To successfully manage a rental property in Colorado, it’s critical to build relationships, reduce tenant turnover, and navigate a legal landscape that’s more complex than many landlords realize. That’s why having a property manager who knows the local area and laws is one of the smartest investments you can make.
Community Knowledge Builds Stability
A property manager rooted in the local area understands the nuances of the neighborhood. This means knowing what types of tenants are most likely to thrive there, what local amenities appeal to them, and how to position your property to attract the right fit. A local property manager can match tenants to properties that align with their lifestyles, which leads to more satisfied tenants, fewer early move-outs, and more lease renewals.
But good relationships must continue beyond move-in day. A community-rooted manager is more likely to resolve issues quickly, communicate effectively, and create a rental experience that encourages tenants to renew rather than relocate.
Colorado Tenant Screening: What Landlords Must Know
Stepping into rental property ownership in Colorado means learning to navigate strict legal guidelines, especially when it comes to screening tenants. A local property manager can help you avoid costly missteps while ensuring fair and effective evaluation practices.
Here’s what matters:
- Rental Applications: You may request information on rental history, employment, and income, but under Colorado law (C.R.S. 38-12-701), application fees must cover actual screening costs and are non-refundable.
- Credit Checks: These fall under the federal Fair Credit Reporting Act (FCRA). You need written consent to run a report, and if you deny someone based on that information, you must provide an “adverse action notice” explaining why.
- Criminal History: Housing providers may consider criminal history, but with limitations to avoid violating fair housing laws. They cannot have blanket bans against all people with criminal records. When considering criminal history for housing, landlords should consider the nature and severity of the crime and the time since the event. They cannot consider arrests that did not lead to convictions, were sealed, or led to an expunged record.
- Privacy Requirements: Sensitive personal data, like Social Security numbers and financial info, must be securely handled, with FCRA standards guiding data usage, storage, and disposal.
- Housing Assistance Programs: Discrimination based on income source, including vouchers like Section 8, is illegal under federal fair housing laws. Applications must be inclusive and equitable, regardless of how rent is paid.
- Rejection Notices: If you deny an application, Colorado law requires written notice, especially if the decision involves a credit or background check. Transparency isn’t just good practice, it’s the law.
How Property Managers Streamline the Process
A professional property manager not only ensures your tenant screening process complies with all local, state, and federal laws, they also save you time, money, and frustration. From standardized, legally sound application forms to partnerships with compliant screening services, they take the guesswork (and risk) out of finding the right tenant.
Instead of scrambling to learn regulations and juggle applications, you get peace of mind knowing your investment is protected and your tenants are treated fairly and professionally from day one.
Looking to build long-term stability in your rental portfolio? Partner with a property manager who knows Colorado, because when your community thrives, so does your rental income. Call Black Bear Real Estate today to set up a time to talk about your rental property.