How often have you looked at your hotel bill and seen additional charges like “internet access fees” or “on-site parking”? Guests are often surprised since these costs aren’t mentioned outright, and people end up paying more than they anticipated.
Hospitality businesses in Colorado are now mandated by the Protections Against Deceptive Pricing Practices law to disclose all non-avoidable fees to customers, and guess what? This applies to residential rental properties too.
Key Highlights:
- The new law took effect January 1, 2026. HB25-1090, Colorado's "Protections Against Deceptive Pricing Practices" law, requires landlords to disclose the full, all-in price of rental housing before a tenant signs. No more surprise fees added after listing a low base rent.
- Six major fee practices are now restricted. Landlords can't hide mandatory fees from advertised prices, bill CAM charges separately, overcharge for utilities, charge for services they're already legally obligated to provide, or collect non-refundable pet deposits without clear disclosure.
- Violations carry real financial penalties. Tenants can send a written demand for reimbursement of any unlawfully charged fee, and landlords must refund it within 14 days — or face actual damages plus 18% annual compounding interest.
- The law's retroactivity is unclear. HB25-1090 doesn't specify whether it applies to leases signed before January 1, 2026, so the safest approach for landlords is to treat all current and future tenants as covered.
- Compliance is straightforward with the right audit. Reviewing fee structures, updating lease language, and keeping utility billing records are the main steps landlords need to take to avoid violations — and doing so proactively builds tenant trust.
What is the ‘Junk Fee’ Ban?
Officially titled “Protections Against Deceptive Pricing Practices,” Colorado now prohibits rental property owners from offering, displaying, or advertising pricing information for a good, service, or property unless the total price is disclosed.
With the passage of House Bill 25-1090, which took effect January 1, 2026, tenants are now better protected from deceptive practices some landlords use in advertising, utility billing, payment processing, and even how security deposits and pet fees are handled.
Specifically for landlords, you can no longer require a tenant to pay certain fees or charges, or include amounts in a written lease agreement, unless you refrain from using “deceptive, unfair, and unconscionable acts” in pricing.
Violating the act can result in penalties, and your tenant can send a written demand for reimbursement of any fee, charge, or amount unlawfully imposed. You must then refund the amount you charged within 14 days. If you fail to do so, you'll owe actual damages plus 18% interest, which can compound annually.
How You Can Ensure Compliance
Specific practices are now banned under the new law, which actually works in your favor. It means you have a clear framework to follow to avoid violating Colorado's new junk fee ban.
Advertise the Full Price
Avoid posting the bare-bones base rent on rental websites or social media platforms. The law now requires you to include mandatory amenity fees, parking, or administrative fees later in the leasing process. You don’t necessarily have to include it in the listed rent price, but make sure all fees are included and clearly visible in the description.
Include Common Area Maintenance
You can’t pass through common area maintenance (CAM) charges as a separate line item, so you must bill tenants transparently by including upkeep fees for shared space like lobbies, hallways, or landscaping.
Don’t Charge More Than Utility Costs
Whether utilities are billed individually or split among tenants, the total charged can't exceed what the landlord actually paid the utility provider. Keep records of your bills so you can provide proof when a tenant asks, especially if they dispute the total utility cost under the new law.
Avoid Fees for Legal Obligations
As the landlord, you must provide certain things to your tenants, such as routine inspections and regular maintenance. Under Colorado law, you can't charge for basic upkeep unless you find damage during inspections. You can then either charge them for repairs or deduct the costs from the security deposit.
No Non-Refundable Pet Deposits
If you have a pet-friendly rental property, tell your tenants how much you are charging and that it is fully refundable if there's no pet damage beyond normal wear and tear. Failing to disclose this, even without the new junk fee ban, is a violation of security deposit laws, so make sure you are transparent about these fees.
Audit Your Fee Structures
Review each recurring or one-time charge to confirm it reflects an actual, documented cost rather than a revenue add-on. If you find inconsistencies, rewrite your lease agreement and rental listings to reflect the total costs of renting your property. Pay close attention to utilities, CAM charges, pet deposits, and payment processing methods.
Does the New Law Apply to New Leases?
This is one of the murkier aspects of HB25-1090. Since it does not state whether it applies retroactively to leases signed before January 1, 2026, it is generally recommended that you assume that the law applies to all current and future tenants.
Beyond being safer, it also builds goodwill with tenants, which can boost resident satisfaction and strengthen your rental business's brand. Abiding by the new law isn’t just for the sake of legal compliance, but also to ensure that you won’t face disputes down the road concerning rental fees.
FAQs
Q: What counts as a "junk fee" under Colorado law?
A: Any fee that isn't disclosed upfront, doesn't reflect an actual cost, or is added on after a tenant has already seen an advertised price. The law targets hidden or unjustified charges, not fees in general. Landlords can still charge for legitimate services as long as they're transparent about them.
Q: Can I still charge fees for amenities, parking, or pet deposits?
A: Yes. The law doesn't ban these fees outright. It requires that you clearly disclose them before a tenant signs a lease and that they reflect an actual cost or service, rather than being buried in the fine print or added after the fact.
Q: What happens if I accidentally violate the law?
A: A tenant can send a written demand for reimbursement, and you have 14 days to refund the fee. Failing to do so within that window exposes you to actual damages plus 18% annually compounding interest, so prompt correction matters.
Ensuring Compliance For Every Rental Law
The rental industry's legal landscape is intricate, and with new laws being enforced, it’s more important than ever to stay updated. A partner with their ear to the ground can help you stay informed on current requirements for your rental property.
That’s where Integrity Realty Management comes in. We eliminate the stress of rental property ownership so you can focus on growing your business.
Contact us, and let’s make an arrangement that works for you!
More Resources:
Avoid These 10 Costly Mistakes New Colorado Renters Make
Colorado Renters: Uncover Hidden Fees & Protect Your Rights Now