Heads up, residential property investors: Colorado’s enforcement of Fair Housing will become more robust in 2025. The state is deploying undercover agents to test for compliance and identify discriminatory practices. Non-compliance could result in costly investigations and fines. The Colorado Fair Housing Act (CFHA) , based on the federal Fair Housing Act of 1988, upholds real estate buyer and tenant rights. Fair Housing protections apply to advertising and tenant screening, lease agreements, maintenance, and eviction practices. Fair-minded people, including rental property investors and managers, want an inclusive and non-discriminatory rental market. Conducting these practices reduces legal exposure and increases residential rental access across our community.
The CFHA complements the federal Fair Housing Act but includes additional protections specific to Colorado. The act’s mission is to ensure equal access to housing for all people regardless of race, color, national origin, religion, disability, sex, and family status. The act applies to all aspects of housing transactions, such as financing, zoning laws, and advertising. The law ensures landlords cannot discriminate against tenants based on these protected characteristics.
- Race
- National origin
- Religion
- Sex
- Physical or mental disability
- Familial status (including families with children under 18)
- Creed
- Marital status
- Sexual orientation
- Source of income (including public assistance or housing vouchers)
Housing Covered by CFHA
In 1959, the State of Colorado was the first in the nation to pass statewide fair housing laws. These laws apply to landlords, property management companies, real estate brokers, mortgage lenders, and HOAs.
- Rental housing (apartments, houses, condominiums)
- Sale of homes and condominiums
- Mortgage lending and insurance
- Advertisements related to housing
- Homeowners’ associations and covenants
Exempt are homeowners renting rooms, single-family homes sold or rented without the use of a broker, and religious organizations and clubs with membership restrictions.
Fair Housing Compliance
Rental regulations have become more complex because of all the new tenant rights laws passed over the last two years in Colorado. DenCO Property Management (DenCO) has its rental property leases reviewed periodically by legal counsel to ensure they comply with Colorado law. We blog extensively about compliance, click here to go to our blog page. Below are common missteps that could be construed as discriminatory under the CFHA.
Housing Vouchers
Landlords cannot discriminate based on income source, including Section 8 housing vouchers. Denver is intensifying its enforcement of this regulation. However, they can refuse a tenant for other legitimate reasons such as poor credit, rental history, negative references, and past evictions.
Automated Tenant Screening Tools
Landlords using AI-driven tenant tools to conduct tenant screens need to be sure they do not screen out protected classes.
Discriminatory Language
To stay compliant, keep marketing focused on the property itself. Marketing embellishments that exclude, whether intentional or not, might be considered discriminatory. It is best to keep advertising neutral and specific to the rental property. Avoid language that might imply any preference or limitation based on the above mentioned nine protected characteristics.
Inconsistent Tenant Screen
The tenant screening process must be the same for all lease applicants. If it varies based on who is applying, the landlord could be accused of discrimination.
Not Accommodating Tenants with Disabilities
Under Fair Housing laws, landlords must provide reasonable accommodations for tenants with disabilities. Failing to engage in a “good faith” dialogue with the tenant with disabilities can result in serious legal consequences.
Retaliation Against Tenants
If a tenant files a Fair Housing complaint, the landlord cannot retaliate by:
- Raising their rent without just cause.
- Evicting them without legal grounds.
- Making their living conditions uncomfortable.
Just Follow the Law
The days of screening tenants by looking them in the eye and shaking hands are long gone in Colorado. Over the last two years, the Colorado Legislature has passed numerous tenant rights laws, most of which Governor Polis signed into law. Many of these laws are complex and open to interpretation, so professional property management companies must use professional lease agreements that comply with all housing and tenant rights laws.
Evictions are still legal in Denver and Colorado when a tenant breaks the lease. Property managers must become archivists, documenting everything associated with each rental. Click here to view a blog titled. “The Importance of Documentation in Property Management.” They should avoid taking action based on a tenant’s complaints or actions. DenCO Property Management retains a legal counsel to comply with landlord-tenant laws, security deposit regulations, lease termination policies, and the state’s legal eviction process.
DenCO believes its job is to keep its owners informed about local and state rental regulations and to keep all properties compliant under its control. DenCO manages over 175 rentals in the DU, Washington Park, and other neighborhoods in the Denver area and has been in business since 1999. Call us at 303-722-9688 or click here to complete a Contact Us form.
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