Colorado had the second-highest rental price increase, with rent averaging $2,767 — up 35.77% over the 2020 price of $1,906. This surge is largely attributed to Colorado's robust job market and picturesque landscapes that continue drawing people in. However, this rent increase is posing challenges for many.
A healthy rent-to-income ratio is considered to be around 30%. Unfortunately, in Colorado, many renters are experiencing ratios as high as 57%, signaling an imbalance where rent prices are outstripping incomes. To afford the national average rent of $2,018 at a 30% ratio, a renter would need an annual income of approximately $80,720.
Rent increases can be a source of stress, especially when they are substantial. Inflation often drives these increases, leading to hikes ranging from a few dollars to several hundred dollars a month.
Is There a Cap on Rent Increases?
Currently, Colorado does not impose a cap on how much landlords can increase rent due to the state-wide ban on rent control (C.R.S. 38-12-30). This means landlords are free to set rent increases as they see fit, within the bounds of the lease agreement.
Legalities of Rent Increases in Fort Collins
Landlords are restricted to raising rent only once in a 12-month period, typically aligned with the lease's expiration. This rule applies to both month-to-month and non-written lease agreements, protecting tenants from frequent hikes.
Required Notice for Rent Increases
Landlords must provide a 60-day notice for rent increases if the lease agreement is unwritten. The agreement should specify the notice period for written leases, which is usually between 30 to 60 days.
Low-Income Housing
Rent increases in low-income housing must adhere to guidelines based on the Area Median Income (AMI), ensuring that increases are reasonable and aligned with the local economic landscape.
Section 8 Housing
In Section 8 housing, where the government contributes to rent payments, increases usually occur only if the tenant's income rises.
Final Notes on Written Notices
While landlords in Colorado can raise rent as they see fit, they are obligated to provide proper notice. This notice is a minimum of 60 days for unwritten lease agreements. For those with written leases, the lease terms will dictate the process, but rent cannot be increased during the lease term. This rule also applies to tenants in mobile home spaces.
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