Monetary Landlord-Tenant Damages in Colorado

If you’re a landlord in Boulder, Denver, or anywhere in Colorado, you of course want to protect your investment and earnings. No matter how carefully you vet tenants however, there may be times when a renter does not pay or when property damage occurs. As a tenant, you may also encounter bad faith landlords who cause you losses.

In either case, you may be entitled to monetary landlord tenant damages in Colorado. Should you find yourself in a landlord-tenant dispute and don’t know where to turn, contact the Denver office of Flaxman Law Group at 970-999-0530. We can set up a consultation so you can speak with an attorney who can explain whether you have a path to damages.

Lease Agreements and Responsibilities

In Colorado, lease agreements play a critical role in determining the responsibilities of landlords and tenants. These agreements outline the terms and conditions of the rental arrangement. For landlords, they may be required to:

• Maintain the property. Landlords are required to maintain the rental property in a habitable condition, meaning it must meet basic health and safety standards. If a landlord fails to uphold these responsibilities, tenants may be entitled to financial compensation for damages, such as repair costs, or in some cases, a rent reduction until the issue is resolved.
• Manage the security deposit. The lease agreement should specify the terms for handling the security deposit, including what deductions are permissible. Landlords must return the deposit within 30-60 days after the tenant moves out, unless there are valid deductions for unpaid rent or damages. Failing to do so could result in the landlord being liable for additional monetary damages, such as three times the amount of the deposit in some cases.
• Following the law. Landlords must abide by all state, federal, and local laws, including fair housing laws. If they want to charge fees, raise the rent, or evict a tenant, for example, they must do so using legal processes. When landlords break the law, tenants can file legal claims to seek remedies.

Tenants also have responsibilities, including:

• Paying rent. Tenants are legally obligated to pay rent in the amount and on the schedule set forth in the lease agreement. If a tenant fails to pay rent, the landlord can pursue legal action to recover unpaid rent, including seeking damages for late payments or initiating an eviction.
• Property care. Tenants are responsible for maintaining the rental unit in reasonable condition and preventing serious damage.
• Adhering to the terms of the lease. Tenants may need to abide by restrictions on pets, subletting, or making alterations to the property. If the tenant fails to uphold their responsibilities, the landlord may seek damages.

A well-drafted lease agreement clearly defines both parties’ responsibilities and can prevent disputes that lead to financial losses. In cases of breach, the injured party may seek monetary damages through negotiation or legal proceedings.

Normal Wear and Tear vs. Damages

When a tenant moves out of a rental property, a debate over whether the condition of the property is due to “normal wear and tear” or “damages” can arise. This is a common cause of landlord-tenant disputes, because the security deposit rests in the balance. Landlords can deduct money from the security deposit for damage, but not for normal wear and tear.

Normal wear and tear refers to the gradual deterioration of the property that naturally occurs over time with regular use. This might include minor scuff marks on the walls, worn carpets, or fading paint. These are expected as part of the life cycle of a rental property and are not considered the tenant’s responsibility. Landlords cannot charge tenants for these issues when they are moving out.

Damages, however, refer to alterations, destruction, or neglect of the rental property that goes beyond normal wear and tear. Damages typically result from tenant actions, such as misuse, abuse, or failure to maintain the property properly.

Large holes in the walls, broken windows, burns on the carpet, or missing fixtures are examples of damage that may result in monetary charges. In such cases, the landlord may use the security deposit to cover repair costs and, if the damage exceeds the deposit, pursue additional monetary landlord tenant damages.

Security Deposit Laws

In Colorado, security deposits play a significant role in protecting landlords from potential damages or unpaid rent. Colorado law does not limit the amount a landlord can charge for a security deposit, but most landlords typically collect one to two months’ rent. The security deposit is meant to cover potential damage to the property and unpaid rent when the tenant moves out. The amount must be clearly stated in the lease agreement.

Landlords are usually required to return the security deposit to the tenant within 30-60 days of the tenant vacating the rental property, though they may need to return the deposit more quickly in some cases.

If any deductions are made for repairs or unpaid rent, the landlord must provide an itemized list of the damages or outstanding rent, detailing the costs for each item.

If a landlord wrongfully withholds the deposit or fails to provide an itemized list, they may be required to pay the tenant up to three times the deposit amount. The tenant may also seek monetary damages.

Damages and Unpaid Rent

When a tenant fails to pay rent or causes damage to the rental property, landlords have the right to seek monetary landlord tenant damages to recover their losses. These damages may be covered through the tenant’s security deposit or pursued through legal action.

If a tenant fails to pay rent, the landlord can charge a late fee, if the lease agreement has defined a late fee. Under Colorado laws, the late fees cannot be more than $50 or 5% of the overdue rent. Late fees can only be applied if the renter is seven days late paying the rent.

If rent remains unpaid for an extended period, landlords may begin the eviction process. First, the landlord will serve the tenant a notice to quit, which gives the renter a chance to pay the rent or move out. If the tenant does neither, the landlord can file an eviction lawsuit. The tenant will be served with notice of the hearing and will have a chance to present their case at the hearing. Both the landlord and tenant may also try mediation and try to resolve the issue. Otherwise, a judge at the hearing will determine the outcome of the case.

In case of non-payment of rent, the landlord can sue for monetary damages. However, the tenant may not have the means to pay for the damages, even if they’re awarded to the landlord. In these cases, it can be beneficial to work with a landlord-tenant attorney who can negotiate a payment plan or can otherwise work to find a resolution.

Evictions and Early Terminations

When a tenant fails to pay rent, violates the lease agreement, or engages in illegal activities, the landlord may initiate the eviction process. Eviction is typically the last resort after attempts to resolve the issue through communication and payment arrangements have failed.

Landlords must have a valid legal reason to evict a tenant, such as non-payment of rent, property damage, lease violations, or illegal activity.Before filing for eviction, the landlord must provide the tenant with a written notice, such as a “Pay or Quit” notice for unpaid rent, or a “Cure or Quit” notice for lease violations. The tenant typically has 3 to 10 days to respond to these notices, depending on the reason for eviction.

If the tenant does not comply with the notice, the landlord can file for eviction in court. If the court rules in favor of the landlord, the tenant may be legally removed from the property.

If a tenant wishes to terminate the lease early, they may be required to pay rent for the remainder of the lease term, unless the lease includes an early termination clause. However, there are some important exceptions:

• Members of the military can terminate a lease early if they are entering active military duty.
• Victims of domestic violence are allowed to terminate a lease early under Colorado law.
• Tenants can terminate a lease if a landlord harasses them, fails to keep the property in habitable condition, violates the tenant’s privacy, or fails to fix a gas-related danger.

Even in these cases, tenants may need to take steps to lawfully break the lease. For example, in the case of domestic violence, tenants may need to submit a police report. In the case of active military duty, renters will need to give their landlord written notice, explaining the military service.