Colorado Rent Increase Laws

Is there a rent increase limit in Colorado? 

No, Colorado law doesn’t set a ceiling for rent increases. Here’s what you need to know.

Statewide caps: Because there’s no legal limit in Colorado, landlords set their prices based on the market rate. By considering your unit’s features, size, and local demand, you can determine a fair and competitive price.

Local rent control ordinances: Colorado doesn’t have statewide rent control, and it doesn’t permit local governments to enforce their policies at the county or city level, either (Colo. Rev. Stat. § 38-12-301).

Exceptions: While state law bans rent control and stabilization, federal programs may apply to certain properties, such as Section 8. Colorado law doesn’t specify exceptions for property types covered by these programs.

Rent Increase Notice Periods

When you raise a tenant’s rent, state law often requires you to notify tenants in writing using a rent increase letter. However, the rules depend on the type of lease agreement you have.

Fixed-Term Lease

If your agreement has a start and end date, you can’t alter the rate mid-tenancy unless your lease specifically allows it. You can only raise your price when you renew the contract.

Colorado law doesn’t require you to inform tenants in advance, but we recommend doing so anyway. Mobile home leases do require a 60-day notification period before rent can be raised, however. Transparency and clarity help you retain tenants and avoid miscommunication. As a best practice, notify your tenants in writing so they can prepare themselves.

Month-to-Month Lease

If you have a month-to-month agreement, state law requires you to provide at least 21 days’ written notice before the next rent due date (Colo. Rev. Stat. § 13-40-701).

Pro Tip: Use the 21-day rule of thumb, even if you’re on a fixed-term lease.

Room Rental Agreements

Landlords who use room rental agreements must still operate within Colorado’s legal guardrails. If you have a month-to-month lease, make sure you give your tenant 21 days’ written notice (Colo. Rev. Stat. § 13-40-701).

How to Deliver a Rent Increase Notice in Colorado

Some states specify delivery methods, but Colorado doesn’t. Regardless, top landlords dot their I’s and cross their T’s by using the following:

• Hand delivering the letter to the tenant,
• Sending via Certified Mail, or
• An electronic notice (using property management software).

If you plan to use digital delivery methods, make sure you add a clause to your lease permitting them. When tenants agree in writing, the clause makes electronic delivery legally binding.

Keep in Mind: Notice periods typically start when the tenant receives the letter, not when you send it.

Understanding Illegal Rent Increase and Retaliation

Even though Colorado bans rent control, state law protects tenants from retaliation and contract breaches. As a landlord, you can’t:

• Raise rent mid-tenancy without a lease clause permitting it.
• Increase your monthly rate to retaliate against tenants for taking the following actions:
  • Making a good-faith complaint about habitability to the landlord, nonprofit organization, or government agency,
  • Organizing or becoming a member of a tenant association, or
  • Exercising their legal rights (Colo. Rev. Stat. § 38-12-509).

Additionally, don’t forget to follow the Fair Housing Act (FHA). Don’t discriminate against tenants by raising rent disproportionately based on these protected characteristics:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

Keep your price adjustment process transparent, consistent, and well-documented for all applicants. Otherwise, someone may file a discrimination claim against you.

How to Write a Colorado-Compliant Rent Increase Letter

Once you understand Colorado’s rent-increase laws, prepare to notify your tenants by drafting a rent-increase letter. Here’s what to include:

• Address (including the unit number),
• Tenant names,
• Exact dollar amount of the increase,
• New total rent amount,
• Effective date (per Colorado’s notice requirements), and
• Instructions for tenants to accept or opt out.

Make the process as seamless as possible by using a standardized template. TurboTenant’s free Colorado rent increase letter template helps you stay compliant, professional, and consistent — without the hard work.

Managing the Rent Increase Process with Tenants

After you send out the rent increase letter, your tenant decides whether to pay the new rate, move out, or negotiate. Here’s what to do in each scenario:

• Accept: If tenants agree to your renewal price, you can begin charging the new rate on the effective date. Colorado law doesn’t require grace periods after you raise rent.
• Decline: When tenants refuse the updated rate, they move out at the end of the tenancy. Get ready to list your unit, find a new tenant, and get your income back on track.
• Negotiate: In cases when tenants ask you to rethink your adjustment, consider negotiating if they’re responsible and pay rent on time. However, make sure you’re consistent with your negotiations. Otherwise, you risk facing a discrimination dispute.

Whether you’re renting out a room in Boulder or an entire property in Denver, use this guide to comply with Colorado rent increase laws. And sign up for a free TurboTenant account to automate your rent payment processes.