Effective January 1, 2026, House Bill 25-1090 changes how all residential rental prices are advertised in Colorado. Landlords must now display a single price that includes all mandatory, non-government fees, with no separate add-on charges. A breakdown of fees is allowed, but the total price must be the most prominent. DenCO Property Management (DenCO) recommends stating the monthly rent with the tenant paying utilities. Most single-family rentals already operate with tenants placing utilities in their own name and paying directly, and no mandatory monthly fees are charged beyond rent. For example, a listing that states “$2,500 per month, tenant pays utilities” will generally be compliant.
In shared-meter situations or properties where utilities cannot easily be placed in the tenant’s name, property managers may not mark up utility charges by more than $10 per month or 2% of the bill, but not both. The lease must clearly disclose how utility charges are calculated, explain any utility reimbursement method, and state that utility costs fluctuate seasonally. Water billing, common area maintenance charges, and payment processing fees are all affected.
After the bill passed, questions emerged about whether Ratio Utility Billing Systems (RUBS) remained legal in multi-family housing. Property management companies had questions about how to pay for the utilities for fitness centers and common areas. The Colorado Attorney General clarified that RUBS are allowed if total tenant billing does not surpass the actual utility costs. The 2% markup does not apply to amenity-related costs and can be included in base rent. Click here for an update from Holland and Hart about RUBS.
Rental Property Advertising Rules
Starting in 2026, all rental ads must show a single total monthly price. If utilities are billed separately, ads must state that utility costs are not included. Property managers should list the total rent and provide a breakdown of any additional fees. The new law does not do the following:
- Limit how much rent may be charged,
- Regulate security deposits,
- Cap late fees,
- Prohibit utility reimbursement,
- Retroactive changes to existing leases; and
- Separate utility metering.
The intent of the law is to ensure rental pricing transparency, so renters can easily understand the true cost of housing before applying. Property managers must advertise one clear total price, avoid profiting from utilities, clearly disclose any required fees, and keep lease terms straightforward. DenCO already follows these requirements, so we will experience little operational change.
Penalties And Enforcement Mechanisms
Tenants can refuse to pay non-compliant fees and demand reimbursement in writing. If property managers do not refund within 14 days, they face actual damages plus 18% annual interest. Violations are considered deceptive practices under the Colorado Consumer Protection Act and allow tenants to recover attorney’s fees. Prohibited fees cannot be treated as “amount due” to justify eviction.
Owners who do not want to keep up with all the new tenant rights laws should consider putting their rentals under professional management. DenCO’s leases are up to date and compliant with Colorado and Denver rental property regulations. We have been in business since 1999 and manage 175 rentals in the DU, Washington Park, and other Denver neighborhoods. Please call 303-722-9688 or fill out this form.
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