Important Rent Increase Laws Fort Collins Renters Must Know
Rental increases can be a little jarring when you first get that notice. You might be able to handle the occasional increases of 20 or 60 dollars, but those larger increases can hurt. As inflation rises, your rent is likely to increase as well. Some renters may see increases of 200 or 300 dollars a month. You might wonder if it’s legal for your landlord to raise rents an amount this large. That’s not an unusual question to ask. Moreover, every landlord—and even tenant—should know the ins and outs of rent protections.
When Can Landlords Raise Rent in Fort Collins?
Despite the increases in rent happening all over, landlords are only allowed to raise rent once in a 12-month period. Usually this increase occurs when the terms of the lease are about to expire. Depending on those lease terms, month-to-month or non-written lease agreements, landlords are still only allowed to increase rent once per year. This regulation protects tenants from frequent rent increases and keeps landlords responsible to the lease terms.
How Much Notice Must Landlords Give Tenants For Rent Increases?
Prior to increasing rent, landlords must provide 60 days’ notice if you have an unwritten agreement. This notice period allows tenants time to adjust their budget—or find a new residence. If the tenant has a written lease agreement, the lease should include details about future increases and set a notice period. Common courtesy dictates a period of 30–60 days for a rent increase.
Is There a Limit on How Much Rent Can Be Increased in Colorado?
As of 2022, there is currently a state-wide ban on rent control under C.R.S. 38-12-30. This means landlords can raise rent by any amount. For example, your rent might be $1,200 paid according to the terms and conditions of your lease. When your lease is about to expire, your landlord can increase your rent by $20, $200 or $500 if they choose so.
Despite the lack of rent control, there are still exceptions landlords and renters need to be aware of in regard to rent increases.
One of these exceptions is in regard to low-income housing. The landlord for these residences must comply with guidelines set by governing authorities. Any rent increase must align with the Area Median Income (AMI). This amount varies from one location to another. In these instances, rent is not determined by your income but rather the median income of the area. Increases of rent by around 1% are not uncommon in these types of housing situations.
Section 8 Housing
For Section 8 Housing where the government pays one-third of your rent, you should only see rent increase if your income increases.
Under Colorado law, landlords may raise rent by any amount they deem. A tenant may see significant increases, sometimes as much as hundreds of dollars. The landlord, however, must provide acceptable notice for any increase in rent. That notice period can be found in the lease agreement, or if the lease agreement is unwritten, must be at least 60 days. During this period, the tenant should make the necessary adjustments to their own budget or find more sustainable accommodations. There are exceptions when it comes to low-income and Section 8 housing, but these stipulations are true in most cases.
If you are interested in finding a new place to live—or thinking about leasing your property—contact Henderson Property Management & Real Estate. One of our representatives will be happy to help you.