Colorado amends rental agreement laws limiting tenant service fees

Colorado renters may soon see relief from excessive fees as the Colorado State Legislature introduced House Bill 1090 on March 28, 2025. This bill aims to amend existing rental agreements by prohibiting landlords from imposing certain markups or fees for services billed by third parties, thereby addressing growing concerns over rental affordability and transparency.

The key provision of House Bill 1090 specifically targets the practice of landlords charging tenants a markup on third-party services. Under the proposed legislation, landlords can only charge a markup that does not exceed two percent of the billed amount or a flat fee of ten dollars per month, but not both. This change is designed to protect tenants from unexpected costs that can arise from service fees, which have been a point of contention in rental agreements across the state.

Debate surrounding the bill has highlighted the balance between landlord rights and tenant protections. Supporters argue that the bill is a necessary step toward ensuring fair rental practices and preventing exploitation, particularly in a housing market where many residents are already struggling to make ends meet. Critics, however, express concerns that such regulations could discourage property investment and lead to increased rents as landlords adjust to the new limitations.

The implications of House Bill 1090 extend beyond immediate financial relief for renters. If passed, the bill could set a precedent for further tenant protections in Colorado, potentially influencing similar legislation in other states. The bill is set to take effect on January 1, 2026, unless a referendum petition is filed, which could delay its implementation until after a public vote in November 2026.

As the legislative process unfolds, stakeholders from both sides of the housing debate will be closely monitoring the bill's progress, with the potential for significant impacts on Colorado's rental landscape. The outcome of House Bill 1090 could reshape the relationship between landlords and tenants, fostering a more equitable housing environment in the state.