Recent Changes To Colorado’s Residential Landlord-Tenant Laws

The Colorado State Legislature continues to pass laws that affect residential landlords and tenants.  Managing a Rental Property and the Tenants who live there has become more complicated and litigious. 

Here are just a few examples.

Changes to Eviction Laws

In 2024, the State Legislature made significant changes to a landlord’s right to evict residential tenants. The new law prohibits a landlord from evicting residential tenants without cause with limited exceptions. Residential landlords and Property Managers must understand the new rules and update rental agreements, eviction forms, policies, and procedures to comply with the new laws. HB24-1098

Changes to Tenant Income Requirements

Colorado Senate Bill 23-184, signed into law in 2023, limits the income a landlord can require from a prospective tenant to 200% of the annual rent.  In simpler terms, landlords can only require the tenant's monthly income to be twice (2X) the monthly rent. If the rent is $2,000.00 per month, then the maximum requirement for tenant income is now $4,000.00.  Before this change, the monthly income requirement could be 3X the monthly rent.

Changes to Warranty of Habitability Laws:

The Legislature amended Colorado’s warranty of habitability laws to provide safe housing for residential tenants. The new amendments clarify the actions that constitute a breach of the warranty of habitability and modify the procedures related to warranty of habitability claims brought by tenants against landlords.

Under existing law, a landlord is deemed to warrant that residential premises are fit for human habitation at the start of the tenant’s occupancy of the premises, and a landlord is required to maintain the residential premises in a condition that is fit for human habitation throughout the time that the tenant lawfully occupies the premises. A residential premises is generally considered uninhabitable if, for example, it has mold associated with dampness, is damp, lacks functioning appliances, waterproofing, weather protection, plumbing, gas, running water, sufficient hot water, heating facilities, electrical lighting, or is in a condition that materially interferes with the tenant’s life, health, or safety and the landlord has actual or constructive notice of the condition, but fails to commence remedial action within set periods. The new amendments are detailed and should be read in their entirety. Of note, the amendments do the following:

• Set legal standards and court procedures for warranty of habitability claims, including authorizing a tenant to raise a breach of the warranty of habitability as an affirmative defense against a landlord’s actions for possession or collection of past-due rent;
• Allow a tenant to recover actual and punitive damages where a landlord is found liable for breach of the warranty of habitability;
• Establish legal standards and procedures for a landlord’s defense to a claim and limitations on a tenant’s claim; and
• Prohibit retaliation, specify tenant actions protected by the prohibition on retaliation, and identify the actions that constitute retaliation by the landlord.

Given these changes, landlords should consider evaluating the condition of their units for compliance with the new laws, updating their maintenance and repair policies and procedures, and revising their rental agreements accordingly. SB24-094

Changes to Occupancy Limits Laws: 

The Legislature now prohibits local governments from enacting occupancy limits based on familial relationships. However, local governments may still implement residential occupancy limits based on demonstrated health and safety standards, such as international building codes, fire codes, Colorado Department of Public Health and Environment wastewater and water quality standards, or affordable housing program guidelines. Landlords should understand local laws where their rental units are located and consider revising their rental agreements to ensure compliance with lawful occupancy limit requirements. HB24-1007

New Rental Price Gouging Law: 

The Legislature now prohibits rental price gouging during a declared disaster, such as the Marshall Fire in Boulder County or other natural or human-caused disasters. Under the new law, price gouging occurs when a landlord increases rent by more than the greater of 10% over the prior year’s rent or in an amount that matches the percentage increase in the prior year. Landlords should be mindful of this new law when increasing rental rates during a declared disaster. Otherwise, a landlord may have to pay damages, attorney fees, and costs. HB24-1259

Changes to Disability-Based Discrimination Laws:

The Legislature amended the laws applicable to premises rented by individuals with a disability. Under existing law, it is unlawful for a residential landlord to discriminate against a tenant on the basis that the tenant has a disability and to refuse to allow an individual with a disability to make reasonable modifications to the rental premises if the modifications are necessary to afford the individual full enjoyment of the premises. The new law prohibits a landlord from granting permission for a modification on the tenant agreeing to restore the interior of the premises. Landlords should re-evaluate and, if necessary, revise their rental agreements to avoid discrimination claims. HB24-1318