Colorado Landlord Risk Report 2026: What Aspen Property Owners Need to Know
Aspen landlords face an increasingly complex legal environment in 2026. Recent changes by the Colorado General Assembly are reshaping the balance of rental relationships across the state—enhancing tenant protections, adding compliance requirements, and introducing new penalties for violations. For property owners in Aspen, where seasonal rentals and high-value properties dominate the market, these laws demand extra attention to detail and timely policy updates.
Below is an overview of the measures enacted or taking effect soon that every Aspen landlord should know.
HB-1249: Security Deposit Reforms
Effective January 1, 2026
Security deposits must now be returned within 30 days, and landlords may no longer withhold funds for preexisting conditions or normal wear and tear. Only unpaid rent, utilities, and verifiable new damage may justify retention.
Given the high-end finishes common in Aspen rentals, landlords should meticulously document move-in conditions and maintain inspection reports to avoid liability for wrongful withholding.
HB-1236: Tenant Screening Changes
Effective January 1, 2026
Under this bill, landlords can no longer require tenants receiving housing subsidies to provide credit history as part of a portable screening report. It also repeals an earlier provision allowing landlords to demand reports through specific online third-party portals.
Aspen landlords who frequently lease employee housing or mixed-income units connected to local housing agencies should update screening processes to reflect this rule.
HB-24-1098: “Just Cause” Eviction
Effective 2024
HB‑24‑1098 is Colorado’s 2024 “just cause” eviction law for residential tenants. It significantly limits when a landlord can refuse to renew a lease or evict a tenant, and creates new notice and procedure requirements to prevent arbitrary displacement.
The law generally prohibits a landlord from evicting a residential tenant or declining to renew a tenancy unless the landlord has legally defined cause.
Its stated goal is to reduce arbitrary displacement, promote housing stability, and protect health and safety while still allowing evictions in clear, specified circumstances.
“For‑cause” grounds include things like: nonpayment of rent, substantial lease violations, creating a nuisance or disturbance that interferes with others’ quiet enjoyment, or negligent damage to the property.
The law also defines limited “no‑fault eviction” grounds, such as: demolition or conversion, substantial renovations, landlord or family member moving in, permanently withdrawing the unit from the rental market to sell, a tenant’s documented history of nonpayment, or refusal to sign a new lease with reasonable terms.
A non‑renewal at the end of a lease term is now treated as a form of eviction and is only allowed if one of the statute’s listed just‑cause or no‑fault grounds exists.
Housing providers must typically offer renewals to existing tenants unless they can document a permitted cause and follow specific notice procedures.
Exemptions include: short‑term rentals, some owner‑occupied or owner‑adjacent rentals (single‑family, duplex, triplex in specified situations), mobile‑home lots, employer‑provided housing, tenants in place less than 12 months, and some unauthorized occupants.
The practical effect is that ;andlords must carefully document reasons and give proper notices before non‑renewal or eviction, which increases compliance and operational complexity but provides clearer rules.
HB-1108: Rental Agreements and a Tenant’s Death
Effective September 1, 2025
This law affects how Aspen landlords handle leases in the unfortunate event of a tenant’s death. It voids lease provisions that would otherwise impose liquidated damages, acceleration of rent, or fees after early lease termination due to a tenant’s death.
For landlords managing luxury or short-term condos in Aspen, this means you cannot require posthumous rent or withhold move-in discounts. You may, however, retain the security deposit for necessary property repairs or damages caused by the tenant’s death. The law also allows landlords to take back possession without filing an eviction if the tenant’s representative formally surrenders the premises or certain conditions are met.
HB-1168: Protections for Victim-Survivors
Effective August 6, 2025
Aspen’s rental market often blends long-term residents with part-time tenants, and this law enhances protections for victim-survivors of unlawful sexual behavior who fall behind on rent. Landlords must now offer a repayment plan and cannot charge penalties or deduct costs linked to the incident.
If both a victim and aggressor share a lease, only the aggressor can be evicted. For Aspen landlords, it’s essential to update property management policies, especially if using third-party rental agencies, to ensure compliance and avoid discriminatory practices.
HB-1240: Protections for Tenants Using Housing Subsidies
Effective May 29, 2025
This bill expands protections for tenants relying on subsidies. Key provisions include:
Mandatory 30-day notice for tenants before eviction for nonpayment.
Automatic rent reimbursement obligations if a property violates the warranty of habitability.
Explicit bans on unfair housing practices such as delaying documentation for rental assistance.
Financial penalties up to $50,000 for repeat violations.
For Aspen landlords, cooperation with local housing programs—like the Aspen-Pitkin County Housing Authority (APCHA)—is more critical than ever.
SB-020: Expanded Enforcement Powers
Effective in 2025
The new law authorizes the Colorado Attorney General and local governments to enforce landlord-tenant laws, including criminal and civil prosecution for serious or ongoing violations. Aspen landlords managing multifamily properties should note the potential for receivership—where an external party temporarily takes control of a property for neglect or compliance failures.
Transparency, regular maintenance, and open tenant communication are vital to avoiding scrutiny under this expanded enforcement framework.
Preparing for 2026 and Beyond
For Aspen landlords, these statewide changes carry local weight. The town’s seasonal dynamics, premium property values, and mix of short- and long-term stays magnify the importance of compliance. Landlords should review leases, update screening policies, and communicate rule changes clearly with tenants.
Working with a property attorney familiar with Aspen’s regulatory environment helps safeguard investments and ensures operations stay compliant as Colorado’s housing laws continue to evolve.
The information provided on this blog is for general informational purposes only and does not constitute legal advice. Transmission of this information is not intended to create, and receipt does not constitute, an attorney–client relationship. The material may not reflect the most current law or legal standards. Readers should not act or refrain from acting based on this information alone. For advice tailored to your specific circumstances, please consult a qualified attorney. If you have a legal matter, contact a licensed attorney in your jurisdiction.