New Laws Limit What Landlords Can Include in Leases

If a landlord rejects a prospective tenant’s application, the landlord must now provide a copy of the background report they used, and tenants are allowed to challenge that report’s contents.

One new law prohibits landlords from requiring that tenants waive certain legal rights in their leases, such as the ability to participate in class action lawsuits or jury trials. It also prohibits landlords from charging renters a penalty if the renter doesn’t give notice that they aren’t renewing their lease, unless the landlord suffers an actual loss because he/she didn’t receive notice.

The new law also limits how much landlords can charge in third-party fees, such as for pest control or trash collection.

Under the law, income requirements are capped at double the cost of rent. Proponents have said that some landlords have required that tenants earn three to five times as much as they’ll pay in rent.

The law also caps security deposits at double the cost of a month’s rent, and it limits how a landlord can use a prospective tenant’s credit or rental history.

Unknown's avatar

Author: Jim Smith, Broker

Jim Smith is best known for his weekly "Real Estate Today" column published on the Real Estate page of The Denver every Saturday and in 24 metro area weekly newspapers the following Wednesday or Thursday. Individual articles are also published at http://RealEstateToday.substack.com. Over a decade of the columns are archived at www.JimSmithColumns.com.

Leave a comment