The recently adopted House Bill 25-1090 (or “HB 1090”) addresses “deceptive, unfair and unconscionable” pricing practices in consumer transactions, including with respect to residential leases in Colorado. This alert broadly focuses on the residential provisions in the new law and what multifamily and single-family landlords need to know before the law goes into effect on Jan. 1, 2026.
What’s in the Bill?
The bill’s core goal is to ensure price transparency by requiring businesses to present the full cost of goods, services or rental property as one total number—without breaking it down into separate fees or hidden charges. This total price must also be displayed more clearly than any other pricing details.
The law applies to a wide range of industries, including restaurants and food service providers, broadband internet providers and residential landlords. Each of these sectors has tailored requirements to ensure compliance. For residential landlords in particular, the bill places new restrictions on what fees can be charged to tenants.
The bill also gives consumers the right to take action if they believe a business has failed to comply. This includes stopping payment of improper fees and requesting reimbursement. Any violations are classified as deceptive, unfair and unconscionable practices—and may result in financial penalties for the business.
What Are the Disclosure Requirements?
The bill strengthens transparency requirements for residential landlords by mandating clear and prominent disclosure of the total price tenants must pay. For visual disclosures, the law specifies that pricing information must be immediately noticeable and easy to understand. This means that the disclosure must stand out based on size, contrast, placement, duration of appearance and other distinguishing factors—ensuring it remains legible and unmistakable to an ordinary person. Additionally, landlords must not offer, display or advertise the amount a tenant may pay for a rental property unless the total price is clearly and conspicuously disclosed as a single number without separating the price into individual fees, charges or amounts. The total price must be displayed more prominently than any other pricing information, ensuring tenants fully understand their financial obligations before entering into an agreement.
The “total price” refers to the maximum amount a tenant must pay for the rental property, including all fees, charges and additional mandatory costs associated with the lease, including:
- Any amount that must be paid to purchase, enjoy or utilize the rental property, and
- Any amount that cannot be reasonably avoided by the tenant.
However, certain government charges and taxes are excluded from the “total price” disclosure requirement unless voluntarily included by the residential landlord. Charges for utilities provided to a resident’s unit are also excluded from total price disclosure requirements to prevent unnecessary pass-throughs.
Residential landlords may not misrepresent pricing details, including:
- Whether a charge is refundable.
- The nature or purpose of fees or services.
- The recipient and actual price of the good, service or property for which an amount is charged.
The above information must be disclosed by the landlord prior to the signing of the lease.
What Fees and Charges Are Outright Prohibited?
- Markups on services billed to a landlord by a third-party are prohibited. However, residential landlords may include a markup or fee in a written agreement—capped at 2% of the third-party charge or $10/month, whichever is lower (but not both).
- Fees (other than for utilities provided to the unit) that increase by more than 2% over the course of a rental agreement of one year or less are also prohibited.
- Prohibited charges by residential landlords also include:
- Charges for property taxes.
- Fees for common area maintenance.
- Payment processing fees (unless at least one no-cost option is reasonably available).
- Late fees on non-rent payments.
- Fees for landlord duties (e.g., maintaining habitability).
- Charges for unprovided services.
The bill imposes strict penalties for unlawful fees, including damages and 18% annual interest if not refunded within 14 days of a tenant’s demand. Tenants may sue without prior notice, and any lease provision violating the bill is void. Leases must comply fully with HB 1090’s pricing rules.
Key Compliance Steps for Landlords Under HB 1090
To ensure compliance and avoid penalties, residential landlords should:
1. Review Current Leases – Identify fees or terms that may need to be revised.
2. Simplify Pricing – Consolidate charges into base rent where appropriate.
3. Disclose Clearly – Ensure all fees are lawful, clear and properly disclosed in advertisements, offers and the lease itself.
4. Update Lease Terms – Revise language to align with fee caps and avoid prohibited charges.
5. Offer Free Payment Methods – Provide at least one no-cost rent payment option.
6. Provide Accurate Disclosures – Share full pricing details with tenants prior to lease execution. Note: Pricing disclosures must meet specific visibility and clarity requirements, which differ for print versus audio advertisements.
When Do the Changes Take Effect?
The bill is set to take effect on Jan. 1, 2026, but it includes a clause allowing for a referendum. If no petition is filed within 90 days after the Colorado General Assembly adjourns—by Aug. 5, 2025—the bill proceeds as planned. However, if a valid petition is submitted, the bill (or parts of it) will go to voters in November 2026 and will only take effect if approved.
The bill may apply to leases active in 2026—even those signed before Aug. 5, 2025. To reduce risk residential landlords should plan for compliance ahead of the Jan. 1, 2026, effective date:
- Update leases now to reflect the bill’s rules; and/or
- Include a clause requiring compliance with changes in applicable law during the lease.
Some residential landlords may plan to increase monthly rental rates in light of the prohibition on certain separate charges under HB 1090. They should keep in mind that, while Colorado law does not cap the dollar amount of rent increases, landlords planning to raise rent must provide residents with certain prior written notice and limit such increases to once every 12 months per resident. Rent may not be increased during an active lease unless the lease expressly allows it. Landlords should also ensure they comply with any local regulations regarding residential leasing.
