Colorado Rent Control Laws (2024)

What right do landlords have to raise rent in Colorado? Whether you’re an experienced property manager or learning the ropes, it’s critical to understand Colorado rent control laws.

First, Colorado legislatures banned rent control laws in 1981, so there are no active laws in the state aside from the ban. However, there are still restrictions on how often landlords can raise rent and how much notice they’re required to give tenants.

This comprehensive guide will provide the most important details about Colorado’s rent control laws and the rights both landlords and tenants have in the state. Understanding rent control regulations is essential to ensuring a smooth and legal rental operation.

Key Takeaways: 

• Colorado has had a statewide ban on rent control laws since 1981
• Local governments are prohibited from enacting rent control measures
• Landlords generally have the freedom to set rent prices, but there are limitations on rent increases during a lease term
• Tenants have specific rights regarding evictions and habitability standards

Rent Control Laws: An Overview

Rent control refers to government regulations that cap the amount landlords can charge for housing. It effectively acts as a price ceiling with the goal of creating affordable housing for tenants, especially those on low incomes. While rent control can benefit tenants, it can also result in unintended consequences.

For example, landlords may be discouraged from building new rental properties if they feel they can’t earn a fair return on their investment. Additionally, these laws may provide less incentive for landlords to maintain existing properties since they can’t raise rents to cover repair costs.

Rent Control in Colorado

In the United States, rent control laws vary from state to state. Unlike some states, Colorado banned rent control at both the state and local levels in 1981. As a result, Colorado landlords have more flexibility in setting rent prices.

However, landlords still have limitations on how much they can raise rent during a lease term; ultimately, lack of rent control can be a double-edged sword. Landlords have more freedom to adjust rental income, but tenants may face steeper rent increases, especially in a competitive housing market, forcing some to look for housing elsewhere.

Outside of rent control, Colorado tenants and landlords must comply with multiple laws and regulations regarding rent raising, evictions, security deposits, and more.

Rent Increase Limitations in Colorado

While there’s no cap on rent prices, Colorado does have some limitations on when and how a landlord can increase rent.

Under Colorado law, a landlord must provide written notice to a tenant 60 days before any rent increase. The 60-day notice law applies to residents on any type of lease, whether they’ve agreed to a written lease for a fixed period or a month-to-month lease. It also applies to any residents who don’t have a written lease.

Colorado law restricts how often landlords can raise rent prices; landlords can only increase rent once every 12 months for the same tenant. The rule applies to all types of tenancies regardless of the following:

• Whether there is a written rental agreement for the tenancy
• The length of the tenancy
• Whether the tenant’s rental agreement is for a fixed tenancy, a month-to-month tenancy, or an unspecified term

Just Cause for Eviction in Colorado

The Colorado eviction process has recently become more complicated. Historically, Colorado was seen as a landlord-friendly state because of fewer eviction restrictions. However, in 2024, Governor Jared Polis signed a new law to protect Colorado tenants.

This bill, known as House Bill 1098, states that Colorado landlords need a specific reason to evict a tenant or not renew their lease at the end of the lease term. Some just causes for eviction include:

• Not paying rent
• Destroying property
• Substantial lease violation
• Interfering with the quiet enjoyment of other tenants

The more significant change related to this law is focused on non-renewals (when landlords opt not to renew a lease) at the end of the lease term. Non-renewal is only allowed if the property is being sold, demolished, substantially renovated, turned into a short-term rental, or if the landlord’s family plans to move in. Colorado landlords must give a 90-day notice for a so-called “no-fault eviction” in those cases.

The new law intends to prevent discriminatory or retaliatory evictions and non-renewals of tenants who raise issues about living conditions or cause other perceived problems but still follow the rules of their lease.

Landlord Rights and Responsibilities

Again, there aren’t any rent control laws in Colorado, but it is still important to know the rights and responsibilities of a landlord in the state and the general guidelines of Colorado’s landlord-tenant laws.

In Colorado, landlords can only raise rent once per year for a single tenant and must give 60 days’ notice of any rent price increases. They are also responsible for maintaining habitable living conditions and making repairs in a reasonable timeframe.

Regarding rights, landlords are also entitled to receive rent payments on time. Rent is considered late after seven calendar days from the due date (typically the first of the month, but this should be outlined in the lease agreement). If rent is late (after a seven-day grace period from the due date), Colorado landlords are entitled to charge a late fee of $50 or 5% of the amount owed, whichever is greater.

Tenant Rights and Responsibilities

While Colorado does not have rent control laws, certain tenant rights and responsibilities are still important to understand.

First, living in a habitable home is a fundamental tenant right in Colorado. Habitable standards include functional utilities, timely repairs, and receiving a security deposit refund upon meeting the lease terms within 60 days of moving out. Ultimately, tenants in Colorado have the right to stop paying rent if their landlords aren’t meeting these terms.

Keep in mind that maintaining a positive landlord-tenant relationship goes both ways. Tenants are responsible for fulfilling their lease obligations as well, such as:

• Paying rent on time
• Disposing of trash properly
• Keeping the property in good condition
• Minor repairs, if outlined in the lease agreement

Navigating Rent Control Laws with TurboTenant

Managing rental properties in Colorado can be complex, especially when it comes to adhering to rent increase restrictions and eviction procedures.

Currently, Colorado has no rent control laws in place, but several bills have been brought in front of the Colorado Legislature. Proponents of rent control assert they’ll continue seeking to pass legislation that introduces rent control. TurboTenant can help keep you informed of changes to these guidelines so you’re not surprised the next time you decide to raise rent prices.

We aim to make running your property management business as easy as possible. We offer rental management software for free, and our screening process includes credit checks for tenants and criminal background checks.

TurboTenant also provides a customizable Colorado rental application and an example of a Colorado lease agreement with state-specific clauses to make creating a compliant lease a breeze.

Disclaimer: TurboTenant does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state, and federal laws and consult legal counsel should questions arise.

Colorado Rent Control Laws FAQs