A Colorado rental application form helps a landlord choose a prospective tenant who is well suited to rent a particular property. The form requests personal and employment information plus consent for a credit check (sometimes called a consumer report). Applications often collect a non-refundable fee, commonly equal to the cost of getting the relevant screening reports.
Colorado Rental Application Laws
Colorado does not set a maximum cap on the amount a landlord can charge for a rental application fee, but recent legal changes strictly require the following standards for a rental application:
- A landlord cannot charge a rental application fee if provided with a portable tenant screening report (PTSR)
- The entire amount of a rental application fee must reflect, and cover, the landlord’s actual screening costs
- When charging an application fee, the landlord must give the applicant an itemized disclosure of anticipated or actual screening expenses
- A landlord cannot charge different applicants different application fees
- Rental history screening cannot inquire beyond the previous seven (7) years
- Criminal history screening cannot inquire beyond the previous five (5) years, with some exceptions
- A landlord must make a good-faith effort to return any unused portion of an application fee within 20 days
- A landlord must provide written notice of reasoning for any denied rental application
- Failure to comply with the above requirements makes the landlord liable for triple the fee charged, plus court costs
Quick Guide To Process a Colorado Rental Application
After receiving a Colorado rental application, most landlords use the following process to evaluate the potential tenant:
- Determine What Screening Process is Necessary – If the applicant provides a portable tenant screening report (PTSR), information such as credit score and rental history will already be available without additional effort. In such a case, all the landlord needs is the applicant’s signed statement that there have been no material changes to the report’s information since the date it was issued. Otherwise, the landlord will have to conduct a traditional screening process.
- Verify Credit – Order a credit report for the potential tenant; a score of 600-650 is a common minimum requirement. A credit report can be as simple as a “pass/fail” result or can have comprehensive details, including criminal history. (NOTE: a credit report requires the tenant’s written and signed consent, on the application or separately)
- Verify Income – Check the potential tenant’s employment status and pay scale. This can be done through recent pay stubs and/or contacting the potential tenant’s employer.
- Check Rental History – Contact previous landlord(s) to confirm a potential tenant has in the past been a good renter and neighbor.
- Check Eviction History – Verify the potential tenant has honestly disclosed the details of any past evictions. An eviction check usually covers a longer period (previous 7 years) than a rental history check (previous 3 years).
- Check Criminal History – Confirm the potential tenant’s reporting of any criminal history, especially including a check of criminal databases like sex offender registries.
- Provide a Response – Approve the application if it’s a good fit, or, if rejecting the application, draft an appropriate adverse action notice to limit liability.
Checking Eviction History in Colorado
Colorado eviction cases are matters of public record which anyone can access. While third-party services often automatically check eviction history as part of a screening report, this also can be checked manually, with the following process:
- Visit Colorado Judicial Branch Docket Search
- Enter the applicant’s name (plus county jurisdiction, if known) to access civil cases and documents
- Select cases to review as desired; at time of writing, case history costs $15 plus a 3% credit card fee
Restrictions on Colorado Rental Application Questions
The sample rental application provided on this page complies with federal law restricting the information a landlord can request. In general, it’s illegal under the Federal Fair Housing Act to screen tenants by asking for information about the following, or using these as a basis for approving or denying an application:
- Race
- Color
- National origin (nationality)
- Religion
- Sex (including sexual orientation and gender identity)
- Familial status (i.e., having or not having children)
- Disability (whether physical or mental)
There are narrow exemptions from the Fair Housing Act for things like senior housing or certain very-small scale landlords, but local regulations may still apply. Always consult an attorney before attempting to ignore federal requirements.
Colorado State Restrictions on Rental Application Information
Colorado state law restricts the information landlords can use from a tenant’s rental, financial, and criminal history. Landlords must respect the following limitations when evaluating a rental application:
Rental History
A landlord may not consider any information in a tenant’s rental history that dates from more than seven years before the application being considered.
Financial History
A landlord may not consider any information in a tenant’s financial history that dates from more than seven years before the application being considered. The applicant’s income cannot be used for any purpose except to determine that annual income is 200% of the annual rent or more.
In most cases, the landlord cannot require the tenant’s income to be 200% of the annual rent or more. The only exception is when the tenant is applying to rent with the assistance of a housing subsidy. This lets a landlord require annual income at least 200% of the annual rent, but such applications cannot consider credit information unless required by federal law.
Criminal History
A landlord may not consider any information in a tenant’s criminal history that dates from more than five years before the application being considered, except for the following criminal convictions or deferred judgments:
- Unlawful distribution, manufacturing, dispensing, or sale of a material, compound, mixture, or preparation that contains methamphetamine, per state law
- Unlawful possession of materials to make methamphetamine and amphetamine, per state law
- Any offense that required the applicant to register as a sex offender
- Any homicide, kidnapping, or related offense under state law
Rejecting an Application: Adverse Action Notice
When taking an action which may disadvantage a potential tenant, a landlord may have to provide an adverse action notice informing the tenant about the decision (sometimes called a “conditional approval,” if the application is approved subject to meeting additional conditions). Federal regulations require an adverse action notice whenever a landlord collects a credit report and takes one of the following actions:
- Rejecting the potential tenant’s application
- Adding a requirement for someone to co-sign the potential tenant’s lease
- Demanding a larger security deposit than before, as a condition for renting
- Asking for higher rent after receiving the report
Important Features of an Adverse Action Notice
An adverse action notice must contain the following details:
- Note that the landlord took adverse action based on information in a consumer credit report
- Details of the consumer reporting agency
- Note that the landlord decided the adverse action, not the agency
- Declaration of the applicant’s right to a copy of the consumer credit report
- Declaration of the application’s right to dispute the report within 60 calendar days
While not legally required, it also is expedient for a landlord to explain the reasons for the adverse action, since this establishes a written record of issues with the application.
For an example, see this tenant rejection letter template.
Fees in Colorado
Colorado has the following regulations on fees relating to a new rental:
- Rental Application Limit: No cap, but cannot exceed the actual cost of screening
- Security Deposit Limit: Two months’ rent (standard housing) or one month’s rent (mobile homes only)
- Pet Fee Limit: $300, and must be refundable (although pet rent does not have to be refundable, only deposits)
Local jurisdictions may impose stricter regulations than the statewide standard. Always check local laws.
Sources
- 1 Col. Gen. Assembly, "Rental Application Fees: Concerning the rental application process for prospective tenants"
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This is the official summary provided by the Colorado General Assembly for HB19-1106, as enacted:
The act states that a landlord may not charge a prospective tenant a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord’s costs in processing the rental application. A landlord also may not charge a prospective tenant a rental application fee that is in a different amount than a rental application fee charged to another prospective tenant who applies to rent:
- The same dwelling unit; or
- If the landlord offers more than one dwelling unit for rent at the same time, any other dwelling unit offered by the landlord.
The act requires a landlord to provide to any prospective tenant who has paid a rental application fee either a disclosure of the landlord’s anticipated expenses for which the fee will be used or an itemization of the landlord’s actual expenses incurred. The landlord is required to make a good-faith effort to refund any unused portion of an application fee within 20 days.
The act states that if a landlord uses rental history or credit history as criteria in consideration of an application, the landlord shall not consider any rental history or credit history beyond 7 years immediately preceding the date of the application. If a landlord considers criminal history as a criterion, the landlord shall not consider an arrest record of a prospective tenant from any time or any conviction of a prospective tenant that occurred more than 5 years before the date of the application; except that a landlord may consider any criminal conviction record or deferred judgment relating to certain criminal offenses involving methamphetamine, any offense that required the prospective tenant to register as a sex offender, any offense that is classified as a homicide, or stalking.
If a landlord denies a rental application, the landlord shall provide the prospective tenant a written notice of the denial that states the reasons for the denial.
A landlord who violates any of the requirements created in the act is liable to the person who is charged a rental application fee for triple the amount of the rental application fee, plus court costs. A landlord who corrects or cures a violation not more than 7 calendar days after receiving notice of the violation is immune from liability. A person who intentionally and in bad faith brings a meritless claim against a landlord is liable for the landlord’s court costs and reasonable attorney fees in defending the claim.
Source Link - 2 Colo. Rev. Stat. § 38-12-904(1.5)(a)
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Except as provided in subsection (1.5)(f) of this section, a landlord shall accept a portable tenant screening report from a prospective tenant.Source Link
- 3 Colo. Rev. Stat. § 38-12-904(1)
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Source Link
(a) If a landlord uses rental history or credit history as criteria in consideration of an application, the landlord shall not consider any rental history or credit history beyond seven years immediately preceding the date of the application, and the landlord must comply with subsections (1)(c) and (1)(d) of this section. (b) If a landlord uses criminal history as a criterion in consideration of an application, the landlord shall not consider an arrest record of a prospective tenant from any time or any conviction of a prospective tenant that occurred more than five years before the date of the application; except that a landlord may consider any criminal conviction record or deferred judgment relating to: (I) The unlawful distribution, manufacturing, dispensing, or sale of a material, compound, mixture, or preparation that contains methamphetamine, as described in section 18-18-405; (II) The unlawful possession of materials to make methamphetamine and amphetamine, as described in section 18-18-412.5; (III) Any offense that required the prospective tenant to register as a sex offender pursuant to section 16-22-103; or (IV) Any offense described in part 1 or part 6 of article 3 of title 18. (c) If a landlord uses financial information, including rental history or credit history, as a criterion in consideration of a rental application from a prospective tenant who is seeking to rent with the assistance of a housing subsidy, the landlord shall not consider or inquire about the prospective tenant’s: (I) Amount of income, except for the purpose of determining that the prospective tenant’s annual amount of income equals or exceeds two hundred percent of the portion of the annual cost of rent that is to be paid by the prospective tenant; or (II) Credit score, adverse credit event, or lack of credit score unless the landlord is required by federal law to consider a credit score or a lack of a credit score. (d) If a landlord uses financial information, including rental history or credit history, as a criterion in consideration of a rental application from any prospective tenant who is seeking to rent without the assistance of a housing subsidy, the landlord shall not consider or inquire about the prospective tenant’s amount of income, except for the purpose of determining that the prospective tenant’s annual amount of income equals or exceeds two hundred percent of the annual cost of rent. A landlord shall not require a prospective tenant to have an annual amount of income that exceeds two hundred percent of the annual cost of rent. (e) Notwithstanding subsections (1)(c) and (1)(d) of this section, nothing in said subsections precludes a landlord who is receiving funding from a governmental entity, quasi-governmental entity, or nonprofit organization that requires landlords to income-qualify tenants for income-restricted rental units from gathering any financial information about a prospective tenant for the purpose of determining the prospective tenant’s eligibility for an income-restricted rental unit if the funding source requires the landlord to collect such information as a condition for the receipt of funding.
