Reasonable Limits on Rental Application Fees

Press Release (April 21, 2017)

The House gave initial approval this morning to a bill by Reps. Chris Kennedy and Dominique Jackson that would protect renters from unnecessarily high rental application fees.

“Some landlords are using rental application fees as a source of profit, rather than to simply find good tenants,” said Rep. Kennedy. “By limiting these fees to actual costs and ensuring tenants aren’t charged when they aren’t even screened, we’re giving more people a chance to find rental housing without going broke.”

“This is a commonsense move to ensure that landlords only charge the actual cost of screening applicants and that they give a receipt to potential tenants,” said Rep. Jackson, D-Aurora. “It’s expensive to move and Coloradans shouldn’t have to pay inflated and unnecessary fees.”

HB17-1310 puts practical limits on the application fees that renters face as they search for their next rental home. The bill keeps application fees to the price of what is necessary to screen residents—such as credit reports, reference checks or tenant screening reports—and ensures the fee is refunded if the applicant is never screened.

The bill is part of a five bill package to help Coloradans access and retain affordable homes for purchase and rent. It now continues to a third reading recorded vote.

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