House Bill 25-1090 (HB-1090) has had an interesting journey after it was first proposed by Denver Representative Emily Sirota last year. The initial bill aimed to ban “junk fees” added onto the advertised prices of goods and services. But this year, the focus of the bill shifted from hotels and ticket sellers to rental properties. The main reason for the change is that the Federal Trade Commission has enacted its own rules on live-event ticketing, hotels, and vacation rentals. As the old saying goes, give a state legislator a hammer, and they will find a nail.
The newly adopted bill redefines how property managers handle pricing and fees in lease agreements. The legislation intends to prevent “deceptive, unfair and unconscionable” pricing practices, promote price transparency, and introduce significant new protections for tenants. The law takes effect on January 1, 2026.
The Colorado Apartment Association (CAA) initially opposed the bill but reached a compromise with its sponsors before the legislature passed it into law. The CAA worked with the sponsors to tighten up the bill’s fee definitions and to lessen regulatory burdens on landlords.
Total Price Transparency
The law mandates that landlords must offer, display, and advertise rental properties with a single all-inclusive price. The total cost is the maximum amount a tenant is required to pay, covering all mandatory fees. The law does make exceptions for government charges, taxes, and charges for utilities provided directly to a resident’s unit.
Landlords can no longer charge tenants for:
- Property taxes.
- Common area maintenance.
- Payment processing, unless you also provide at least one no-cost payment option that is reasonably available.
- Late fees on any non-rent payments.
- Performing standard landlord duties, such as maintaining habitability.
Landlords can still pass on charges from third-party services, but markups are capped at 2% of the charge or $10 per month, whichever is lower.
Stricter Penalties
Tenants who believe a landlord is non-compliant have the right to stop paying improper fees and demand reimbursement. If a landlord fails to refund an unlawful fee within 14 days of a tenant’s demand, they can face steep penalties, including damages and 18% annual interest.
DenCO Property Management (DenCO) believes some of the bill’s provisions are vague, so we recommend having lease templates reviewed by legal counsel for HB-1090 compliance. Below are general steps to meet HB-1090 requirements.
- Review Your Leases: Property managers should scrutinize their current lease agreements to identify any fees, charges, or terms that conflict with HB-1090.
- Simplify and Consolidate Pricing: To align with the “total price” requirement, consider consolidating ancillary charges into the base rent where appropriate.
- Use Clear Disclosure: Make sure all lawful fees are clearly and prominently disclosed in advertisements, offers, and the lease itself, meeting the bill’s visibility standards.
- Offer a Free Payment Option: To continue charging for payment processing, you must provide at least one reasonably available no-cost option for tenants to pay their rent.
DenCO believes property managers can consider raising monthly rent to offset the loss of separate fee revenue. Colorado does not cap rent increase amounts; however, the state requires prior written notice and limits increases to once every 12 months per resident.
Owners who struggle to keep up with the tenant rights laws of the last two years should consider putting their rentals under professional management. DenCO Property Management is familiar with Colorado and Denver rental property regulations, including the revamped warranty of habitability law. 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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