By Elizabeth D. Arcane, Esq.
Beginning January 1, 2026, several significant real estate laws passed by the Colorado 2025 General Assembly took effect, bringing changes to pricing transparency, tenant screening, and security deposit practices. These laws are part of an effort to protect renters across the state.
Increasing Price Transparency
House Bill (HB) 25-1090 targets so-called “junk fees” by requiring residential landlords to clearly and conspicuously disclose the total cost of renting a unit. All mandatory fees must be included in a single, combined price that is easy for consumers to see and understand before entering into a lease or transaction.
The law also prohibits certain fees from being included in rental agreements unless they are lawful and disclosed upfront. Additionally, it limits landlord markups on third-party services, making lease costs more predictable and transparent for tenants.
Expanding Access to Housing
HB 25-1236 updates the definition of a “portable tenant screening report” to specify that applicants receiving housing subsidies cannot be required to include a credit history report, credit score, or adverse credit event in their screening report. The bill also removes language that allowed landlords to require a tenant to make a screening report directly available to the landlord through a consumer reporting agency or third-party website.
Reforming Security Deposit Rules
HB 25-1249 redefines “normal wear and tear” so that landlords cannot charge tenants for routine deterioration that occurs through normal use of a rental unit. It also establishes requirements regarding transfer or return of security deposits when a property changes owners and clarifies that imposing certain fees on tenants for preexisting conditions or normal wear are against public policy and unenforceable.
Under the new law, landlords cannot retain deposits in bad faith or for routine cleaning, absent substantial damages. Furthermore, if a refund is issued but is not deliverable to the tenant (e.g., due to an incorrect forwarding address), the landlord must hold the funds for up to 1 year and disburse them within 15 days upon tenant’s request.
Collectively, these laws reflect a trend toward transparency and stronger tenant rights as lawmakers respond to affordability challenges and concerns about equitable access to housing. Landlords and property managers should review compliance obligations and consult an experienced real estate lawyer to ensure you stay compliant, protect your investments, and confidently navigate these new laws. Proactive legal guidance can save landlords and property managers time, money, and stress down the road.
