Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
In Colorado, residential lease documents—including their structure, nature, and contents—are regulated by Colorado landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement Colorado considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free Colorado lease template for download!
A Colorado lease is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease adheres to Colorado’s landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
The following components should be included in every lease agreement for a residential property. Note that a Colorado commercial lease agreement will necessarily have different requirements.
Lease Term
This section specifies the lease agreement start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control. In Colorado, rent control is banned—no cities or counties can pass laws that regulate or restrict the price of rent (CRS § 38-12-301(1)). This means that landlords can decide on their own rent prices depending on market rates. However, it’s important to know that Colorado requires landlords to provide at least 60 days’ notice to tenants before increasing rent (CRS § 38-12-701(2)(a)).
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Colorado, late fees are restricted to $50 or 5% of the rent due (CRS § 38-12-105(1)(b)). Additionally, Colorado has a mandatory seven-day grace period, which means landlords cannot charge late fees or otherwise penalize tenants for late rent until at least seven days after the original due date. Be sure that your late fee policy (including the seven-day grace period and fee amount) is clearly described in the lease so that tenants know exactly what to expect if they pay their rent late.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Colorado, late fees are restricted to $50 or 5% of the rent due (CRS § 38-12-105(1)(b)). Additionally, Colorado has a mandatory seven-day grace period, which means landlords cannot charge late fees or otherwise penalize tenants for late rent until at least seven days after the original due date. Be sure that your late fee policy (including the seven-day grace period and fee amount) is clearly described in the lease so that tenants know exactly what to expect if they pay their rent late.
Security Deposit
This section of the lease includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
In Colorado, there is no maximum or limit for security deposits. However, Colorado law does say how landlords must return deposits. When a tenancy ends, the landlord must return the security deposit to the tenant (minus any deductions) within 60 days (CRS § 38-12-103(1)).
Every Colorado lease should include a detailed security deposit section that specifies the amount of the deposit, how/when it will be returned, and under what conditions funds might be withheld from the deposit (e.g., unpair rent or utilities, repairs, cleaning, etc.).
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to rent the property. Required disclosures must be included in a lease agreement Colorado considers compliant, or else provided in a separate written notice to the tenant.
In Colorado, the required disclosures are:
- Lead-based paint – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most properties built before 1978.
- Landlord/agent identification – Landlords in Colorado are required to disclose the name and address of the person authorized to manage the property.
- Bed bugs – If a tenant asks, Colorado landlords must disclose whether a unit has been found to have bed bugs within the previous eight months, as well as the last date the unit was inspected and found free of them.
Landlord Right to Entry
In Colorado, there are no specific laws governing when a landlord can enter a rental property in general. However, Colorado does have a law that requires landlords to give at least 48 hours’ notice (written or electronic) if they are entering for the purpose of inspecting or treating a bed bug infestation (CRS § 38-12-1004). For all other circumstances, most landlords provide at least 24 hours’ notice before entering. The landlord’s right of entry should be included in every Colorado lease agreement.
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. Every Colorado residential lease agreement should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Lease Termination/Renewal Procedures
This section details the procedures for early lease termination and breaking the lease, including eviction processes. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
A Colorado residential lease agreement should also clearly describe what happens if the tenant breaks the lease. Before filing for eviction in Colorado, landlords must send eviction notices of specified lengths: A ten-day pay or quit notice (for nonpayment), a ten-day cure or quit notice (for lease violations), or a three-day unconditional notice (for substantial violations, such as violence or illegal drug activity). These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the lease either on paper or electronically, ensuring a secure and convenient process.
Colorado Lease Agreement Download
To make your leasing journey simpler, we offer a free, downloadable Colorado lease agreement. This template is tailored to meet the specific requirements of Colorado state law, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of a Colorado residential lease agreement is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of a Colorado lease. To get started on the right foot, download our free Colorado lease template and ensure a transparent, lawful, and satisfying rental experience.
