Denver Metro Rental Market & Colorado Law Update: 2025–2026
This update is intended to keep you informed about what occurred in the Denver Metro rental market over the past year and to help you prepare for the year ahead. The rental environment has shifted significantly over the last two years, making it increasingly important for owners to stay current. We actively monitor legal and regulatory changes affecting property management, and while we do this daily, we recognize the value in sharing that information more transparently with you.
This update is thorough and, admittedly, not the most exciting read — but it reflects the knowledge we rely on to guide pricing, compliance, and strategy for your property.
Market Overview: A More Balanced Phase
As we close out 2025 and look ahead to 2026, the Denver Metro rental market has entered a more balanced phase following several years of rapid rent growth.
Throughout 2025, multifamily properties experienced the most noticeable adjustment. Local reporting highlighted that Denver saw some of the largest apartment rent declines among major U.S. metros late in the year. This change was driven largely by a significant increase in apartment supply. As new units were delivered across the metro area, renters had more choices, vacancy rose, and competition among landlords increased.
In response, many apartment communities relied on concessions and move-in incentives to attract tenants, which reduced net effective rents even when advertised rents appeared relatively stable. Importantly, this shift reflects a supply-driven market correction rather than a drop in renter demand.
Single-Family Rentals: Steadier but Evolving
Single-family rentals generally performed more steadily than multifamily properties, though they were not immune to broader market softening.
Higher interest rates kept many would-be buyers in the rental pool, supporting demand for single-family homes. Well-maintained properties in desirable locations continued to lease, but tenants became more price-conscious, and days on market increased modestly compared to prior peak years. Overall, single-family rentals proved more resilient, but success required more thoughtful pricing and presentation than in recent years. We expect this trend to continue well into 2026.
Colorado Legislative Changes Effective January 1, 2026
In addition to market changes, Colorado’s 2025 legislative session introduced several laws that significantly impact property management. Most of the laws described below take effect on January 1, 2026.
Letty’s Act (HB25-1108)
Letty’s Act clarifies what landlords may and may not charge when a lease ends early due to the death of a tenant.
What this means for owners: Leases must allow for a clean, penalty-free termination in these circumstances while still protecting your right to recover for actual property damage.
Pet Ownership and Insurance Changes (HB25-1207)
This law limits breed-based restrictions and prohibits insurance companies from denying coverage or raising premiums based solely on a dog’s breed. Publicly financed affordable housing developments receiving state financing after January 1, 2026, must allow tenants to keep up to two common household pets under reasonable management standards.
What this means for owners: Pet policies must emphasize behavior, safety, and reasonable controls rather than breed or weight alone.
Portable Tenant Screening Reports (HB25-1236)
Landlords must accept qualifying portable tenant screening reports prepared by consumer reporting agencies. For tenants using a housing subsidy, portable reports may exclude credit history or a credit score.
What this means for owners: Application and screening procedures must be updated to accept qualifying portable reports.
Expanded Enforcement Authority and Receivership (SB25-020)
This bill increases the Colorado Attorney General’s ability to enforce residential housing laws and introduces a receivership process for properties with documented neglect affecting health or safety.
What this means for owners: Preventative maintenance, timely responses, and accurate documentation are more critical than ever, especially in multifamily properties.
Housing Subsidy Protections (HB25-1240)
Discrimination based on housing subsidies is unlawful, and landlords must meet specific timelines for communication and documentation with applicants or residents using rental assistance.
What this means for owners: Screening, communication, and documentation must be consistent, cooperative, and well-documented to reduce fair-housing risk.
Expanded Anti-Discrimination Remedies (HB25-1239)
This law broadens remedies available for disability and housing discrimination claims, including non-economic damages and statutory penalties.
What this means for owners: Fair housing compliance is more important than ever, as penalties for violations have increased.
Price Transparency and Fee Disclosure (HB25-1090)
Landlords must clearly disclose the total cost of housing — including rent and any mandatory fees — at the time a unit is advertised or offered.
What this means for owners: Rental listings and lease disclosures should be updated to ensure full price transparency.
Victim-Survivor Housing Protections (HB25-1168)
This law expands documentation options and protections for tenants who are victim-survivors of domestic violence or similar situations. It includes repayment plan requirements and limits on liability after lease termination.
What this means for owners: Careful documentation, timely communication, and strict compliance are essential when these protections apply.
Security Deposit Updates (HB25-7249)
Security deposit laws now expand tenant protections, clarify “normal wear and tear,” and strengthen inspection and documentation requirements.
What this means for owners: Move-in and move-out documentation must be thorough, and deposit deductions should be proportionate and well-supported.
Vehicle Booting Regulations (HB25-1117)
This law imposes notice requirements and documentation standards on vehicle immobilization companies and expands vendor oversight.
What this means for owners: Parking enforcement must follow stricter rules, and only compliant vendors should be used.
Emergency Access Liability Protection (HB25-1053)
Landowners are provided limited liability protection for allowing first responders to access their property in an emergency.
What this means for owners: Emergency access can be granted without increasing legal exposure when done in good faith.
Final Thoughts
We maintain a strong conviction in the long-term viability of real estate investments and believe disciplined, transparent property management is essential to creating sustainable value for owners and tenants.
If you would like to understand how these market conditions and new laws apply specifically to your property, we encourage you to schedule a property review. We can assess pricing, leasing strategy, compliance readiness, and upcoming renewals to help you enter 2026 with clarity and confidence.
As always, our goal is to protect your investment, reduce risk, and deliver an Unmatched Experience for both owners and residents.
From all of us at Walters and Company Property Management, thank you for the opportunity to work with you. We look forward to serving you now and in the years ahead.
Contact
Call us: (720) 357-6655
Email: rent@rentgowalters.com
Visit: www.rentgowalters.com
