Colorado legislation poses changes for landlords

Amy Donegon

Newly enacted state legislature has resulted in significant changes for Colorado landlords and how they manage tenant relationships.

Among the new laws putting more rights into the hands of tenants, House Bill 24-1098 states landlords can’t evict without cause or refuse to renew a lease for tenants. There are a few exceptions, including sale of properties, significant repairs or renovations and moving the landlord’s family into the property.

The laws for pet rent were updated, limiting landlords to how much extra they can charge for pet rent. The refundable pet deposit is capped at $300 a household. Laws related to emotional support or service animals remain the same: Landlords can’t charge a deposit or additional rent. Insurance companies can no longer deny owner coverage for specific dog breads, resulting in landlords no longer being able to deny a dog based on breed.

Aiming to curb housing affordability issues, Colorado introduced measures to control rent increases. Landlords can increase rents only once during a 12-month period, and only up to 5 percent plus the rate of inflation. This limit also applies to tenants on month-to-month leases. Landlords must give tenants who receive rental assistance through a government program a 60-day notice before any rent increase.

Landlords are required to return security deposits within 30 days of a tenant’s move-out date, unless specified otherwise within the lease, not to exceed 60 days. Additionally, landlords must provide a detailed itemized list of any deductions from the security deposit for damages or unpaid rent, along with receipts or estimates for repairs. Failure to comply can result in penalties, including the requirement to pay up to three times the amount of the held security deposit.

Landlords are obligated to maintain rental units in good repair, promptly addressing such issues as electrical systems, heating, plumbing and pest control. The law also includes provisions for tenants to withhold rent if repairs aren’t made within a reasonable timeframe after proper notification has been given to the landlord, but they must use the withheld rent to pay for the repairs themselves.

New laws also reinforce anti-discrimination protections. Landlords can’t discriminate against tenants based on race, color, national origin, religion, sex, familial status, disability or source of income. This includes refusing to rent to individuals who use housing vouchers or other government assistance programs. Violations can result in legal action and severe penalties.

Tenant privacy rights continue to require landlords to provide at least 24 hours notice before entering a rental unit for inspections, repairs or showings. Emergency situations are exempt from this requirement.

To address disputes between landlords and tenants, Colorado now encourages mediation as a first step before legal proceedings. For tenants that receive rental assistance from government programs, mediation is mandatory before proceeding with eviction. Mediation aims to resolve conflicts amicably and cost-effectively, benefiting both parties. Landlords should familiarize themselves with local mediation services and consider this option to address disputes.

Current tenant rights laws represent a significant shift toward more protections for tenants and more responsibilities for landlords. By understanding and adhering to these changes, landlords can ensure compliance and foster positive tenant relationships. Staying informed and proactive benefits both landlords and tenants while promoting a stable and equitable housing environment in Colorado.

As new laws take effect, landlords should seek legal advice and other resources to navigate changes. Maintaining open lines of communication with tenants and addressing their concerns promptly builds trust and cooperation, essential elements for successful property management in an evolving legal landscape.