Complete Rental Law of Colorado( Landlord and Tenant) 2024

The Legislature recently passed a handful Rental Law of Colorado that afford tenants new protections, and place additional burdens on landlords. SB23-184 (“Protections for Residential Tenants”), HB23-1095 (“Prohibited Provisions in Rental Agreements”), HB23-1254 (“Habitability of Residential Premises”), HB23-1068 (“Pet Animal Ownership in Housing”), HB23-1099 (“Portable Screening Report for Residential Leases”), HB23-1120 (“Eviction Protections for Residential Tenants”), and HB23-1186 (“Remote Participation in Residential Evictions”), collectively impact landlord-tenant relationships moving forward. And, the Colorado Supreme Court recently issued a ruling on the current applicability of the CARES Act.

Under Colorado law, if a written or oral agreement exists, or if payment is accepted as rent, landlords and tenants have rights and responsibilities under Colorado Statutes Title 38 Article 12, such as the right to timely rent payments and a livable dwelling.

Tenants in Colorado have the legal right to repairs for issues that place the property in violation of state health and safety standards.

To exercise this right, they must give the landlord written or electronic notice and allow 24-96 hours for the landlord to begin repairs in good faith.

Colorado tenants don’t have to fix minor damages that result from ordinary wear and tear, but are responsible for repairing any damage they cause to the property which affects a legal habitability requirement or general health and safety.

If they have the necessary repair skills, renters of unsubsidized single-family homes can make a separate written agreement with the landlord to do maintenance that would otherwise be the landlord’s responsibility.

SB23-184 “Protections for Residential Tenants”

Signed into law on June 6, 2023, and effective this August, this bill restricts landlords (with some exceptions) from considering or inquiring about certain information relating to a prospective tenant’s amount of income and credit history. It also places a cap on security deposits

Tenant Responsibilities in Colorado

Apart from paying rent promptly and on time, Colorado tenants must:

Keep the unit safe and habitable.
Remove garbage and maintain cleanliness.
Use facilities and appliances in a reasonable manner.
Perform minor repairs and maintenance.
Promptly inform the landlord if the premises are inhabitable.
Not negligently or deliberately destroy any part of the premises.
Not disturb other tenants or neighbors.

Colorado landlords may evict tenants for the following reasons:

Nonpayment of Rent: If a tenant fails to pay rent then the landlord may issue a 5-Day Notice to pay if the landlord has five or fewer rental properties. For tenants who are provided with rental housing by their employer, landlords must provide a 3-Day Notice to Pay.

For all other tenancies, landlords must provide a 10-Day Notice to Pay. If the tenant does not pay after the specified timeframe the landlord may file a Forced Entry Detainer and Summons.

Lease Violation: If a lease violation occurs then the landlord may issue a 5-Day Notice to comply if the landlord owns five or fewer rental properties.

For tenants who have been provided housing by their employer, landlords shall provide a 3-Day Notice to Comply. For all other tenancies, a landlord shall provide a 10-Day Notice to Comply.

No Lease/End of Lease: At-will tenants are entitled to advance written notice before being evicted that is based on how long they have lived at the property.

One Year or More: 91-Day Notice to Quit.

Six Months to One Year: 28-Day Notice to Quit.

One to Six Months: 21-Day Notice to Quit.

One Week to One Month: 3-Day Notice to Quit.

Less Than One Week: 1-Day Notice to Quit.

Illegal Acts: Several illegal acts may be justification for eviction, such as assault or violence. A landlord must provide the tenant with a 3-Day Notice to Quit.

Landlords are not permitted to evict tenants in retaliation or for discriminatory reasons.

Agreement Provisions of Rental Law of Colorado

A residential rental agreement may now not contain:

1. A clause that assigns a penalty to a party stemming from an eviction notice or an eviction action that results from a violation of the rental agreement.

2. A one-way, fee-shifting clause that awards attorney fees and court costs to only one party. Any fee-shifting clause must award attorney fees to the prevailing party “following a determination by the court that the party prevailed and that the fee is reasonable.”

3. Waiver of any of the following:

a. A jury trial;

b. The ability to pursue, bring, join, litigate or support any kind of joint, class or collective claim or action;

c. The implied covenant of good faith and fair dealing; or

d. The implied covenant of quiet enjoyment.

4. A provision that purports to affix any fee, damages, or penalty for a tenant’s failure to provide notice of nonrenewal of a rental agreement prior to the end of the rental agreement.

5. Except for the set monthly payment for occupancy of the premises, any provision that characterizes any amount or fee as “rent,” which could lead to remedies such as eviction in the event of non-payment.

6. A provision that requires a tenant to pay a “fee markup or for a service for which the landlord is billed by a third party; except that a written rental agreement may include a provision that requires a tenant to pay either a markup or fee in an amount that does not exceed two percent of the amount that the landlord was billed or a markup or fee in an amount that does not exceed a total of ten dollars per month, but not both.”

Pet Animal Ownership in Housing

Limits the amount of additional security deposit that a landlord can demand as a condition of permitting the tenant’s pet to reside at the property to no more than $300. The additional pet deposit must be refundable to the tenant. Further, the amount of additional rent that can be charged as a condition of permitting the tenant’s pet to reside at the property cannot exceed the greater of: (i) $35 per month, or (ii) 1.5% of the monthly rent amount.

This Act also prohibits insurance companies from refusing to issue, cancelling, refusing to renew, or increasing premiums or rates for a homeowner’s insurance policy or a dwelling fire insurance policy based on the breed or mixture of breeds of dog that is kept at the dwelling. However, these prohibitions do not apply if a particular dog kept at the dwelling is known to be dangerous or has been declared to be dangerous and the decision is “based on sound underwriting and actuarial principles.”

Portable Screening Report for Residential Leases

Requires landlords to accept a “portable tenant screening report” as part of the application process, in which case the landlord may not charge the prospective tenant an application fee. A portable tenant screening report includes information about the applicant from a consumer reporting agency, including the applicant’s:

Name;
Contact information;
Verification of employment and income;
Last-known address; and
Rental, credit, and criminal background histories, in compliance with Colorado law.

Landlords may require that the portable tenant screening report meet certain criteria, including that the report was:

Completed within the last 30 days;
Made directly available to the landlord by the consumer reporting agency or through a third-party website regularly engaged in the business of providing consumer reports, in compliance with all applicable consumer reporting laws;
Provided to the landlord at no cost; and
A statement from the prospective tenant that there has not been any material change in the information provided in the report.

Before taking any rental application for which the landlord would typically charge an application fee, landlords must advise applicants that they have a right to obtain a portable tenant screening report. Required language, timing, and placement of the advisement is included in the statute.

Landlords are exempt from these requirements if the landlord:

Does not accept more than one application fee at a time for a dwelling unit, or if a dwelling unit is rented to more than one occupant, does not accept more than one application fee at a time from each prospective tenant or tenant group for the dwelling unit; and
Refunds the total amount of the application fee to each prospective tenant within twenty calendar days after written communication from either the landlord or landlord’s agent or the prospective tenant declining to enter into a lease agreement for the dwelling unit.
This Act in particular contains many specific details that are not included in this brief summary. Contact FJGG attorney Zac Grey for information and questions about Rental Application Fairness Act compliance matters.

Protections for Residential Tenants

This Act restricts a landlord’s ability to consider or inquire about specific aspects of an applicant’s income if the landlord uses rental or credit history when evaluating potential applicants.

When a prospective tenant applies for a rental without the help of a housing subsidy, landlords are not allowed to demand that the applicant’s annual income be greater than 200% of the rent amount.

In accordance with the Act, residential tenants may only be required to pay a security deposit equal to two (2) months’ worth of rent each month.

In 2023, the Colorado General Assembly made enacting laws governing the relationship between residential landlords and tenants a top priority. The numerous new laws have an immediate effect on how property managers and landlords must operate in order to abide by the law as it stands.

Also Read: What to Do After a Social Security Overpayment?

FAQ’s

What are the new renters rights in Colorado?

Colorado adopted a grace period law. It states that Colorado landlords can’t charge late rent fees until rent is seven days . Plus, late fees are capped at $50 or 5% of the amount of past due rent, whichever is greater. To charge a late fee, landlords must disclose it in the rental agreement.

What a landlord Cannot do in Colorado?

It is never legal for a landlord to evict a tenant without a court order. Self-help by a landlord is illegal in Colorado. Evictions are governed by Colorado law under C.R.S. §13-40-101 et seq.

What are the tenant rights in Colorado 2023?

Is Colorado a tenant friendly state?

Colorado is considered a landlord-friendly state since there are few restrictions regarding evictions for late-payments and security deposits. On the other hand, Colorado is one of the few states that allow landlords to enter their property without notice.

How long do you have to pay rent in Colorado?

If a renter can’t pay rent the day it is due (usually the 1st of the month), landlords have to wait at least 7 calendar days before they charge a late fee. (Calendar days means weekends and holidays count toward that 7-day minimum.) If the renter pays their rent in those 7 days, no late fee should be charged.