A Bill for an Act
Page 1, Line 101Concerning a landlord's ability to raise a tenant's rent
Page 1, Line 102based on fair market considerations.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Under current law, a landlord may initiate a no-fault eviction of a tenant if the tenant refuses to sign a new rental agreement with reasonable terms. The bill clarifies that, for purposes of determining whether a new rental agreement includes reasonable terms, a rent increase in the new rental agreement is reasonable if the landlord increases rent in view of fair market rent, as evidenced by the rental amount of comparable properties.
Also under current law, a landlord is prohibited from increasing a tenant's rent in a discriminatory, retaliatory, or unconscionable manner. The bill clarifies that a rent increase is not discriminatory, retaliatory, or unconscionable if the landlord provides evidence showing that the rent increase is in line with fair market rent, as evidenced by the rental amount of comparable properties.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 38-12-1303, amend (3)(e) as follows:
Page 2, Line 338-12-1303. Cause for eviction required - no-fault evictions.
Page 2, Line 4(3) In addition to the requirements of subsection (5) of this section, the following conditions constitute grounds for a no-fault eviction of a tenant:
Page 2, Line 5(e) Tenant refuses to sign new lease with reasonable terms.
Page 2, Line 6(I) If a tenant refuses to sign a new rental agreement with reasonable
Page 2, Line 7terms, the landlord may initiate a no-fault eviction of the tenant so long as the landlord:
Page 2, Line 8
(I)Page 2, Line 9notice described in
subsection (3)(e)(II)Page 2, Line 10section to vacate the residential premises after the tenant has refused to
Page 2, Line 11sign the new rental agreement, during which time the tenant may remain
Page 2, Line 12in possession of the residential premises under the same terms as the tenant's existing rental agreement; and
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(II)Page 2, Line 14the landlord's intent to terminate the tenancy, which notice includes the date on which the tenant will be required to vacate.
Page 2, Line 15(II) For purposes of this subsection (3)(e), an increase in
Page 2, Line 16rent in a new rental agreement is reasonable if the landlord
Page 2, Line 17increases the rent in view of fair market rent, as evidenced by the rental amount of comparable properties.
Page 3, Line 1SECTION 2. In Colorado Revised Statutes, amend 38-12-1307 as follows:
Page 3, Line 238-12-1307. Retaliatory rent increase prohibited. A landlord
Page 3, Line 3shall not increase a tenant's rent in a discriminatory, retaliatory, or
Page 3, Line 4unconscionable manner to circumvent the requirements and prohibitions
Page 3, Line 5set forth in this part 13. A rent increase is not discriminatory,
Page 3, Line 6retaliatory, or unconscionable if a landlord provides evidence
Page 3, Line 7showing that the rent increase is in line with fair market rent,
Page 3, Line 8as evidenced by the rental amounts of comparable properties,
Page 3, Line 9and that the property could be rented with the rent increase to a new tenant in an arm's-length transaction.
Page 3, Line 10SECTION 3. Act subject to petition - effective date. This act
Page 3, Line 11takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 12ninety-day period after final adjournment of the general assembly; except
Page 3, Line 13that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 14of the state constitution against this act or an item, section, or part of this
Page 3, Line 15act within such period, then the act, item, section, or part will not take
Page 3, Line 16effect unless approved by the people at the general election to be held in
Page 3, Line 17November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.