Are you aware of all the new Colorado rental regulations demanding your compliance?
If you’re renting out a home in Golden, Lakewood, or anywhere in Jefferson County and beyond, awareness of state and local rental laws is a requirement. To eliminate “bad actors” in the landlord space, tenant protections are growing and landlords need to understand both what they’re required to do and what they’re prohibited from doing.
Let’s take a look at recent legal updates and review what you might have missed.
Quick Summary:
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Credit Reports and Screening for Tenants with Subsidies
HB 1236 stipulates that prospective tenants applying with a housing subsidy are not required to include a credit history report in a portable tenant screening report. This report, as defined by the law, is a “consumer report” prepared at the request of the tenant, containing information from a consumer reporting agency.
Additionally, HB 1236 repeals C.R.S. §38-12-904(1.5)(b)(II), which previously allowed landlords to require tenants to provide access to a screening report via a consumer reporting agency or third-party website.
Pricing Transparency Laws in Colorado
Starting in 2026, a new law mandates that advertised rental prices must include all additional fees and costs, giving prospective tenants a clear picture of the total amount they will pay upfront.
In other words, landlords can no longer advertise one rental price and then charge tenants a higher monthly rent once extra fees are added. Full transparency is required throughout the entire process, from marketing the property to signing the lease.
Handling Tenants Who Pass Away
A new law went into effect at the end of 2025, which concerns the death of residents. The law says that if a rental agreement is terminated early due to a tenant’s death, certain provisions become void. This includes any liquidated damages, rent acceleration, or requirements for payment of concessions or move-in discounts, as well as any additional fees or damages.
The bill also allows a landlord to take possession of the rental unit without initiating an eviction process if the deceased tenant’s personal representative informs the landlord of the intention to surrender the property within 30 days of the tenant’s death, provided rent remains unpaid or most of the tenant’s belongings have been removed.
Finally, the law permits landlords to retain the security deposit to cover repair costs if the property was damaged due to the tenant’s death.
Security Deposit Laws in Colorado
In 2026, Colorado implemented stricter protections for security deposits. Under the new law (HB 1249), landlords must return the security deposit within 30 days of a tenant’s move-out, unless the lease explicitly allows for 60 days. Additionally, landlords are prohibited from using any portion of the deposit to cover costs for damage or issues that existed before the tenant moved in.
As a result, it’s more important than ever to thoroughly document your property’s condition both before a tenant moves in and after they move out to avoid potential disputes. Everything is going to look like normal wear and tear unless you can prove it’s tenant damage.
Landlords in Colorado are permitted to withhold a reasonable amount of the security deposit to cover:
- Nonpayment of rent
- Nonpayment of utility charges
- Other lawful charges listed in the lease
- Any necessary repair work from damage that did not preexist the lease
Landlords will be liable for damages for wrongful retention of the security deposit or for any delay in returning the security deposit.
Late Fee Limits
Late fees are now limited in both when you can charge them and how much you can collect.
First, there’s a limit on what you can collect in late fees. According to the law, you cannot charge a late fee that’s more than 5% of the outstanding rent or $50, whichever is greater. Then, we have to talk about the grace period. You cannot charge a late fee until rent is late by 7 full days, not including the due date, or the date the late fee is charged.
Make sure you include the late fee in your lease agreement, otherwise you cannot charge a late fee at all. And remember that you cannot charge interest on late fees nor can you use unpaid late fees alone as a reason for evicting a tenant.
Just Cause Evictions
In Colorado, eviction laws have evolved, and you have to make sure you’re aware of what’s required in order to remove a tenant from your rental home.
We now have just cause evictions, which limit when a landlord can legally force a tenant to move out, providing protection against unjust displacement. These rules ensure tenants cannot be evicted without a valid reason.
Common just causes for eviction include:
- Nonpayment of rent
- Serious or repeated lease violations
- Criminal activity
- Refusal to allow lawful access
- Failure to vacate after the lease ends when the landlord has a legitimate reason not to renew.
Additionally, landlords in Colorado may have just cause if they plan to substantially renovate the property, remove it from the rental market, or move into the home themselves, though this typically requires additional notice and documentation.
When a no-fault eviction is necessary, you’ll have to identify the situation that requires it, provide an extended notice period of 90 days to your tenant, and potentially provide relocation assistance to the tenant who is being evicted through no fault of their own.
The key difference between for-cause and no-fault evictions lies in who is at fault. For-cause evictions stem from the tenant’s actions or failures, while no-fault evictions are based on the landlord’s situation or intentions for the property.
Before proceeding with eviction, ensure you have a valid reason to avoid legal issues.
These are just a few of the most important legal updates to know. To ensure you and your property are protected against unnecessary legal risk, consider professional property management and contact us at Laurel Property Services. We provide expert property management throughout Jefferson County in Colorado, including communities such as Golden, Arvada, Lakewood, Morrison, Wheat Ridge, and Littleton.
