Do I need a license to rent the other unit in Denver?
Yes. Denver requires a residential rental license for any separate unit rented for 30 days or more at a time, even when you live on the property. The other side of a duplex, a basement apartment and an ADU each count.
WHAT MOST PEOPLE ARE NEVER TOLD
A Denver rental license does not pass to the buyer. If the other unit is rented when you close, you apply for a license of your own, and that usually starts with an inspection.
Start with the inspection. A private inspector who holds the certifications the city lists does it, and you apply within 90 days of it. A license lasts four years unless ownership changes. A unit counts as unlicensed until the license is issued, and renting without one can bring fines and citations.
Denver's line is the kitchen and the bathroom. If you live there and rent a room without its own kitchen and bathroom, the city says you need no license. A basement apartment or ADU with a separate entrance, kitchen and full bathroom needs one.
If the person living there pays rent, or helps with any part of the mortgage, property taxes or HOA fees, the city calls it renting. A license is required. Paying only for the utilities they use does not count.
Checked November 11, 2026. Denver's Department of Licensing and Consumer Protection confirms your own case.
GOOD TO KNOW
Renting for under 30 days takes a different license, and Denver gives it only for the home you live in, so ask the city first. Live in the house and you may be able to short-term rent its ADU, but the other side of a duplex you live in cannot be short-term rented.
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WHERE THIS COMES FROM
- City and County of Denver: Residential rental property license, frequently asked questions
- City and County of Denver: Short-term rental frequently asked questions
- City and County of Denver: Questions about accessory dwelling units and short-term rentals (PDF)
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.