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Denver Property Management Blog

Legal Updates for 2023 and early 2024

Legal Updates for 2023 and early 2024

Colorado legal updates for 2023 and early 2024

There have been quite a few legislative changes for property management and landlords in Colorado over the last 12 months and another one wen into effect on January 1, 2024. The summaries below provide the most relevant details that pertain to our landlords but is not the full extent of the law. Let’s start with what is new for 2023.

1. House Bill 23-1099 - Portable Tenant Screening Report (PTSR) – It is now required by law to allow tenants to provide their own screening report when applying for a rental. The following criteria must be met in order for the report to be eligible for use:

a. Include information provided by a Consumer Reporting Agency, which includes the tenant’s name, contact information, verification of employment and income, and last known address.

b. A rental and credit history report that complies with section 38-12-904 (1)(a).

c. A criminal history record check that complies with section 38-12-904 (1)(b)

d. Landlord may require that the report be completed in the last 30 days,

e. The PTSR must be made directly available to the Landlord by the Consumer Reporting Agency.

f. PTSR disclosures must be included in all advertisements of the property, website, and application.

What this means to you: Due to the length of the required PTSR text for the disclosure it limits the remaining description characters that we are allowed per the MLS and other software that is used to produce the listing. Although the law has built in some requirements for what needs to be included in the report it may not be as comprehensive as the reports that we typically run.


2. House Bill 23-1120 - Eviction protections for residential tenants that receive government assistance.

a. Requires that mandatory mediation be conducted by a trained, neutral third party, at the first available date but no later than 14 calendar days after the landlord requests the mediation for those tenants that receive the type of government assistance outlined below. The mediation is at the landlord’s expense.

b. Types of government assistance that apply to HB23-1120

i. Supplemental Security Income

ii. Social Security Disability Insurance under Title II of the
Federal “Social Security Act”, 42 U.S.C. Sec. 401 et seq.,
as amended

iii. Cash Assistance through the Colorado Works Program
Created in Part 7 of Article 2 of Title 26

c. The writ of restitution may not be filed prior to 48 hours after the judgment.

What this means to you: Any tenant that receives this type of assistance will require mandatory mediation which will need to be set up upon delivery of and eviction notice for non-payment of rent. The mediation is paid by the Landlord and if a judgment is found in favor of the Landlord there will be a 48-hour wait period for filing the writ of restitution. We have adjusted our application questionnaires to ensure that we are in compliance. Please keep in mind that previous legislation was passed that does not allow for discrimination based on source of income.

3. House Bill 23-1254 - Warranty of Habitability

a. Pertains to remediation of a residential premises that is damaged due to an environmental public health event such as a wildfire, flood, or a release of toxic contaminants that can create negative health and safety issues for the tenant.

b. Homes must be returned to a condition that protects the health and safety of the tenant from environmental contaminants.

c. Includes warrant of habitability standards as well as those outlined in section 38-12-505.

d. Provides details on when a tenant may get out of their lease due to violations of these habitability requirements.

i. Repairs have not been completed within 60 business days.

ii. Tenant provided written notice, and

iii.The landlord was unable to provide reasonable
accommodations.

e. Landlord retaliation is also covered and is not allowed. Examples of landlord retaliation include things such as raising rent, reducing services, terminating a lease without written notice etc.

What this means to you: In the event of an environmental disaster that affects the warrant of habitability, you will need to make sure the work is completed within 60 business days, provide reasonable accommodations to the tenant, allow the tenant to terminate the lease under certain conditions and does not allow the landlord to retaliate against the tenant. This is what has been added to what was previously in place. For a list of standards that pertain to habitability please go to https://hcpf.colorado.gov/sites/hcpf/files/Attachment%205-Warranty%20of%20Habitability.pdf


4. Senate Bill 23-184 – Tenant protections

a. A landlord may not charge more than 2 times the rent for security deposit.

b. A landlord may not require income of greater than 200% of the tenant’s portion of rent.

c. If the tenant is to receive a housing subsidy of any amount, or duration, directly or indirectly, for the sole purpose of rent, Landlord is not allowed to do the following during the application and approval process:

i. Consider the amount of income other than the 200%
mentioned above.

ii. Consider credit score, adverse credit events, or lack of
credit score unless the landlord is required by federal law.

(1.7) "HOUSING SUBSIDY"; MEANS ANY PORTION OF A RENTAL PAYMENT THAT IS DERIVED FROM A PUBLIC OR PRIVATE ASSISTANCE, GRANT, OR LOAN PROGRAM AND THAT IS PAID BY THE PROGRAM DIRECTLY, INDIRECTLY, OR ON BEHALF OF A TENANT TO A LANDLORD.)

What this means to you: If a tenant is receiving funds that are solely to be used for rent, whether it be a partial month or 12 months, you are not allowed to pull or factor the tenant’s credit history in the approval process. Rental history may also open up liability since an eviction may be considered an adverse credit event. This limits the background check to strictly a criminal background check. It also limits the security deposit to no greater than twice the monthly rent.

5. CARES Act - All properties in Colorado that fall under the CARES Act are required to serve a 30 day notice for non-payment of rent. This now matches what has been required in Denver since the Act went into effect and since it expired.

What this means to you: If you have a federally backed mortgage it is required to serve a 30 day notice for non-payment of rent. Failure to do this will result in your eviction case being dismissed and the whole process will have to start over beginning with serving of the notice.

6. SB23-206 – Disclose Radon Information Residential Property

a. It is now required for all Landlords to complete a radon disclosure and provide details of any tests that have been done on the property as well as mitigation systems.

b. A radon pamphlet must be provided and a radon disclosure must be signed by the tenant prior to signing a lease

What this means to you: You will need to complete a radon disclosure. It also may result in prospective tenants having issues or concerns about either known or unknown radon levels. In addition, if we do not meet these requirements, the tenant may void the lease agreement.

New legal items for Colorado in 2024

1. House Bill 23-1068 - Restricts the types of fees and deposits that may be collected when a tenant has pets.

a. Non-refundable pet fees are no longer allowed.

b. Pet deposits are limited to $300 per unit regardless of the number of pets and must be refundable.

c. Pet rent may be charged but is limited to $35 or 1 ½ percent of the rent per month, per unit whichever is greater. Pet rent is per household not based on number of pets.

What this means to you: We will no longer be charging non-refundable pet fees that was outlined in your property management agreement. We may charge pet rent as well as collect a pet deposit.

Reminder for those Landlords that have single family homes in the city and county of Denver, you must have your rental license in place by 1/1/2024.

https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Business-Licensing/Business-licenses/Residential-rental-property

My Haven Property Management in Denver, Colorado

The above is a summary of the legislation that has passed in Colorado in 2023. There were other bills proposed that would have also affected property owner rights but failed for one reason or another. There is discussion that some of these may come back in 2024. Understanding your representatives’ positions and voting accordingly is becoming more and more crucial. All of the licensees that are a part of My Haven are members of our local, state, and national Realtor boards. Contained within our state board is a heavy lobbyist group advocating on behalf of property owners. If you are interested in joining or supporting a landlord advocacy group we recommend checking out the Colorado Landlord Legislative Coalition. https://coloradolandlordlegislativecoalition.org/

If you are interested in learning more about how My Haven can assist with all of your Colorado property management needs, including stay abreast of all legal happenings within the industry, please click here to get started.


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