Denver ADU Investment: Garage to Five-Star Airbnb

ADU above garage. Airbnb listing for "Private Pool / Deck and Whole Studio @ YK Hideaway," an entire guesthouse in Denver, Colorado, rated 5.0 stars as a Guest Favorite

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Arch Design & Build turned a garage roof in Denver into a 600-square-foot rental unit, and it’s already pulling in up to $270 a night on Airbnb.

Interior dining and multipurpose living area inside a 600-square-foot Denver garage ADU conversion

The Homeowners Behind This Denver Garage ADU Case Study

The homeowners moved to Denver from Chicago and settled in Sunnyside, where land costs so much per square foot that buying more rarely pencils out. What they already had was a garage with an unused roof over it. Arch Design & Build looked at the lot and saw a second income stream sitting right there, waiting to be built.

Full-size kitchen with custom cabinetry and quartz countertops in a Denver garage ADU rental

The Layout

At 600 square feet, there’s no separate bedroom, and that was the point. During the day, the space needed to feel like a studio. A Murphy bed folds away so the main room reads as a living space. The kitchen is a full kitchen, built to handle a week-long stay rather than a quick weekend. The bathroom is finished to the same standard as a main house — nothing about it feels like a downgrade.

Bright open-concept living area with comfortable sofa in a Sunnyside Denver garage ADU rental

Six Months, One Price

The design work — sketches, architectural drawings, structural engineering, permits — was locked in before the first stud went up, and Arch Design & Build handled it all, including helping with the short-term rental license the unit needed to legally list on Airbnb. Once construction started, it took about six months from framing to final finishes.

Partway through the build, tariff-driven price increases pushed lumber costs up across the industry. Arch Design & Build absorbed that difference rather than passing it on. The client paid exactly the price they were quoted at the start of the project.

Modern walk-in glass shower and upscale bathroom finishes in a Denver garage ADU rental

What the Numbers Look Like

Two months after the listing went live, the unit is holding a perfect five-star rating across reviews, and a good chunk of the current season calendar is already booked. A weeknight stay runs close to $200-250 depending on season; weekends climb toward $270.

Guests have been specific about what stands out. One wrote that “the shower and bathroom is amazing,” adding that “every last part of this Airbnb is amazing.” Another described the unit as “spacious, private, very clean, good a/c, firm but comfortable bed”.

Exterior view of a two-story garage rooftop ADU addition in Denver

Every Backyard Is Different

Not every garage should become the ADU. Sometimes the existing garage is worth converting into livable space outright. Sometimes the better move is to keep the garage as a garage and build a second story on top of it, like this project. And sometimes the lot has room for a completely separate structure, which keeps the garage untouched and gives the new unit its own footprint. Arch Design & Build walks each homeowner through their specific lot, prices out realistic options, and helps them choose the one that actually pencils out.

Picture of Valerie Ives, ARCH DESIGN & BUILD

Valerie Ives, ARCH DESIGN & BUILD

Licensed General Contractor · Denver, CO · Master of Architecture + Engineering

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