Earlier this year, the Denver City Council passed a law that requires local landlords to obtain long-term rental licenses within the next few years. However, the new law has also sparked vocal opposition from landlords and renters over how it will impact them financially.
Partnering with a property management company can help landlords stay compliant and profitable.
The New Requirements
According to the new law, an owner renting out a building with two or more units (like a duplex) must be licensed by January 2023. Owners of single-family homes need to be licensed by January 2024.
The first step in getting your rental property licensed is getting it inspected by a certified home inspector. For multi-unit properties, 10% of the units must be inspected at random.
- Application fees range from $50 to $500 depending on the number of rental units in the building.
- Starting in 2022, landlords must provide new tenants with their rights, resources, and a copy of the lease within 70 days.
- The new law contains detailed standards for the building’s structural integrity (walls, floors, roofs, ceilings, etc.).
- Requirements cover ventilation, lighting, electrical, plumbing, stairwells, bathrooms, and gas appliances.
- It also addresses storm drains and pest control.
- Landlords will need to renew their licenses and go through another inspection every four years.
What The Law Is Designed To Do
The law’s sponsors have said that the license requirement will hold landlords to higher standards. These higher standards will give renters more protections. For instance, a landlord can be fined and have their license sanctioned, suspended, or revoked if she violates the new law.
The city government also reported that the law would help it gather data on rental properties, their owners, and how many renters live in Denver.
What This Means For Landlords
The worst-case scenario that a Denver landlord faces under this new law is having units disqualified from the rental market. It doesn’t meet the new standards, and remodeling isn’t an option. Unfortunately, a finished basement could easily find itself in that category.
The growing expense of Denver rental management is the most pressing concern for landlords. Extra upfront costs will hit all of them to cover inspection costs, application fees, and any required repairs or upgrades. The home inspection alone can cost $150-$1000.
How A Rental Property Management Company Can Help
At Cobalt Creek Property Management, we keep up to date with new laws like this one, so you don’t have to stress over the fine print. Our team performs regular property inspections to catch problems before they become headaches. Our maintenance partners can address most minor issues, often at a discounted rate.
Get In Touch With A Denver Property Manager Today
You don’t have to confront these new challenges alone. Contact Cobalt Creek Property Management to talk with one of our expert property managers. Ask about our free cost analysis, which provides a thorough breakdown of where and how our Denver home rental management services can help you save money.