Fair Housing Compliance in Colorado: What Landlords Need to Know in 2026

Own a rental property in Colorado? Manage homes for clients? You must know the new laws. To avoid fines, you must update your lease agreement.

The Colorado Civil Rights Division watches housing rules closely. Local rules must align with the federal Fair Housing Act. Recent changes to Colorado law have removed old exemptions. Now, even owners with fewer rental properties must follow every rule.

This guide covers fair housing compliance in Colorado and what landlords need to know in 2026. Read on to keep your rental process safe and legal.

Key Takeaways:

No Voucher Exemptions: All landlords must accept housing vouchers. Refusing them is a fair housing violation.
Screening Restrictions: You cannot charge application fees if renters provide a portable screening report, and voucher users do not need a credit report.
Deposit Deadlines: Deposits are capped at two months' rent, cannot cover normal wear and tear, and must be returned within 30 days.
Fee Caps: Advertised prices must show all mandatory fees upfront, late fees are limited, and rent increases are capped annually.

What You Need to Know: Colorado's Major 2026 Legal Shifts

Every housing provider must now show total price honesty. You must follow strict rules when you pick prospective tenants or collect rent.

The End of Small Landlord Exemptions for Housing Subsidies

State rules protect many groups under the Colorado Anti-Discrimination Act. These protected classes include race, religion, and marital status. The law also protects people who use housing subsidies or housing vouchers.

You can no longer reject Section 8 vouchers. Saying in an ad that you do not accept vouchers is an unfair housing practice. You must review income based only on the tenant's monthly rent portion.

A tenant might fall behind on a rent payment. You cannot start eviction proceedings right away. You must give 30 days' written notice for any past-due rent or unpaid rent. This gives the tenant time to pay rent before you go to court.

Need help updating your lease? You do not have to handle these complicated law changes alone. Our team at Colorado Springs Group can review your rental forms to ensure you stay fully compliant.

New Rules for Tenant Screening

Screening prospective tenants is different now. An applicant might give you a portable tenant screening report. If they do, you cannot charge them an application fee.

A voucher user with a portable screening report does not need to give a credit history report. You cannot deny someone just because they lack a traditional credit history.

Do not use a consumer reporting agency to block people based on past criminal history without a close look. Also, you must help housing agencies fill out forms quickly. If a landlord fails to cooperate with a housing authority, the state views it as discrimination.

Navigating the Restricted Security Deposit Landscape

Rules for rent and security deposits must be the same for everyone. Different rules for different people violate the Fair Housing Act.

Rules for Security Deposits and Damage

Social media is rife with rumors about a security deposit cap. Some say the cap is one month's rent. State law actually allows you to charge up to two months' rent as a security deposit.

You cannot keep a deposit for normal wear and tear. The law defines normal wear as including small wall scuffs or minor carpet wear. You cannot charge a flat move-out cleaning fee in a written lease agreement. You can only charge for cleaning if the rental unit is much dirtier than at move-in.

Tenants can request a final walk-through after they move their belongings. You must write down any issues on a written notice during this walk-through. If you miss an item, you cannot charge for it later.

Returning the Money

You must return the deposit money within 30 days after the lease ends. If you keep any money, you must provide a written lease statement with line items.

If a landlord fails to follow this timeline, the tenant can sue. A judge can make you pay three times the original amount.

Clear Pricing, Fees, and Rent Increases

New laws ban hidden junk fees. Your ads must show the true total price of the rental property. This total includes base rent and mandatory costs like pet rent. Only utilities can stay separate.

Limits on Fees and Rent

Your written lease must follow strict limits on late fees and rent increases:

Late Fees: You can only charge a fee if the rent is 10 days late. The fee cannot exceed 20 dollars or 5 percent of the unpaid rent.
Rent Increases: Landlords may raise rent for a resident no more than once a year. You cannot raise the rent during an active lease term unless the written lease specifies the exact change in advance.

Special Protections for Tenants

Federal law and state law protect specific groups of renters. Your lease terms must respect these rights.

Protection for Survivors of Abuse

Colorado law protects survivors of domestic violence, sexual assault, and stalking. A survivor can break a lease early if they provide a police report. They do not lose their prepaid rent. They are also not responsible for damage caused by an abuser.

Federal Rights to Remember

The Servicemembers Civil Relief Act allows military members to break a lease if they receive relocation orders. Under federal fair housing laws, you must offer reasonable accommodation for people with disabilities. This includes allowing a trained service animal without charging pet rent.

Clear Answers to Common Landlord Questions

1. Is there a strict rule for how long my old carpets must last before I can charge a tenant for replacing them?

Yes. Under the new 10-year carpet rule, if your carpet is 10 years old or older, it has hit the end of its useful life. You cannot deduct any money from a security deposit to replace it, even if a tenant leaves it stained or heavily damaged.

2. Can I still charge an extra deposit or a monthly fee if a tenant brings a pet?

Yes, but the state caps these fees. Any additional pet security deposit cannot exceed $300 and must be refundable. Monthly pet rent is capped at either $35 or 1.5% of the monthly rent, whichever is greater.

3. Does the state require me to give a warning before I enter a tenant's rental home?

Yes. Colorado privacy guidelines require landlords to give at least 24 hours' notice before entering an occupied property. The only exception to this 24-hour notice rule is a true, immediate emergency, such as a fire or a burst water pipe.

Stay Compliant, Stay Profitable: The Future of Your Colorado Rental

Managing a rental in Colorado isn't a hands-off job anymore. With strict rules around prices, vouchers, and security deposits, an old lease template is a huge financial risk. A single mistake with paperwork or an illegal fee can cost you thousands in fines before you even know what went wrong.

You can absolutely still run a successful, profitable rental business here. You just need to adjust your setup. Update your application process, revise your lease terms, and ensure your move-in files are perfect. Take a little time to align your business with these new state guidelines, and you will protect your investments for the long haul.

Ready to protect your real estate investments from costly mistakes? Contact Colorado Springs Group today for professional property management services that keep your rentals fully legal.