When Can Landlords Raise Rent for Pass-Through Costs in Colorado?

As a renter in Colorado, you might be concerned about how, when, and why your landlord can legally raise your rent, especially when it comes to "pass-through" costs. With no statewide rent control laws, it's important to know your rights about rent increases and what counts as legal additional charges under Colorado law.

Understanding Pass-Through Costs in Colorado

"Pass-through" costs are extra charges that landlords may legally add to your rent to cover specific expenses, like property tax increases or utility upgrades, depending on your lease agreement. While some states regulate these charges under rent control or rent stabilization laws, Colorado currently does not have statewide rent control or stabilization. This means landlords generally have flexibility, but they must still follow state notice requirements and the terms of your lease.

What Are Typical Pass-Through Costs?

• Utility increases (only if your lease allows for variable payments)
• Property tax increases (rare, and only if your lease specifically permits this)
• Improvement surcharges for capital improvements, sometimes passed to tenants as outlined in the lease

Always check your lease for language about additional charges. If your lease doesn't mention a certain pass-through cost, your landlord likely can't add it during your tenancy.

How and When Can Colorado Landlords Raise Rent?

Colorado law does not set limits on the amount of rent a landlord can charge or the frequency of increases, except for lease restrictions. However, landlords must give proper written notice before raising rent:

• For tenants renting month-to-month or with a periodic tenancy, landlords must provide at least 21 days' written notice before any rent increase can take effect.^[1]
• For fixed-term leases (e.g., a one-year lease), rent cannot be increased before the lease ends, unless specifically outlined in the agreement.

Rent increases, including any allowed pass-through costs, cannot occur in retaliation for exercising your legal rights or in a discriminatory manner. If you feel an increase is unfair or illegal, you can seek guidance from Colorado’s Division of Housing.

Required Forms and Notices

• Notice of Rent Increase (No official statewide form or number, but must be in writing)
  • This written notice should state the new rent amount, the effective date, and be delivered at least 21 days in advance (for month-to-month tenancies).
  • Example: If you are a month-to-month tenant and your landlord wishes to increase rent due to higher utility costs (as allowed by your lease), you must receive a written notice at least 21 days before the higher rent becomes due.
  • Details about rent increase notices are found in the Colorado Revised Statutes, Title 38, Section 12-104.

The Tribunal Handling Tenant-Landlord Disputes

In Colorado, residential tenancy disputes (including issues about rent increases and pass-through costs) are typically handled in County Court in the area where the property is located. The Colorado Judicial Branch provides forms, filing instructions, and support for resolving disputes between landlords and tenants.

Protections Against Excessive or Retaliatory Rent Increases

While there are few restrictions on the amount of increase, Colorado law protects renters from retaliatory rent increases. For example, your landlord cannot raise your rent solely because you:

• Requested a repair
• Complained about housing conditions
• Joined a tenants' organization

Retaliatory actions are prohibited under Colorado Revised Statutes Title 38 Article 12.

Your Action Steps if Facing a Rent Increase Due to Pass-Through Costs

If you receive a rent increase notice involving pass-through costs, here’s what you can do:

• Review your lease agreement for clauses about extra charges
• Check the notice for proper advance warning (at least 21 days for most tenancies)
• Ask your landlord for a breakdown of the specific pass-through costs
• If you believe the increase isn’t allowed, contact the Colorado Division of Housing or visit your county court for guidance

This approach allows you to stay proactive and informed when faced with changes to your rent.

Frequently Asked Questions (FAQ)

1. Can my landlord add extra charges to my rent any time in Colorado?
   Landlords in Colorado can only add extra charges, such as pass-through costs, if your lease allows it. They must also provide written notice at least 21 days before the increase takes effect for month-to-month tenants.
2. What official notice does my landlord have to give for a rent increase?
   There’s no required statewide form, but your landlord must give you written notice with the new rent amount and effective date at least 21 days in advance (for month-to-month tenancies).
3. Who handles complaints about illegal rent increases in Colorado?
   Tenant-landlord disputes, including concerns about illegal rent increases, are handled by the Colorado County Courts where your rental property is located.
4. Does Colorado have rent control?
   No. Colorado does not have statewide rent control or rent stabilization laws as of this year. Rent can be increased with proper notice, as long as the lease and the law are followed.
5. What should I do if I think my landlord is retaliating by raising my rent?
   If you suspect a retaliatory rent increase (for example, after requesting repairs or reporting a violation), seek advice from the Colorado Division of Housing, a tenant advocacy service, or consider reaching out to your local county court for guidance.

Need Help? Resources for Renters

• Colorado Division of Housing: Rental Rights and Assistance
• Colorado Judicial Branch: Landlord/Tenant Information and Forms
• Colorado Housing Connects: Tenant Support Helpline (1-844-926-6632)
• For official legal text, see Colorado Revised Statutes Title 38 Article 12

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1. Colorado Revised Statutes Title 38, Section 12-104: Colorado Residential Tenancy Laws

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