“CO Democrats Want to Strip Power From Landlords”

This was the title of this front page story in The Denver Post on March 2nd as a group of Democratic state lawmakers, “say the state needs to bolster protections for the long-term by shifting power to tenants.” State Rep. Dominque Jackson, an Aurora Democrat, said, “It’s about humanity, empathy, and economics.” However, recently a Texas judge ruled that the national eviction moratorium is unconstitutional. Why? It infringes on property owners’ rights.

The Post reports that this group of Democrats are introducing 5 separate bills—
· A statewide eviction moratorium into 2022.
· Limiting the charges to break a lease early.
· Allowing illegal immigrants to receive housing assistance.
· Limiting landlords to one rent increase a year.
· HB21-1121—Extend eviction notice from 10 days to 14 days. It was just 3 days until last year. This bill would also extend the date of eviction after the Judgement of Writ is received from 2 days to 10 days. This bill also limits rent increases to just once a year. If this bill passes CO will then have one of longest eviction processes in the country.
· The Senate version of this bill SB 21-173 says a landlord can’t charge a late fee until after 14 days have passed and the late fee can’t be greater than $20 or 2.5% of the rental amount past due. Thus, since the penalty is so late and so small tenants have very little incentive to pay their rent on time with this bill. Scary to me as an investor and landlord.

Further under this Bill, if a landlord fails to timely cure a violation, the tenant may bring a civil action to seek one or more of the following remedies:
· Compensatory damages for injury or loss suffered;
· A penalty of at least $500 but not more than $2,000 for each violation, payable to the tenant;
· Costs, including reasonable attorney fees if the tenant is the prevailing party; and
· Other equitable relief the court finds appropriate.
So, if a landlord makes a mistake we can be penalized by as much as 50 TIMES MORE than we can penalize a tenant for a late payment. This is SO MESSED UP!!!

If this Senate Bill becomes law I ask this question—WHO WANTS TO BE A LANDLORD IN COLORADO? I have been afraid that bills like this would be coming this year. I am very relieved that we sold both of our 4-plexes as investors owning affordable properties will be the most impacted by a bill like this.

We are also selling both of our rental condos and most likely will be buying in Alabama; but we may stay here too and if we do we will be purchasing more expensive townhomes that will rent for at least $2400 a month. Why? Tenants at this price point need to be making $100k a year to afford the rent and could most likely buy a home if they wanted to and I would expect we will have fewer problems with tenants not paying the rent.