or retirement planning.
Historical homes and large lots: Many Durango properties have the space and character to accommodate an ADU without sacrificing charm.
Your Roadmap to Building an ADU
Building an ADU requires thoughtful planning. Here are three essential steps to get started:
Start with the city: Research zoning, permits, and restrictions to confirm an ADU is allowed on your property.
Assemble your team: It’s crucial to involve both an architect and a builder early on.
An architect is essential for designing the ADU and navigating permitting requirements.
A builder provides practical insights into how the design impacts your home or site. Having both from the start ensures a smoother process and avoids costly surprises.
Leverage local expertise: At Top Drawer Construction, we partner with trusted architects and offer transparent communication throughout the process. From design to completion, we’ll ensure your ADU is built efficiently and to the highest standard.
Ready to start your ADU project?
Whether you’re looking to create additional space for your family, generate rental income, or enhance your property’s value, building an ADU is an exciting opportunity. Let’s make it a seamless experience—together.
