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Denver, Colorado - Four Star Realty, a Boulder-based property management firm, has settled with the Colorado Attorney General's office for nearly $1 million, predominantly for consumer restitution, concluding a state probe into illegal tenant charges for routine repairs and services. The company will also provide a list of tenants who moved out from January 2020 to December 1, 2023, for restitution purposes.

Key Points

• The investigation found that Four Star charged tenants for damages they didn't cause, unnecessary work, and fees not included in leases.
• Properties managed by Four Star in Boulder, Fort Collins, Greeley, and Denver, often rented by college students, were primarily affected.
• The company cooperated with state attorneys during the investigation and has already implemented changes in its business practices.
• These changes, now binding, include clear disclosure of all fees and costs on lease documents and compliance with a new state law regarding utility billing.
• Four Star is also now required to maintain photos and records of property inspections, documentation of withholding security deposits, and provide these to tenants upon request for three years.
• The company must minimize costs for minor paint damage and carpet cleaning, and cannot withhold rekeying costs from security deposits or charge for rekeying unless tenants opt for it and are informed of the costs beforehand.
• This is the first enforcement action by the Colorado Department of Law under a 2022 state law that empowers the attorney general in housing-related civil and criminal actions.