Landlords on Alert: Colorado's Game-Changing Property Management Laws

Concerned, landlord over Colorado's new tenant friendly legislationPhoto byUsman YousafonUnsplash

Colorado Springs property managers and landlords are facing significant changes due to recent state legislation. Several bills passed in 2023 and 2024 are reshaping the rental landscape, affecting everything from tenant screening to eviction processes. This article examines four key pieces of legislation and their impact on the property management industry in Colorado Springs.

SB24-094: Rental Application Fees and Screening Criteria

Senate Bill 24-094, introduced in 2024, proposes stricter regulations on rental application fees and screening criteria. Here's how this bill impacts the residential leasing landscape:

• Limit application fees to the actual cost of screening
• Require landlords to provide detailed receipts for application fees
• Standardize screening criteria across properties
• Prohibit discrimination based on source of income

Impact: Property managers will need to reassess their application processes, which could potentially lead to more transparent and equitable tenant selection.

However, it may also increase administrative burdens and limit flexibility in screening procedures.

HB24-1098: Rental Housing Support Services Program

House Bill 24-1098 establishes a Rental Housing Support Services Program. Key provisions include:

• Creating a fund to assist tenants facing eviction or housing instability
• Providing resources for mediation between landlords and tenants
• Offering education on tenants' rights and responsibilities

Impact: While this program aims to reduce evictions and promote housing stability, property managers may see changes in how they handle tenant disputes and late payments. It could potentially lead to fewer evictions but may also extend resolution timelines for landlord-tenant conflicts.

SB23-184: Landlord Penalties for Prohibited Rental Practices

Signed into law in 2023, Senate Bill 23-184 introduces penalties for landlords engaging in prohibited rental practices, including:

• Charging fees not explicitly allowed by lease agreements
• Failing to return security deposits within the legal timeframe
• Retaliating against tenants for exercising their legal rights

Impact: Property management companies must ensure strict compliance with lease terms and state laws to avoid substantial penalties. This may necessitate updates to lease agreements and internal policies.

SB23-206: Protections for Residential Tenants

Senate Bill 23-206, also enacted in 2023, strengthens protections for residential tenants by:

• Extending the time tenants have to cure lease violations before eviction
• Requiring landlords to provide specific reasons for lease non-renewal
• Limiting late fees and establishing a grace period for rent payments

Impact: This legislation significantly alters the eviction process and lease renewal practices. Property managers must adjust their timelines for addressing lease violations and modify their late fee policies.

Conclusion

These legislative changes are fundamentally altering the Colorado Springs property management landscape. While they aim to create more equitable housing practices and protect tenants' rights, they also present challenges for landlords and property management companies. To ensure compliance, adapting to these new regulations will require careful policy revisions, staff training, and potentially new technological solutions.

As the rental market in Colorado Springs continues to evolve, property managers who can navigate these changes effectively will be best positioned to succeed in this new regulatory environment. Staying informed about legislative updates and seeking legal counsel when necessary will be crucial for property management professionals in the coming years.