NAVIGATING COLORADO’S HB24-1098: “FOR CAUSE” EVICITON LAW By Brian Allard, Lyons Gaddis

On April 19, 2024, Colorado Governor Jared Polis signed HB24-1098 into law. The new law went into effect upon Governor Polis’ signature, due to the general assembly determining the law was necessary to protect public peace, health, and safety. That law is also known as the For Cause Eviction Law and it essentially prevents landlords from evicting tenants without a valid reason. This brings new legal hurdles for landlords, particularly those who’ve been used to the old, more flexible system, whereby a notice to quit could be served on the tenant, at the end of the lease, with or without providing a reason.

Key Takeaways:

The new law requires a valid reason for an eviction and is more specific than the old notice to quit, which only required proper notice at the end of the lease. So, what counts as for cause? All of the old demand reasons are considered for cause and have not gone away. Specifically:

1. Nonpayment of Rent: If a tenant doesn’t pay rent, landlords still have grounds to serve a ten-day demand for compliance.
2. Lease Violations: The old violation’s of the lease demands also have not gone away. Such violations may include, but are not limited to, noise complaints or adding additional occupants to the premises. In some instances when there is a material breach of the lease a ten-day demand for compliance may be served. However, in most instances, landlords will have to serve a subsequent ten-day notice of the lease violation before being permitted to file an eviction action.
3. Illegal Activity: If a tenant is involved in illegal activities on or near the premises, they could also be served with a three-day notice to quit. Again, documentation is key.

Under HB24-1098, tenants will likely experience more lease violation demands from landlords, but landlords will also need to approach every issue carefully as tenants are provided with more protections and defenses under the new laws. For example, the new law requires personal service of a demand for compliance or notice and if personal service cannot be obtained on one day the landlord or process server must go back a second day and attempt personal service before posting.

But what if the tenant is not doing anything wrong and the landlord needs to obtain possession of the premises? In those cases, HB24-1098 allows for “no-fault” evictions. However, these are only permitted in certain circumstances. In addition, the landlord must provide a 90-day notice in order to be permitted to move forward with an eviction action. The specific grounds for a “no fault” eviction are:

1. Tenant refuses to sign a new lease with “reasonable terms.”
2. History of at least three non-payment of rent that are over ten days late during the tenancy.
3. Demolition or conversion of property.
4. Substantial repairs or renovations. However, the landlord must allow the tenant the option to lease the property back if the repairs are expected to last less than 180 days.
5. The landlord or family member assumes occupancy.
6. Withdrawal from market to sell. The landlord must show that the property is actually listed.

How Landlords Should Prepare

• Update Leases: Every landlord should review and revise their lease agreements to align with HB24-1098 and other new laws.
• Documentation: If you want to maintain control over your properties, it is essential to document tenant interaction, from late payments to complaints.
• Seek Legal Guidance: Understanding HB24-1098’s specifics can be tricky, so don’t hesitate to seek legal advice to avoid costly missteps.

Colorado’s HB24-1098 represents a significant shift in the landlord-tenant landscape. For landlords, it introduces new legal challenges and requires careful navigation to ensure compliance. For tenants, it offers enhanced protections but also demands greater responsibility in adhering to lease agreements. Both landlords and tenants will need to stay informed, adapt to the changes, and seek professional advice as they navigate this ever-evolving area of law.