A home with an accessory dwelling unit (ADU) can offer additional flexible space, but buyers should look beyond the extra square footage. Before purchasing, it's important to understand the ADU's permitted use, condition, utilities, access, and any applicable zoning or HOA requirements.

For Colorado Springs buyers, reviewing these details before closing can help you understand what you're actually purchasing and how the ADU can be used.

What Is an ADU?

An accessory dwelling unit is a separate residential living space located on the same property as a primary home. Depending on the property, an ADU may be attached to the main house, located above a garage, or situated in a separate structure.

The configuration and permitted uses can vary, so buyers should verify the specific property rather than relying only on the listing description.

Why this matters:

An ADU can provide additional usable space, but its permitted use and features should be confirmed before you purchase.

Verify That the ADU Is Permitted

One of the most important steps is determining whether the ADU was properly permitted.

Ask for available permits and property records, and verify applicable requirements with the appropriate local authorities.

What to do:

• Ask whether the ADU was legally permitted

• Review available permits and documentation

• Confirm its approved use

• Ask about any required inspections or certificates

Understand How the ADU Can Be Used

Don't assume that an ADU can automatically be used for any purpose you have in mind.

Depending on applicable regulations and the property's specific circumstances, there may be requirements regarding occupancy, rental use, parking, access, or other aspects of the unit.

Why this matters:

Understanding the permitted use before purchasing can help you avoid planning around a use that isn't allowed.

Check the ADU's Condition

An ADU should be evaluated just like the main home.

Pay attention to the roof, foundation, windows, plumbing, electrical system, heating and cooling, appliances, and other components.

If the ADU has separate systems from the main house, ask about their age and maintenance history.

What to do:

Have the ADU included in your inspection and consider additional professional evaluations when appropriate.

Review Utilities and Separate Systems

Some ADUs have separate utility meters, while others share utilities with the primary residence.

Find out how electricity, gas, water, sewer, and other utilities are connected and billed.

Why this matters:

Shared utilities can make it more difficult to determine the ADU's individual operating costs, while separate systems may have their own maintenance responsibilities.

Consider Access and Parking

Look at how people access the ADU and where vehicles can be parked.

Depending on the property, the ADU may have a separate entrance, shared driveway, dedicated parking, or another arrangement.

Make sure the current setup complies with applicable requirements and fits your intended use.

Review HOA and Property Restrictions

If the property is located within an HOA, review the governing documents for rules related to ADUs, rentals, exterior changes, parking, and other property uses.

Also consider zoning, easements, setbacks, and other restrictions that may apply.

Why this matters:

Having an ADU doesn't automatically mean every potential use is permitted.

Consider the Costs and Long-Term Value

An ADU may provide additional flexibility, but it can also mean more maintenance and operating costs.

Consider the condition of both structures, insurance, utilities, repairs, and ongoing maintenance when comparing the property with other homes.

If you're considering the ADU as a potential rental, speak with the appropriate professionals about local requirements, taxes, insurance, and financial considerations.

Common Mistakes Buyers Make

• Assuming an ADU is automatically permitted

• Not verifying its approved use

• Failing to inspect the ADU separately

• Overlooking shared utility arrangements

• Ignoring parking and access requirements

• Not reviewing HOA restrictions

• Assuming an ADU automatically adds a specific amount of value

Frequently Asked Questions

Is an ADU the same as a guest house?

Not necessarily. The terms can be used differently, and the property's legal classification and permitted use are what matter. Buyers should verify the property's records and applicable regulations.

Can I rent out an ADU in Colorado Springs?

Rental rules depend on the property, applicable regulations, and the type of rental arrangement. Verify current requirements before purchasing if rental use is part of your plans.

Does an ADU increase a home's value?

An ADU can be a desirable property feature, but its effect on value varies based on factors such as location, condition, size, permitted use, and the local market.

Should an ADU be inspected?

Yes. The ADU should be included in the property's inspection, with additional evaluations when appropriate.

Can an ADU have separate utilities?

Yes. Some properties have separate utility connections or meters, while others share utilities with the main home. Ask for details about the specific property.

Key Takeaways

• Verify that the ADU is properly permitted.

• Confirm how the unit can legally be used.

• Inspect the ADU's structure and major systems.

• Understand shared or separate utilities.

• Review parking, access, zoning, easements, and HOA requirements.

• Consider maintenance, insurance, and other ongoing costs.

• Don't assume an ADU automatically adds a specific amount of value.

Buying a Home With an ADU in Colorado Springs?

An ADU can provide valuable additional space, but understanding the property's permits, condition, utilities, and restrictions is an important part of the buying process.

Nora Pajian, a Colorado Springs real estate agent with Engel & Völkers, can help you identify questions to ask and navigate the due diligence process with the appropriate professionals.

👉 Reach out today to start your Colorado Springs home search.