Colorado's landlord-tenant laws are complex and can be challenging to understand for both property owners and renters. A lack of familiarity with these regulations can result in legal disputes, financial losses, and stress for all parties involved.
This guide provides a thorough explanation of Colorado Statutes Title 38 Article 12, offering essential information for landlords to protect their investments and for tenants to understand their rights.
It covers all aspects of the rental process, including applications, tenant screening, lease agreements, security deposits, rent adjustments, and eviction procedures. By providing clear, detailed information on Colorado's rental regulations, this article aims to help landlords and tenants avoid common pitfalls and ensure compliance with state laws.
Whether you're an experienced property owner, a new landlord, or a tenant in Colorado, this guide will serve as a valuable resource for navigating the state's rental landscape.
Is Colorado considered a landlord-friendly state?
Colorado is generally regarded as a landlord-friendly state due to several factors that favor property owners. However, recent legislative changes have introduced some tenant protections. Let's examine the key aspects that contribute to Colorado's landlord-friendly reputation and the emerging tenant-friendly trends.
Factors contributing to landlord-friendly status
- Low property taxes: Colorado boasts one of the nation's lowest property tax rates at approximately 0.48%, reducing the financial burden on landlords.
- Limited rent control: The absence of statewide rent control laws gives landlords significant flexibility in setting and increasing rents.
- Security deposit regulations: Most rental properties have no legal limit on security deposit amounts. Landlords have up to one month (or 60 days if specified in the lease) to return deposits after a lease ends.
- Efficient eviction process: Landlords can initiate eviction proceedings after providing tenants with just three days' notice to pay overdue rent or remedy lease violations.
- Flexible property access: Colorado lacks specific laws governing a landlord's right to enter rental properties, offering more freedom to property owners.
- Reliable rent payments: Colorado ranks among the top five states (According to Azibo data) for on-time rent payments, enhancing the appeal for landlords.
Recent tenant-friendly changes
While Colorado remains largely landlord-friendly, recent legislative changes have introduced some tenant protections:
- Extended rent increase notices: Landlords must now provide at least 60 days' notice for rent increases.
- Longer termination notices: The notice period for ending month-to-month tenancies has increased from 7 to 21 days.
- Late fee limitations: Late fees are now capped at $50 or 5% of monthly rent and cannot be charged until rent is at least 7 days overdue.
- Deposit and pet rent restrictions: As of 2023, security deposits are limited to 2 months' rent, pet deposits to $300, and pet rent to $35 or 1% of monthly rent.
Despite these recent tenant-friendly adjustments, Colorado's overall legal framework continues to favor landlords compared to many other states. The balance between landlord rights and tenant protections makes Colorado an attractive market for real estate investors while still offering some safeguards for renters.
What are landlord rights in Colorado?
Like in every state, Colorado rental property owners are granted fundamental rights that allow them to run an efficient rental business. Some of their key rights include:
- The right to collect rent and the freedom to set rent amounts.
- The right to increase rent (though 60 days' notice is now required for rent increases)
- The right to collect security deposits (now limited to a maximum of 2 months' rent)
- The right to deduct damages from the security deposit at the end of a tenancy if damage exceeds normal wear and tear.
- The right to enter the property for emergencies, repairs, inspections, and showings.
- The ability to enforce the terms of the lease agreement.
- The right to seek legal action against the tenant for breaching the terms of the lease agreement.
- The ability to evict tenants for valid reasons, such as lease violations or criminal activities.
- The right to charge pet deposits and pet rent, though now with limitations:
- Pet deposits capped at $300
- Pet rent limited to $35 or 1% of monthly rent
- The ability to screen tenants, though with new restrictions:
- Cannot reject tenants for insufficient income if their annual income is at least double the annual rent
What are landlord responsibilities in Colorado?
Colorado landlords are held to certain obligations to ensure their tenants' smooth tenancy and habitable living environment. Some of the main responsibilities landlords have include:
- Providing a habitable property:
- Ensure the rental property meets basic health and safety requirements.
- Comply with state and local building codes and health regulations.
- Conducting repairs and maintenance:
- Provide necessary repairs to the property in a timely manner, depending on the specific situation.
- Conduct repairs within 24 to 96 hours after being notified by a tenant, depending on the issue's urgency.
- Maintain the implied warranty of habitability throughout the tenancy.
- Making mandatory disclosures to tenants before they sign the lease agreement, including:
- Utility arrangements
- Presence of bed bugs
- Radon gas levels
- Lead-based paint (for properties built before 1978)
- Methamphetamine contamination (if applicable)
- Handling security deposits:
- Return the security deposit to the tenant within 60 days of the lease termination.
- Provide an itemized list of deductions if any are made for damages exceeding normal wear and tear.
- Complying with lease agreements:
- Honor all terms specified in the lease agreement.
- Provide written rental agreements for leases lasting 12 months or longer.
- Maintaining common areas:
- Keep common areas and areas under landlord control reasonably clean, sanitary, and free from debris, filth, rubbish, and garbage.
- Providing pest control:
- Offer appropriate extermination in response to rodent or vermin infestations throughout the premises.
- Maintaining essential systems:
- Keep waterproofing, plumbing, gas facilities, running water, heating, electrical systems, and locks on exterior doors and windows in good working order.
By fulfilling these responsibilities, Colorado landlords can maintain a positive landlord-tenant relationship and avoid potential legal issues. It's crucial for landlords to understand and meet these obligations to ensure a smooth rental experience for both parties and to comply with state laws.
What are tenant rights in Colorado?
Colorado tenants have several rights that help ensure their safety and respect while living in a rental unit. Some of their most important rights include:
- The right to a safe and habitable living space that meets basic health and safety requirements.
- The right to privacy and quiet enjoyment of the rental property.
- The right to have necessary repairs made by the landlord in a timely manner.
- The right to dispute eviction notices.
- Tenants now have 10 days (increased from 3) to cure lease violations before eviction.
- Sheriffs must wait at least 10 days after a judgment before physically removing a tenant.
- The right to have their security deposit returned within 60 days of lease termination.
- Landlords can only deduct for damages beyond normal wear and tear.
- Protection from discrimination based on familial status, marital status, national origin, sexual orientation, religion, gender, and other protected classes.
- Rights related to rent and fees:
- Late fees are capped at $50 or 5% of monthly rent and cannot be charged until rent is at least 7 days late.
- Landlords cannot evict solely for failure to pay late fees.
- 60 days' notice required for rent increases.
- The right to withhold rent for essential repairs affecting habitability.
- The ability to terminate a lease early in cases of domestic violence.
- Protection against retaliation by landlords for exercising legal rights.
These rights aim to ensure fair treatment and safe living conditions for tenants in Colorado, balancing their needs with landlords' interests. It's important for tenants to be aware of these rights to maintain a positive rental experience and address any issues that may arise during their tenancy.
What are tenant responsibilities in Colorado?
In Colorado, tenants have several key responsibilities to ensure a smooth tenancy and maintain a positive relationship with their landlord. These responsibilities are based on state laws and typical lease agreements. Here are the primary obligations of tenants in Colorado:
- Pay rent on time: Tenants must pay rent by the due date specified in the lease agreement.
- Maintain cleanliness and safety: Tenants are responsible for keeping the rental unit in a reasonably clean and sanitary condition.
- Proper waste disposal: Tenants must dispose of garbage, rubbish, and other waste from the premises in a clean, safe, and legally compliant manner.
- Comply with health and safety codes: Tenants must follow applicable building, health, and housing codes that affect health and safety.
- Use facilities responsibly: Tenants should use electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in a reasonable manner.
- Respect neighbors: Tenants must conduct themselves, and ensure others under their control behave, in a way that doesn't disturb neighbors' peaceful enjoyment of their dwellings.
- Report uninhabitable conditions: Tenants must promptly notify the landlord if the premises become uninhabitable or if there's a condition that could lead to uninhabitability if not addressed.
- Allow landlord access: Tenants must provide reasonable access to the landlord for inspections, repairs, and showings.
- Avoid property damage: Tenants are obligated not to destroy, deface, damage, impair, or remove any part of the premises or surrounding property.
- Make minor repairs: Tenants are typically responsible for small maintenance tasks and repairs.
- Comply with lease terms: Tenants must adhere to all terms and conditions specified in the lease agreement.
By fulfilling these responsibilities, tenants can maintain a positive relationship with their landlord and ensure a smooth tenancy in Colorado. It's important for tenants to understand and meet these obligations to avoid potential conflicts or legal issues during their rental period.
Colorado landlord-tenant laws through the rental cycle
Colorado rental application and tenant screening laws
In Colorado, landlords can screen applicants but must use application fees solely for processing costs, refunding any excess within 20 days. While they're free to ask various questions, adherence to Federal Fair Housing laws is mandatory, ensuring no discrimination occurs.
Screening cannot include arrest or conviction records older than five years, with exceptions for certain serious offenses, nor can it consider rental or credit history beyond seven years. Landlords cannot mandate that a prospective tenant earn more than 200% of the yearly rent amount if they rely on credit and rental history for decisions and the tenant doesn't use housing subsidies.
The recent HB 23-1099 law, effective August 6, 2023, further regulates application fees. Landlords cannot charge these fees if a tenant provides a portable tenant screening report valid for multiple applications within 30 days.
This report, encompassing rental, credit, and criminal history, aims to make housing more accessible and reduce the financial burden on applicants. Landlords are required to accept these reports as valid screening and must inform applicants of this option.
If a landlord obtains a consumer report, they must provide a copy to the applicant and advise them of their right to dispute its accuracy.
Landlords violating these laws may be liable for $2,500, plus court costs and attorney fees. However, a 7-day cure period is allowed, during which the landlord can pay a $50 penalty to avoid further liability. These regulations promote fairness and efficiency in the rental process while balancing the needs of both landlords and tenants.
Read our indepth article on Colorado application and screening laws here.
Colorado lease agreement laws
In Colorado, lease agreements that extend beyond a year must be documented in writing, though both oral and written lease agreements are valid for tenancies shorter than a year. The law sets clear boundaries on what can and cannot be included in lease agreements to ensure fairness and protect both landlords' and tenants' rights.
Required disclosures and essential components
Landlords must disclose information about:
- Lead-based paint (for pre-1978 buildings)
- Radon gas levels
- Bed bug infestations
- Utility arrangements
Essential components of a lease include names and contact information of both parties, property description, lease duration, rent amount and due date, and security deposit details.
Prohibited clauses and tenant protections
Colorado law prohibits several types of clauses in lease agreements:
- Military protection: Requiring military tenants to continue paying rent after being called to active duty is deemed unfair (Federal Soldiers and Sailors Civil Relief Act, 50 U.S.C. App. §534).
- Waiving fundamental rights: Lease agreements cannot waive a tenant's rights to quiet enjoyment and a habitable living environment (C.R.S. §38-12-503).
- Eviction process: Landlords must follow the formal eviction process and cannot forcibly remove tenants without legal proceedings (C.R.S. §§13-40-101 thru 123).
- One-way fee-shifting: Clauses that only allow landlords to recover legal fees are banned (HB 23-1095).
- Jury trial waivers: Tenants cannot be forced to waive their right to a jury trial in eviction cases (HB 23-1095).
- Class action preclusions: Agreements cannot prevent tenants from participating in class action lawsuits (HB 23-1095).
Rent increases and notifications
- Rent increases are limited to once per 12-month period.
- For leases of one month or longer but less than six months, landlords must provide at least 21 days' notice for rent increases.
- Rent cannot be raised during a fixed-term lease unless specifically allowed in the agreement.
Eviction notice
Tenants are entitled to a three-day notice before eviction proceedings for unpaid rent or other breaches can begin (C.R.S. §§13-40-01 thru 123).
These regulations are designed to promote a fair, transparent, and equitable housing market in Colorado, protecting both landlords and tenants by clarifying their rights and responsibilities.
Find out more about what to include in your lease agreement.
Colorado security deposit laws
In Colorado, a landlord is not allowed to require a tenant to submit a security deposit in an amount that exceeds two monthly rent payments under the rental agreement. This regulation is stated in the added section 38-12-102.5 of the Colorado Revised Statutes, which specifies the maximum amount a landlord can require as a security deposit.
This means that if your monthly rent is, for example, $1,000, the maximum security deposit a landlord can require would be $2,000. This regulation was established to protect tenants from excessively high security deposits and to make housing more accessible.
Other Colorado security deposit laws to note:
- Security deposit receipts are not required.
- Landlords do not have to pay interest on security deposits.
- Landlords do not have to store security deposits in a separate bank account.
At the end of a tenancy, the security deposit must be returned within 60 days from the end of the tenancy with a written statement covering the exact reasons for deductions and any remaining funds if applicable.
Colorado real estate investors have the right to withhold a portion or all of the tenant's security deposit if:
- There are damages beyond normal wear and tear.
- The tenant still owes rent or utilities.
- Cleaning is required to return the property to the state it was in at the inception of the tenancy.
- Any other reason that brings financial difficulty to the landlord outside of normal upkeep of the unit.
Colorado rental law makes it so that landlords cannot withhold security deposits without valid reasons or in excess of the allowable deductions. This could result in a penalty against the landlord.
Read more in our indepth security deposit law article here.
Colorado rent laws
In Colorado, where rent control is absent, landlords can set rental prices. Despite this freedom, the law restricts rent increases to once per 12-month period and prohibits raising rent during a lease term unless the written rental agreement itself specifically allows it (Colo. Rev. Stat. § 38-12-702 (2022)).
From October 1, 2021, a grace period law for late rent payments has been in effect. It prevents landlords from charging late fees until rent is seven days overdue, with fees capped at the lesser of $50 or 5% of the overdue rent. The rental agreement must detail the late rent fees and fee policies.
Key late fee regulations include prohibitions against:
- Evicting solely for non-payment of late fees.
- Terminating tenancy due to unpaid late fees.
- Charging late fees on rent are covered by subsidy providers.
- Imposing multiple late fees on a single late payment beyond the cap.
- Charging interest on late fees.
- Applying late fees without providing written notice within 180 days post rent due date.
Tenants are permitted to withhold their rent payment if the landlord does not make essential repairs affecting habitability, with "repair and deduct" being a viable option under specific circumstances.
A notable addition to Colorado's rent laws is HB 23-1120, which introduces a pre-suit mediation requirement for landlords before proceeding with eviction against tenants receiving certain types of financial assistance.
This legislation is designed to reduce evictions by promoting resolution through mediation, marking a significant shift towards dispute resolution outside of court settings. The aim is to provide a fairer, more collaborative approach to eviction proceedings, especially for financially vulnerable tenants.
These laws collectively ensure a balanced approach to rental practices, safeguarding landlord and tenant interests while fostering a fair housing environment in Colorado.
Colorado repair and maintenance laws
In Colorado, landlords must maintain the implied warranty of habitability, ensuring rental properties are livable. This duty includes conducting necessary repairs within 24 to 96 hours after being notified by a tenant, depending on the issue's urgency.
The "repair and deduct" remedy is available to tenants under specific conditions, such as:
- Providing two written notices with up to four days' waiting period each before tenant-initiated repairs.
- The issue must violate the implied warranty of habitability, affecting health, safety, or livability.
- The remedy is not applicable if the damage is caused by the tenant or their guests.
- For non-urgent issues like appliance malfunctions, landlords have 14 days to address the problem.
- Repair costs cannot exceed one month's rent, and tenants are limited to using this remedy twice within a 12-month period.
Tenants cannot withhold rent for unresolved maintenance issues but are responsible for minor repairs and maintaining the property's condition.
Pets in Leased Spaces (HB 23-1068): A significant update to these laws is the inclusion of provisions for pets during eviction processes. Landlords and officers executing a writ of restitution must now ensure the safety of pets by:
- Inspecting for pets and, if found, returning them to the tenant or contacting local animal control.
- Informing tenants where their pets have been taken, if not returned directly.
- Financially, additional pet deposits cannot exceed $300, and monthly pet fees are capped to prevent undue burden on tenants with pets.
HB 23-1068 emphasizes the importance of pet welfare in rental agreements and during evictions, ensuring pets are safely considered in the broader context of maintaining habitable living conditions.
Colorado notice of entry laws
Colorado rental laws do not cover notice of entry rules and regulations, meaning a landlord does not have to provide any notice to enter the rental. However, most landlords and renters mutually agree on notification clauses to avoid any issues.
Generally speaking, landlords should give tenants one to two days' notice before entering the property unless it's for an emergency.
Colorado eviction laws
There are several reasons a landlord may file for eviction in Colorado. The reasons and the required notices are as follows:
- Unpaid rent: When tenants fail to pay rent by the due date, landlords may serve a five-day notice to pay if the landlord has five or fewer rental properties. For all other tenancies, landlords must provide a 10-day notice to pay. If the tenant does not pay rent in the specified time frame, the rental owner may proceed with the eviction process and file a Forced Entry Detainer and Summons.
- Lease violation: If a tenant violates the lease, the landlord may issue a five-day notice to fix the issue if the landlord has five or fewer rentals. For all other tenancies, landlords must provide a 10-day notice. If the tenant fails to do so, the landlord may file a lawsuit for unlawful detainer.
- Illegal activity: If a landlord has evidence of criminal activity taking place in the rental unit, they may file a 3-day unconditional notice to quit. The landlord may file for formal eviction if the tenant does not leave.
- No lease/end of lease termination: Whether at the end of the lease or if there's no lease, landlords must provide advanced written notice before evicting the tenant. The required notice amount is based on how long the tenant has lived in the property. For example, tenancies of one year or more require landlords to give a 91-day notice to quit.
It's essential to note that "self-help" evictions – the act of forcibly removing renters or their possessions from a rental property – are strictly prohibited in Colorado. Unlawful actions to evict tenants could lead to legal repercussions.
Colorado also includes an early termination clause that allows Colorado tenants to terminate the lease early under certain conditions. Those conditions are:
- Active military service
- Hazardous or uninhabitable rental unit
- Domestic violence
- Early termination clauses
Additional Colorado landlord-tenant laws
In addition to rules governing general issues such as repairs and security deposits, Colorado also has specific rights and responsibilities for topics such as renter and housing discrimination laws, landlord harassment and retaliation, and more. Some of these topics are explored below.
Colorado renter discrimination laws
Colorado landlords must adhere to the Federal Fair Housing Act and laws and cannot discriminate against tenants based on protected characteristics such as race, color, religion, sex, national origin, familial status, marital status, or disability.
Retaliation
Colorado does have retaliation laws, but they generally favor the landlord. In the state, landlords cannot retaliate against tenants for alleging that the landlord breached the warrant of habitability or having made a complaint alleging the breach of the warrant of habitability.
Suppose a former tenant decides they want to take legal action against their landlord for retaliatory behaviors. In that case, the tenant must be able to prove the landlord breached the warrant of habitability and retaliated against the renter for complaints against the landlord.
How Azibo supports landlords with essential tools
Azibo offers a comprehensive property management platform tailored to meet the unique needs of Colorado landlords and tenants.
- Rent collection: Free and flexible online rent collection with multiple payment options, auto-pay features, and automated communications.
- Tenant screening: Thorough applicant vetting with credit, criminal, and eviction reports.
- Lease management: Quick generation of state-specific, legally binding lease agreements with e-signing capabilities.
- Maintenance and communication: Centralized system for tracking maintenance requests and tenant messaging.
- Accounting and bookkeeping: Automated expense categorization, bank account integration, and streamlined reporting for easier tax preparation.
- Document storage: Secure, integrated storage for all real estate-related documents.
- Renter experience: Tools to help renters pay on time, boost their credit, and access special offers.
By using Azibo, Colorado landlords can streamline their operations while staying compliant with state-specific regulations, ultimately fostering better landlord-tenant relationships in the Centennial State.
Summing up landlord tenant law, Colorado
whether you're a landlord looking to navigate Colorado's rental market landscape or a tenant aiming to safeguard your rights, understanding the state's landlord-tenant laws is crucial. By familiarizing yourself with these regulations' detailed aspects, including rights and responsibilities, you can prevent unnecessary legal disputes and ensure a harmonious rental experience.
This guide is a valuable resource, offering a comprehensive overview of the critical laws governing rental interactions in Colorado. With this knowledge, landlords and tenants alike can confidently approach their rental agreements, equipped to handle any challenges that may arise in this landlord-friendly state.
Remember, staying informed is key to protecting your interests and maintaining a positive rental relationship.
Colorado landlord-tenant law FAQs
How much can a landlord raise rent in Colorado?
In Colorado, landlords can raise rent by any reasonable amount they wish, as there is no legal cap on rent increases. However, there are regulations and guidelines that landlords must follow:
- Landlords can only increase rent once in a continuous 12-month period.
- Landlords may increase rent in a lease of one month or longer but less than six months only after providing the tenant with at least a 21-day notice.
- Landlords cannot raise rent during a lease term unless the lease agreement specifies that they may do so.
What is the limit a landlord or tenant can sue for in Colorado small claims court?
The maximum amount a landlord or tenant can sue for in Colorado small claims court is $7,500. However, if the claim amount exceeds $7,500, the party can waive the balance and proceed in small claims court.
Can Colorado landlords charge pet fees?
As of 2023, Colorado rental property owners cannot charge more than $300 as an additional pet security deposit, and the fee must be refundable.
Additionally, they cannot charge tenants more than $35 or 1.5% of monthly rent as an additional pet fee.
Avoid Lease Pitfalls: Free Guide
Avoid Lease Pitfalls: Free Guide
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