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Colorado Rental Law Changes Owners Need to Know for 2027

Colorado Rental Law Changes Owners Need to Know for 2027

Colorado's 2026 legislative session was quieter for rental housing than the last few years, but a few changes take effect January 1, 2027, and some of the biggest proposals that failed are likely to return. As Legislative Chair for Denver NARPM and President of the Colorado Housing Coalition, I spent the session at the Capitol working on these bills. Here is what owners need to know.

The Capitol was quieter in 2026 than in recent years when it came to landlord-tenant law, and that was no accident. Our industry worked hard to stop three bills that would have hurt Colorado housing providers: a local tax on vacant homes (HB26-1036), a broad tenant protections bill (HB26-1047) and an eviction bill (HB26-1106). We also supported the utility billing bill that passed (HB26-1013) and pushed for changes to the tenant screening bill (HB26-1196) before it became law.

Taking effect January 1, 2027

Tenant screening disclosures (HB26-1196). Before screening an applicant, landlords must tell them what information they will access, the general factors they will consider (such as credit, rental history, income and criminal background), and whether they use a third-party screening company and its name. The law also adds protections for tenants' personal identifying information in eviction filings. What it means for you: if we manage your home, we handle this. Our published screening criteria and application notices are being updated before January 1. If you self-manage, your application and notices need to change.

Seller rent-backs and deposit limits (SB26-054). Short occupancy agreements after a home sale, where the seller rents back from the buyer, are no longer subject to Colorado's two-month security deposit cap. What it means for you: mostly relevant if you are selling a home and staying on briefly after closing.

Already in effect

Assistance animals (HB26-1045). Colorado law now spells out the federal rules for assistance and emotional support animals. Little changes in practice, but every request must be handled the same careful way. We handle these requests for our owners and never charge pet rent or pet deposits for assistance animals.

Utility billing by ratio (HB26-1013). Landlords who split a building's utility bill among units by formula must exclude common areas, disclose the method in the lease and add no fees on top of the actual utility charges. New buildings permitted after mid-2027 must be metered by unit.

Still in effect from 2025

The 2025 laws that took effect this year still drive most day-to-day changes: "all-in" rent advertising that includes required monthly fees, tighter security deposit rules, and limits on what can be required in a portable tenant screening report.

What did not pass, and why it matters for 2027

The most closely watched bill of the session, an eviction proposal (HB26-1106), did not pass. Failed bills are often reworked and brought back, and we expect eviction and screening proposals to return in the 2027 session. We will keep our owners posted as bills move.

Questions about your rental?

If you own a rental in Littleton, Highlands Ranch or Lone Tree and want to know how these changes affect you, book a call with TJ.

This post is general information, not legal advice. For advice about your situation, talk with a Colorado attorney.

Sources: HB26-1196, Colorado General Assembly; HB26-1013, Colorado General Assembly; 2026 Colorado Legislative Session Recap, Berg Hill Greenleaf Ruscitti; Colorado Landlord-Tenant Laws, Landlord Atlas.

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