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Boulder, CO Accessory Structures: ADU Rental Restrictions (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Rental license required
Before renting ADU or principal dwelling to anyone
Rental license fee
$190 per accessory dwelling unit
Short-term rental
Prohibited unless licensed under Section 10-3-19
Independent sale
Never allowed to convey ADU separately from house
Max fine
$2,650 per violation under general penalty

Summary

Boulder requires a rental license before anyone occupies an accessory dwelling unit (ADU) or the paired principal dwelling as a paying tenant, bars short-term renting of either unit on an ADU lot unless separately licensed, and forbids selling the ADU apart from the main house. Each rule sits in Subparagraph 9-6-3(n)(1)(A) of the land use code.

(iii)Rental License: No owner of the property shall allow, or offer to allow through advertisement or otherwise, any person to occupy the accessory dwelling unit or the principal dwelling unit as a tenant or lessee or otherwise for a valuable consideration unless such rented unit has been issued a valid rental license by the city manager consistent with the requirements of Chapter 10-3, "Rental Licenses," B.R.C. 1981.(iv)Short-Term Rental: Short-term rental of an accessory dwelling unit and short-term rental of a principal dwelling unit on a lot or parcel with an accessory dwelling unit are prohibited except as specifically authorized in Section 10-3-19, "Short-Term Rentals," B.R.C. 1981.(v)No Independent Conveyance: No person shall convey an accessory dwelling unit independently of the principal dwelling unit on the lot or parcel.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 167 Update 3).

Full Breakdown

C. 1981. " Section 4-20-18, "Rental License Fee," sets that fee at $190 per accessory dwelling unit and adds a $250 fee for any investigative inspection the city manager performs to check compliance. Short-term rental of the ADU, or of the principal dwelling on a lot that also has an ADU, is flatly prohibited unless the owner obtains authorization under Section 10-3-19, "Short-Term Rentals," which requires its own annual certification and fee. The code also bars splitting ownership of the ADU from the house: no person may convey the accessory dwelling unit independently of the principal dwelling on the lot or parcel, so an ADU can never become a separately deeded condo-style unit.

The ADU must keep the same utility hookups and meters as the principal dwelling unless the city approves a separate connection under the City of Boulder Design and Construction Standards. Owners of an affordable ADU must also record a declaration of use with the Boulder County Clerk and Recorder certifying the affordability standard and bedroom count. Any prior planned development, planned unit development, or site review condition that tried to prohibit ADUs on a property is void and unenforceable once the ADU meets these current standards, and establishing one on such a property goes through the minor modification process instead of a full amendment.

Violations & Fines

Renting an unlicensed ADU or principal dwelling, running an unauthorized short-term rental, or selling an ADU apart from the house is a code violation prosecuted in Boulder Municipal Court under the general penalty in Section 5-2-4: a fine of up to $2,650 per violation, up to ninety days in jail, or both, with every day of continued violation counted as a separate offense under Section 5-2-5(b).

Frequently Asked Questions

Can I rent out my Boulder ADU without a license?
No. Subparagraph 9-6-3(n)(1)(A)(iii) requires a valid rental license from the city manager under Chapter 10-3 before any owner lets a tenant occupy the ADU or the paired principal dwelling for money. Operating without one exposes the owner to a code enforcement citation and the general penalty fine, plus possible denial of a future rental license application.
Can I list my Boulder ADU on Airbnb?
Only if you hold a short-term rental license under Section 10-3-19. Subparagraph 9-6-3(n)(1)(A)(iv) prohibits short-term rental of an ADU, and of the principal dwelling on a lot with an ADU, except through that licensed program, which imposes its own certification and fee requirements before any short-term booking is legal.
Can I sell my Boulder ADU as its own condo unit?
No. Subparagraph 9-6-3(n)(1)(A)(v) bars conveying an accessory dwelling unit independently of the principal dwelling on the same lot or parcel, so the ADU and main house must stay under one deed for as long as both exist on the property.

Sources & Official References

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