The Colorado General Assemble keeps giving Colorado landlords new legal challenges. The new laws (3 are listed below) significantly impact rental property owners and highlight the continuing importance of hiring a licensed professional Property Manager. The three new laws highlight the six primary reasons investors and rental property owners hire Stars & Stripes Homes - Legal Protection, Advertising, Tenant Screen & Placement, Agent Interaction, Maintenance and Emergencies.
HB-1118 (The Right to Cure Bill). This law became effective immediately upon the Governor’s signature on May 20, 2019. Since the real goal of proponents was not to postpone or delay evictions but to eliminate them, the bill should have been called the “Delay or Eliminate Eviction Act of 2019”. This law increases the rent demand period in Colorado from 3 to 10 days. The law accomplishes this by increasing the amount of time a non-paying tenant can occupy a rental before a landlord can commence eviction.
HB-1106 (the “Application Fee Bill”). This bill became effective on August 2, 2019. The biggest impact of HB-1106 is to significantly regulate the application process including how much landlords can charge. “Rental Application Fee” means any sum of money, however denominated, that is charged or accepted by a landlord from a prospective tenant in connection with the prospective tenant’s submission of a rental application or any nonrefundable fee that precedes the onset of tenancy. Rental property owners and their Property Management Companies need to also clearly set forth the fees and charges that are collected and imposed if a tenant is approved but doesn’t sign a lease. In short, this law may prohibit landlords from making a profit on the application process. Further, the law limits the information that can be considered in evaluating an application, requires specific action when applications are denied, and requires landlords to refund any unused portion of the application fee.
HB-1170 (Amendments to the Colorado Warranty of Habitability Law). This law became effective August 2, 2019. It greatly expands the existing Warranty of Habitability. The Amended Warranty of Habitability law significantly increases the burden on landlords in dealing with warranty of habitability issues. The new law increases a landlord’s burden by requiring specific maintenance-related responses from landlords in specific time frames and requires specific communications from landlords in response to specific tenant communications within specific time frames. Under most circumstances, a landlord must respond to a tenant’s initial warranty of habitability communication within twenty-four hours.
Owning one or several rental properties may be a great addition to your overall investment portfolio or retirement plan. But like any of your other investments, it is important to have a trusted professional to help navigate you through the process to ensure success and profitability. Please contact us if we can answer any questions. Serving customers in the Denver Metro Area for 15+ years. We welcome the opportunity to serve you.
Owner, Managing Broker, Realtor, Property Manager
Stars & Stripes Homes, Inc.
Veteran, United States Marine Corps