New Rules for Landlords
If you’re managing your own residential rental property, you should be aware of four new laws that now apply to all Colorado landlords. Failure to comply with these laws can result in escalating penalties and court costs so it’s a good idea make sure you understand the changes. Some highlights follow. If you have questions or want a deeper dive, just give me a call.
Protections for Residential Tenants
Senate Bill 23-184 has several provisions that, taken together, create a more level playing field for renters when navigating a challenging rental market. The new law lowers the income-to-rent ratio that tenants must meet in order to qualify for a rental. In the past, Colorado landlords could require that renters have an annual income that is at least three times (300%) their annual cost of rent; the new law caps the annual income requirement at two times (200%) the cost of rent. The law also limits security deposits to the cost of two month’s rent, and includes penalties for landlords who engage in discriminatory housing practices.
Portable Screening Reports
With House Bill 23-1099, Colorado landlords are now required to accept screening reports that are provided by renters. There are some conditions: the screening report must be from a consumer reporting agency within the last 30 days, and the report must include the prospective tenant’s credit score and other key information. But with those conditions met, landlords cannot charge a separate screening report fee to a prospective renter who provides their own report. This change falls under the “Rental Application Fairness Act,” and attempts to reduce the number of fees renters must pay in Colorado’s hyper-competitive rental market.
Pet Animal Ownership in Housing
House Bill 23-1068 limits pet security deposits to $300, and specifies that landlords may not apply monthly pet surcharges in excess of $35 per month or 1.5% of the monthly rent. It also prevents insurers from increasing premiums or refusing to write a policy based on pet breed or mixture of breeds. This change reflects the rise in pet ownership in Colorado during the pandemic, and provides a uniform guide for landlords and apartment operators to adjust their pet policies.
Radon Disclosure in Residential Property
Senate Bill 23-206 requires that landlords (and sellers) of residential properties provide prospective tenants with the following, in writing:
- A warning statement about the dangers of radon and the need for testing.
- Any knowledge the landlord (or seller) has of the residential property's radon concentrations and history, including tests performed, reports written, and mitigation conducted.
- The most recent brochure published by the Department of Public Health and environment that provides advice about radon in real estate transactions
If a landlord fails to provide the written disclosures or fails to mitigate an elevated radon level, the tenant may legally void the lease. This law reflects the prevalence of radon in Colorado, where all 64 counties and about half of all homes have naturally occurring radon levels above EPA accepted levels.