Colorado HB 24-1098: "Just Cause" Eviction Bill Passed

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Colorado HB 24-1098: "Just Cause" Eviction Bill Passed

Laura S.
Investor · Boulder, CO · Member since 2017 · 7 posts · 3 votes

Unfortunately, Colorado has just passed HB 24-1098, the "just cause" eviction bill, which requires landlords to offer lease renewals to their tenants unless one of a few specific criteria are met (if the property is going to be sold, substantially repaired, or renovated, or if the landlord’s family plans to move in - but basically you can't put it up for rent to anyone else for at least 90 days). I am horrified by this overreach, and trying to figure out my best path forward. Luckily I only have one rental property in Colorado, but it's my second home where I rent out a room rather than the whole house, so it's really important to me to be able to give reasonable notice to a tenant that isn't working out, since I have to share the house with them when I am there.

How are others responding to this? I am considering switching the property to six-month lease terms, so that I maintain the choice of whether to keep renewing...

Full details of the bill here: https://leg.colorado.gov/bills/hb24-1098

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Kelly Sennholz
Denver, CO · Member since 2012 · 268 posts · 162 votes
2y
Quote from @Sean Barry:

This is a huge overreach on the part of the government. As a property owner one of the few rights I enjoy is to do with the property that I pay for, maintain, and pay property taxes on is to choose to whom I rent the property. If I have had a negative tenant experience (late payments, hostility, drug use, damaging property, etc) one of the options available is for me not to release. I incentivize my tenant to be a better tenant as they know I have the right to not release to them and they generally don’t want to go through the hassle of relocating. I really cannot figure out what the state here in Colorado is trying to achieve in stripping property owners of that right. 


Yes, it is UTTERLY OUTRAGEOUS and CAN. NOT. STAND. 

I cannot believe more people are not furious.
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  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I would need to read into this, as I don't invest in CO. But I would just offer an egregious lease renewal, and if they deny it then great. I can then re-market it. And if I like them, I offer a fair renewal. 

    0Reply
  • Laura S.
    OP
    Investor · Boulder, CO · Member since 2017 · 7 posts · 3 votes
    2y

    The bill says that the new lease has to be "reasonable", but doesn't define what that is. Could be a battle to determine what kind of rent increase is "reasonable." And, the full text of the bill says that a landlord can't increase a tenant's rent to circumvent the requirements.

    The full text of the bill also calls out that tenants paying late is fine as long as it's not more than 10 days late more than three times. That is a LOT of late payments!

    Here's a good video analysis of the bill I just found: 

    2Reply
  • Sean Barry
    Member since 2020 · 9 posts · 5 votes
    2y

    This is a huge overreach on the part of the government. As a property owner one of the few rights I enjoy is to do with the property that I pay for, maintain, and pay property taxes on is to choose to whom I rent the property. If I have had a negative tenant experience (late payments, hostility, drug use, damaging property, etc) one of the options available is for me not to release. I incentivize my tenant to be a better tenant as they know I have the right to not release to them and they generally don’t want to go through the hassle of relocating. I really cannot figure out what the state here in Colorado is trying to achieve in stripping property owners of that right. 

    2Reply
  • Caitlin Logue
    Denver, CO · Member since 2024 · 31 posts · 24 votes
    2y

    I think in the long run this is going to have an adverse effect on the tenants. This bill was about non renewals, which is very different than an eviction. Landlords are going to leave the business because it's not profitable for them to stay in it. The legal exposure is far too much with everyone suing each other and now the laws in Denver are more tenant friendly. A tenant can pay rent late without consequences in certain scenarios, trash the place, or refuse to move and the landlord has to deal with that. Now, landlords are basically required to auto renew their tenants. Why be in the landlord business if the protections are few and the risk is high with low returns? This is going to mean fewer options for tenants so that is going to decrease accessibility. Decreased accessibility will therefore increase rent prices. Increased rent prices end up hurting tenants because they will have to pay more for rent. Additionally, this is only going to create more legal cases if landlords don't want to auto renew a bad tenant. 

    3Reply
  • Kelly Sennholz
    Denver, CO · Member since 2012 · 268 posts · 162 votes
    2y
    Quote from @Sean Barry:

    This is a huge overreach on the part of the government. As a property owner one of the few rights I enjoy is to do with the property that I pay for, maintain, and pay property taxes on is to choose to whom I rent the property. If I have had a negative tenant experience (late payments, hostility, drug use, damaging property, etc) one of the options available is for me not to release. I incentivize my tenant to be a better tenant as they know I have the right to not release to them and they generally don’t want to go through the hassle of relocating. I really cannot figure out what the state here in Colorado is trying to achieve in stripping property owners of that right. 


    Yes, it is UTTERLY OUTRAGEOUS and CAN. NOT. STAND. 

    I cannot believe more people are not furious.
    4Reply
  • James Free
    Rental Property Investor · Fort Collins, CO · Member since 2015 · 128 posts · 327 votes
    2y

    This legislative session introduced a lot of changes besides this one. All together, things are far worse than this thread makes them appear, and honestly, I don't think I could summarize all of the impacts if I tried. Procedural errors will now be catastrophically expensive.

    What's going to happen is that many landlords and nearly all tenants won't know about the changes, so only a few landlords will get burned at first, and that amount will grow over time. The law also established a slush fund for "legal services for tenants", meaning that we can be sued with our own tax dollars. In practice, the landlording equivalent of "ambulance chasers" will proactively market to renters, offering to sue their landlords over trivialties so that they can collect this funding and profit.

    Get out of Colorado. You could easily be one of the lucky ones whose tenants obliviously continue life as before, but the risk is terrible.

    3Reply
  • Kelly Sennholz
    Denver, CO · Member since 2012 · 268 posts · 162 votes
    2y
    Quote from @James Free:

    This legislative session introduced a lot of changes besides this one. All together, things are far worse than this thread makes them appear, and honestly, I don't think I could summarize all of the impacts if I tried. Procedural errors will now be catastrophically expensive.

    What's going to happen is that many landlords and nearly all tenants won't know about the changes, so only a few landlords will get burned at first, and that amount will grow over time. The law also established a slush fund for "legal services for tenants", meaning that we can be sued with our own tax dollars. In practice, the landlording equivalent of "ambulance chasers" will proactively market to renters, offering to sue their landlords over trivialties so that they can collect this funding and profit.

    Get out of Colorado. You could easily be one of the lucky ones whose tenants obliviously continue life as before, but the risk is terrible.


     Why is everyone so calm? This is catastrophic and needs action NOW. 

    1Reply
  • Steven Db
    Investor · Denver, CO · Member since 2016 · 2 posts · 1 vote
    2y

    1Reply
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