HB25‑1090: How the New Colorado Junk Fee Law Impacts Denver Property Managers (Investor Guide)

If you own rental property in Denver, you probably do more than just charge base rent. Many landlords also add extra fees for things like trash service, amenities, parking, or administrative costs. These fees help cover real expenses associated with running a property and often make the advertised rent look more affordable. Under HB25-1090, or the “Protections Against Deceptive Pricing Practices,” that model has changed. 

As of January 1, 2026, the Colorado junk fee law is officially in effect. It changes how rent must be advertised, how extra fees can be charged, and how leases are written. It directly affects how the total cost of renting must be presented to tenants from the very beginning of the leasing process.

HB25-1090 represents one of the most significant changes to rental fee rules Colorado has seen in decades. The law targets fees that traditionally appeared later in the leasing process, including administrative charges, processing fees, and other add-ons that often caught tenants off guard. Legislators refer to these as "hidden" or "junk" fees. Moving forward, prices must be upfront, clear, and complete. 

For landlords and other investors, the stakes are high. HB25-1090 ties rental pricing directly to Colorado’s consumer protection rules. That means confusing or misleading pricing can require landlords to issue refunds, pay damages, and cover legal costs. At the same time, the law creates opportunity. By making your pricing, advertising, and lease language more transparent, you can protect your rental income and build better relationships with tenants. 

This article breaks down the Colorado junk fee law in detail. It explains what HB25-1090 requires, which fees are affected, and how Denver landlords can adjust pricing and leases to stay compliant without sacrificing profitability.

Understanding HB25-1090: The Shift Toward Rental Fee Transparency

The Colorado junk fee law was passed after lawmakers kept hearing the same complaints from renters across the state. Tenants would see an advertised rent that looked affordable, then watch the total cost rise as they moved forward in the leasing process. Application fees, administrative charges, and required service packages were often added later, and what once seemed like a reasonably priced unit quickly became much more expensive. 

The Legislative Intent Behind the Junk Fee Ban

The point of the Colorado junk fee law is not to cap rent prices or tell landlords what they can charge. It is meant to ensure that the price tenants see in an ad or lease reflects the real cost of living in the unit. During hearings, legislators cited examples of apartments listed at one price that ended up costing hundreds of dollars more per month once all mandatory fees were included.

Sponsors of the bill argued that this pricing approach was unfair. When some properties advertise a low base rent and add fees later, it becomes difficult for renters to accurately compare options. It also puts landlords who already price transparently at a disadvantage. 

While drafting HB25-1090, legislators had the following goals: 

•  Eliminating surprise charges that appear after tenants have invested time and money in the application process

• Creating a level playing field where landlords compete based on total monthly cost rather than artificially low base rent
• Reducing disputes and legal claims caused by unclear or misleading fee structures
• Improving housing affordability awareness by helping renters accurately compare rental options

The law does not prohibit landlords from charging for legitimate services or recovering real operating costs. Instead, it requires those costs to be disclosed upfront and, in many cases, included in the advertised rent rather than added later in the process. 

Key Definitions: What Qualifies as a Junk Fee?

HB25-1090 uses a broad definition of junk fees, which is where many landlords and property managers start to run into trouble. The law does not focus on what a fee is called. Instead, it focuses on two specific questions: 

1. Is the fee required in order to rent the unit?
2. Was the fee clearly disclosed when the unit was advertised? 

If the answer to both questions is ‘yes’ and ‘no’ respectively, that fee is likely to be considered a junk fee. The same is true for fees that are disclosed but priced well above the actual cost of the service being provided. 

Certain kinds of fees tend to raise red flags more often than others, including: 

• Rent payment processing fees, especially when electronic payment is the only realistic way to pay rent. 
• Administrative charges for lease preparation, renewals, or account setup. If these fees are flat charges that do not reflect real staff time or actual cost, they raise compliance concerns.
• Mandatory amenity or service packages, including bundled charges for gyms, lounges, pools, shared spaces, or other services that tenants cannot opt out of. If every tenant pays the fee, it’s considered part of rent.
• Trash or utility-related fees that exceed the actual cost of providing the service.
• Technology, portal, or “resident services” fees that are required to pay rent, submit maintenance requests, or communicate with management.

These fees are not automatically illegal, but they are closely scrutinized. If they are mandatory, predictable, and not connected to real costs, they create compliance risks.

The Colorado junk fee law also draws an important distinction between optional and mandatory charges, and this is where wording alone isn’t enough. 

• Optional services are charges a tenant can decline without affecting their ability to rent the unit or remain in good standing under the lease. An example would be an optional covered parking space or valet trash versus a self-service system. 
• Mandatory charges are fees the tenant must pay regardless of choice.

Mandatory charges must be included in the total advertised rent. Calling a fee “optional” in the lease doesn’t make it optional under the Colorado junk fee law. If a tenant does not have a real choice, the law treats the charge as mandatory for compliance purposes.

A good rule of thumb is this: if every tenant pays the fee and the amount is known ahead of time, it should be treated as rent for advertising and disclosure purposes under HB25-1090.

Mandatory Disclosure Requirements for Denver Landlords

The disclosure rules are where HB25-1090 creates the most work for landlords. The Colorado junk fee law requires consistent pricing at every stage of the leasing process, including listings, conversations, applications, and leases. 

Upfront Pricing and Total Cost of Lease Agreements

Many rental vacancies are filled through advertisements, and those listings must now show the total monthly amount a tenant is required to pay, including all mandatory fees. Advertising a unit at $1,500 is no longer acceptable if the real monthly cost is $1,650 once required charges are included. 

Leases should itemize every charge, including:

• Base rent 
• Required monthly fees and their purpose
• One-time move-in charges
• Deposits and refund terms
• Potential fees that could apply in the future

Under the Colorado junk fee law, tenants must understand the full monthly cost of a unit before paying any application fees. Springing on additional charges after the fact can get you in trouble. 

Advertising Regulations for Rental Listings

HB25-1090 applies to all rental advertising, including online listings, property websites, yard signs, and print materials. Wherever a price appears, it must represent the total monthly cost. Pricing must also be easy to find and clearly presented. If tenants need to search through fine print or multiple pages to understand the real cost, the listing is likely not compliant.

Third-party listing platforms can make this more challenging, since many still default to base rent pricing. Until those systems fully adapt, landlords may need to manually adjust how prices are displayed.

The law also prohibits bait-and-switch pricing. If a unit is advertised at a certain price, that price must be available for a reasonable period. Advertising a low price to attract interest and then steering tenants to higher-priced units violates the Colorado junk fee law.

Prohibited Fees and Restricted Revenue Streams

Even if you already price your rental correctly, don’t tune out just yet. The Colorado junk fee law does more than require clear pricing. It also limits which fees landlords are allowed to charge and how those fees can be structured. Some charges that were long considered standard in Denver rentals now face strict limits or are no longer permitted at all, and that matters for your bottom line.

Under HB25-1090, restricted or prohibited charges include separate CAM line items, mandatory amenity fees, property tax pass-throughs, late fees on non-rent charges, padded mark-ups above actual cost, and fees for services that are never actually provided. 

Administrative and Application Fee Limitations

Application fees are still allowed, but only up to the actual cost of processing the application. For example, if a background check costs $25 and staff time is minimal, charging a $200 application fee is no longer defensible. Administrative fees are treated similarly. Charges for renewals, lease preparation, or document handling must be reflective of real work and real cost. Flat fees are unlikely to hold up. 

If you continue to charge these types of fees, be prepared to justify them if questioned. Keeping basic records of screening costs and processing time can demonstrate compliance. 

The law also prohibits several practices, such as:

• Charging application fees to multiple applicants when only one unit is available and there is no intention of considering all applicants 
• Keeping application fees non-refundable when the application is not processed within a reasonable time
• Charging administrative fees for services already covered by base rent. 

Hidden Monthly Surcharges and Convenience Fees

Legislators focused heavily on recurring monthly surcharges when drafting the Colorado junk fee law. Fees for services like pest control, common area maintenance, or building amenities must now be included in rent if tenants are required to pay them.

If a charge applies to every tenant and the amount is predictable, it can no longer appear as a separate line item. Under HB25-1090, those costs are treated as part of rent.

Payment convenience fees face the tightest restrictions. If electronic payment is the only realistic way to pay rent, any related fee is considered mandatory and is not allowed. Offering alternatives that exist on paper but are impractical does not meet the law’s standard.

There is a limited exception. If tenants can pay by check at no cost or choose electronic payment for a small, reasonable fee, that charge may still be permitted. The option must be genuine. Charging a high processing fee for checks while offering free electronic payment does not qualify as a real choice.

Operational Adjustments for Property Management Firms

Complying with HB25-1090 requires more than updating a lease or tweaking an ad. For most landlords and property management firms, it means making operational changes to systems, workflows, and staff training. When pricing is handled one way in marketing, another way in leasing conversations, and a third way in the lease, that inconsistency creates risk. 

In practice, this often means updating accounting systems and general ledger coding for fees rolled into rent, revising leasing scripts so pricing is explained consistently, and ensuring maintenance and billing teams are no longer passing improper costs back to tenants. 

Updating Lease Templates and Marketing Collateral

Start with your lease templates. Every version you use should be reviewed before the next signing. Pay close attention to fee language and look for charges that may no longer be allowed, need to be rolled into rent, or need better explanations. Fixing these issues early is far easier than resolving disputes later.

Marketing materials need the same level of attention. This includes website listings, property management software outputs, third-party listing platforms, social media posts, email templates, and any printed materials. Anywhere a price appears is a potential compliance issue if it does not reflect the total monthly cost, even if it’s outdated in just one place. 

To keep things manageable, many firms are making a few practical changes:

• Creating a standardized fee disclosure that accompanies every listing
• Adjusting software settings to display total monthly rent instead of base rent
• Adding a review step before listings go live
• Updating pricing across all platforms at the same time

In many cases, simplifying fee structures actually makes operations easier. Fewer separate charges mean fewer things to explain and fewer chances for mistakes.

Training Staff on Compliance and Consumer Protection

Staff training is equally important as updating documents. Anyone who speaks with prospective tenants should understand how pricing must be explained under the Colorado junk fee law. That includes leasing agents, property managers, and any staff who answer questions during tours or over the phone. 

Training should focus on what must be disclosed, when it must be disclosed, and how to describe fees. Staff should understand which fees require backup documentation and where to find that information if a tenant asks. 

Walking through real-life scenarios can help. Practicing how to respond when a tenant asks about fees before applying or during a tour makes conversations more consistent and reduces confusion. 

It’s also essential to keep a record of your training. If a pricing concern ever comes up, being able to show that your team was trained on the rules helps show good faith and reduces risk. 

Enforcement Mechanisms and Legal Risks of Non-Compliance

HB25-1090 is not a best practice or guideline. It is an enforceable law, and violations are treated as consumer protection issues. That matters because pricing mistakes are no longer just leasing problems. They can now turn into legal and financial issues. 

The biggest mistake you can make as a landlord is assuming that minor errors will be overlooked. Under the Colorado junk fee law, even small pricing inconsistencies can create risk if they affect how rent is presented to tenants. 

Penalties and Fines Under Colorado Consumer Law

Enforcement can come from more than one place. Tenants have the right to challenge unlawful fees or misleading pricing. Many issues start with a request for a refund or correction. If problems are not fixed, state enforcement is also possible. 

The Colorado Attorney General has the authority to investigate deceptive pricing practices, especially when the same issue shows up across multiple units or properties. A single mistake may not stand out on its own, but repeated issues across listings or leases can draw attention.

The cost of non-compliance can go beyond refunding a fee. Under Colorado’s Consumer Protection Act, penalties can add up. Landlords may be responsible for: 

• Refunding improperly charged fees
• Paying statutory damages if issues are not corrected after notice
• Owing up to 18% interest on refunded amounts
• Covering a tenant’s attorney’s fees if the tenant wins
• Facing broader claims when the same fee appears across multiple leases

For owners with more than one unit, lawsuits can be particularly costly. Still, legal penalties are only part of the risk. Fee disputes can also lead to unhappy tenants, negative reviews, and higher turnover. Staff time gets pulled into handling complaints instead of managing properties. 

In a competitive rental market like Denver, reputation matters. Clear pricing improves tenant trust and prevents many of these issues from coming up in the first place. 

Strategic Recommendations for Protecting Investment Returns

The Colorado junk fee law doesn’t mean your returns have to take a hit. HB25-1090 changes how pricing is presented, not whether landlords can profit. The landlords who navigate these new rules successfully tend to be proactive.

A smart place to start is with a fee audit. List every charge you pass on to tenants and sort them into two categories: 

1. Mandatory fees: Fees that tenants are required to pay and will need to be included in rent
2. Optional fees: Fees that tenants can genuinely decline and must be priced close to the actual cost

From there, focus on adjusting pricing rather than cutting income streams. If you used to charge a monthly admin or service fee, rolling that amount into rent preserves your income and keeps the tenant’s total monthly cost the same, while staying compliant with HB25-1090.

Transparent pricing can also work in your favor, especially when you advertise your properties with "no hidden fees." Many tenants are tired of surprise fees and confusing listings. When your ads show the real monthly cost upfront, you tend to get fewer questions, fewer disputes, and smoother lease signings. 

This is also a good time to review vendor costs. Services like trash, pest control, or software platforms should reflect what they actually cost. Small changes here can help protect your margins. 

If you own multiple properties or prefer not to manage compliance yourself, working with an experienced property management company like Evernest can make this transition much easier. Our team stays up to date on HB25-1090 and other local and federal laws so that your pricing, leases, and listings remain compliant as requirements evolve. Reach out to Evernest today and see how professional property management can keep your Denver rentals compliant, competitive, and performing.