All Residential Leases Could be Indefinite Under New Law

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Colorado landlords beware! Your property rights are about to be severely curtailed if House Bill 24-1098 becomes law. The proposed law would basically extend all residential rental leases indefinitely – including month-to-month leases – by limiting a landlord’s power to end the lease, according to Attorney at Law Brandon Ceglian, who represents many landlords opposing the bill. However, Democratic Lawmakers who sponsored the bill say their proposal, known as the “Just Cause Law” will bring much deserved stability to tenants.

In January when the bill was introduced, Co-sponsor, Representative Javier Mabrey said “A for-cause eviction law would clearly define in state law when and why a landlord can evict tenants. This will stabilize renters and prevent unnecessary displacement, discrimination and retaliatory evictions."

Sponsors went on to say that it's unfair for landlords to arbitrarily replace tenants. They maintain that tenancy should be sustained unless there is a substantial breach of the lease's terms.

Ceglian, takes another view. He said the bill has man ambiguities. He highlights the problematic nature of the bill, such as the restrictions on rent increases, which could be deemed retaliatory by a court without clear guidelines.

“What is a retaliatory rent increase anyway? This puts a burden of proof landlords to simply raise rents.”

Ceglian also points out that the law can also prevent a landlord from moving into his own rental, if certain conditions exist.

“The court can prevent that, if it determines the landlord has other options.”

There is also wording that allows a landlord to end a lease to make substantial repairs, but does not outline exactly that "substantial" means, according to Ceglian.

The attorney forewarns that such a law could exacerbate rental property shortages by dissuading potential landlords from entering the market, given the potential for increased legal complexities and expenses.

“Basically, if tenants believe they should stay and they don’t like the reason for non-renewal, the burden of proof will be on the landlord. I can see this clogging up the courts and causing landlords to withdraw from the market.”

He says a one month lease could go on indefinitely unless the landlord has a reason that pleases the courts. And he says the landlords he questions wonder why they just can't manage their own affairs.

If this becomes law, simply evicting a tenant or ending a lease will be a thing of the past. The landlord will take on a massive burden in proving “just cause”.