According to statistics, well over 33% of all people that live in the State of Colorado are renters. While that may seem like a relatively small number of people, becoming a landlord in Colorado will prove to be a highly profitable endeavor. In order to achieve true success, it is essential that you learn the about the rights you have as a landlord as well as all associated landlord laws within the State of Colorado. This will aid in ensuring that you are in full compliance of all legal-based requirements when you put your rental agreement into place. In this guide, we will outline the landlord rights and laws for the State of Colorado.
Do I Need a License to Rent Property in Colorado?
No, you are not required to have a rental license in the State of Colorado. You will be required to meet with any and all local legislation for landlords and any other requirements as outlined by the area where you will be renting to tenants. For example, if you want to put up a rental that is for a short amount of time for people in the City of Denver, you will need to obtain a special license. If you are concerned as to whether or not the rental property you own will need a license for your real estate endeavors, contact us here at Pioneer Property Management today.
What are the Laws on Discrimination and Protected Groups of People in Colorado?
As a landlord in the State of Colorado, you cannot discriminate against individuals that may be a part of certain protected classes. These are as follows:
- Sex
- Age
- Sexual Orientation
- Color
- Religion
- Creed
- Race
- Handicap
- Disability
- National Origin
- Marital Status
You should understand that there are situations where you may discriminate against the marital status of a person. This may include an instance where zooming regulations or a zoning law may require you to. Additionally, you may examine certain aspects of a tenant’s life to determine if they are considered to be credible. These include their rental history, their credit history, and similar factors.
What is a Written Rental Agreement?
According to Colorado State Law, as a landlord, you must provide a rental agreement that is in writing that outlines the terms associated with the lease that is for a period of – at least – 1 week. This agreement is designed to protect both you and the person or persons that rent your property. If you want to rent for shorter periods of time, you may make the rental agreement for shorter periods of time.
You may outline a large assortment of issues that may arise during occupancy. This way, you and the person or persons that you rent to may refer back to the agreement if one of the outlined issues arises. You should review the rental agreement with your tenant so that everyone understands it. Both you and your tenant should sign and date the agreement.
What Should I Put in a Rental Agreement?
When you are composing an agreement on a rental, you should always review the laws in the State of Colorado to determine what they require to be included. Currently, the following should be included in the agreement:
- The names of each the landlord and the people renting the property
- Occupancy conditions and/or rules
- Property description and any pictures with a time and date stamp
- Length that the lease is good for
- Who is responsible for paying utilities
- The price of the rent
- The date that the rent is due
- If you include a late fee, outlines the terms and amount of the late fee.
- Outline of landlord responsibilities
- Outline of tenant responsibilities
- An outline of things that are prohibited, such as smoking
- Pet restrictions
- Maintenance responsibilities – like maintaining cleanliness while residing on or in the property.
Should a Rental Agreement Include Any Disclosures?
It is important to understand that there are some situations where you must legally disclose certain types of information. The following outlines information that must be legally disclosed:
- If lead paint is in or around the rental property
- If mold is present and whether or not it has caused damage of any degree to the property
- If mold has damaged the structure in any way
- If fire or smoke has occurred on the property and damaged it in any way
- If there is water damage to the property
- If insects have damaged the property
- The condition or state of the roof on the structure
- If a methamphetamine lab has ever been located where the tenant will be living
- Where the drinking water associated with the property is coming from
- If any transportation projects are presently occurring or will occur in the future
- If the property is located in an area that has a distinguished type of taxing district
- If the rental is located in a special type of community that requires additional fees to reside there
What are the Duties of the Tenant?
When you create a rental agreement, it is important that you outline the duties that you expect your tenant to complete. You should outline, for example, the following:
- If they are expected to mow the grass, remove weeds, and keep hedges trimmed
- How to store outdoor garbage
- Keeping the indoor and outdoor areas of the property clean
- Not disturbing neighbors in any way
- Parking requirements for tenants and their guests
- If issues develop that they cannot or should not handle, to contact you or your property management company immediately
- How to handle waste from pets
- Rules about controlling any pets that they have – such as keeping animals on a leash when outdoors
- Changing filters on HVAC units
- Being responsible for any damage done to the property while occupying it
Is There a Maximum Amount on a Security Deposit?
Most landlord charge a rental deposit of security when a tenant moves into their property and – currently – there is no maximum amount that you may charge. Most landlord will base the price on the rent amount or the general value of the property. These deposits may be charged on both short-term and long-term rentals. You should always put this in a savings account while the tenant remains with you. That way, should they move out and you deem it appropriate, you may return that deposit. If you put it in a savings account that pays interest, it can even allow you to earn a little extra money.
Once the tenant vacates the property and you feel they should get their deposit back based on the specifications outlined in the original rental agreement, you have up to one month to return the deposit funds in full. If outlined originally, you may pay it back in a period of up to two months or 60 days. If you decide not to return the full amount, you should know that you may be sued, so you must support your reasoning based on the legal bounds of the rental agreement.
When Can I Keep the Security Deposit?
As a landlord, you may keep the security deposit under the following conditions:
- To cover rent that has not been paid by the tenant
- To cover any repairs from damage over that of normal use
- To pay for cleaning-specific services or other types of services to make the property habitable again
If you have kept the security deposit, give the renter a detailed list of offenses. Each should be itemized and an associated price should be outlined with each. You should outline a total of the amount of the charges. You may also handle a pet deposit the same way. That is, if you allow various types of pets in your rental and the laws for the deposit money usage are the same as a security deposit. To fix damage caused by pets, you may deduct funds from a pet deposit placed by the tenant.
Can I Legally Change a Rental Agreement?
In the State of Colorado, you may change a rental agreement; however, you have to give the tenant that is renting your property ample notice of the changes that you are making. This is especially true as it relates to changing the services that you give with the rental, the duties of the tenant and the amount of the rent. The legal time amount that you give is based on the time frame of the rental lease. For example, if the lease is a year, the notice you give the tenant must be a minimum of 91 days. If the lease is for a month, a notice of 3 days is required. If the lease is six months, a notice of 7 days is required. If it is a weekly lease, the tenant’s notice should be at least one full day. A lease of at least 6 months and up to 12 months needs a notice of at least 28 days.
Contact Us
If you would like to learn more about landlord tenant laws in the State of Colorado, please contact us here today at Pioneer Property Management for immediate assistance. Be sure to inquire about all of the services we provide and how we can automate your real estate business: 720-839-7482
