Colorado Rental Laws Every Landlord Needs to Know

Beth Davis

All County Editor

Are you ready to tackle the world of Colorado rental laws? As a landlord in Colorado, it’s crucial to understand the Colorado rental laws that govern your rights and responsibilities. From security deposits to evictions, these laws can vary from state to state. And if you’re not up to speed on the specifics, it could cost you big time. You don’t want to find yourself in hot water because you didn’t know about a specific requirement or deadline.

Learn from the All County Property Management team what it takes to own rental properties, stay compliant, and protect your investment in Colorado real estate rentals.

Please note that this post does not constitute legal advice. For legal matters, please consult your local attorney.

Is Colorado a Landlord or Tenant-Friendly State?

As a landlord, you’re generally required to provide a safe, habitable living space for your tenants. This means ensuring the property is up to code, with working heat, plumbing, and electricity.

On the flip side, tenants have a responsibility to pay rent on time, keep the property in good condition, and follow the terms of the lease agreement. If either party fails to hold up their end of the bargain, that’s when things can get messy.

Some aspects of Colorado law can be seen as more landlord-friendly. For example, Colorado has no statewide rent control laws, meaning landlords are generally free to set their own rental rates based on market demand. Additionally, Colorado landlords can charge whatever security deposit amount they like as long as it seems reasonable.

Tenant Screening and Rental Applications in Colorado

As a landlord in Colorado, one of the most important things you can do to protect your rental property is to thoroughly screen potential tenants. This means having a solid rental application process and knowing what you can and can’t ask regarding tenant screening. Here are a few key things to remember when screening prospective tenants in Colorado.

Background Checks and Tenant Personal Information

You can ask about a potential renter’s rental history, job status, and income. You’re also allowed to check credit history, but you must follow legal guidelines. Application fees are nonrefundable and must reflect actual costs under Colorado law (C.R.S 38-12-701).

Is it Legal for a Colorado Landlord to Inquire about Criminal History?

In Colorado, the answer is yes — but with some important caveats.

Under Colorado law, landlords can consider an applicant’s criminal history as part of the tenant screening process. However, you can’t automatically deny someone housing just because they have a criminal record. Instead, you need to consider the nature and severity of the crime, how long ago it occurred, and whether it’s relevant to the applicant’s ability to be a good tenant. Additionally, sealed records and arrests without convictions are not allowed to be part of your decision-making process.

Housing Assistance and Section 8 Income

Your application forms should not omit housing assistance money as acceptable proof of income; these applicants must be considered fairly. Some areas may have additional protection beyond just federal laws, so you will need to stay up-to-date with all the various local laws as well.

Rental Agreements in Colorado

One of the most essential documents you’ll deal with is the property lease agreement. Beyond the basics, a Colorado lease agreement should also include details about the length of the lease term, any late fees or grace periods for late rent fees or payments, and who is responsible for utilities and maintenance. It’s also a good idea to include provisions around subletting, pets, and any other specific rules or restrictions for the property.

Other clauses you might like to include:

• Landlord right to entry
• Severability lease clause
• Routine maintenance
• Security deposit requirements and policies
• Late fees and unpaid rent
• Any relevant HOA rules or regulations in the lease agreement, if applicable

The key is to be as thorough and specific as possible in your lease agreement while ensuring everything is legal and enforceable under Colorado law. Regardless, it’s always a good idea to consult with a local attorney specializing in landlord-tenant law to review your lease agreement and ensure you’re covered.

Colorado Security Deposit Laws

Many states have a limit on security deposit charges; Colorado landlord-tenant laws do not specify a limit. In other words, a landlord can charge whatever is reasonable.

It’s important to note that in Colorado, landlords must return the security deposit (minus any deductions for damages or unpaid rent) up to 60 days after the tenant moves out. You must specify that you can take up to 60 days in the lease, however. In the event of a hazardous situation that you cannot remedy within 72 hours, the tenant may be able to vacate, in which case you would need to return the security deposit within 72 hours.

If you fail to do so, you could be on the hook for up to three times the security deposit amount, plus attorney’s fees and court costs.

Rent Control Law

Colorado doesn’t have any statewide rent control laws. They were banned back in 1981. This means landlords are generally free to charge whatever rent the market will bear and can raise rents as they see fit (within the terms of the lease agreement, of course). However, there is a push within some cities to own rent control laws (like Denver).

Grace Periods

Colorado used to have no statewide grace period law, but in 2021, that changed. The new grace period prevents landlords from charging late fees until rent is seven days past due. Fees are also capped at $50 or 5% of the overdue rent (the lesser amount). Additionally, your lease or rental agreement must outline all fees and policies. Also, it’s important to note that tenants can withhold their monthly rent payment if you do not make essential repairs that affect habitability.

Landlords are also prohibited from:

• Evicting based on non-payment of late fees.
• Terminating tenancy due to unpaid late fees.
• Charging late fees on rent are covered by subsidy providers.
• Charging more late fees or interest on a single late payment above the regulated cap.
• Applying late fees without providing written notice within 180 days post rent due date.

Notice to Vacate Laws in Colorado

Colorado law doesn’t require tenants to give written notice on a fixed-term lease – it simply ends on the date in the agreement. For other leases, notice requirements are as follows:

• 1 week or less: 1 day
• 1 week to 1 month: 3 days
• 1-6 months: 21 days
• 6-12 months: 28 days
• 12+ months: 91 days

Colorado Landlord-Tenant Laws for Property Management and Maintenance

Colorado rental laws outline specific requirements that property owners must follow to ensure a safe and habitable living environment for tenants. Staying on top of these requirements not only keeps tenants happy but also helps protect your investment in the long run.

Required Disclosures

Colorado rental laws mandate that landlords provide certain disclosures to tenants. These include:

• Landlord contact information(Colo. Rev. Stat. Ann. § 38-12-801(2) (2022)
• Bed bugs (Colo. Rev. Stat. Ann. § 38-12-1005 (2022)
• Lead paint disclosure
• Radon Disclosures (SB 23-206)
• Rental application fee expenses (Colo. Rev. Stat. Ann. § 38-12-903 (2022)
• Application denial (Colo. Rev. Stat. Ann. § 38-12-904 (2022)

Failure to provide these disclosures can lead to legal issues down the road. All County Property Management has a thorough checklist to ensure all required disclosures are made.

Right to Entry for Landlords

While tenants have a right to privacy, Colorado rental laws allow landlords to enter the rental unit under certain circumstances, such as making repairs or addressing emergencies. While the state doesn’t mandate any notice to enter, it’s crucial to respect tenants’ privacy and only enter during reasonable hours unless there’s an urgent situation. Clear communication about entry policies can help avoid misunderstandings.

Providing a Safe Living Environment

If a tenant experiences harassment or violence on the rental property, they should document the incidents and notify the landlord in writing. Under Colorado rental laws, landlords must provide a safe living environment and address any reported issues promptly. Tenants may also contact local law enforcement if they feel threatened or unsafe.

In some cases, tenants may be able to break the lease early due to safety concerns. Encourage open lines of communication so tenants feel comfortable reporting any issues, and you can work quickly to resolve them.

Eviction Process and Tenant Protections in Colorado

Evictions are never pleasant, but sometimes they’re necessary when a tenant violates the lease agreement or Colorado rental laws. However, landlords must follow a specific legal process to evict a tenant, and tenants have certain protections under the law. Thorough tenant screening, clear lease agreements, and regular property inspections can help identify and address issues before they escalate.

When it comes to early lease terminations, there are only a handful of scenarios where a tenant can legally break their lease in Colorado. These include things like domestic violence, military deployment, or if the property is unsafe or uninhabitable. However, they may still be liable for one month’s rent, depending on the situation.

What Can a Landlord Evict Someone for?

In Colorado, a landlord can evict a tenant for several reasons, including:

• Nonpayment of rent
• Violation of lease terms
• Commits a crime or serious act against another tenant
• Staying beyond the lease term

Eviction can be complicated, so if you’re forced to go that route, it’s best to seek an attorney’s advice.

When Can a Landlord Not Renew a Lease?

A Colorado landlord may choose not to renew a lease for various reasons, such as wanting to sell the property, turning the property into a short-term rental, having the landlord’s family plan to move in, or having substantial renovations. This is called a “no-fault” eviction, and 90 days notice must be given on the landlord’s end.

Hire All County Property to Manage Your Colorado Rental

As a landlord in Colorado, it pays to know your rights and responsibilities under the law. By staying informed and playing by the rules, you can avoid costly mistakes and protect your rental investments for the long haul.

Feeling like you need way too much legal knowledge to manage your own property as a landlord? Partner with All County Property Management today. With over thirty years in this business, we are professional experts in long-term residential property management. We are client-focused and handle all aspects of your property, ensuring you peace of mind that your asset is performing to its fullest potential.