The Lease Renewal Conversation: How Denver Landlords Should Handle Rent Increases This Summer

Every summer, we field the same call from landlords across the Denver metro: "My tenant's lease is up in 60 days. Should I raise the rent? How much? And what if they leave?"

It's one of the most important decisions a rental property owner makes — and one of the most emotionally charged. Nobody wants to price out a good tenant. But leaving money on the table year after year quietly erodes the returns that made the investment worthwhile in the first place.

Here's how we think about lease renewals, and what we're seeing in the Denver market right now.

Start With the Market, Not Your Gut

The first thing we do before any renewal conversation is pull current comps for the property's neighborhood and unit type. Not "Denver" broadly — Denver is not a single market. Rent dynamics in Highlands Ranch look very different from those in Five Points or Englewood.

Pull three to five comparable active listings within a half-mile radius. Same bedroom count, similar finishes, similar amenities. That's your real market rent. If your current tenant is paying $200/month below market, you have a real decision to make — and the data gives you the foundation to make it clearly.

We'll be honest here: many landlords are surprised to find they've been undercharging for two or three years running, simply because they didn't want to rock the boat. A gradual annual adjustment is almost always easier for both sides than a large catch-up increase after years of staying flat.

Colorado's Notice Requirements

Colorado law requires landlords to give proper written notice before changing lease terms, including rent. For month-to-month tenancies, that's 21 days' notice under C.R.S. § 13-40-107.5. For fixed-term leases, any rent increase takes effect at renewal — you can't change the rent mid-lease without tenant agreement.

If you're on a 12-month lease expiring in August, you should be sending your renewal offer right now — in early June — to give your tenant time to decide and yourself time to re-list if needed. Waiting until July to have the conversation is how you end up scrambling for showings in September.

How Much Can You Raise?

Colorado does not have statewide rent control, and Denver proper does not currently have rent control ordinances (unlike some California cities). So legally, you can raise rent to market rate. The question is: should you, and by how much?

Our general framework:

• 0–3% increase: Appropriate for excellent long-term tenants in a flat market. Preserves the relationship and avoids turnover costs.
• 4–8% increase: Reasonable when rents in the neighborhood have moved and you're below market. Most good tenants will accept this with sufficient notice and a brief explanation.
• 10%+ increase: Only justifiable if you're significantly below market, the unit has been upgraded, or you've gone multiple years without any adjustment. Expect a higher probability of turnover.

Turnover typically costs Denver landlords one to two months of rent when you factor in cleaning, repairs, marketing, and vacancy. A tenant paying $100/month below market who renews for another 12 months is often more valuable than finding a new tenant at full market rate.

How to Frame the Conversation

We always recommend a warm, direct approach. A simple written notice along the lines of: "We've appreciated having you as a tenant. Based on current market conditions in [neighborhood], we'll be adjusting the rent to $[amount] for your upcoming renewal. We'd love for you to stay — please let us know by [date] whether you'd like to renew."

No apology needed. No over-explanation. Treat it like the business transaction it is, while keeping the tone respectful.

If you're managing the property yourself and the conversation feels uncomfortable, that's worth noting. It's one of the reasons many landlords eventually move to professional management — having a buffer between personal relationships and business decisions.

What If They Don't Renew?

Sometimes a tenant declines a renewal at the new rate, and that's okay. A vacancy gives you the opportunity to re-list at full market rent, address any deferred maintenance, and potentially make upgrades that support a higher rent long-term.

The worst outcome isn't a tenant who doesn't renew — it's a tenant who doesn't renew and you find out with two weeks' notice. That's why the timeline matters.

If you'd like help analyzing whether your current rents are at market, or if you want someone else to handle the renewal process entirely, we're here. Call us at 303-228-7800 or visit rentmyhaven.com to learn how My Haven manages renewals for landlords across the Denver metro.

My Haven is a full-service property management company proudly serving the Denver metro area.