Colorado Fair Housing Act: An Overview

Key Takeaways

• Colorado’s Fair Housing Act prohibits housing discrimination based on numerous protected classes, including additional protections like those for domestic violence survivors.
• Landlords must avoid discriminatory actions—such as unequal lease terms, biased screening, or failing to accommodate disabilities—to comply with the law and avoid legal penalties.
• To ensure compliance, landlords should use objective screening criteria, maintain consistent lease terms, and avoid making assumptions or asking questions based on protected characteristics.

To attract and retain a quality tenant in your Colorado rental, you need to treat them fairly as per the Fair Housing Act (FHA). The act requires property owners to treat tenants fairly, equally, and respectfully regardless of their protected classes. 

The act applies to various facets of the landlord-tenant relationship from the initial interaction during screening, to the end of the lease, and everything in between. The FHA applies to landlords, home sellers, mortgage lenders, housing developers, and insurance brokers, but with different legal standards. 

Discriminating against a tenant, whether intentionally or otherwise, can be costly to your bottom line. To avoid potential discrimination lawsuits, it’s best to familiarize yourself with the basics of the FHA. This guide by TJC Real Estate and Management will provide you with an overview of Colorado’s Fair Housing policies. Here’s everything to know about the Act in Colorado!

Federal Fair Housing Act 

The FHA is a crucial piece of legislation that seeks to eliminate housing discrimination based on select characteristics. The Act became law on April 11^th, 1968. Then, it made discrimination based on race, color, religion, and national origin illegal. Subsequent amendments some years later expanded the list of protections to include sex, religion, familial status, and disability. 

In Colorado, additional Fair Housing protections include protection for victims of domestic violence and survivors of stalking.

Discriminatory Actions and Penalties in Colorado 

It’s the Colorado Civil Rights Division that investigates potential cases of housing discrimination at the state level, while the Department of Housing and Urban Development (HUD) handles federal law violations. 

If a landlord is found liable for discrimination, they will order a corrective action to be taken. This may involve the landlord paying damages to the tenant or requiring them to change their policies. The following are some of the actions that the department may flag as discriminatory against a tenant belonging to a protected class:

Refusing Qualified Tenants

Refusing a qualified tenant the opportunity to rent your property just because of their protected class. If a rental unit is available, a tenant passes the screening process, and meets objective rental criteria applied consistently, you may accept them. However, landlords are not required to rent to every applicant who meets the criteria, as long as their decision is not discriminatory. 

Setting Different Lease Terms

Providing a tenant belonging to a protected class with different terms and conditions. For instance, requiring a tenants of one race to pay more in rent and charge a higher security deposit than others. 

Demonstrating Retaliatory Practices 

Retaliating against a tenant who has exercised a legal right is illegal under the Fair Housing laws. For example, you cannot retaliate against a tenant by carrying out an eviction because they reported you to a local health agency. 

Showing a Preference in Rental Ads

You cannot use language that shows a preference or bias towards any tenant demographic. Your rental listings should only highlight the properties best features and surrounding neighborhood amenities. 

Asking Improper Questions During a Screening

You must only ask relevant questions during a tenant screening. For instance, you may ascertain information regarding their credit score, employment history and perform a general background check. The ancestry or any other protected characteristic of a tenant must not be used as a basis for housing qualification in Colorado.

Not Providing Accommodations 

Failing to provide disabled tenants with reasonable accommodations is illegal. The Fair Housing Act provides rights to disabled tenants in private housing. The Americans with Disability Act primarily applies to public accommodations and government-owned housing. It’d be illegal for landlords, for example, not to allow a disabled tenant to keep their service animals even if there is a no-pet policy in place. 

Tips on How to Comply with the Fair Housing Act

As a landlord, the following are some tips to keep in mind when it comes to the FHA in Colorado:

Understand All Elements of the Law

Make sure you adhere to all applicable Fair Housing laws, from the federal, state, and local levels. You must also remain up-to-date on any changes to these laws. 

Develop and Enforce a Solid Lease

Draft a proper rental agreement and apply it consistently across all tenants regardless of their protected classes. For instance, if charging a fee on late rent payments for one tenant, make sure you do the same for all the other tenants. 

Don’t Ask Invasive Questions

Avoid questions based on a tenant’s protected class. For example, don’t ask how many children the tenant has, whether they’re pregnant, or from what nationality they are from. 

Avoid Discriminatory Advertising

When drafting your rental ad, make sure it has neutral language. Only describe the rental property and surrounding neighborhood, not the kinds of tenants you’re hoping to rent to.

Establish Objective Screening Criteria

Set clear and objective criteria for screening. It’d be discriminatory, for example, to require one applicant to provide their credit history and not require the others to do the same.

Treat All Applicants Equally

Provide all tenants with the same level of service and information. Making assumptions or stereotypes could land you in potential legal trouble. 

Make Accommodations and Modifications 

Provide disabled renters with reasonable modifications and accommodations. If a disabled tenant makes a reasonable request, consider granting it, especially if it’s going to be at their cost. 

Bottom Line 

Complying with the Fair Housing Act, as well as other landlord-tenant laws isn’t optional. Doing so protects your reputation as a landlord and ensures that your rental business can continue to thrive

If you would like help managing your rental properties, work with a trusted property manager. TJC Real Estate and Management is a full-service property management company that specializes in helping landlords manage their rentals successfully in the Greater Denver area. Reach out now to get started! 

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.