The State of Colorado is considered to be a landlord-friendly state. This means that from the laws surrounding landlords and tenants, insurance rates, tax rates, allowing landlords to enter their property without notice, to very few restrictions in regards to evictions tend to favor the landlord over the tenant. If you have an interest in real estate investments, the State of Colorado is definitely one that you should consider as it will result in numerous benefits and – ultimately – your overall success!

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What Makes a State Landlord-Friendly?

There are several factors that make a state a landlord-friendly state. Below, we have outlined these factors along with a brief explanation of each:

  1. The Rights of Landlords and Tenants – In every single state, both landlords and tenants have rights. What varies is the extent in which those rights are put officially carried out. In some states, the rights of the tenants supersede those of a landlord and it has the potential to negatively impact the financial standing of a landlord. In other landlord-friendly states, these rights are more balanced and provide favor to both the tenant and the landlord.
  2. Rent Control – Many states do not allow the landlords to engage in the process of raising rent, despite increasing costs in expenses and inflation. The reason being is that those states do not want landlords to price gouge. Landlord-friendly states make it easy for landlords to reasonably raise rent charges when the circumstances arise that make it ideal.
  3. The Eviction Process – There are states out there that make evicting a tenant a seemingly impossible task; however, landlord-friendly states make it easy. In these states, a landlord may quickly evict a tenant that has breached their rental contract and/or their lease.
  4. Licenses and Registration – In some states, landlords must obtain various licenses and registration in order to rent to tenants. This may prove to be costly and time-consuming. In landlord-friendly states, special licenses and a registration is not required to rent out real estate.
  5. High Insurance and Property Tax Rates – The rates that are charged for insurance and property taxes are typically put into place by local-based municipalities. In some states, these rates are so high that real estate investing is considered to be expensive and risky. The landlord-friendly states generally have lower rates when it comes to insurance and property taxes.
  6. COVID-19 Regulations – When COVID-19 started in 2020, many real estate laws and policies changed. These regulated rental properties more than any other type of real estate. Examples included rent freezes and eviction moratoriums. In many states, this is still being regulated. In landlord-friendly states, these laws and policies have now been relaxed and landlords are now permitted to engage in their regular operations.

The Easiest Eviction Process

When a tenant breaks a rental agreement/contract or their lease, landlords typically pursue the eviction process. If you are interested in investing in real estate in the State of Colorado, you will be happy to know that out of ALL of the states, Colorado is considered to be the one that has the easiest eviction process. The local law enforcement agencies throughout the state favor the best interests of the landlord.

In states that are not landlord-friendly, the state protects the rights of the tenant first and does so at the unfortunate expense of the landlord. The demand associated with compliance notices issued by the landlord is limited to a period of 72 hours. Once this time period has passed, tenants may either pay what is owed or leave the premises. If they must leave, they then have only 48 hours to completely vacate the premises. If you want to purchase real estate in Colorado that you will rent or lease, this will work in your favor and you can rest assured that you will not have to worry about your potential to make a profit to be ruined.

Is it Legal for a Colorado Landlord to Inquire about Criminal History?

Yes, it is legal for landlords in the State of Colorado to ask about the criminal history of a potential tenant during the application process. The only rule is, arrests that did not result in a conviction cannot be considered. Typically, only convictions in the five years before applying may be considered.

What is the Maximum Security Deposit in Colorado?

There is currently no legal limit imposed on how much a landlord may charge on a security deposit on their rental property in the State of Colorado. This offers a unique opportunity for landlords to charge higher security deposits to cover various expenses that may occur when a tenant rents said property. In states that have a legal limit on security deposits charged, landlords often find that the remaining deposit is never enough to handle the damage and repairs left by a tenant after they leave the premises.

Are There Required Disclosures of Landlords in the State of Colorado?

Yes, there are certain types of information that must be legally disclosed to the tenants that a landlord oversees. These include the following:

  1. Contact Information – Each rental agreement or lease must include a special statement that includes the name of the landlord or their authorized agent, as well as a means of contact.
  2. Rental Application Fee – If a landlord elects to charge an application fee on their rentals, they must outline how the fee will be used or itemize the expenses that have been incurred.
  3. Bed Bug History – If a prospective tenant requests it, landlords in Colorado are legally bound to disclose if the rental had an issue with bed bugs within the past eight months. Landlord may also be required to disclose the date of the last inspection that occurred that checked the rental for bed bugs and found it to be free and clear of a bed bug infestation.
  4. Reason Behind Application Denial – If a rental application is denied, the landlord is required to provide a written notice that states the reason why the application was denied. A good faith effort must be made to provide this documentation within 20 calendar days of the official denial.

Is There a Limit a Landlord May Sue for?

In the State of Colorado, both a landlord and a tenant may sue up to the amount of $7,500 in a small claims court. While this type of court does not handle evictions, landlords may handle disputes with security deposits in small claims court. If a landlord needs to legally handle an eviction, this is typically done in county court where the property is located.


While rental markets exist in all states, there are certain states that reward real estate investors more than others. One of the main states is that of Colorado. It is a landlord-friendly state that places the rights of property owners over that of the tenants. Colorado is a state where you can put your real estate assets over the top and successfully mitigate all risks.

We here at Pioneer Property Management are capable of helping you discover sound real estate investments throughout Colorado. Additionally, we offer many property management services that will allow you to achieve the highest level of success in all of your real estate or rental endeavors. If you are ready to explore what the State of Colorado has to offer, we are standing by to assist you! If you want to learn more or set up an appointment, simply call us now. We may be reached at: 720-839-7482

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