One of the most important recent laws that impact Colorado’s rental housing industry is the “Cause Required” law, which marked a complete break with historical practice around providing notice of non-renewal at the end of a lease.
Before HB24-1098, housing providers in Colorado did not have to provide a reason to tenants when they decided against offering a renewal, regardless of how long the tenant had been in possession of a property. It was best practice to have an internal policy around when tenants did or did not qualify for a lease renewal, but those reasons, so long as they were applied fairly and could be communicated to an investigator in the event of a lawsuit, did not have to be disclosed to tenants.
HB24-1098 changed this drastically. Now, tenants are presumed to be eligible for a lease renewal unless there is cause for a legal eviction, or if one of six qualifying scenarios occur at the end of a lease. Without cause, or a “no fault” reason, housing providers are prohibited from evicting a tenant, and under the new terms of this law, “eviction” includes issuing a notice of non-renewal, or notice to vacate, at the end of a lease.
Cause for Evictions
Under HB24-1098, legal cause to evict a tenant exists for the following reasons:
- When entry is made without right or title to any vacant or unoccupied land or tenement (a squatter moves in)
- When entry is made wrongfully into certain public lands, tenements, mining claims, or other possessions
- When a lessee or tenant at will holds over and continues in possession of a property after the expiration of the term for which the property was leased or after the tenancy, at will or at sufferance, has been terminated by either party
- For nonpayment of rent
- For a substantial violation
- For a material violation of the lease
- For a repeat violation after receipt of proper notice of a violation
- For possession after a legal sale
- When property has been sold under judgement or decree and the party or privies to the judgement refuse or neglect to surrender possession
- When an heir or devisee continue in possession of a premises sold and conveyed by a personal representative
- For a vendee that holds over after failing to comply with an agreement to purchase property
- When a tenant has engaged in conduct that creates a nuisance or disturbance that interferes with the quiet enjoyment of the landlord or other tenants at the property or where the tenant is negligently damaging the property
- When “no fault” cause exists
No-Fault Evictions
Under HB24-1098, legal cause to evict a tenant exists when certain conditions are met. In addition to the conditions listed below, a minimum of 90-days notice must be provided to the tenant, and that 90-days notice cannot expire prior to the end of the current lease agreement. This notice must be properly served or posted, like any other demand. An email, letter, or text do not constitute proper notice for a no-fault notice.
Demolition or conversion of residential premises to a short-term rental
- A housing provider must also provide a description and timeline of the demolition or conversion and a material demonstration of the proposed date upon which the project will start, such as a copy of a building permit or application for a short-term rental license
- Substantial repairs or renovations
- A housing provider must also provide the tenant with an expected completion date and a general description of the repairs or renovations, and
- If the repairs are expected to last less than 180 days, the housing provider must provide the tenant with the first right of refusal to reoccupy the property, with a new lease agreement with reasonable terms.
- A housing provider may not proceed with a no-fault eviction if the repairs and renovations are required to cure a breach of the warranty of habitability, or initiated in retaliation against the tenant
- The owner or family member of the owner assumes occupancy
- The owner or family member, as defined by law, must move in within three months after the tenant vacates the property
- There must not be a substantially equivalent unit that is vacant and available to house the owner or family member in the same building
- If the owner is an active duty military member, or spouse of an active duty military member, then only 45-days notice is required, so long as that notice does not expire before the end of the current lease
- If the owner or the family member is a person with a disability, the three-month deadline to move back in can be extended for a reasonable period to allow for changes to be made to the property to accommodate the disability
- Withdrawal from the rental market for the purpose of selling the residential premises
- This is only applicable to a property that is a single-family home, a townhome, a duplex, triplex, or an individual condo unit. This does not apply to fourplexes or larger buildings.
- A housing provider cannot list the property for a long-term or short-term rental for at least 90 days after the tenant vacates, unless the housing provider produces evidence that the property was listed for sale on a multiple-listing service after the tenant was required to vacate
- Tenant refuses to sign new lease with reasonable terms
- History of nonpayment of rent
- Tenant must pay late more than two times during the period of the rental agreement
- For purposes of this clause, rent is late only when it is submitted more than 10 calendar days after the day it is due according to the rental agreement, and the housing provider provides the tenant with proper service of a written notice
- If the tenant pays to cure the demand during the legal cure period, this late payment does not count towards the 3 late payments needed
If a housing provider fails to comply with all regulations around “for cause” and “no fault” evictions, the tenant may assert this failure as an affirmative defense in the eviction hearing, and unless the housing provider can demonstrate, by a preponderance of evidence, that they have complied with these requirements, the court will dismiss the eviction.
This has been Colorado law since 4/19/2024.
Here at Ironclad Realty and Property Management, we keep legal compliance top of mind when we review and prepare renewal offers. If you have a question about how this may impact your plans for your rental property, please give us a call! We’ve got you covered.