Overview of Lease Termination in Colorado
When it comes to Colorado leasehold real estate, the law surrounding the termination of a lease depends on the parties’ agreement regarding the same. While there are some overarching statutory regulations that govern residential leases, the Contract, or Lease, controls with regard to how a lease is terminated. Therefore, it is always important to review the terms of the governing Lease Agreement to determine if any such provisions exist, as well as the extent to which the Lease may provide notice provisions that go beyond those provided by statute. Absent written agreement of the parties regarding termination, the statutory ability to terminate a residential Lease is typically dependent on whether the Agreement is month-to-month or for a longer term. Ordinarily, a Lease for a period longer than a month, and up to one year is terminable by providing at least 60 days’ notice prior to the expiration of the Lease in order to avoid its automatic extension. For tenants occupying a residence for an indefinite period of time, the Lease is a month-to-month arrangement , and the terminating party (tenant or landlord) is required to provide at least 10 days’ notice (unless the parties have agreed in writing to different notice provisions). A tenant that commits any material breach, including failure to pay rent or other occupancy expenses when due, may be required to comply with a written demand for compliance before the tenant can be evicted. A breach that materially violates the Lease, but which is not willful or persistent may require the landlord to provide a written demand for compliance before an eviction notice may be issued to the tenant. Such eviction notice should provide the tenant with at least 10 days’ notice to comply after a written demand for compliance is provided. Leases that are terminable by the lessor or lessee following a specified period of time are generally construed to mean that the lessor is required to provide notice of termination to the lessee at least as many days as there are months remaining in the term (meaning a six-month notice for Leases for a term of six months or more). Notice from the lessee to the lessor requires at least that number of days’ notice in advance of the date that a subsequent payment for occupancy expenses is due.
Legal Reasons for Lease Termination
Both lessors and lessees have a variety of legal reasons that justify lease termination in Colorado. For tenants, the most common termination ground is nonpayment of rent; however, tenants can also terminate for constructive or retaliatory eviction. Lessors, too, can terminate leases for tenant defaults, other defaults, and various statutory grounds.
For tenants, the most common grounds for lease termination is nonpayment of rent. As noted above, if two days’ rent is unpaid, a tenant is considered in default. This enables the lessor to terminate the tenancy with 3 days’ notice, unless the rent is paid within that time period. However, this termination right does not apply to commercial leases unless the parties expressly include it in the lease.
If a tenant defaults in the payment of rent, the lessor may terminate the lease and end the tenant’s privilege to occupy. Tenants have 5 days to leave once a lessor gives them a written notice stating that the rent is past due and demanding possession. In commercial leases, the tenant may be evicted before the rent due date if the lease calls for it. Failure to pay rent will also constitute a forfeiture of any damage deposit or prepayment of rent the tenant made to enter into the agreement. In such cases, the underlying security deposit goes to any damage to the leasehold.
Material breach consists of a tenant failing to comply with a material term of the rental agreement, other than failure to pay a rent owed or breach of a term that is reciprocal under the law. The lessor must give the tenant 7 days to remedy the failed obligation. If the tenant fails to do so, the lessor can serve a 3-day notice to vacate and recover possession of the property. For a lessor, this is the most advantageous ground for termination, as it generally gives a renter only 3 to 10 days to vacate the premises. In the event of an unlawful noncompliance by the tenant with the terms of the rental agreement or applicable rules, the lessor can commence an action for damages to enforce obligations or recover possession.
For commercial lessors, the most common ground for termination is when a tenant becomes a final debtor in bankruptcy or insolvency proceedings. The lessor may terminate a lease if that occurs, unless the bankrupt is still occupying the premises and violates one of the terms of the lease at least 5 days after receiving notice of termination.
The lessor may terminate a lease when notice of intent to bankrupt has been given, regardless of whether the tenant moves forward with the bankruptcy, if the lease offers the lessor the right to terminate upon bankruptcy or assignment for credit-debtor purposes.
A lessor can terminate an agreement for a lease of real property under the following circumstances: To terminate on any of these grounds, the lessor need only give the tenant a 3-day notice to vacate the premises. A tenant may also be liable for the lessor’s consequential damages that result from the tenant’s failure to pay rent, knowingly using the premises for an illegal purpose, or violating any other provision of the lease.
A lessor may also terminate a lease if the tenant has unlawfully removed or committed waste on the premises. Removal of any improvements or fixtures by the tenant that result in injury to the lessor can result in the lessor being awarded possession of the leased property. A lessor can also terminate a lease if a person other than the tenant with actual possession causes or permits any nuisance. Even if a tenant is not guilty of the nuisance, the court may award the lessor restitution of the premises if the person causing the nuisance does not vacate the premises.
Notice and Termination Procedure
The notice requirements and procedures for terminating a lease are dictated not only by the lease terms themselves, but also by state law. Thus, Colorado landlords and tenants must be familiar with current Colorado law and procedures for giving the required notices in order to be able to comply with same. The colors of the paper and font size and type, which may be required by some jurisdictions when filing pleadings with a court, are not involved.
When the lease is for a term of one year or longer, and the landlord intends not to renew the lease at its expiration, the landlord must give the tenant written notice not less than three months prior to the end of the term of the lease.
The new law no longer requires that the notice be provided in writing. As long as the appropriate time frame is followed for the type of notice, e-mail should also suffice as written notice.
Should the tenant be in default of its rental obligations under the lease, the landlord must give the tenant written notice of nonpayment of rent pursuant to 38-12-103, C.R.S. (2016), as follows:
(1)(c) The notice required by paragraph (a) of this subsection (1) shall be in substantially the following form: "Your landlord has demanded payment of rent that you have failed to make. If you fail to make payment of all past due rent within thirty days after the date of this notice, your rental agreement will be terminated. To cure the default and avoid termination of your rental agreement, you must mail or deliver to your landlord payment of the past due rent shown below within thirty days after the date of this notice (which is printed on the left side of this page). In addition, you must also pay your landlord all normal monthly rent payments that come due after the date of this notice (which is printed on the left side of this page). Your future rental payments are not included in the past due rent shown below.
It is not necessary that the past due rent and future rental payments be in the same form of payment (e.g., cash, check, etc.) Under the lease or rental agreement there may also be an additional late charge if rent is not paid on the first day of each month. This notice does not cover these additional charges."
(1)(d) The notice required by paragraph (a) of this subsection (1) shall be in substantially the following form: "Your landlord has demanded payment of past due rent that you have not made. Your rental agreement or lease is now in default. This means that your rental agreement may be terminated. To cure the default and avoid termination of your rental agreement, you must mail or deliver to your landlord payment of the past due rent shown below within thirty days after the date of this notice (which is printed on the left side of this page). In addition, you must also pay your landlord all normal monthly rent payments that come due after the date of this notice (which is printed on the left side of this page). Your future rental payments are not included in the past due rent shown below.
It is not necessary that the past due rent and future rental payments be in the same form of payment (e.g., cash, check, etc.) Under the lease or rental agreement there may also be an additional late charge if the rent is not paid on the first day of each month. This notice does not cover these additional charges."
As stated above, the landlord is only required to give the tenant thirty (30) days to cure the situation. However, the landlord may elect to be more generous by giving the tenant longer to cure the default, e.g., thirty (60) days to cure.
Although it is common for the landlord to give the tenant notice of other defaults under the lease, the landlord is not required to give the tenant notice of defaults other than the non-payment of rent in order to terminate the lease under 38-12-103(1)(b), C.R.S. (2016).
Where the lease does not expire by its terms, the landlord can terminate the lease and give the tenant a notice to vacate the premises. This can be done on thirty (30) days’ notice "for any reason, including nonpayment of rent," (38-12-802(1)(b)(I), C.R.S. (2016), or on 10 days’ notice "for any reason, including nonpayment of rent, where the rental unit is not occupied by the tenant or the tenant’s immediate family for the duration of ten consecutive days after notice is given…." (38-12-802(1)(II), C.R.S (2016)).
Where the lease is for a lease period of less than one (1) year (generally month-to-month leases), the landlord can terminate the lease and give the tenant a notice to vacate the premises on a ten (10) day notice for "any reason, including nonpayment of rent, where the rental unit is not occupied by the tenant or the tenant’s immediate family for the duration of ten consecutive days after notice is given, …." 38-12-802(1)(II), C.R.S. (2016).
Where the tenant has breached any covenant, including the failure to pay rent, the tenant must generally give the landlord three (3) days written notice to vacate the premises. 38-12-804, C.R.S. (2016). However, certain conditions must be met in order for the landlord to terminate the lease. See 38-12-804(2)(b), C.R.S. (2016).
All notices must be delivered personally, by e-mail, or sent by U.S. mail or private carrier, e.g., UPS or FedEx. 38-12-103(3), 38-12-802(3), 38-12-804(6), C.R.S. (2016).
Although the requirements and procedures are limited, we recommend that landlords and tenants recognize that there are also, for the most part, general provisions in the Colorado Common Interest Ownership Act (CCIOA), the Colorado Revised Uniform Law on Notarial Acts (CRULNA), otherwise known as the Notary Public law, and the Colorado Homestead Statute, which are also applicable to the following:
Tenant Rights in Colorado Lease Terminations
When a lease is terminated, regardless of how it was terminated, the tenant is accorded certain "post-termination" rights and obligations. The Information provided below describes Colorado laws governing tenants’ rights during and after a lease termination, as well as remedies for violations of these rights.
Protection Against Unlawful Evictions
If a landlord were to attempt to seize possession of the apartment after the termination of a lease without going through the proper process, this would be considered an unlawful eviction. Tenants have the right not to be evicted in this manner. Pursuant to Colorado law, landlords may not forcibly dispossess a tenant from the rental unit. A landlord may not attempt to remove a tenant by: (1) using or threatening to use physical force against the tenant; and (2) asserting any ground for dispossession other than in a court proceeding. Therefore, even if your landlord has proper authority to terminate your lease, they cannot remove you from your rental unit themselves. Instead, the landlord must go through the court system and seek restitution through the courts if the tenant will not vacate the residence voluntarily. (This is usually done by initiating an Unlawful Detainer ("eviction") action in your local county court).
Withholding a Security Deposit
A tenant is not entitled to withhold a security deposit after a tenant terminates a lease. In Colorado, whether or not a tenant can collect part or all of a security deposit is dependent on one’s ability to prove that the landlord failed to fulfill their obligations under the lease. If so, a tenant may be able to claim some of the withheld deposit, but only to remedy the deficiencies caused by the landlord’s failure to perform.
Landlord Duties and Responsibilities
The law in Colorado requires landlords to make best efforts to properly terminate a residential lease. There are special stipulations that need to be met by both the tenant and the landlord if either party wishes to terminate the lease. The following will outline the responsibilities of the landlord.
If a landlord wishes to terminate a residential lease, he or she must give specific notice to the tenant of any alleged breach of the lease. If the tenant fails to remedy the violation, the landlord is required to give a second notice of intention to bring suit to recover possession of the premises. After the tenant has had an opportunity to remedy the alleged violation, the landlord has the legal right to file a summons and complaint with the court to seek possession of the premises.
If the tenant has made a security deposit payment to the landlord, the security deposit must also be fully refunded to the tenant within one month of the expiration of the tenancy. If the landlord breaches the conditions of the lease or violates these regulations and has previously served notice of alleged violations to the tenant, the tenant has the right to terminate the lease without legal repercussions or retribution by the landlord .
A landlord is legally permitted to terminate all or part of a lease if the tenant has: 1) Failed to comply with any of the material duties outlined in the rental agreement and the violation remains uncorrected for at least ten days. 2) Allocated occupancy of the premises to someone other than an immediate family member without the landlord’s consent. 3) Natured behavior that seriously endangers the property. 4) Performed criminal activity involving a controlled substance on the premises. 5) Violating the rental agreement terms. 6) Failing to pay or being persistently late to pay rent.
There are several other violations that could lead to lease termination. If the tenant were to perform criminal activity on the premises, which would be detailed in the lease agreement, the landlord has the legal right to terminate the lease with written notice to the tenant outlining the nature of the violation. Tenants have the right to respond to any notice sent by the landlord regarding lease termination. The landlord is required to give the tenant a reasonable amount of time to respond.
Disputes and Legal Proceedings
Disputes arising from disagreements over lease terminations can often be a source of stress and anxiety for both landlords and tenants. When formal eviction becomes unavoidable, both parties have legal paths for pursuing grievances and seeking damages. In Colorado, landlords must seek eviction and remedy through the courts. As noted earlier in this article, landlords may not use locks, force, shut off utilities or otherwise remove an errant tenant from the rental unit. Instead, a formal eviction suit must be filed in district or county court.
If the eviction is deemed valid by the court, an officer of the court will be tasked with overseeing the physical removal of the tenant and his or her belongings. If the tenant fails to remove his or her belongings within 24 hours, the officer will again return to the property, remove the possessions to Colorado storage locker, where they may be retained for a period of 30 days. If the tenant does not claim the items during this time, they become the property of the landlord, who can dispose of them as he or she chooses.
For landlords and tenants whose disputes are relatively minor, both the landlord and the tenant may seek remedies in Colorado small claims court. This method of dispute resolution is meaningful to landlords and tenants because it allows both parties to retain legal representation if desired. In most cases, however, both parties appear in court without legal counsel. Smaller claims courts in Colorado limit damages to $7,500 per claim. Both the landlord and the tenant may petition the court for waivers of the filing fees associated with taking an action in small claims court.
Colorado offers a number of community resources for dispute resolution. Some large cities, including Denver, also offer neighborhood mediation services to sort out conflicts.
FAQ of Common Issues in Lease Termination in Colorado
Here are some frequently asked questions and answers regarding lease termination in Colorado:
When must a tenant give notice that they will be vacating the property?
A one year lease agreement requires a minimum of 30 days notice to terminate. However, if the lease agreement has not been renewed or extended, at least 60-90 days notice may be required, depending on your lease terms and how long you’ve occupied the property.
What happens if the lease agreement includes a non-alienation clause?
A non-alienation clause prohibits the tenant from assigning their rights to the lease or sub-letting the property. The clause does not inhibit the sale of the tenant’s personal property and is not enforced by the courts.
Can a tenant break their lease without it being considered a breach?
In Colorado, both parties must be allowed to input new terms into the lease agreement. The lease is a contract that allows both parties to negotiate the terms before signing. If a tenant has moved into the property under false information or is the victim of domestic violence, they may be able to legally break the lease without it being called a breach. If the tenant is still required to pay rent, the landlord will have to try to rent the apartment to mitigate any losses.
Can a landlord force a tenant to leave their home to avoid a breach of lease or non-compliance to terms of agreement?
A landlord has no right to evict a tenant without going through a court to file an eviction. If both parties agreed to new terms after the lease has been signed, and the tenant isn’t honoring those terms, the landlord can ask the court to remove the tenant without having to wait until the end of the term or renewing the lease agreement.
Conclusion and Tips
In conclusion, it is essential for both landlords and tenants to fully understand their rights and obligations under Colorado lease termination laws. From identifying valid reasons for lease termination to following the proper notice requirements, understanding the legal landscape can help avoid costly disputes and ensure a smooth transition out of a rental property.
Landlords should always communicate with their tenants about their intentions and provide written documentation throughout the termination process. Failure to do so could result in wrongful eviction claims or loss of rental income. Tenants, on the other hand , should always review the current lease agreement and consult with legal counsel before taking any action.
It is also helpful to keep written records of all communications – this will inform the course of action for both parties and prove helpful in the event of a dispute. In the event that a dispute does arise, it is vital that both parties act in good faith to achieve an amicable resolution. This not only preserves the relationship, but also saves time and money in the long run.
Before serving any notice, both landlords and tenants should consider seeking legal counsel with experience in Colorado lease termination law, which applies to both residential and commercial agreements. Colorado law clearly delineates the rights and obligations of both parties in the termination context, and counsel can help parties avoid mistakes that can be difficult to recover from.