Recently the state of Colorado enacted legislation that imposes new lease restrictions for owners/landlords. Among other things, Colorado House Bill 23-1095 limits the types of fees and charges that can be considered as part of rent, and provides guidelines for tenant fee markups or third-party service charges. We want to make our clients aware of this change, as it impacts the method for charging residents for internet, television, or other broadband services you may provide for your assets located in Colorado.
- Prohibition of Additional Amounts and Fees as Rent: Under the new statute, owners are prohibited from designating any amount or fee (apart from the set monthly payment for occupying the premises) as “rent.” This means that remedies to collect rent, such as eviction, can only be applied to the agreed-upon monthly rent and cannot extend to other charges. This includes fees for utilities or services and any charge that is not explicitly classified as rent.
- Prohibition of Tenant Fee Markup or Third-Party Service Charges: The statute also imposes limitations on fee markups or charges for services for which the owner is billed by a third party. The amount charged may not exceed two percent of the amount the owner was billed or a total of ten dollars per month.
The bill goes into effect 90 days after final adjournment of the Colorado General Assembly which happened May 8th. These rules apply to written rental agreements executed on or after the effective date, which is approximately August 7th. Finally, the act specifies it applies only to written rental agreements executed on or after the effective date of the act.
It is crucial to consult with qualified local real estate counsel licensed in the state where your properties are located to ensure leases fully comply with all applicable state laws, including this new legislation in Colorado. These laws can vary significantly from one jurisdiction to another, making it unlikely a standard lease agreement will be compliant across multiple states.
We have reached out directly to each of our clients who may be directly impacted by this new law based on existing bulk (owner-paid) broadband agreements being in place today. Should you have any questions about your specific portfolio please reach out to your Account Manager or email firstname.lastname@example.org for more information.