Deceptive Trade Practices In Residential Lease Agreements In Colorado

New landlord tenant legislation goes into effect on January 1, 2026. In April of 2025, Governor Jared Polis executed HB 25-1090, requiring landlord to disclose pricing information to a prospective tenant. While the bill addresses deceptive trade practices in several pricing contexts, relevant to landlords and tenants, the bill requires that a landlord cannot offer, display, or advertise an amount a person would have to pay to rent a unit unless such amount clearly and conspicuously discloses the total amount a prospective tenant would have to pay.

This means that previous lease agreements or term sheets that outline base rent, pet rent, utilities, etc. must be referred to as one total amount due by a tenant to a landlord monthly. The intention of this piece of legislation is to hidden costs and fees written into lease agreements in Colorado classifying them as a deceptive trade practice, which would give rise to civil and criminal penalties.

In addition to presenting the total amount in a clear and understandable manner, effective January 1, 2026, a landlord may not assess any sort of fee, charge, or amount against a tenant to rent the premises if that fee, charge or amount that:

• is greater than what a utility provider actually charges;
• increases by more than 2% over the course of a rental agreement of one year or less (excluding the cost of utilities provided to the tenant’s unit);
• relates to payment of property taxes;
• relates to processing of rent or other fee if a means of payment that is cost-free to the tenant is not reasonably accessible to the tenant;
• establishes a late-fee or overdue fee for non-rent charges;
• arises from a landlord’s obligation to maintain habitability or common areas;
• is greater than the total price for renting the premises than what is actually charged; or
• charges a tenant for a good/service that is not actually provided to the tenant.

The new bill does give tenants the option to provide landlords with a fourteen (14) day opportunity to cure the alleged violation; however, the statutory language does not mandate an opportunity to cure by landlords. Those whose lease agreement violates this legislation can face monetary damages for actual amounts damaged by the tenant and interest accruing at 18% per annum compounded annually.

Reach out to Pearson & Paris, P.C. to have your lease agreement reviewed prior to the statute goes into effect.