|
Getting your Trinity Audio player ready...
|
The state of Colorado enacted several important changes to landlord-tenant law that took effect on January 1, 2026. Here are some key changes Colorado Landlords need to be familiar with:
Colorado Security Deposit Law Changes in 2026
Colorado previously limited security deposits to two months’ rent. As of January 1, 2026, Colorado security deposits may not exceed one month’s rent.
In addition to the cap, there are two other notable changes to security deposit laws:
- Tenants have the option of paying their security deposit in monthly installments over six months.
- Landlords may collect an additional pet security deposit of up to 25% of the monthly rent.
Updated Guidance on “Wear and Tear” & Move-Out Procedures
Colorado’s updated Landlord-Tenant laws define normal wear and tear as “natural deterioration, minor damage, and everyday uncleanliness that occurs based on normal use.” Landlords cannot make deductions from security deposits for normal wear and tear, such as scuff marks, minor carpet stains, or minor paint damage.
Landlords also cannot impose automatic cleaning fees. Landlords may only deduct cleaning fees from the security deposit if the unit is significantly dirtier than it was at move-in.
At move-out, Tenants may request a final walk-through inspection and documentation of any damages.
Landlords who retain an unreasonable amount of the security deposit may face penalties.
Colorado Tenant Screening Law Changes for Section 8 and Voucher Applicants
Effective January 1, 2026, Landlords may not require a credit score, credit report, or credit history from applicants who receive housing subsidies – for example, housing vouchers.
Colorado Landlords with Section 8 Tenants or Tenants who receive other types of housing vouchers should update their screening policies and application process to comply with this process.
Increased Enforcement and Penalties Under Colorado Landlord-Tenant Law
Colorado’s updated Landlord-Tenant laws expand enforcement authority to the Colorado Attorney General and local government. This means increased oversight and increased exposure for Landlords who do not comply with applicable laws.
What Colorado Landlords Must Do to Comply in 2026
With the updated Lease laws in 2026, Colorado Landlords should:
- Update their Lease Agreements to ensure compliance
- Review and adjust security deposit procedures
- Update Tenant Screening procedures for Tenants with housing vouchers
Being proactive about compliance reduces the risk of violations and ensures your rental business runs smoothly.
Create a free ezLandlordForm’s account to customize a legally compliant Colorado Lease Agreement in minutes.
