New Colorado Landlord and Tenant Laws Taking Effect in 2026

If you currently own a rental property or plan to purchase one in the new year, you may be interested in learning about the new tenant and landlord laws that go into effect on January 1st, 2026. As of January 1st, landlords will be required to be transparent in how they advertise and disclose housing prices.

Overview of Colorado Rental Law Changes Effective January 1, 2026

Additionally, restrictions will be placed on how landlords handle security deposits, providing further protections for tenants. The real estate transaction attorneys at Brown Dunning Fein Drusch PC in Denver, CO, keep you informed of the current changes in the state’s rental laws to ensure your rights and your property remain protected.

New Protections Against Deceptive Housing Practices

Under HB25-1090, a landlord in Denver, Colorado, will be prohibited from:

Total Price Disclosure

A landlord must disclose the total rent for a unit. This prohibits property owners from separating fees to make the rent appear lower. This total rental price will exclude utilities.

Fees Landlords Are No Longer Allowed to Charge

A landlord will be forbidden from charging tenants specific fees. This ban applies explicitly to fees listed in the leasing agreement that are prohibited by law. These banned fees include:

• Payment processing fees (unless there is a free option available to the tenant)
• Property taxes
• Late fees related to non-rent charges
• Services provided by a third-party: A cap of two percent of the amount the landlord was billed or $10 per month (not both)

Limits on Rent Increases During Lease Terms

Landlords will be prohibited from increasing rent by more than 2% during the lease term (for leases of 1 year or less).

Penalties for Violating Colorado Rental Pricing Laws

A landlord who violates any terms of the new law will be held responsible for a tenant’s damages plus 18% annual compound interest.

Expanded Tenant Security Deposit Protections Under Colorado Law

HB25-1249 provides the following provisions regarding security deposits:

Updated Definition of Normal Wear and Tear

Under current law, a landlord who retains any portion of a tenant’s security deposit must provide a written statement detailing the reasons for the retention. The landlord will need to provide the difference between the total security deposit amount and the amount retained for repairs. The landlord has 30 days from the termination of the lease or the tenant’s vacating the premises to return the security deposit.

The new law expands the definition of “normal wear and tear,” making it illegal for a landlord to charge a tenant for expected wear and tear resulting from the property’s everyday use. This would include carpet buckling, wall scuffs, or general deterioration. This does not apply to irreparable damage. However, this will not apply to any carpets that have not been replaced within the past 10 years.

Restrictions on Cleaning Fee Deductions

Any clauses in a lease agreement that require the tenant to pay cleaning costs automatically will be voided. However, a landlord may retain part of the security deposit for cleaning costs if the rental is substantially less clean than when the lease began.

Tenant’s Right to a Final Walk-Through Inspection

The new law permits tenants to request a final walk-through with their landlord before moving out. This walk-through will take place at a mutually convenient time for both parties, after the tenant has removed their furniture. The landlord will detail in writing any defective conditions that go beyond normal wear and tear and were not present when the tenant moved in. The tenant may request documentation (photos or videos) from the landlord detailing the repairs.

Unreasonable Amount of Security Deposit Retained

Under the new law, a landlord has kept an unreasonable amount of the security deposit if the amount exceeds 125% of the actual repairs.

How the 2026 Laws Affect Colorado Landlords

The implementation of new legislation makes it more critical than ever that landlords follow protocols to a tee. Tenants have and continue to have the ability to dispute retained security deposits if you do not provide a written statement justifying the amount withheld.

The state will be tightening up previous laws, making it essential that you hire a real estate transaction lawyer to handle any disputes you have in connection with your property. Being aware of the law allows you to safeguard your property without any resistance.

Speak With a Denver Real Estate Transaction Attorney About Compliance

Being a property owner is one of the most rewarding experiences, but it is often accompanied by overwhelming stress. To keep you ahead of the curve, Brown Dunning Fein Drusch PC would like to inform you of changes to housing laws as we head into 2026.

If you are seeking legal guidance in navigating a landlord-tenant dispute, our Denver, CO, real estate transaction lawyers are here to assist you. To schedule an appointment with a member of our legal team, contact us online or by phone at (303) 239-3363.