As property managers in Golden, Colorado, we have talked to a lot of owners and landlords about pets. We talk about the benefits of allowing pets and the potential risks. We share the elements that ought to be included in any strong pet policy, and we help investors navigate the reality of most tenants having at least one pet. One of the things we always recommend when you’re allowing pets is that you collect a pet deposit to protect your property and limit any unavoidable liability.
Legally, there have been some new developments, and we want to make sure you’re aware of what the established limits will be when we talk about pet deposits and pet restrictions.
Golden Property Management and HB23-168 Pet Animal Ownership in Housing
This bill is complex, and we encourage you to read it on the Colorado General Assembly website:
https://leg.colorado.gov/bills/hb23-1068
Here is a summary of how this new piece of legislation reinforces and/or changes the way Laurel Property Services, Inc. is managing your property.
Breed Restrictions
This bill prohibits insurance providers from having breed restrictions in their policy coverage. Essentially, your insurance provider will no longer be able to deny you coverage if you or your tenants own a dog who is considered one of the standard “restricted breeds”. Subsequently, landlords are no longer able to provide insurance concerns as a reason to deny housing to a renter who owns a “restricted breed” dog at an otherwise pet-friendly property.
Laurel Property Services eliminated breed restrictions as part of our rental qualifications several years ago. Our Property Management Agreement requires our clients to ensure their insurance does not impose such breed restrictions. This part of the bill does not change our business practices. However, it is good practice for you to review your property insurance to ensure your policy is in compliance.
Limiting Security Deposits, Pet Fees, and Pet Rent
Previous to the passage of HB23-1068, Laurel Property Services had the policy of a $200 per pet additional deposit at the pet-friendly properties we manage. This new law sets a maximum of $300 total pet deposit allowed per lease. To be compliant, we now charge a flat deposit of $300 for pets, whether the renter owns one or two pets. Please keep in mind that at Laurel Property Services, our base security deposit is always $50 more than the advertised rent. For example, if the rent at your property is $3,000 per month, and your renters have two dogs, the total security deposit held will be $3,350.
What Does All This Actually Mean for Golden Property Management?
While the last several years of legislation have left many landlords and investors feeling a loss of control over their properties, we feel the best way to retain control is to understand the ever-changing legal landscape that requires the evolution of policies. This is why as your Golden Property Managers, we stay educated and current on legislative issues to keep our policies compliant while protecting your interests.
