How Much Can a Landlord Raise Rent in Colorado

In Colorado, the amount a landlord can raise rent is governed by state law. The maximum allowable rent increase is set by the Colorado Rental Housing Act, which states that landlords can only raise rent once per year and the increase cannot exceed a certain percentage. The percentage is determined by the Consumer Price Index (CPI), which measures the rate of inflation. The CPI is calculated by the Bureau of Labor Statistics, and it tracks the changes in prices for a variety of goods and services. The maximum rent increase allowed in Colorado is equal to the CPI plus 3%. For example, if the CPI is 2%, then the maximum rent increase allowed is 5%.

Colorado Rent Control Laws

Colorado state law does not impose rent control on residential properties, giving landlords the freedom to set rental rates as they see fit. However, certain municipalities within Colorado have implemented their own rent control ordinances.

Rent Control in Denver

The City and County of Denver passed Initiative 300 in 2019, which established rent control and tenant protection measures within the city limits. Here’s an overview of Denver’s rent control law:

• Rental Rate Increases: Landlords can increase rent by a maximum of 3% per year plus the percentage change in the Consumer Price Index (CPI) for the Denver-Aurora area in the previous calendar year.
• Exemptions: The rent control ordinance does not apply to properties constructed within the past 10 years, single-family homes rented by the owner, and properties with fewer than four rental units.
• Individual Lease Agreements: Rent increases above the allowable limit can be negotiated and agreed upon between landlords and tenants through individual lease agreements.
• Rent Adjustment Process: Rent increases must be communicated to tenants in writing at least 60 days in advance of the effective date.
• Tenant Protections: Tenants have the right to challenge excessive rent increases and seek resolution through the city’s administrative process or through legal action.

Rent Control in Boulder

The City of Boulder implemented rent control regulations in 2020. Here’s a summary of Boulder’s rent control ordinance:

• Rental Rate Increases: Landlords can raise rent by a maximum of 5% per year. Rent increases must be applied equally to all units in a rental property.
• Tenant Protections: Tenants can file complaints with the city if they believe excessive rent increases have been imposed. Rent increases may be rolled back to the previous rent amount if found to be in violation.
• Eviction Protections: Evictions without a just cause are prohibited under Boulder’s rent control ordinance. Landlords must provide valid reasons, such as nonpayment of rent or violation of lease terms, to evict tenants.
• Covered Properties: The ordinance applies to all residential rental properties within the city limits, including apartments, condos, and single-family homes rented by non-owners.

Please note that these are summaries of the rent control ordinances in Denver and Boulder. For specific details and any updates, refer to the official city ordinances or consult with legal professionals specializing in landlord-tenant law.

Annual Rent Increases

In Colorado, landlords are allowed to raise rent once a year, with some exceptions. The maximum amount that rent can be increased is set by the Colorado Rental Housing Act, which is updated annually.

For 2023, the maximum annual rent increase is 5%. This means that a landlord can raise rent by up to 5% of the current rent, plus any additional rent increases that are allowed by law.

Additional Rent Increases

• Security Deposit: Landlords are allowed to charge a security deposit of up to two months’ rent. The security deposit can be used to cover damages to the property caused by the tenant.
• Late Fees: Landlords are allowed to charge a late fee of up to $10 per day for rent that is paid late.
• Pet Fees: Landlords are allowed to charge a pet fee of up to $25 per month for each pet.
  

  Rent Control

  There are a few cities in Colorado that have rent control ordinances. These ordinances limit the amount that landlords can raise rent each year. The following cities have rent control ordinances:

  • Boulder
  • Denver
  • Fort Collins

  If you live in a city with rent control, you should contact your local housing authority to learn more about the rent control ordinance.

  Negotiating Rent Increases

  If you are a tenant, you may be able to negotiate with your landlord to lower the rent increase. You can do this by:

  • Asking for a lower rent increase: You can simply ask your landlord to lower the rent increase. Be prepared to explain why you think the increase is too high.
  • Offering to sign a longer lease: If you are willing to sign a longer lease, your landlord may be more likely to give you a lower rent increase.
  • Making improvements to the property: If you are willing to make improvements to the property, your landlord may be more likely to give you a lower rent increase.

  Filing a Complaint

  If you believe that your landlord has violated the Colorado Rental Housing Act, you can file a complaint with the Colorado Department of Regulatory Agencies (DORA).

  Rent Increase	Additional Rent Increases	Rent Control	Negotiating Rent Increases
  5% annual increase	Security deposit, late fees, pet fees	Boulder, Denver, Fort Collins	Ask for a lower increase, offer a longer lease, make improvements

  Rent Increases During Lease Terms

  In Colorado, landlords are allowed to raise rent during the lease term or after renewal under specific circumstances and within legal limitations set by state law. Here’s a detailed explanation:

  Lease Agreement:

  • Landlords and tenants enter into a lease agreement that outlines the terms of the tenancy, including the initial rent amount, rental period, and any conditions for rent increases.
  • The lease agreement typically specifies the frequency and conditions under which rent can be increased.

  Fixed-Term Leases:

  • Fixed-term leases, also known as annual leases, generally cover a period of one year or more.
  • During a fixed-term lease, landlords are typically not allowed to increase the rent unless it was previously specified and agreed upon in the lease agreement.
  • Any rent increase during a fixed-term lease must follow the terms and conditions outlined in the lease.

  Automatic Rent Increases:

  • Some lease agreements may include a provision for automatic rent increases at predetermined intervals, such as every year or two.
  • Automatic rent increases must be clearly stated in the lease agreement and should specify the percentage or amount of the rent increase.

  Notice Requirements:

  • Landlords are required to provide written notice to tenants before increasing the rent.
  • The notice period varies depending on the type of lease and the rent increase amount.
  • For a rent increase of 10% or less, landlords must provide at least 30 days’ notice.
  • For a rent increase of more than 10%, landlords must provide at least 60 days’ notice.

  Rent Control:

  • Rent control laws may exist in certain cities or municipalities in Colorado, which can impose specific limitations or restrictions on rent increases.
  • Rent control ordinances vary greatly and can include provisions such as rent caps, limitations on the frequency of rent increases, and requirements for landlord justification of rent increases.

  Tenant Rights:

  • Tenants have the right to challenge unreasonable rent increases.
  • If a tenant believes that a rent increase is excessive or violates the terms of the lease agreement or applicable laws, they may file a complaint with the local housing authority or seek legal counsel.

  Additional Points:

  Here are some additional points to consider regarding rent increases in Colorado:

  • Landlords must provide tenants with a written statement explaining the reasons for the rent increase.
  • Rent increases cannot be retaliatory in nature. Landlords cannot increase rent in retaliation for a tenant exercising their legal rights, such as reporting housing code violations.
  • Tenants should carefully review their lease agreements and understand the provisions related to rent increases.

  Colorado Rent Increase Notice Periods

  Rent Increase Amount	Notice Period
  10% or less	30 days
  More than 10%	60 days

  Colorado Landlord Rent Increase Regulations

  Landlords in Colorado are subject to certain regulations when it comes to raising rent. These regulations include limits on the amount of rent that can be increased and the frequency of rent increases.

  Security Deposit Limits

  • Under Colorado law, landlords may only charge a security deposit of up to two months’ rent for residential properties.
  • However, landlords may collect additional fees to cover the cost of things like cleaning and repairs, cleaning, or key deposits.
  • The total amount of the security deposit and any additional fees cannot exceed two months’ rent.

  Rent Increase Limits

  • Landlords are limited in the amount they can increase rent. The maximum annual rent increase is the greater of:
  • 3%
  • The percentage change in the Denver-Boulder-Greeley Consumer Price Index (CPI) for All Urban Consumers for the 12-month period ending on the date the rent increase is effective.

  Frequency of Rent Increases

  • Landlords can only increase rent once per year.
  • The rent increase must be in writing and must be delivered to the tenant at least 30 days before the effective date of the increase.
  • The notice must include the amount of the rent increase, the effective date of the increase, and the reason for the increase.

  Rent Increase Exemptions

  • There are a few exemptions to the rent increase regulations.
  • Landlords can increase rent by more than the maximum annual increase if the increase is due to a capital improvement.
  • A capital improvement is a major renovation or improvement to the property that increases its value.

  Summary Table of Colorado Rent Increase Regulations

  Rent Increase Regulations in Colorado

  Regulation	Limit	Frequency
  Maximum Annual Increase	3% or the percentage change in the Denver-Boulder-Greeley CPI, whichever is greater	Once per year
  Notice Requirement	30 days written notice	–
  Rent Increase Exemptions	Capital improvements Affordable housing properties	–

  For more information about your rights and responsibilities as a landlord or tenant in Colorado, you should contact the Colorado Attorney General’s Office.

  That’s all I got for you today, folks! I hope you found this article helpful. If you have any more questions about Colorado landlord-tenant law, be sure to check out the resources I have linked throughout the article. And don’t forget to come back and visit us again soon! We’re always adding new articles and information to our website, so you never know what you might find. Thanks for reading!