Have you ever signed a lease only to see new charges appear later? Hidden fees have shaped Colorado rentals for years, often pushing the real cost higher than what was advertised. Valet trash and pest control fees tend to surface after a tenant has already committed.
These surprise charges usually live in the fine print of rental agreements, where junk fees and required services quietly raise the total price of a rental unit and create frustration for renters.
House Bill 25-1090, also called House Bill 25, is now changing how landlords and property managers handle consumer transactions by requiring clear pricing and full disclosure of mandatory fees to stop deceptive practices.
Tenants and property owners need to understand how this law works to follow the rules and reduce risk, so get to know how House Bill 25-1090 affects you in this article. Keep reading.
Key Takeaways
- House Bill 25-1090 eliminates hidden fees and enforces full disclosure.
- Tenants gain protections against junk fees, drip pricing, and deceptive trade practices.
- Landlords and property managers must revise lease provisions and marketing materials to reflect the actual cost.
- Compliance avoids actual damages, attorney fees, and penalties under Colorado law.
Hidden Fees and Deceptive Pricing before HB 25-1090
Before this law, rental properties often included hidden fees and mandatory charges that were not reflected in the actual price. Common examples included:
- Facility fees and valet trash
- Utility provider surcharges and ratio utility billing system costs
- Delivery app or payment processing fees
- Variable fees and variable pricing embedded in marketing materials
These deceptive pricing practices allowed property managers to increase the total cost of a rental unit without clear disclosure. The Colorado Consumer Protection Act and federal law consider some of these actions to be unconscionable acts or deceptive trade practices, yet enforcement was inconsistent.
For tenants, this meant a rental agreement could carry hidden charges for mandatory service charges, government charges, or attorney fees, often buried in the fine print of existing leases. Drip pricing and hourly rates for services sometimes went unnoticed until payment was required.
Key Provisions of House Bill 25-1090
House Bill 25-1090 enforces full compliance and stronger disclosure requirements under the Colorado Consumer Protection Act, ending deceptive pricing practices that relied on hidden fees, junk fees, and fine print in residential leases.
This new law changes how landlords and property managers set the base rent, list fees, and present the total price of a rental unit so customers see the actual price before they agree to a rental agreement.
Key changes under House Bill 25-1090 include:
- No More Hidden Fees – All mandatory fees, mandatory charges, service charges, and separate fees must be disclosed clearly and conspicuously in residential leases, including valet trash, pest control, late fees, payment processing fees, and other hidden charges.
- Price Transparency – Variable fees, facility fees, utility provider charges, government charges, and property taxes must reflect the actual cost, stopping drip pricing and deceptive pricing that inflates the total cost.
- Updated Lease Provisions – Existing leases and every lease provision must be revised to show full disclosure of the base rent, total price, ratio utility billing system, and any mandatory service charge.
- Enforcement and Penalties – Tenants may send a written demand, and violations may lead to actual damages, attorney fees, or action by the attorney general under Colorado law and the deceptive trade practices rules.
- Marketing and Visual Disclosures – Marketing materials, visual disclosures, and pricing information must show the real total price of the property offered so that consumer transactions are not misleading.
- Who Must Comply – The law applies to property owners, landlords, and property managers, and it requires businesses such as delivery apps and utility providers that charge fees tied to a rental property.
This is how no more hidden fees become reality and how House Bill 25-1090 changes renting in Colorado for every rental unit covered by the new law.
Implications for Tenants
For renters, House Bill 25-1090 means fewer surprises and more control over residential leases. Key benefits include:
- Price Transparency: Know the total cost of a rental unit before signing.
- Protection against Junk Fees: Mandatory service charges and variable pricing must reflect the actual cost.
- Legal Remedies: If hidden charges appear or deceptive pricing occurs, tenants can pursue actual damages, attorney fees, or submit a written demand.
- Better Budgeting: With full disclosure of base rent, government charges, and mandatory charges, tenants can plan expenses accurately.
Implications for Landlords and Property Managers
Landlords and property managers must now adhere to stricter statutory obligations:
- Revise language in all rental agreements and existing leases to reflect House Bill 25 1090 requirements.
- Ensure marketing materials accurately convey actual price, total cost, and service charges.
- Avoid deceptive trade practices, drip pricing, or hidden charges.
- Verify full compliance for utility provider fees, pest control, and facility fees.
- Work with law firms or seek specific legal advice to ensure compliance and avoid penalties.
Failure to comply could result in actual damages, attorney fees, and penalties enforced by the attorney general under Colorado law and the Consumer Protection Act.
Colorado Landlord Practical Tips to Stay Compliant
Landlords and property managers must follow House Bill 25-1090 and the Colorado Consumer Protection Act to avoid penalties and ensure transparent residential leases. Practical steps include:
- Disclose all mandatory fees, service charges, and separate fees clearly and conspicuously.
- List the actual cost for variable fees, utility provider charges, payment processing fees, and property taxes to prevent deceptive pricing.
- Update existing leases and lease provisions with full disclosure of base rent, ratio utility billing systems, and mandatory service charges.
- Ensure all marketing materials and visual disclosures reflect the total price.
- Respond to written demands and understand potential actual damages or attorney fees under the new law.
- Train property managers and staff to follow statutory obligations and provide good service or property management.
These steps help property owners and landlords and property managers stay compliant, avoid penalties, and keep rental agreements fair and transparent.
FAQ
1. What fees are no longer allowed under House Bill 25-1090?
All mandatory fees, service charges, facility fees, and hidden charges must be disclosed clearly and conspicuously.
2. How can landlords ensure compliance?
Update existing leases, revise lease provisions, and ensure marketing materials reflect the actual price of residential leases.
3. Can tenants take action if fees are not disclosed?
Yes, under the Colorado Consumer Protection Act, tenants can pursue actual damages, submit a written demand, or recover attorney fees.
Make Rentals Fair and Transparent
For years, renters in Colorado have been surprised by hidden fees. House Bill 25-1090 changes that. Landlords and property managers must now show mandatory fees up front. They must also disclose service charges clearly. Each facility cost must be listed so tenants know the total price of a rental unit. This ensures the price reflects the actual cost before anyone signs a lease.
Updating leases helps property owners follow the Colorado Consumer Protection Act. Ensuring marketing materials match the true price prevents confusion and avoids penalties. Transparent pricing also makes rentals easier to manage and builds trust with tenants.
Make your rental process fair and fully compliant. Contact Mavi Unlimited Property Management today for a free rental analysis.