Colorado Rental Owners: Does Your Lease Still Protect You?
The result: a lease that worked two years ago may be unenforceable today. Here is what Colorado rental owners need to know — in plain terms.
1. Your lease is a contract Colorado regulates strictly
- Prohibited clauses are void. C.R.S. § 38-12-801(3) voids one-way attorney-fee clauses, waivers of a jury trial, pre-set charges for failing to give nonrenewal notice, and lease penalties tied to an eviction.
- Procedures are mandatory. Skip a required notice or hang on to a deposit past the deadline, and you lose your remedy.
Generic forms and old templates routinely miss both.
2. The warranty of habitability — and your right to enter
Every Colorado lease carries a non-waivable warranty of habitability (C.R.S. § 38-12-503). Once a tenant gives written notice of a problem, you must act quickly:
| Condition | Start repair | Presumed breach |
| Threatens life, health, or safety 24 hours 7 days | 24 hours | 7 days |
| Uninhabitable (§ 38-12-505) | 72 hours | 14 days |
Getting in to fix it matters. Entry for remedial work generally requires 24 hours’ written notice with the date, time, and duration — except in a true life-safety emergency. A tenant may reasonably deny entry, in which case you must agree on an alternative time, but an unreasonable denial rebuts the presumption of your breach and tolls the deadlines. § 38-12-503(3), (6)
Keep complete records throughout the tenancy plus three years and produce them within 10 days on request (§ 38-12-503(5)). A breach opens you to rent abatement and damages under § 38-12-507.
3. “Maintenance by tenants” — possible, but only done right
You cannot simply push repair duties onto a tenant. There is one narrow option: for an unsubsidized single-family home, you and the tenant may sign a separate writing (with real consideration) for the tenant to perform specific repairs or maintenance — but only if the tenant has the skill and the work won’t endanger health or safety. C.R.S. § 38-12-506
An informal line in the lease will not do. Drafted correctly, this is a genuine advantage for the right owner.
4. Deposits, late fees, and screening
Deposits:
| Rule | Cap | Statute |
| Security deposit | 2 months’ rent | § 38-12-102.5 |
| Pet deposit | $300, refundable | § 38-12-106 |
| Return | 1 month (60 days if lease says so) | § 38-12-103 |
Late fees — only after rent is 7 days late, max the greater of $50 or 5%. § 38-12-105
Screening is where small owners get tripped up. The Rental Application Fairness Act (§§ 38-12-901 to 38-12-905) limits application fees to your actual processing cost (refund unused funds within 20 days), caps income requirements at 200% of annual rent, and restricts how far back you can look at credit (7 years) and criminal history (5 years, with exceptions). Violations carry $2,500 plus costs and fees — though you can cure within 7 days to cut liability to $50. § 38-12-905
5. A real advantage for small owners: the 5-day notice
Colorado’s new eviction laws generally require cause before you can evict (§ 38-12-1303). But for exempt residential agreements, the forcible-entry demand notices shrink from ten days to five days for nonpayment of rent, lease violations, repeat violations, and nuisance conduct. C.R.S. § 13-40-104(1)(d), (e), (e.5), (j)
An “exempt residential agreement” is a single-family home leased by an owner of five or fewer single-family rental homes who states in the lease that the ten-day notice period does not apply. § 13-40-104(5)(d)
The catch: you do not get this advantage automatically. It applies only if the lease contains that required notice. A form lease without the clause forfeits the shorter timeline.
6. Why have McMechan Law prepare your lease
Colorado landlord-tenant law has shifted in tenants’ favor overall — but several drafting opportunities genuinely help owners who use them correctly, including the faster 5-day notice for qualifying small owners, the tenant-maintenance option for unsubsidized single-family homes, and clean deposit/late-fee provisions that survive challenge.
At McMechan Law, we draft current, court-tested Colorado leases that:
- avoid prohibited and void clauses;
- comply with the warranty of habitability, entry, and recordkeeping rules;
- stay within screening and deposit limits;
- and capture the drafting advantages the law actually allows — including the exempt-landlord notice.
Contact McMechan Law to review your current lease and get one that protects your business.
Office: (720) 638-7142
Email: smcmechan@mcmechanlaw.com
McMechan Law, www.mcmechanlaw.com
13791 East Rice Pl. ste 144,
Aurora, CO 80015
Appointment only.
This article provides general Colorado legal information for educational purposes, is not legal advice, and does not create an attorney-client relationship. Colorado law changes frequently; consult a Colorado attorney about your situation.