The Colorado legislature was at it again in the 2025 session, implementing new restrictions and regulations governing residential lease arrangements with HB25-1090 (“Protections Against Deceptive Pricing Practices”), which requires landlords to disclose the full cost associated with renting a property and prohibits landlords from charging tenants for certain expenses. While this so called “junk fees” legislation applies broadly to many types of Colorado businesses, this article will focus on its effect on residential leasing relationships. The law becomes effective on January 1, 2026.
Disclosing Total Price
When displaying or advertising a residential property for rent, the landlord must clearly and conspicuously disclose the “total price” of the rental as a single number, without separating the figure into separate fees, charges or amounts. The dwelling unit’s “total price” is defined as the maximum total of all amounts – including fees and charges but excluding utilities – that must be paid to utilize the property and that are not reasonably avoidable by the tenant. The total price must be disclosed more prominently than other pricing information for the property.
Further, landlords may not misrepresent the nature and purpose of pricing information, including: (i) the refundability of an amount charged, (ii) the identity of the item for which an amount is charged, (iii) the recipient of an amount charged, or (iv) the actual price of the item associated with the charge. Before an applicant agrees to pay for a rental unit by signing a lease, the landlord must also clearly and conspicuously disclose the nature and purpose of any pricing information that is not included as part of the total price, including its refundability, identity, and recipient.
A landlord is deemed to comply with the requirements described above if they do not use deceptive, unfair or unconscionable practices related to the pricing of the property and if the landlord can demonstrate that they are offering some services for which the total price cannot reasonably be known at the time of offer due to factors beyond the landlord’s control. In that case, the landlord must clearly and conspicuously disclose: (i) the factors that determine total price, (ii) any mandatory fees associated with the transaction, and (iii) that the total price of the services may vary.
The term “clearly and conspicuously” appears throughout the legislation and is defined in detail.
In visual, audible, and interactive electronic mediums, disclosures must be unavoidable, easily noticeable, readable, and understandable to ordinary consumers. Further, disclosures must not be contradicted or mitigated by, or inconsistent with, any other information.
Prohibited Fees and Charges
Landlords and property managers are now prohibited from requiring tenants to pay certain fees, charges or amounts, including:
- Utility Mark-Up Fees: Fees for utilities that are above the amount charged by the utility provider for service to the tenant’s dwelling unit, except as permitted by C.R.S. § 38-12-801(3)(a)(VI), which allows for a maximum mark-up fee of two percent (2%) of the charge or $10 per month, if disclosed in the lease agreement.
- Increasing Amounts: Any amounts (other than utilities) that increase by more than two percent (2%) over the course of a rental agreement of one year or less.
- Property Taxes: Any amounts related to the payment of property taxes.
- Payment Processing Fees: Any fees or charges related to the processing of rent or other payments if a cost-free payment method is not reasonably accessible to the tenant.
- Late Fees on Non-Rent Payments: Fees or charges for overdue payments of non-rent amounts due under the lease.
- Landlord Responsibilities: Costs associated with items necessary for landlords or landlord agents to comply with their responsibilities or obligations, including providing a habitable living environment under Colorado’s Warranty of Habitability laws.
- Mark-Up Fees: Mark-up fees above the total price of the good, service, or property, unless the mark-up fee does not exceed two percent (2%) of the charge or $10 per month and is disclosed in the lease agreement.
- Services Not Provided: Charges for any items not actually provided.
- Common Area Maintenance: Charges for the maintenance of common areas.
- Violations of this Section: Any fee, charge, or amount that violates C.R.S. § 6-1-737.
Remedies for Violations
Violating any of these requirements or prohibitions is considered a deceptive, unfair, and unconscionable act or practice. A tenant may send a written demand to a landlord seeking reimbursement of fees, charges, or amounts paid in violation of the act, for actual damages, and for the landlord to cease violating the section. The tenant may also notify the landlord of their refusal to pay violating fees.
If the landlord declines to fully pay all fees, charges, amounts or actual damages demanded, or refuses to cease charging the amounts within 14 days of receiving a written demand, the landlord is liable for actual damages plus 18% interest per annum, compounded annually, in addition to any other damages available to the tenant by law or in equity. However, unlike the statute for wrongful withholding of a security deposit (C.R.S. § 38-12-103), the tenant is not required to send a prior demand or notice before pursuing other legal remedies.
How Can Colorado Landlords and Property Managers Comply?
Landlords and property managers should review their written leases or rental agreements to ensure compliance with this legislation. All costs and fees must be clearly and conspicuously disclosed in the lease agreement. Specifically, property owners and their agents should:
- Remove any lease clauses that violate the Prohibited Fees and Charges described above, including excess mark-ups.
- Explain the purpose of all charges to tenants.
- Utilize a standard fee disclosure outlining all fees and charges for which a tenant is responsible, including frequency and refundability.
- Implement a system to receive notices and timely respond to tenant demands and disputes.
Licensed property managers should review these changes with their owner clients to explain how they may impact advertising, lease terms, billing and fee practices, tenant communications, and liability exposure. In advertisements, the total price for the rental must be more prominently displayed than other pricing information. To comply with Colorado Real Estate Commission rule 5.17, licensed property managers should verify that all costs and fees charged to tenants are disclosed to the property owner.
Further, property managers should verify that any mark-up fees are disclosed and charged in compliance with these requirements. While property managers may continue to charge mark-up fees to owners, mark-up fees that exceed the nominal thresholds described above may not be passed on to tenants.
In sum, this bill requires transparency from residential landlords and property managers by clearly disclosing all costs, fees and charges for which tenants are responsible. In practice, compliance will require active efforts to provide upfront disclosures and eliminate unauthorized charges.
For assistance with residential lease terms and agreements, contact attorney Michael Smeenk. For lease enforcement and eviction guidance, contact attorney Caroline Young.
