2023 Significant Legislative Changes in Colorado's Rental Industry

As we approach the end of 2023, we would like to share key developments in the Colorado rental market and offer insights into what to expect in 2024.

Legislative Impact on Rental Industry:

The standout narrative of 2023 revolved around significant legislative changes in Colorado's rental industry. Some notable points include:

1. Radon Disclosures and Owner's Acknowledgement:
   • Owners are required to disclose any knowledge of radon.
     • Please be on the lookout for a radon disclosure that we will send your way via email to complete, if you have not received it already.
2. Tenant Protection: 
   • Changes in income requirements, decreased to 200% annual income Minimum.
   • Security deposit limitations, decreased to a maximum of 2 times rent.
   • Credit scores can no longer be a consideration for applicants with subsidized income.
     • "Housing subsidy” means any portion of a rental payment that is derived from a public or private assistance, grant, or loan program and that is paid by the program directly, indirectly, or on behalf of a tenant to a landlord.
3. Portable Screening Reports: 
   • Tenants can provide their own screening reports provided by a credit reporting agency, within 30 days of issuance, eliminating application fees.
4. Pet Protection: 
   • Caps on Pet fees, $35 or 1.5% of rent.
   • Pet deposit is limited to $300 per household.
   • Insurance policy denials are not allowed based on breed of pet.
5. Eviction Procedures: 
   • Remote court appearances are now acceptable.
   • New rules for serving 30-day rent demands.
     • A resident has the right to cure a Demand for Rent by paying off the full balance all the way up until the Writ has been issued by the courts. If they do this, the law states landlords cannot charge the tenant any attorney fees leading up to this point. As a result, owners may be responsible for paying for the filing fee in this scenario.

Operational Enhancements in 2023

We implemented several operational changes this past year, including:

• New Property Management Software system: We successfully transitioned from Propertyware to Rentvine, receiving positive feedback on its user-friendly interface that fosters improved communication between PMI, owners, and residents.
• Expanded our team: To accommodate our growth and enhance service, we are excited to welcomed Carley Tharpe, a seasoned Realtor, as our Office Manager who will be an amazing asset on the leasing team and in operations. Get to know Carley and the rest of our team here.
• Late Fees: While not a new law, we wanted to remind you about the rule on late fees: We are not able to charge a late fee until the 9th of the month.

Operational Changes in 2024:

We anticipate more legislative changes to come and have implemented several operational changes for the upcoming year, including:

• Rental Pricing: The Denver Metro Area is anticipating a new supply of rental housing and new apartment construction which could provide for an additional 120,000 units, ultimately affecting demand and pricing, in the rental market.
  • To maintain resident retention, our main goal this coming renewal season is to keep good tenants in place. We do this by maintaining good communication and addressing tenants' concerns in a timely manner. We also know an important factor to keep good tenants is for us to consider not increasing the rent when it comes time to offer a lease renewal, unless the market supports it and/or they are well under market values.
• New Tenant Screening System: Effective the first of the year, a new tenant screening platform will be rolled out which offers biometric verification, enhanced document review, and detailed bank account scrutiny to identify suspicious spending that does not align with their application. Ex: (Pet purchase with no pet on application).
• Client Appreciation Events: We will increase our engagement with hosting client appreciation events in 2024 to express our gratitude for your partnership.
• Pricing and Loyalty: Despite industry trends, we have chosen to maintain our current pricing for 2024 as a gesture of appreciation for your loyalty. While future adjustments may be necessary due to evolving laws and business costs, we remain committed to providing exceptional service at your current pricing.

This update aims to inform rather than cause concern. We assure you that our well-trained team is dedicated to navigating these challenges and protecting your assets. Having a knowledgeable, dedicated property management company in your corner is needed now more than ever. Please rest assured we have implemented all the best practices to overcome all these challenges to provide protection for you and your properties.

We look forward to a successful 2024!