The Colorado State Legislature continues to pass laws that affect residential landlords and tenants.  Managing a rental home and the Tenants living there has become more complicated and litigious. Here are just a few examples.

Changes to Eviction Laws

In 2024, the State Legislature changed 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 of the monthly rent.

Changes to Warranty of Habitability Laws

The Legislature amended Colorado’s warranty of habitability laws in 2024 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 the 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 

In 2024, the Legislature began prohibiting 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 

In 2024, 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 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 laws in 2024 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

Cause Required for Eviction of Residential Tenant (HB24-1098)

The Legislature amended laws in 2024 that with certain exceptions, the act prohibits a landlord from evicting a residential tenant unless the landlord has cause for eviction. Cause exists only when:

• A tenant or lessee is guilty of unlawful detention of real property under certain circumstances described in existing law, as amended by the act;
• A tenant or lessee engages in conduct that creates a nuisance or disturbance that interferes with the quiet enjoyment of the landlord or other tenants at the property or an immediately adjacent property, or where the tenant negligently damaged the property; or
• Conditions exist constituting grounds for a "no-fault eviction".

The following conditions constitute grounds for a "no-fault eviction" of a residential tenant, with certain limitations:

• Demolition or conversion of the residential premises;
• Substantial repairs or renovations to the residential premises;
• Occupancy of the residential premises is assumed by the landlord or a family member of the landlord;
• Withdrawal of the residential premises from the rental market to sell the residential premises;
• A tenant refuses to sign a new lease with reasonable terms; and
• A tenant has a history of nonpayment of rent.

Suppose a landlord proceeds with eviction of a tenant without cause. In that case, the tenant may seek relief as provided in existing laws concerning unlawful removal of a tenant and may assert the landlord's violation as an affirmative defense to an eviction proceeding. Current law allows a tenant to terminate a tenancy by serving written notice to the landlord within a prescribed period, based on the length of the tenancy. For such notices, certain provisions apply, including the following:

• Any person in possession of real property with the assent of the owner is presumed to be a tenant at will until the contrary is shown; and
• Certain provisions concerning notices to quit do not apply to the termination of a residential tenancy if the premises are a condominium unit.

Consider hiring a professional to manage your investment property!

Justin Sadler

Owner, Property Manager, Licensed Broker Associate, REALTOR®, Stars & Stripes Homes, Inc.

Bachelor Of Business Administration, Loyola Marymount University - Los Angeles

Talk/Text 303.506.9633  

Justin@StarsAndStripesHomes.com