If you own rental property in Colorado, you’ll want to pay close attention to two new laws that go into effect on January 1, 2026. These changes reshape how landlords can handle security deposits and how rental prices must be advertised and disclosed. As always, our job at WH Realty Company is to stay ahead of the curve and make sure you—and your investment—are protected.
Security Deposit Protections (HB25-1249)
The first major update is around how security deposits are handled. Here’s what you need to know:
- Normal Wear & Tear Redefined
Everyday use—like light carpet staining, paint scuffs, or general aging—cannot be charged to the tenant. Cleaning deductions are only allowed if the property is left substantially dirtier than it was at move-in. - Carpet & Paint Deductions Limited
- Carpet older than 10 years cannot be charged against a deposit.
- Only “substantial and irreparable” damage (not pre-existing, not normal use) qualifies for deductions.
- Interior painting costs can only be deducted for true damage beyond normal wear.
- No More Automatic Cleaning Fees
Clauses in leases that include standard cleaning deductions will be void. - Tenant Rights Expanded
Tenants can now request a final walkthrough before move-out, and if deductions are made, they can demand supporting documentation (photos, invoices, inspection reports) within 14 days. - Higher Penalties for Non-Compliance
Landlords who wrongfully withhold deposits may owe triple damages plus attorney fees.
Rental Pricing Transparency (HB25-1090)
The second law targets what legislators call “junk fees.” For landlords and property managers, the focus is on clear and honest pricing.
- Total Price Disclosure
All ads must display the total monthly price of renting the unit (excluding utilities). No separating out fees to make the rent look lower. - Banned Fees
You may no longer charge tenants for:- Property taxes or common area maintenance.
- Landlord obligations like habitability compliance.
- Payment processing fees (unless a free option exists).
- Late fees on non-rent charges.
- Services not actually provided.
- Excessive mark-ups (utility mark-ups capped at 2% or $10/month).
- Limits on Increases
For leases of a year or less, fees (other than utilities) cannot increase by more than 2% during the lease term. - Strict Penalties for Violations
Tenants can seek damages, plus 18% annual interest, if landlords impose fees that violate these rules.
What This Means for Colorado Landlords
At WH Realty Company, we’ve already been preparing for these changes. Many of the new requirements—like detailed move-in/move-out documentation, avoiding blanket cleaning fees, and transparent lease pricing—are practices we’ve had in place for months.
Our mission is simple:
- Protect your property.
- Reduce your legal exposure.
- Deliver a fair, compliant, people-first rental experience.
To ensure our owners are always protected, WH Realty Company partners with both Tschetter Sulzer Muccio Law Firm and Frascona, Joiner, Goodman & Greenstein Law Firm. Both are highly respected in the Colorado market and are recognized leaders when it comes to staying ahead of constantly changing landlord-tenant laws and providing education for their clients.
If you’d like to dive deeper into these new laws, here are resources you may find helpful:
- Read more from FJGG here HB25-1090
- Read more from FJGG here - HB25-1249
Final Thoughts
These updates underscore why having a professional property manager matters more than ever. The rules are becoming stricter, the penalties sharper, and the expectations higher. But with WH Realty Company—and our trusted legal partners—in your corner, you can navigate these changes with confidence.
Want to talk through what these laws mean for your specific property? Reach out today—I’m always here to help guide you through the shifting waters of Colorado property management.
Brandi Wright- The Real Estate Shark
