Navigating Colorado's New Rental Laws: Key Updates for Landlords and Tenants in 2024

Colorado has rolled out a significant wave of landlord-tenant legislation for 2024 that impacts everything from eviction processes to pet fees and security deposits. Understanding these updates is essential for both landlords and renters navigating the Colorado rental market. Here’s an overview of the key points:

1. “For Cause” Eviction Requirement

The 2024 “for cause” eviction law requires landlords to provide a specific reason for ending a lease, such as lease violations or non-payment of rent, and eliminates arbitrary terminations. Landlords can still adjust rental terms, like rent or conditions, at the end of a lease as long as they’re communicated in advance and aren’t retaliatory​

Colorado Public Radio. Colorado Newsline.

2. Habitability Standards

Colorado has heightened habitability requirements for landlords. Landlords must keep units safe and functional, ensuring issues like heating, water, and appliance repairs are addressed swiftly. If repairs are delayed, landlords may be required to provide alternative accommodations. Detailed documentation of tenant repair requests is now mandatory to help track response times and ensure accountability​

The Colorado Sun

3. Pet Deposits and Pet Rent

New rules now cap pet deposits at a maximum of $300 per unit (not per pet) and pet rent at $35 per month or 1.5% of the monthly rent, whichever is higher. Pet deposits are required to be refundable. These limits aim to prevent excessive pet fees, making pet ownership more affordable for renters​

Colorado Newsline.

4. Rental Application Fees

Landlords are now restricted from charging more than the actual cost of processing a rental application. This means that if a background check costs $35, landlords can’t charge applicants $100. Additionally, tenants may provide a portable screening report at no cost, eliminating unnecessary expenses for prospective renters​

The Colorado Sun.

5. Limits on Rental History and Criminal History Screening

For rental and credit histories, landlords can only consider data up to seven years back, and criminal background checks are limited to convictions within the last five years, with certain exceptions. Any denial must be provided in writing, detailing the specific reasons for the decision​

The Colorado Sun.

6. Markups on Fees

Landlords may only add a limited markup for services rendered by third parties, capped at $10 or 2% of the billed amount, whichever is lower. This regulation addresses excessive charges for items like maintenance services and repairs handled by third-party providers​

Colorado Newsline.

7. Non-Renewal and Security Deposit Policies

Landlords cannot charge fees for tenants who choose not to renew their lease unless there are actual losses incurred. Security deposits are now capped at twice the monthly rent, and they must be refunded within 60 days after a tenant vacates. If any portion is withheld, landlords must provide a detailed statement listing costs and reasons​

Colorado Newsline. The Colorado Sun.

8. Rent Increase Limitations

Rental increases are limited to once per 12-month period, preventing mid-lease hikes. This change helps tenants plan for their expenses without the worry of sudden increases​

Colorado Newsline.

9. Late Fees

Landlords can only impose late fees if rent is overdue by at least 10 days, a change from previous timelines. Late fees are capped at 5% of the rent or $50, whichever is greater. Additionally, if a lease doesn’t specify a late fee, landlords are prohibited from imposing one​

Colorado Newsline.

10. Municipal Restrictions

Many municipalities in Colorado have specific restrictions on rental occupancy, short-term rentals, and rental licensing. Always check with your city or county to ensure compliance with local regulations​

The Colorado Sun.

11. Pet Policies: Service and Emotional Support Animals

Under the Fair Housing Act, landlords are required to make reasonable accommodations for tenants with assistance animals, including both service animals and emotional support animals (ESAs). Landlords cannot charge additional fees, deposits, or pet rent for these animals if the tenant has a documented disability and a related need for the animal. However, tenants are responsible for any property damage caused by their assistance animal​

The Colorado Sun.

12. Renter’s Bill of Rights

HB 24-1098 enacts a Renter’s Bill of Rights, specifying that evictions require just cause, among other protections. This legislation is one of Colorado’s most significant tenant-protection efforts, reinforcing renters' rights and outlining landlord responsibilities in greater detail. See the full text here https://leg.colorado.gov/sites/default/files/2024a_1098_signed.pdf ​

The Colorado Sun.

With these 2024 updates, landlords should take the time to review their leasing policies and practices to align with Colorado’s new rules. Renters should feel empowered to understand their rights and make informed choices. If you have questions or need guidance on how these changes might affect you, please reach out – I’m here to help you navigate these updates!

Disclaimer: This blog post is for informational purposes only and is not intended as legal or financial advice. Real estate laws, including landlord-tenant regulations, can be complex and vary by municipality. Please consult with a qualified real estate attorney, property management professional, or financial advisor to ensure compliance with Colorado’s 2024 regulations and to address any specific legal or financial questions related to your property. This information is based on current Colorado laws and may not reflect future changes or local variations. Always verify information and requirements with your city or county as additional restrictions may apply.