Colorado Rental Application Form

Last Updated: December 6, 2023 by Roberto Valenzuela

Rental Application Form Template_1 on iPropertyManagement.com

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:

  • 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:

  1. 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)
  2. 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.
  3. Check Rental History – Contact previous landlord(s) to confirm a potential tenant has in the past been a good renter and neighbor.
  4. 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).
  5. Check Criminal History – Confirm the potential tenant’s reporting of any criminal history, especially including a check of criminal databases like sex offender registries.
  6. 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.

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.

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