Denver Plans Long-term Rental Property License Amid Push for Greater Protections for Renters
By Robert Davis
Council President Stacy Gilmore (District 11) introduced an ordinance on Wednesday, April 14 to create a long-term rental license for landlords designed to promote healthy homes across the city.
The purpose of the ordinance is to centralize regulations for landlords and tenants of residential property, according to the ordinance’s text. Currently, Denver does not track its rental stock data nor keep records of landlords and operators.
If passed, the ordinance would require landlords to provide an executed copy of leases greater than 30 days to the city and to provide tenants with information about their rights. Tenants must also be informed of their rights and resources in cases where a landlord formally demands rental payments.
To obtain a license, landlords would need to have a certified private home inspector inspect their units before applying. Parcels with two or more rental units will be required to have at least 10% of their units inspected at random. These provisions mirror Boulder’s rental license model.
Last year, Denver’s Department of Public Health and Environment – which oversees the city’s residential habitability standards – received 1,268 substandard living complaints. That total has grown by 20% since 2017, according to the agency’s data.
However, the new license would only apply to parcels of land, not individual units. The ordinance says this approach is meant to create more equity and streamline both the implementation process and fee collection.
The ordinance is co-sponsored by Councilwoman Robin Kneich (At-Large) and Council President Pro Tem Jamie Torres (District 3).
The stakeholder group includes the City of Boulder, Elevation Community Land Trust, and the Colorado Coalition for the Homeless.
“This code shall be construed to ensure public health, safety, and welfare insofar as they are affected by the continued occupancy and maintenance of these structures and premises. In the future, efficiency standards for rental properties to ensure emission reductions, improved indoor air quality and affordability of rentals for tenants and landlords may be implemented into these provisions,” the ordinance reads.
According to data from Denver’s assessor’s office, the ordinance would apply to approximately 37% of the city’s housing stock that is currently rented – or around 520,000 properties. This includes 19% of single-family homes, 38% of condos, and 26% of rowhouses.
Phase 1 is expected to go into effect on January 1, 2022. It will open rental licensing for all dwelling units on a given parcel.
Phase 2 will go into effect the following year and require landlords who offer, provide, or operate two or more rental dwellings to be licensed. Examples include apartment buildings, condo units, and rowhome units.
Phase 3 will require landlords who offer a single rental unit on a given parcel to be licensed. This includes single-family homes and ADUs.
These licenses will be renewable every four years unless property ownership changes.
Application fees for the license will vary by property type, according to the plan. Early licensing during Phase 1 will be $25 but can be cut in half during the early phase. Phases 2 and 3 will require a $50 application fee.
Similarly, license fees will be assessed depending on the number of units a rental property offers. Single dwelling units such as apartments will have a $50 license fee, while a building offering 250 or more units will pay a $500 license fee. These fees are refundable if the license is not approved.
Building types that are exempt from these regulations include on-campus college housing, boarding homes, short-term rentals, and commercial lodging such as hotels. This includes new builds that are less than four years old.
Affordable housing developments where 80% or more of the units are income-restricted must show proof of inspection, even those owned by a 501(c)(3) nonprofit organization.
The plan was announced amid a concerted effort by City Council and state lawmakers to increase legal protections for renters across the state.
Councilmembers Candi CdeBaca (District 9) and Amanda Sawyer (District 5) are working to build on the city’s eviction legal defense program from 2018. The proposal would limit protections to renters earning up to 80% of the city’s median income—approximately $60,000 per year.
It would also establish a new office within the Department of Housing Stability that would be responsible for overseeing the problem.
Meanwhile, state lawmakers are debating Senate Bill 21-173, which would provide renters with a legal avenue to seek recourse against a landlord for an illegal eviction. It also prohibits rental agreements from containing provisions that would shift fees from landlords to renters.