Renting or leasing real estate for others for compensation is real estate brokerage, and no one may do it without a license from the Real Estate Commission.
CO · Researched October 7, 2026
Colorado rules for property managers
Colorado has added many renter protections since 2019. Deposits are capped at two months' rent, late fees at the greater of $50 or 5% of past due rent after 7 days, and most tenancies longer than 12 months need a lawful cause to end (HB24-1098). From January 1, 2026, advertised rent must include mandatory fees and deposit deduction rules are stricter.
Licensing to manage rentals in Colorado
Checked against the official sourceNatural persons managing property they own or lease; regularly salaried on-site managers employed by an apartment or condominium owner; attorneys in fact without pay; receivers, trustees and executors; attorneys; and other exemptions in C.R.S. 12-10-201(6)(b).
Brokers must keep funds of others in an escrow or trust account at a bank or recognized depository in Colorado, keep records under Commission rules, and not commingle or convert funds.
Money
Pet deposits are capped separately at $300, refundable, and pet rent at the greater of $35 or 1.5% of monthly rent. From January 1, 2027, the two-month cap does not apply to post-closing occupancy agreements in home sales (SB26-054).
Since January 1, 2026, you cannot deduct for normal wear and tear or conditions that existed before the tenancy, and if the tenant asks in writing within 14 days you must send photos, invoices and other relevant documents with the statement. Missing the deadline or the itemized statement forfeits the right to keep any of it. Keeping 125% or more of actual damages is presumed unreasonable, and wrongful retention can bring treble damages. Do a walk-through on request. Whole-unit carpet or paint charges need substantial damage.
Colorado's deposit statute does not require interest or a separate account for owners. If a mailed refund comes back, hold it at least one year and pay the tenant within 15 calendar days of a request. Refunds may go by mail or, with consent, secured electronic transfer. Licensed brokers must keep others' money in a Colorado escrow or trust account.
The fee must be in the lease, and you must give written notice of it within 180 days after the rent was due. Charge one late fee per late payment, no interest on late fees, and do not take late fees out of rent payments or charge them on a subsidy provider's share. You cannot evict or terminate for unpaid late fees alone.
Tell applicants they can submit a portable report, itemize or disclose the fee's costs, give a receipt, and refund unused amounts within 20 days. Do not consider rental or credit history older than 7 years, arrests, or most convictions older than 5 years. Income requirements may not exceed 200% of rent (200% of the tenant's share for subsidized applicants). Since January 1, 2026, subsidized applicants need not include credit history in a portable report.
The one-increase limit applies to all residential tenancies, written or not. Do not serve a termination notice mainly to raise rent around these rules. Many managers give 60 days' notice on all renewals.
No county or city may control rent on private residential housing. Voluntary agreements and deed restrictions with owners or permit applicants to provide affordable housing are allowed.
Notices and eviction
Exempt residential agreements may use 5 days. Since May 22, 2025, if late rent is tied to domestic violence, unlawful sexual behavior or stalking against the tenant, the landlord must offer a repayment plan of up to 9 months before pursuing eviction.
Substantial violations, such as certain crimes on the premises, follow C.R.S. 13-40-107.5. Exempt residential agreements may use 5 days.
Since April 19, 2024, most tenancies of 12 months or more can end only for causes listed in C.R.S. 38-12-1303, such as nonpayment or lease violations, or no-fault reasons with 90 days' notice. Exemptions include tenants under 12 months, owner-occupied single-family homes, duplexes and triplexes, short-term rentals, and employer-provided housing.
The writ cannot issue until 48 hours after judgment. For tenants receiving SSI, SSDI, or Colorado Works, the writ waits 30 days after judgment in some cases.
Property removed during a writ need not be stored, and the landlord is immune for loss but may charge reasonable storage if it stores. A landlord has a lien for unpaid rent on most household goods left on the premises (not beds, clothing, records or personal effects). Property is presumed abandoned after 30 days without contact, and sale requires 15 days' certified mail notice.
Access and condition
For habitability repairs, give at least 24 hours' written notice with the date, time and expected length of entry, except when a condition imminently threatens life, health or safety or is causing ongoing major damage. The tenant may reasonably decline a time and agree on another. Bed bug inspections need 48 hours' notice unless the lease says otherwise. Put other entry terms in the lease.
The deadlines run from notice. For life, health or safety conditions, if the tenant asks, provide a comparable unit or hotel room at no cost within 24 hours, with a per diem after 48 hours. Mold tied to dampness makes a unit uninhabitable. Tenant remedies are in C.R.S. 38-12-507.
Before signing, give the radon warning statement and any known radon test or mitigation information for the tenant to sign. Under C.R.S. 6-1-737, listings and leases must show the total price including required fees (actual utility costs excepted), and landlords may not charge fees for property taxes, common area maintenance, or services needed for habitability. Give the tenant a signed copy of the lease within 7 days. Federal lead paint disclosure applies to pre-1978 housing.
Fair housing
Source of income includes housing vouchers. Some small landlords have limited exemptions from source of income rules. Not yet checked against the official C.R.S. text.
Recent and upcoming changes
Tenancies over 12 months can end only for listed for-cause or no-fault reasons, with 90 days' notice for no-fault.
No eviction for late rent tied to domestic violence, unlawful sexual behavior or stalking against the tenant without first offering a repayment plan of up to 9 months. Most of the act took effect on signing; some sections took effect August 6, 2025.
Liquidated damages, rent acceleration, and fees are void when a lease ends because the tenant died, and the deposit may cover only property damage.
Deposits due within 30 days. No deductions for normal wear and tear or preexisting conditions, documentation on request within 14 days, walk-throughs on request, and limits on carpet and paint charges.
Rental ads and leases must show the total price including mandatory fees, and certain fees (property taxes, common area maintenance, habitability services) are banned.
Applicants using a housing subsidy need not include credit history in a portable tenant screening report.
Signed April 20, 2026; the act took effect August 12, 2026. From January 1, 2027, post-closing occupancy agreements in home sales are exempt from the two-month deposit cap.
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Colorado directory
Sources
- Colorado Revised Statutes Title 38 Article 12 (public.law copy of official C.R.S.)
- Colorado Revised Statutes Title 13 Article 40 (public.law copy)
- HB25-1249 bill page
- HB24-1098 bill page
- Spencer Fane: 2025-2026 Colorado landlord-tenant updates
- Otten Johnson: Changes to Colorado security deposit statute
- Colorado Division of Real Estate
- Colorado Revised Statutes 2024, Title 38 (Office of Legislative Legal Services), Wayback copy 2025-04-19
- Colorado Revised Statutes 2024, Title 13, Wayback copy 2025-10-07
- Colorado Revised Statutes 2023, Title 12, Wayback copy 2025-04-03
- 2025 Colo. Sess. Laws ch. 401 (HB25-1249)
- 2025 Colo. Sess. Laws ch. 229 (HB25-1168)
- 2025 Colo. Sess. Laws ch. 94 (HB25-1090)
- 2025 Colo. Sess. Laws ch. 399 (HB25-1236)
- 2025 Colo. Sess. Laws ch. 437 (HB25-1108)
- 2026 Colo. Sess. Laws ch. 61 (SB26-054)
Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.