How to Become a Landlord in Colorado: A Guide from My Haven
Thinking about renting out property in Colorado? Becoming a landlord can be a rewarding investment, but it’s crucial to understand the rules and responsibilities that come with it. At My Haven, we want you to feel confident as you embark on your landlord journey. Here’s what you need to know to stay compliant, protect your investment, and create a positive experience for your tenants.
Know Colorado’s Landlord-Tenant Laws
Before you hand over the keys, get familiar with Colorado’s landlord-tenant laws. These regulations cover everything from lease agreements to evictions and are designed to protect both landlords and tenants.
- No Statewide Rental License: Colorado doesn’t require a state rental license, but some cities (like Denver) have their own rules. Learn about Denver’s licensing requirements here: https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Community-Planning-and-Development/Property-Owners/Rental-Licensing
- Key Regulations: Understand how to handle application fees, security deposits, late fees, and rent increases. Find a summary of Colorado landlord-tenant law: https://www.nolo.com/legal-encyclopedia/colorado-landlord-tenant-rights
Lease Agreements & Evictions
Always Use a Written Lease: While oral agreements are allowed for leases under 12 months, a written lease protects both parties and clarifies expectations. Explore lease agreement templates: https://www.colorado.gov/pacific/dola/landlord-tenant
Eviction Process: Evictions must follow legal procedures and vary by county. Avoid “self-help” evictions and seek legal advice if needed. Read about Colorado eviction laws: https://www.courts.state.co.us/Forms/Forms_List.cfm?Form_Type_ID=93
Local Licensing Rules
Not every city in Colorado requires a rental license, but some do. For example:
Denver: Rental properties with two or more units (and soon, even single units) require a license that must be renewed every four years. Check Denver’s licensing site: https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Community-Planning-and-Development/Property-Owners/Rental-Licensing
Tip: Always verify with your city or county for the latest requirements.
Application Fees, Deposits & Late Fees
- Application Fees: You can charge application fees, but they must only cover your screening costs—typically $30-$90. See Colorado’s guidelines on application fees: https://leg.colorado.gov/bills/hb19-1106
- Security Deposits: Protect yourself from damages or unpaid rent, but be clear and transparent about deductions. Review Colorado security deposit laws: https://www.nolo.com/legal-encyclopedia/colorado-security-deposit-limits-deadlines-30114.html
- Late Fees: Colorado limits late fees to $50 or 5% of the overdue amount (whichever is greater). Tenants also get a 7-day grace period after rent is due. Read more about late fee rules: https://leg.colorado.gov/bills/hb21-1121
Screening Tenants
Background Checks: You can review rental and credit history (up to 7 years back), but be mindful of fair housing laws. Criminal history should only be considered if it impacts tenancy responsibilities. HUD’s guide to screening practices: https://www.hud.gov/program_offices/fair_housing_equal_opp/tenant_background_checks
Be Consistent: Treat all applicants equally to avoid discrimination.
Maintenance & Tenant Rights
Habitability: You must keep properties safe and habitable, addressing repairs promptly. Details on the Warranty of Habitability: https://cdola.colorado.gov/warranty-of-habitability
Privacy: Give at least 24 hours’ notice before entering a rental, except in emergencies. Learn about tenant privacy rights: https://www.nolo.com/legal-encyclopedia/tenants-right-privacy-colorado.html
Rent Pricing and Increases
No Rent Control: Colorado doesn’t have statewide rent control, but be cautious with large increases. Conduct market research to set fair rates. See local rent data: https://www.rentcafe.com/average-rent-market-trends/us/co/
Notice Requirements: Always give proper notice before raising rent, as specified in your lease and by law.
Additional Tips for Success
Get Insured: Landlord insurance protects you from unexpected damages or liabilities. Learn about landlord insurance: https://www.nerdwallet.com/article/insurance/landlord-insurance
Communicate Openly: Respond promptly to tenant requests and maintain clear communication.
Stay Informed: Laws can change—stay up-to-date by checking resources like Colorado Legal Services (https://www.coloradolegalservices.org/) or consulting a local attorney.
Final Thoughts from My Haven
Becoming a landlord in Colorado can be a fantastic way to build wealth and provide much-needed housing. By understanding your legal obligations and treating tenants with respect, you’ll create a positive rental experience for everyone involved.
For more guidance, reach out to us HERE — we’re here to help you succeed.
References:
- Denver Rental Licensing: https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Community-Planning-and-Development/Property-Owners/Rental-Licensing
- Nolo: Colorado Landlord-Tenant Law: https://www.nolo.com/legal-encyclopedia/colorado-landlord-tenant-rights
- Colorado Legal Services: https://www.coloradolegalservices.org/
- RentCafe: Colorado Rent Trends: https://www.rentcafe.com/average-rent-market-trends/us/co/
