Mandie Pallone, Licensed Mortgage Lender NMLS #1141754
Investment & Rental

Colorado Landlord Rules Every Investor Should Know

Buying a rental is a lending question for about three weeks and an operating question for the next thirty years. Here are the Colorado landlord laws investors run into first, and what each one quietly does to a pro forma.

Rent Control
None Statewide

C.R.S. 38-12-301, re-verified August 17, 2026

Eviction
Cause Required

HB24-1098, signed and effective April 19, 2024

Documentary Fee
$0.10 per $1,000

Allocated by contract and local custom

Reappraisal
Odd Years

Next in 2027, at a June 30, 2026 level of value

The Colorado landlord laws investors ask me about are almost never the ones that decide a deal. People ask about eviction timelines. What actually moves the numbers is a quieter set of rules about what you may charge, what your taxes will do in two years, and which rental strategies a given city permits at all.

So this is the orientation page I wish existed when someone calls me about a first rental in Broomfield County. It is a plain-language map of the operating environment, written by a lender rather than a lawyer. Legal specifics belong with a Colorado real estate attorney, and I will say that more than once on this page because it genuinely matters.

Colorado Landlord Laws Investors Meet First: No Statewide Rent Control

Colorado prohibits local rent control. The statute is C.R.S. 38-12-301, and it declares the question a matter of statewide concern, then says that no county or municipality may enact any ordinance or resolution that would control rent on private residential property or a private residential housing unit.

That prohibition has been tested. HB23-1115 would have repealed it. The bill passed the House in 2023 and was then postponed indefinitely in the Senate Local Government and Housing Committee on April 25, 2023, which ended it. Since then, HB25-1004, a bill on algorithmic rent-setting software, was vetoed on May 29, 2025, and the 2026 regular session adjourned on May 13, 2026 without a repeal.

Because this is exactly the kind of fact that ages badly, I re-checked the statute against Colorado sources on August 17, 2026 before publishing this page, and it is still in force, unrepealed. If you are reading this well after that date, treat it as a starting point and confirm the current text with an attorney rather than assuming a page stayed accurate.

One caution about how to read this. No rent control does not mean no rules. The statute leaves room for voluntary agreements between a local government and a property owner, such as a deed restriction attached to an affordable housing incentive. If a property you are considering carries a recorded restriction on what it may rent for, that restriction travels with the title, and it is a title question worth asking early.

Just-Cause Eviction in Colorado Under HB24-1098

This is the change that most surprises investors coming from another state or from a long gap out of the rental market. HB24-1098, titled Cause Required for Eviction of Residential Tenant, was signed and took effect on April 19, 2024.

Before it, a fixed-term lease could generally be allowed to expire without a stated reason. Under the law, a residential landlord needs cause to evict or to decline renewal. Cause falls into two broad families.

  • Tenant-related grounds. Nonpayment, a material violation of the lease, conduct that creates a nuisance or interferes with the quiet enjoyment of others, and negligent damage to the property.
  • No-fault grounds. A defined list that includes demolition or conversion of the premises, substantial repairs or renovation, occupancy by the owner or a family member, withdrawal of the unit from the rental market for sale, and a tenant declining to sign a reasonable new lease.

The statute carries conditions, notice requirements, and exemptions that turn on the specific tenancy, and those details are where real cases are actually decided. I am not the person to interpret them for you. Bring your lease template and your intended plan to a Colorado real estate attorney before you close, not after a dispute starts.

What this means for your underwriting is narrower and more useful. A no-fault path such as owner occupancy or sale is available but procedural, so any pro forma that assumes you can clear a building quickly to renovate or to sell should be built with a longer timeline and some cushion in it.

HB25-1090 and What Colorado Landlords May Charge in 2026

HB25-1090, the Protections Against Deceptive Pricing Practices act, was signed on April 21, 2025 and took effect on January 1, 2026. It is written as consumer protection law rather than as landlord-tenant law, which is part of why it caught some owners off guard.

Two pieces matter to a rental operator. First, the total amount a person may be asked to pay has to be disclosed clearly and conspicuously up front, together with the nature and purpose of any additional charges. Advertising one number and revealing the rest later is the practice the law targets. Second, the act restricts certain fees a landlord may require a tenant to pay or write into a rental agreement.

Enforcement runs through the Colorado Consumer Protection Act, which treats a violation as a deceptive trade practice.

Why This Lands on a Spreadsheet

Ancillary fee income is a line a lot of investor models lean on. If some of it is no longer chargeable, the revenue side of your pro forma changes while your payment stays exactly the same. Confirm your intended fee structure with an attorney before you underwrite income you may not be able to collect.

The Colorado Documentary Fee on a Rental Purchase

This one is small, and I include it because it is the item people most often misunderstand as a transfer tax. Colorado's documentary fee, at C.R.S. 39-13-102, is one cent for each one hundred dollars of consideration. That is ten cents per one thousand dollars, or one hundredth of one percent of the price. Where the consideration is $500 or less, no fee applies. The county clerk and recorder collects it from the person offering the deed for recording.

Purchase Price Documentary Fee Share of Price
$450,000 $45.00 0.01%
$600,000 $60.00 0.01%
$850,000 $85.00 0.01%
$500 or less No fee Not applicable

Here is the part worth writing down. The statute assigns the fee to the person offering the deed for recording and is silent on buyer versus seller, and the Colorado Real Estate Commission's standard residential contract has no documentary fee allocation line at all. So the documentary fee is allocated by contract and local custom, not by statute. If someone tells you Colorado law makes the seller pay it, they are describing a habit, not a rule. Ask your title company and your agent how it is being written on your specific transaction.

Working Through a Rental Purchase?

Send me the property you are considering, the rent you expect, and how you plan to hold title. I will walk you through what the financing side looks like and where the operating rules above touch your numbers. No pressure and no obligation.

Visit mandiepallone.com or call (720) 436-5280

Colorado's Reappraisal Cycle and What 2027 Does to a Pro Forma

Property taxes are not a landlord law exactly, but they behave like one, because the timing is set by statute and it is not intuitive.

Colorado reappraises real property on a two-year cycle, in odd-numbered years. 2025 was a reappraisal year. 2026 is an intervening year, which means it carries the same actual value forward rather than setting a new one. Both years sit at a June 30, 2024 level of value, drawn from a sales study period that ran through that date. The assessment date each year is January 1, and residential property is valued using the market approach.

The next reappraisal is 2027, at a June 30, 2026 level of value.

Sit with that for a second, because it is the practical point of this whole section. When you buy a Broomfield County rental in 2026 and build your model on the tax bill in front of you, you are modeling a value that was measured on June 30, 2024. In 2027 the assessor resets to a June 30, 2026 level of value. Whatever your submarket did across those two years shows up in your tax line at once, not gradually, and it shows up in the year after you bought.

There is a second wrinkle that most models still miss. From 2025 forward a single Colorado home produces two assessed values, one for school district levies and one for local government levies, with the local government calculation applied after a subtraction tied to the first portion of actual value. Any tax estimate that runs one blended rate against one assessed value is now built wrong, regardless of how careful the rest of the spreadsheet is.

The honest planning move is to underwrite a rental so it still works if the tax line moves in 2027 rather than assuming it holds. For price context while you are choosing a submarket, my Broomfield housing market prices and trends page is a reasonable starting point, and the full carrying-cost picture lives on my guide to what it costs to own a rental in Broomfield County.

Colorado Landlord Rules Are Also Local, and That Part Decides Deals

State law is the floor. Cities build on top of it, and in the north Denver metro the local layer is where most investor plans succeed or quietly fail.

The clearest example is short-term rental legality, which differs meaningfully from city to city across Broomfield, Westminster, Thornton, Arvada, Superior, and Louisville. Some of these cities permit short-term rental only where the property is the owner's principal residence, which rules out the non-owner-occupied investor case entirely. I check the specific municipality's current ordinance before any file is structured around a rental strategy, and I would encourage you to do the same before you write an offer rather than after.

Occupancy limits, licensing, business licensing, and local lodging taxes also sit at the city level. None of them appear in a state statute search, and all of them can change your operating model.

Where Colorado Landlord Rules Touch Your Loan File

I am a lender, so let me connect this back to financing directly.

On a debt service coverage ratio loan, which is a business-purpose loan on a rental where the property's rent is measured against its full monthly housing payment rather than against your personal income, the rent that reaches the calculation comes from a signed lease or an appraiser's rent schedule. Everything above shapes that number. What you may legally charge, which fees you may collect, how quickly a unit may be turned, and which rental strategies a city permits all feed the income side of the ratio. My guide to DSCR loans in Broomfield covers how that ratio is built.

The rules also touch how you hold the property. Many investors want title in an entity, which changes insurance, the personal guarantee, and which loan programs are available. I walk through the lending side of that on my page about buying a Colorado rental property in an LLC, and the formation and tax questions belong with your attorney and your CPA rather than with me.

If you want the wider financing picture for this county first, start at my Broomfield County home loans hub. Eligibility on any program is subject to credit approval and a full loan estimate, and guidelines vary by lender and program.

A Short, Honest Disclaimer

Everything on this page is orientation. It is here so that you know which questions to ask and roughly what the landscape looks like, not so that you can rely on it in a dispute. Landlord-tenant law, lease drafting, eviction procedure, and entity structure are legal work, and they belong with a licensed Colorado attorney. Tax treatment belongs with a CPA. Insurance placement belongs with a licensed insurance agent.

What I can do is the financing, and help you see where these rules land on your numbers before you are under contract rather than after.

FAQs About Colorado Landlord Rules for Investors

Does Colorado have rent control?

No. Colorado law at C.R.S. 38-12-301 states that no county or municipality may enact any ordinance or resolution controlling rent on private residential property or a private residential housing unit, and it declares the question a matter of statewide concern. A repeal bill, HB23-1115, passed the House in 2023 and was then postponed indefinitely in the Senate Local Government and Housing Committee on April 25, 2023, so the prohibition stayed in place. I re-checked the statute on August 17, 2026 and found it unrepealed. This is orientation rather than legal advice, and a Colorado real estate attorney is the right person to confirm anything you plan to rely on.

Can a Colorado landlord end a lease for any reason?

Not since HB24-1098, which was signed and took effect on April 19, 2024. The law requires cause before a residential tenant is evicted or a lease is declined for renewal. Cause includes tenant-related grounds such as nonpayment or conduct that interferes with quiet enjoyment, and a defined set of no-fault grounds such as demolition, substantial renovation, occupancy by the owner or a family member, or withdrawal of the unit from the rental market for sale. The statute carries conditions and exemptions that turn on the specific tenancy, so route your situation to an attorney rather than to a summary like this one.

What does HB25-1090 change for Colorado landlords in 2026?

HB25-1090, the Protections Against Deceptive Pricing Practices act, was signed on April 21, 2025 and took effect on January 1, 2026. It requires that the total price a person may be asked to pay is disclosed clearly and conspicuously up front, along with the nature and purpose of any additional charges, and it restricts fees a landlord may require or write into a rental agreement. Violations are treated as deceptive practices under the Colorado Consumer Protection Act. For an investor, the practical effect is that fee income assumed in a pro forma may not survive the new rules, so confirm your intended fee structure with an attorney before you underwrite it.

What is the Colorado documentary fee on a rental property purchase?

Under C.R.S. 39-13-102 the documentary fee is one cent for each one hundred dollars of consideration, which works out to ten cents per one thousand dollars, or one hundredth of one percent of the price. A $600,000 purchase carries a documentary fee of $60.00. No fee applies where the consideration is $500 or less. The county clerk and recorder collects it from the person offering the deed for recording. The statute does not assign it to the buyer or the seller, so it is allocated by contract and local custom rather than by statute, and it belongs on your settlement statement conversation with your title company and your agent.

How often is Colorado property reappraised, and why does that matter to an investor?

Colorado reappraises real property every two years, in odd-numbered years. 2025 was a reappraisal year and 2026 is an intervening year that carries the same actual value forward, both set at a June 30, 2024 level of value. The next reappraisal lands in 2027 at a June 30, 2026 level of value. That matters because a pro forma built on today's tax bill assumes a value that is already about two years old. If values in your submarket moved between those two dates, the 2027 reappraisal moves your tax line, and property taxes sit inside the payment that a rental has to cover.

Do Colorado landlord rules affect whether I can get a rental property loan?

They affect the income side of the file more than the approval itself. On a debt service coverage ratio loan, meaning a business-purpose loan on a rental where the property's rent is measured against its full monthly housing payment, the rent an underwriter accepts comes from a signed lease or an appraiser's rent schedule. State and local rules shape what rent you may legally charge, which fees you may collect, and which rental strategies are permitted in a given city, so they shape the number that reaches the ratio. Terms remain subject to credit approval and a full loan estimate, and guidelines vary by lender and program.

Let's Talk

Plan the Financing Around the Rules, Not After Them

I have worked with buyers and investors across Broomfield, Westminster, Thornton, Arvada, Superior, and Louisville, and the most useful conversation usually happens before an offer is written. Tell me the property, the rent you expect, and how you want to hold title, and I will map out the options.

Give me a call at (720) 436-5280 or start at mandiepallone.com whenever you are ready.

(720) 436-5280