Colorado Property Management Laws & Landlord-Tenant Laws

Colorado has highly specific laws related to real estate investments and renting. Landlords must meet federal, state and local regulations when advertising and leasing residential properties. While Colorado has one set of laws regarding rentals, another state may have dramatically different legislation, making property ownership a complex issue, particularly for out of state owners. Property management companies may be more up-to-date on local regulations.

This guide offers a broad overview of the laws that may affect landlords in Colorado, providing guidance on lease creation, advertising and other activities. Learn about required maintenance, when to hold on to a deposit and how to handle evictions. Both property managers and landlords should have a detailed understanding of best practices for Colorado.

Key Colorado landlord, tenant and property management laws include:

• Licensing Laws: Property management companies must be licensed as per 12-61-101(2)(a)&(b).
• Rental Application Laws: Landlords can charge application fees and conduct credit and criminal background checks, but with certain limitations (HB19-1106). 
• Security Deposit Laws: Landlords cannot charge non-refundable fees and must return the security deposit within 30 days after lease termination (38-12-101 thru 104). 
• Lease and Termination Laws: Both term and month-to-month leases are recognized, and eviction requires a three-day notice period (13-40-101 thru 108).
• Rent and Late Fee Laws: There are no state laws limiting rent amount or late fees, but they must be outlined in the lease agreement. 
• Disclosure Laws: Landlords must comply with federal requirements on lead paint disclosure.
• Landlord Responsibility Laws: Landlords must provide habitable properties and give reasonable notice before entering the property (38-12-503).
• Property Maintenance and Repair Laws: Landlords are obligated to address necessary repairs within 10 days of written notice (38-12-501 thru 511).

Colorado Rental Application Laws

In Colorado, landlords are permitted to charge an application fee, limited to the actual costs of processing the application as per HB19-1106. This also mandates the return of unused fees. Landlords can conduct credit and criminal background checks during the application process, but there are limitations. Only the past seven years of credit and rental history can be considered, and for criminal records, only convictions within the last five years can be used, barring certain serious offenses.

Landlords are not obligated to rent to any specific tenant, but must adhere to the Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status, disability, and transgender status. It is advisable for landlords to approve applications meeting pre-set criteria to avoid violations.

If an application is denied, Colorado law requires landlords to provide a written notice stating the reason for denial, as per HB19-1106. 

Colorado Security Deposit Laws

In Colorado, landlords are prohibited from charging non-refundable fees at the start of a lease. Any additional move-in costs must be justified as reasonable expenses such as security deposits or application fees. There are no legal restrictions on the amount a landlord can request as a security deposit, though it is typically equivalent to one month's rent. This deposit is fully refundable at the end of the lease term.

Landlords have the discretion to manage the security deposit as they see fit, with no obligation to hold it in a separate account or pay interest on it. Upon lease termination, landlords are expected to return the security deposit within 30 days, or 60 days if specified in the lease. In cases of emergency early termination, landlords have 72 hours, excluding weekends and holidays, to return the deposit.

Landlords can withhold part or all of the security deposit to cover unpaid rent, cleaning fees, damage beyond normal wear and tear, or any other lease violation causing financial loss. They must provide an itemized invoice for all retained funds. If a landlord fails to return the deposit within the legally required timeframe, they forfeit all rights to it. Tenants can then send a Seven-Day Demand Letter for the owed amount and can sue for up to three times the deposit value plus court costs if the landlord does not comply. 

Colorado Laws About Leases and Lease Termination

Colorado law recognizes both term and month-to-month leases, with no specific limit on the duration of term leases. Upon lease expiration, a tenant may transition to a month-to-month tenancy with landlord approval. Lease violations, such as late payments, damage to the property, or occupancy clause breaches, may result in eviction. The eviction process begins with a three-day notice period for the tenant to remedy the violation.

For month-to-month lease termination, a minimum of 10 days notice before the end of the rental month is required (C.R.S. § 13-40-107). A tenant can terminate a term lease early with the landlord's consent, or at the end of the lease term with written notice. Colorado law doesn't mandate a notice period for lease termination at the end of the term, but individual leases may require it. A lease can also be terminated without penalty if the landlord fails to maintain the unit per habitability requirements (statutes 38-12-501 to 511).

Active service members can terminate a lease without penalty under federal law, provided they supply written notice and proof of deployment at least 50 miles away for a minimum of 90 days. Special lease termination rules apply for victims of domestic violence (C.R.S. §38-12-402), who can terminate their lease without penalty with proof of abuse.

Landlords can evict tenants for lease violations after a three-day notice and court process (C.R.S. §13-40-101 to 123). Self-help evictions, such as lockouts or direct confrontations, are prohibited. If a landlord wishes to make property changes that would result in tenancy termination, they must typically adhere to standard notification requirements and wait until the lease term ends. 

Colorado Laws About Rent and Late Fees

Landlords in Colorado can increase the rent upon lease renewal, with the increment rate stipulated in the original lease agreement. There are no state laws limiting the rent amount a landlord can charge. Furthermore, Colorado law does not mandate a grace period before imposing a late fee. However, the late fee amount must be clearly outlined in the lease agreement. 

Colorado Legally Required Disclosures

Property owners are not obligated to disclose information about property ownership. They can, however, appoint a licensed real estate agent to handle disclosures. While there are no specific regulations for mold disclosure, landlords must comply with federal requirements on lead paint disclosure, irrespective of Colorado's lack of specific rules on lead. 

Colorado Laws About Landlord Responsibilities

Landlords must provide tenants with reasonable notice before entering the property unless there is an emergency; the specifics should be outlined in the lease agreement. Tenants have the right to refuse entry if the landlord violates the notice requirement or if there is no entry clause in the lease.

To maintain habitability, landlords in Colorado are legally required to ensure the property has a waterproof roof, unbroken windows and doors, functioning plumbing and gas fixtures, running water, adequate hot water, working heat, and electric lighting. The property must also be clean, reasonably free of vermin, and have well-maintained floors, stairways, and railings. Exterior doors and windows must have locks. Additionally, landlords must provide an adequate number of well-maintained trashcans/dumpsters and ensure regular trash removal.

Landlords are also responsible for providing adequate hot water, sufficient garbage receptacles, and meeting local parking ordinances. They must also supply access to running water. However, they are not required to provide a certificate of inspection or to supply locks and keys. Tenants may opt to provide their own locks and keys as landlords are not required to change them between tenants.

Retaliatory actions by landlords, such as significant rent increases, harassment, or slow responses to maintenance requests, are prohibited. 

Colorado Property Maintenance and Repair Laws

Under Colorado law, landlords are obligated to maintain habitable properties, which includes addressing normal wear and tear caused by tenants. While there's no specific timeframe for repairs, prolonged delays may lead to lease termination by tenants. Tenants can request an official inspection for substandard conditions at any point. If landlords fail to address necessary repairs within 10 days of written notice, tenants are legally permitted to undertake the repairs themselves and deduct the cost from their rent, within specified limits. Note that Colorado law doesn't mandate landlords to reduce rent for diminished rental value or provide relocation assistance. Local building codes, such as Longmont's window size requirement, may also apply. Federal or state laws may offer additional tenant protections. 

Bottom Line

Colorado has a comprehensive set of laws to regulate property management and protect the rights of both landlords and tenants. These laws cover various aspects including licensing, rental applications, security deposits, lease termination, rent and late fees, disclosures, landlord responsibilities, and property maintenance. It's crucial for landlords and property management companies to understand and adhere to these laws to ensure smooth and lawful operations. It's also beneficial for tenants to be aware of these laws to protect their rights and interests.