Understanding Rental Application Fees

If you're applying to rent a home in Colorado, state law gives you specific rights about how landlords can collect and use rental application fees. This guide explains:

• What landlords are allowed to charge 
• How to avoid overcharges
• What they can review in your application 
• How to use a Portable Tenant Screening Report
• What to do if a landlord mishandles your application or violates your rights

What is a rental application fee?

A rental application fee is any nonrefundable payment a landlord charges to process your rental application. It does not include a refundable security deposit or rent paid in advance. Landlords must use the entire fee to cover their actual or average costs for processing your application—and nothing else.

What are the rules for rental application fees?

When you apply for rental housing:

• Landlords must use the full fee only for application processing.
• If they are charging based on actual costs, landlords must give you a breakdown or a list of estimated costs.
• If they are using average costs, they must explain how they calculate that average.
• Landlords can’t charge different application fees for the same unit or other available units at the same time.
• Landlords must refund any unused portion of the fee within 20 days of processing.
• They must give you a receipt—electronic or paper—if you ask for one.
• Landlords can’t charge any fee if you provide a Portable Tenant Screening Report. For more information about Portable Tenant Screening Reports, see below.

Landlords must consider:

• Rental and credit history from only the past 7 years.
• Criminal history from only the past 5 years, except for serious offenses like meth production, homicide, stalking, or sex offenses.
• Financial and income details, but with limits:
  • With a housing subsidy: Income requirement cannot be more than 2 times the remaining rent after subsidy.
  • Without a housing subsidy: Income requirement cannot be more than 2 times the full rent.

Landlords may not consider your income amount, credit score, or adverse credit history if you have a housing subsidy—unless federal law says otherwise.

Using a Portable Tenant Screening Report

A Portable Tenant Screening Report is a report you can request from a consumer reporting agency. You have the right to provide your own tenant screening report instead of paying a fee to your potential landlord. The report must:

1. Be completed within the past 30 days;
2. Come from a licensed agency or third party;
3. Include details like employment, income, rental and credit history, and criminal background; and
4. Be free for the landlord to access.

The landlord must notify you of this option before charging a fee. They can only opt out of accepting these reports if they take only 1 application fee at a time and refund it within 20 days if you’re not chosen.

What if my application is denied?

You must receive a written denial explaining why you were rejected. If the landlord pulled a consumer report, you’re entitled to a copy of it and a notice of your right to dispute errors.

If your landlord uses a screening company, they may not be able to give you the full report—some of it belongs to that company. But you're still entitled to a copy, with only that private information blacked out.

The denial notice must be given within 20 days and can be electronic unless you ask for a paper copy.

What if the landlord breaks the rules?

If a landlord misuses your fee or financial information:

• Send a written demand letter. 
  • See Instructions for Filling Out a Rental Application Demand Letter for more information. 
• Make sure you wait 7 calendar days before filing anything in court.
• If they fix the issue within that time, they owe you $50 but nothing more.
• If not, you can sue for up to $2,500, plus court costs and attorney's fees.

Unlawful use of financial information

If the landlord considered more of your financial history than allowed, it may count as income-based discrimination. It is best to talk to an attorney if this happens.

You can:

• File a complaint with the Colorado Civil Rights Division at ccrd.colorado.gov. Be as thorough as possible in the questionnaire that they will give you.
• Call 303-894-7830 for help with the questionnaire.
• Sue in court following the same process as above.

Penalties may include:

• $50 initial fine
• $2,500 statutory penalty
• Court costs
• Attorney's fees
• Actual damages

Can I file a lawsuit?

Yes. If you decide to sue, keep detailed records of your costs:

• Small claims court (up to $7,500): Use Colorado form JDF 248.
• County court (up to $25,000): Use Colorado form JDF 110.

Need more help?

If you are low-income, a senior, or a veteran, you may qualify for free legal help from Colorado Legal Services (CLS). To apply or ask if you might qualify, go to the CLS website and find the office that serves your area. If you call or visit, CLS can help you in your native language.

You can get help from the courts. Every judicial district has staff called “Sherlocks” to help people with their legal questions. To find the Sherlock in your county, visit the Judicial Department’s Sherlock webpage.