Renting an ADU - Must Know City of Bozeman Restrictions
by Marisa Owen
on Thursday, January 3rd, 2019 at 9:40pm.
In the last two years, the City of Bozeman has reinforced the how, where, what of renting out properties in Bozeman (long term and short term rentals). There are more factors to consider (i.e. location, zoning, etc, etc) beyond this list, but this is to kick off the basics when shopping for a property that has investment opportunity. Specifically, this blog is looking at "a main house and ADU" as a rental property.
Property Type: Main House and ADU (Accessory Dwelling Unit)
Where: Located in city limits of Bozeman
What: Review both HOA covenants and bylaws (or call the Property Management Company to verify) AND review the city of Bozeman ordinances for specific restriction language
Restrictions: The City of Bozeman has restrictions on where you can have Short Term Rentals and How to Rent an ADU as a long term rental (owner occupancy requirements), etc.
Zoning: Look for R-2 zoning to appropriately qualify the property to rent 2 units as long term rentals if within city limits (other zoning may qualify)
Parking Spots: 1 parking spot is required for an ADU
When a property with an ADU is zoned R-S or R-1, the city restricts a homeowner from renting BOTH units at the same time (refer to the language below). According to the Community Development UDC Updated on May 8th, 2017:
Sec. 38.360.040. - Accessory dwelling units (ADU). (38.22.030) C. Supplemental ADU provisions for the R-S and R-1 districts:
Occupancy: The detached dwelling unit within which the ADU is located, or the ADU itself, is actually and physically occupied as a principal residence by at least one owner of record who possesses at least an estate for life or a 50 percent fee simple ownership interest. No more than one of the dwellings, either the principal dwelling or the accessory dwelling, may be rented by non-owners at the same time. The city may require a guarantee of compliance with the requirements of this section, including but not limited to a binding deed restriction or covenant enforcing the single rental restriction as allowed in section 38.270.080.B, as a condition of approval." (Page 248 of 564)
Please note that the city does update the ordinances so be sure to visit the City of Bozeman codes or call the planning department for specific questions at 406-582-2344.
For further reference to the above information, please review the City of Bozeman Ordinances at this link. If you are looking for an investment property, don't hesitate to inquire about specific properties so we can help you research the property is the right fit for your needs.