New Colorado Law Overhauls Residential Lease Non-renewals: A Guide to the 2024 For-Cause Eviction Requirements

By Justin Miller

Overview of the For-Cause Eviction Policy  
The Colorado General Assembly passed a law, which went into effect in April 2024, which significantly impacts the legal landscape for landlords considering not to renew a residential lease. Under the new law landlords must now have a valid reason, or “cause,” to evict tenants. This law, known as the “For Cause Eviction Policy,” means that landlords must be able to articulate a specific and valid reason under the act to evict residential tenants. The new law also creates new requirements and expanded timelines for how much advance notice a landlord must provide before deciding not to renew a lease. If a landlord doesn’t follow these rules, a tenant can seek damages to recover their actual costs, attorneys’ fees, and a penalty worth three times their monthly rent or $5,000, whichever is higher. 

For Cause Eviction Policy 
The new eviction law applies to almost all rental homes in Colorado, with a few exceptions. These exceptions include short-term rentals, units occupied by the owner as their primary residence, mobile homes in a lease-to-own agreement, housing provided by an employer, tenants the landlord didn’t know about, and tenants who haven’t lived in the home for at least a year. It also doesn’t apply to units next to an owner’s home (if it’s the owner’s primary residence), as long as the building is not part of a multifamily property with four or more units. 

What Qualifies as No-Fault Eviction in Colorado? 
The biggest change brought about by the law is the designation of no-fault evictions. Under the statute, a landlord’s non-renewal of a rental agreement is considered a no-fault eviction. No-fault evictions must meet certain requirements in the statute. In order to proceed with a no-fault eviction, the landlord must have provided the tenant with a written notice at least 90 days before the end of the lease term and also enumerate a specific cause for the non-renewal. Below are the six permissible causes for a landlord may rely on in order to initiate a no-fault eviction. 

6 causes for a no-fault eviction: 

1. Demolition or conversion of the property: A landlord can decide not to renew a lease if they plan to tear down or change the property’s use. This could mean turning it into a business space or a short-term rental, for example. In this case, the landlord must include details about the planned demolition or change in use and give a timeline. They also need to provide some proof of the project start date, like a short-term rental license, a building permit, or a permit application.

2. The landlord or the landlord’s family member is moving into the residence: A landlord can carry out a no-fault eviction if they or a family member plans to move into the property within three months after the tenant leaves. There must also be no similar vacant units available in the same building. If the landlord changes their mind, they have to wait 90 days after the tenant moves out before listing the property for rent again. Active military landlords only need to give 45 days’ notice instead of the usual 90.

3. Selling the property: If a landlord chooses not to renew a lease because they plan to sell the property, they must state this intention clearly in the notice to the tenant. If the landlord changes their mind and decides not to sell, they can’t list the property for rent again until 90 days after the tenant has moved out. However, if the landlord can show that the property was posted for sale on MLS after the tenant’s move-out date, they may relist it sooner.

4. History of non-payment: Under the new law, a history of non-payment has a specific definition. To refuse renewal for a history of non-payment, the tenant must have been at least 10 days late on rent more than two times. 

5. Substantial renovation or repair: The eviction notice must include a general description of the planned work and an estimated completion date. If the work is expected to be finished within 180 days, the landlord must first offer the tenant the option to return to the property. The tenant has 10 days to tell the landlord if they want to come back. However, major renovations or repairs to fix issues like unsafe conditions or as a way to retaliate against the tenant are not considered valid reasons for eviction.

6. Tenant refuses to sign a new rental agreement with reasonable terms: The new law provides no guidance on what terms are considered “reasonable.” However, this provision means landlords do not have to offer the same terms as the previous agreement. 

Detailed Grounds for Eviction Under Colorado’s New Law
The For Cause Eviction Policy lists 13 reasons why a landlord may evict a tenant, most of which involve different kinds of illegal property holdovers. In addition to these reasons, a landlord can also evict a tenant for causing a nuisance that disturbs others’ enjoyment of the property or for damaging the property through carelessness. However, tenants who are victims of domestic violence cannot be evicted for creating a disturbance if the disturbance is due to the violence against them.  

Enhanced Notice and Service Requirements for Lease Non-renewals 
For every eviction or lease non-renewals, landlords need to follow specific notice and service rules. In most non-renewal cases, the landlord must give tenants at least 90 days’ notice before they need to move out. When terminating a tenancy, a landlord also has to try to deliver the notice in person at least twice on different days before posting it somewhere noticeable at the rental property. This new law also requires that eviction notices include more detailed information. In addition to basic details in writing like property description, move-out date and time, and the landlord’s signature, notices must now explain the reason for eviction. Lastly, to fully meet legal standards, the notice must be in the tenant’s primary language. 

Conclusion: Tenant Protections and Landlord Obligations 
Colorado’s recent changes to landlord tenant laws creates an environment that is mostly friendly to renters. Landlords run the risk of severe monetary penalties if the law’s provisions are not closely followed. If you are a landlord faced with the need to evict or non-renew a tenant’s lease, we encourage you to study the law closely and seek the advice of counsel before proceeding. 

Caplan and Earnest’s team of attorneys are available and ready to assist renters and landlords alike with their legal needs.