How I Got Started With This Page

I was rudely made aware of last year’s new tenant laws when a tenant (incorrectly) cited (Colorado Revise Statutes) C.R.S. 38-12-701, Notice of Rent Increase which states that a landlord must give a tenant 21-days notice of a rent increase if there’s is no agreement/lease in place.  If there’s a lease, then this restriction isn’t applicable.  

If that weren’t enough, (and don’t you think it ought to be?) there’s C.R.S. 38-12-702, Limit on Frequency of Rent Increase which limit rent increases to once every 12-months. 

More Bills from the Colorado Legislature Headed Your Way

Find out what the Colorado Legislature has in store for landlords next year. Click on the links to see more about each bill.  (Thanks to Kevin Lundberg.)

The following bills are most likely to pass during the 2023 Legislative session.

HB-1095 Limitations On Rental Agreements This is a long list of what cannot be in a housing rental agreement. This will inevitably drive up the cost of renting in Colorado, which is already way too high. Passed House third reading   

HB-1171 Just Cause Requirement Eviction Of Residential Tenant More controls on rentals, increasing the cost of renting homes. Passed House

HB-1190 Affordable Housing Right Of First Refusal Forcing property owners to give the local government 90 days to review any property sale and buy it for the same terms the owner made with a private purchaser. Passed House

HB-1254 Habitability of Rental Properties This bill will guarantee an increase in rental rates across the state as property owners will have to be prepared to pay significant costs if a tenant makes a habitability claim.

SB-184 Protections For Residential Tenants If I am reading this right, it requires a landlord to rent to the first person who applies for the property and it protects the renter from eviction if any violation of this law is claimed. There are several other absurd requirements, too many to list here. This could be the worst anti-landlord bill I have ever seen. 

New Legislation including 2023 Bills from the Colorado State Legislature Actually Signed into Law (Effective 8/7/2023)

The following bills are from the latest round of anti-landlord bills from the Colorado Legislature.  It’s more nitpicking than anything else.  All are tilted against the landlord.  The one solution that is pointed out is to only have month-to-month tenants.  No long-term leases.  Thanks to Colin Smith of Solid Rock Realty and Michael A. Smeenk of FJGG.  (this is not an endorsement of Mr. Smeenk.) Although, I can endorse Solid Rock Realty.  

Denver To Require All Landlords to Have a License

Do you own any residential property in the City and County of Denver that you lease on a monthly or annual basis? If so, you must obtain a new municipal license in the coming months, with specific deadlines and requirements depending on the type of your property.

Multi-unit rental properties such as apartment buildings are up first – the City’s new license is required by January 1, 2023. All single-family rentals are next, with licensing starting on January 1, 2024.

In all, the City estimates that 50,000 total rental properties (multi-unit and single-family) must be licensed by early 2024. Given expected delays in scheduling certified on-site inspections and navigating a new licensing structure, our best advice is to begin preparing early.

The Denver webpage for residential rental licenses provides resources for property owners and managers. Return to List

 

Polis' Property Tax Relief Relies On Your TABOR Refund.
(5/4/2023)

SB23-303 – Reduce Property Taxes and Voter-approved Revenue.   This bill introduced by Colorado Governor Jared Polis takes the refund money you’re supposed to get from TABOR and spends it on you property taxes.  This way the state still gets the huge increase in property taxes, but says it’s giving you a tax break by spending your money.

SB23-184: Protections for Residential Tenants

  • Gross Household Income Requirement: Limited to 200% of Annual Rental Rate (2x)
  • Maximum Security Deposit: 200% of 1 Month’s Rent
  • Applicants Applying with a Housing Subsidy:
    • 200% of Annual Rent for which they are responsible for.
    • May not take into consideration poor credit score or no credit score.
  • Amount of Income: “Tenants income from salaries, wages, commissions,
    payments received as an independent contractor, bonuses, or a housing subsidy or derived from any other public or private source and include all of tenant’s or prospective tenant’s cash assets. Return to List

SB23-206: Disclosure of Radon Information Residential Property

    • This new rules apply to all properties for sale or lease, no exclusions.
    • Disclosures must be made BEFORE signing a lease and acknowledged with
      a Tenant signature. (Part 1)
      • Whether a radon test or tests have been conducted in the property.
      • The most current records and reports pertaining to radon concentrations within the residential real property.
      • A description of any radon concentrations detected or mitigation or remediation performed.
      • Information regarding any radon mitigation systems, including a system description and documentation, if a radon mitigation system has been installed in the residential real property
    • Disclosures BEFORE signing a lease. (Part 2)
      • Provide the Radon and Real Estate Transaction Brochure from the CO Department of Public Health: https://cdphe.colorado.gov/hm/radon-and-real-estate.
    • Disclosures BEFORE signing a lease. (Part 3)
      • The following is written in BOLD FONT as follows (Part A):
        THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT STRONGLY RECOMMENDS THAT ALL TENANTS HAVE AN INDOOR RADON TEST PERFORMED BEFORE LEASING RESIDENTIAL REAL PROPERTY AND RECOMMENDS HAVING THE RADON LEVELS MITIGATED IF ELEVATED RADON CONCENTRATIONS ARE FOUND. ELEVATED RADON CONCENTRATIONS CAN BE REDUCED BY A RADON MITIGATIONS PROFESSIONAL
    • A Tenant will have the right to void a lease and move out if the Landlord:
      1. Refuses to provides a written disclosure.
      2. Mitigate the radon to under 4.0 pCi/L within 180 days after receiving notification of elevated levels of radon (4.0 pCi/L or more) by a Radon Measurement Professional.
    • These guidelines impact all residential housing to include single family houses, condos, townhomes, mobile homes, apartments, and multi-family properties.
    • Not following these new radon guidelines is also considered a breach of the Colorado Warranty of Habitability.

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HB23-1095: Prohibited Provisions In Rental Agreements

  • No penalty or fee assigned to a party stemming from an eviction notice or eviction action that resulted from a violation of the lease agreement.
  • 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 the fee is reasonable”.
  • Waiving any of the following:
    ○ A jury trial
    ○ The ability to pursue, bring, join, litigate, or support any kind of joint,
    class, or collective claim or action.
    ○ The implied covenant of good faith and fair dealing.
    ○ The implied covenant of quiet enjoyment
  • A 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.  But the landlord can charge a fee if they suffer an actual loss because they didn’t receive notice.  *** Like the tenant’s deposit because the landlord lost a month’s rent!! ***
  • Except for the monthly rent, any provision that characterizes any amount or fee as “rent” which could lead to remedies such as eviction in the event of non-payment of rent.
  • 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 may include a provision that requires a tenant to pay either a markup or fee in an amount 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.”
  • “A provision that purports to allow a provider operating under any local, state, or federal voucher or subsidy program to commence or pursue an action for possession based solely on the nonpayment of utilities.” Return to List

HB23-1068: Pet Animal Ownership In Housing

  • Insurance companies can no longer refuse, cancel, alter, increase rates on, etc, for properties that have a specific dog breed.   This new provision DOES NOT alter the insurance company’s ability to refuse to issue, cancel, refuse to renew, or impose a reasonable rate increase for a particular dog kept at the dwelling that is known to be dangerous.
  • You may no longer charge a non-refundable pet fee. Only a pet refundable security deposit in the maximum amount of $300 may be charged.
  • The maximum pet rent is now established as the greater of $35 or 1.5% of the monthly gross rent. Return to List

HB23-1099: Portable Screening Report for Residential Housing

  • New mandatory language must be on the application and on all advertisements (including those that are online) in 12-point, bold font:
    • THE PROSPECTIVE TENANT HAS THE RIGHT TO PROVIDE TO THE LANDLORD A PORTABLE TENANT SCREENING REPORT, AS DEFINED IN SECTION 38-12-902 (2.5), COLORADO  REVISED STATUTES; AND
      2. IF THE PROSPECTIVE TENANT PROVIDES THE LANDLORD WITH A PORTABLE TENANT SCREENING REPORT, THE LANDLORD IS PROHIBITED FROM:
      CHARGING THE PROSPECTIVE TENANT A RENTAL APPLICATION FEE; OR CHARGING THE PROSPECTIVE TENANT A FEE FOR THE LANDLORD TO ACCESS OR USE THE PORTABLE TENANT SCREENING REPORT.
  • The Portable Screening Report must contain the following:
    • Name;
    • Contact Information;
    • Verification of employment and income;
    • Last-known address;
    • Rental, credit, and criminal background histories, in compliance with Colorado law.
  • The Portable Screening Report must meet the following criteria: 
    • Completed within the last 30 days;
    • Made directly to Property Manager by the consumer reporting agency or through a third-party website regularly engaged in the business of providing consumer reports.
    • Provided to use at no cost;
    • A written statement from the prospective tenant that there has not been any material change in the information provided in the report.
  • Other Noteworthy items:
    • Rental fee must be the same to every applicant, across all properties managed by the same person.
    • If a landlord denies a rental application, the landlord shall provide to the prospective tenant a written notice of the denial that states the reasons for the denial.
    • “If the prospective tenant submits an application that results in a landlord obtaining a consumer report relating to the prospective tenant, the landlord shall also provide a copy of the consumer report relating to the prospective tenant and advisement of the prospective tenant’s right to dispute the accuracy of the consumer report with the consumer reporting agency pursuant to section 5-18-106.”
    • Denial notice can be electronic unless requested by the applicant to be a paper copy, then the landlord is required to provide a paper denial notice.
  • Landlords are exempt from part of this bill if :
    • “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, landlord’s agent or the prospective tenant declining to enter into a lease agreement for the dwelling unit.”
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HB23-1120: Eviction Protection For Residential Tenants

  • For all evictions filed a Government Assistance Affidavit must be completed.
  • Government Assistance is:
    ○ Supplemental Security Income
    ○ Social Security Disability Income
    ○ Cash assistance through the Colorado Works program.
  • Mandatory Mediation
    ○ Paid for by Landlord. May not request reimbursement.
    ○ State will pay the Tenant’s portion.
    ○ Must be a professionally trained, neutral 3rd party. Colorado has an Office
    of Dispute Resolution.
    ○ Must take place within 14 days of the request.
  • Sheriff’s execution of a Writ of Restitution extends from 10 days to 30 days.
  • There are exceptions (AND MUST BE WRITTEN ON THE AFFIDAVIT)!
    • The Tenant(s) did not disclose or declined to disclose to the Landlord in writing, in response to a written inquiry from the Landlord requesting whether Tenant(s) receive assistance.
    • The Tenant(s) does not receive assistance.
    • The Landlord is a 501(C)(3) nonprofit organization that offers opportunities for mediation to residential tenants prior to filing a residential eviction in court.
    • The Tenant(s) was notified of mediation and did not participate in mediation.
    • The Tenant(s) waived the mediation.
    • Landlord has five or fewer single-family rental homes and no more than five total rental units, including any single-family homes.
  • Otherwise, mediation must be performed and Affidavit to read: The Tenant(s) receives Assistance, and the Landlord and Tenant(s) participated in mandatory mediation and the mediation was unsuccessful. Return to List

Colorado Supreme Court Ruling: C.A.R.E.S. Act

    • May 15, 2023 CO Supreme Court Ruling.
    • If a property is considered a “Covered Property” then a Landlord must post a 30-Day Demand instead of a 10-Day Demand for non-payment of rent.
    • A “Covered Property” is:
      ○ If the mortgage on the property is purchased by Fannie Mae, Freddie Mac, VA, FHA, or any other loan backed by the Federal Government. 
    • CONVENTIONAL LOANS: YOU MUST CALL YOUR MORTGAGE SERVICER TO FIND OUT!
      ○ If the tenant receives payment assistance or a voucher, such as a VA
      voucher, section 8, or Colorado Works Program.
    • A C.A.R.E.S Act Affidavit is now required with every eviction to state whether or not it is in effect.
    • To see if your loan falls under this ruling go to: https://yourhome.fanniemae.com/calculators-tools/loan-lookup

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