Residential landlords beware. If enacted, new Colorado measures could affect your ability to remove defaulting tenants and limit the fees you charge.

Here’s a brief summary of a portion of what Senate Bill 21-173 includes as currently proposed:

When a landlord removes or excludes a tenant from a dwelling without resorting to proper court procedures, it is an unfair or deceptive trade practice for the purposes of the Colorado Consumer Protection Act.

After a complaint is filed by a landlord, the clerk of the court or the attorney for the plaintiff shall issue a summons, including information concerning filing an answer and legal aid. A court shall not enter a default writ of restitution before the close of business on the date upon which an appearance is due.

Provides additional details regarding the defendant’s answer. A defendant doesn’t waive any defense related to proper notice by filing an answer. The court shall set a date for trial no sooner than seven, but not more than 10, days after the answer is filed unless the defendant waives this provision and a trial is scheduled for an earlier date. In the time after an answer is filed and before a trial occurs, the court shall order the landlord or tenant to provide any relevant documentation that either party requests.

A landlord who provides a tenant with proper notice of nonpayment shall accept payment of the tenant’s full amount due according to the notice, as well as any rent due under the rental agreement, at any time until a court has ordered a writ of restitution.

Eliminates the bond requirement for the warranty of habitability and allows the tenant to assert an alleged breach of warranty of habitability as an affirmative defense.

Establishes allowable court procedures and remedies in cases of an alleged breach of warranty of habitability.

Bans liquidated damage clauses that assign a cost to a party stemming from a rental violation or eviction action.

Prohibits rental agreements that contain one-way fee-shifting clauses that award attorney fees and court costs only to one party.

Guarantees parties to a residential forcible entry and detainer dispute the right to a trial by jury.

SB 21-173 is still subject to change, but I expect some form of the measure to become Colorado law. The provisions most likely won’t take effect until Jan. 1, so landlords will have time to adjust to the new laws.