The proposed bill provides clarity on what constitutes a "reasonable" rent increase and outlines acceptable grounds for no-fault evictions in Colorado.
Reasonable Rent Increase: Under current law, landlords can initiate a no-fault eviction if a tenant refuses to sign a new rental agreement with reasonable terms. The bill specifies that a rent increase is considered reasonable if it aligns with the fair market rent, as demonstrated by the rental amounts of comparable properties. This means landlords must base rent hikes on prevailing market rates for similar units, ensuring increases are justified and not arbitrary.
Prohibition of Unfair Rent Practices: Existing regulations prevent landlords from raising rents in a discriminatory, retaliatory, or unconscionable manner. The bill clarifies that a rent increase is not deemed discriminatory, retaliatory, or unconscionable if the landlord can provide evidence that the new rent aligns with fair market values, based on comparable property rentals. This provision aims to protect tenants from unjustified rent hikes while allowing landlords to adjust rents in accordance with the local market.
In essence, the bill seeks to balance tenant protections with landlords' rights by defining fair rent increases and ensuring that eviction processes are grounded in reasonable and transparent practices.
Summary
Under current law, a landlord may initiate a no-fault eviction of a
tenant if the tenant refuses to sign a new rental agreement with reasonable terms. The bill clarifies that, for purposes of determining whether a new rental agreement includes reasonable terms, a rent increase in the new rental agreement is reasonable if the landlord increases rent in view of fair market rent, as evidenced by the rental amount of comparable properties.
Also under current law, a landlord is prohibited from increasing a
tenant's rent in a discriminatory, retaliatory, or unconscionable manner. The bill clarifies that a rent increase is not discriminatory, retaliatory, or unconscionable if the landlord provides evidence showing that the rent increase is in line with fair market rent, as evidenced by the rental amount of comparable properties.
