When a tenant passes away during an active lease, landlords are often left navigating emotional, legal, and financial uncertainty. Colorado lawmakers addressed this sensitive situation with HB25-1108, known as Letty’s Act, a bill passed by the Colorado House and General Assembly to limit penalties and financial burdens placed on families after a tenant’s death.
For property owners and property managers in Metro Denver, understanding how this legislation changes residential rental agreements is critical.
Key Takeaways
Rental agreements can no longer require rent acceleration or penalties due to the death of a tenant.
Landlords may take possession of a rental unit without filing an eviction action under specific conditions.
Security deposit rules still apply, but landlords may retain deposits for damages caused by the death.
The law applies only to residential rental agreements entered into on or after September 1, 2025.
Lease agreements must be updated to remove void and unenforceable clauses before.
Understanding HB25-1108 (Letty’s Act) and Its Impact on Denver Landlords
HB25-1108, formally titled “HB25-1108: Letty’s Act – Tenant Death Protections,” was introduced during the Colorado House reading special order and later advanced through the Senate. The bill was sponsored by Representative Javier Mabrey and co-sponsored by multiple Colorado lawmakers concerned about fairness in residential rental agreements following the death of a tenant.
Known as Letty’s Act, the legislation amends the Colorado Revised Statutes to prohibit certain penalties, fees, and lease enforcement actions that previously applied when a tenant died during a lease term. The goal was to strike a balance between protecting landlords’ property rights and preventing unnecessary financial harm to families.
The History and Purpose Behind Letty’s Act
The creation of Letty’s Act was driven by real-life tenant results that exposed gaps in Colorado rental law. Lawmakers cited cases in which families were required to pay thousands of dollars in early termination fees, accelerated rent, and other penalties due to the death of a loved one.
One frequently referenced incident involved a Loveland apartment, where a tenant’s family was pursued for the remaining balance of a lease after the tenant passed away. Despite the unit being vacated and possession returned, the rental agreement required full payment of rent, liquidated damages, and other penalties. These situations highlighted how existing lease terms could impose severe financial stress during an already traumatic time.
In response, the Colorado General Assembly introduced HB25-1108 to ensure residential rental agreements could no longer impose penalties caused by the death of a tenant. The bill passed both chambers, received its last action by the governor, and became law with a delayed effective date to allow landlords time to update leases.
What Happens If a Tenant Dies During a Lease in Colorado?
Under HB25-1108, the death of the tenant triggers specific protections. When a tenant dies:
The rental agreement is terminated due to death
Rent may only be required through the end of the month or 10 business days after the tenant’s death
Any clause requiring additional payment is void under the law
This applies to all residential rental agreements, including those involving housing subsidies or government agencies.
Prohibitions in Rental Agreements Due to Death
Under Letty’s Act, rental agreements may not:
Require acceleration of rent
Impose early termination fees
Enforce liquidated damages
Impose penalties or other fees caused by the death
Any rental agreement terms requiring acceleration or penalties due to death are unenforceable under Colorado law.
When Can a Landlord Take Possession of the Rental Unit?
Landlords may take possession of a rental unit without filing an eviction action if:
The tenant’s personal representative notifies the landlord that the unit is surrendered, or
Thirty days have passed since the event of the death, and rent remains unpaid or most of the tenant’s property has been removed
This allows landlords to regain possession without court involvement while complying with the state constitution and due process standards.
Security Deposit Rules After a Tenant’s Death
Letty’s Act allows landlords to retain security deposits sufficient to cover:
Unpaid rent within the allowed timeframe
Damages caused by the death of the tenant
Standard Colorado security deposit rules still apply. Landlords may not retain deposits for prohibited penalties, acceleration of rent, or voided liquidated damages, leading to a potential dispute about the security deposit.
Tenant Property and Possession After Death
If the tenant’s property has been removed and the unit is vacated, landlords may proceed with possession. If items remain, landlords should work with the personal representative or family and follow state abandoned property rules.
Compliance Responsibilities for Property Managers
Property managers in Metro Denver and South Metro Denver must:
Review all residential rental agreements and conduct walk-through inspections before a tenant moves in
Remove prohibited clauses
Update lease templates before September 1, 2025
Train staff on notice, payment, and possession procedures
Failure to comply may result in unenforceable lease terms and legal risk.
Frequently Asked Questions About HB25-1108
1. Can landlords require rent after a tenant’s death?
Yes, but only through the end of the month or 10 business days after death.
2. Is an eviction required to regain possession?
No, if conditions under the law are met, landlords may regain possession without filing an eviction action.
3. Does Letty’s Act apply to current leases?
No. It applies only to rental agreements entered into on or after September 1, 2025.
When Was the Effective Date of HB25-1108?
With an effective date of September 1, 2025, landlords should act now to:
Remove prohibited clauses
Ensure lease compliance
Avoid penalties and disputes
PMI Elevation helps property owners navigate new Colorado rental laws and remain compliant across Metro Denver and South Metro Denver.
How HB25-1108 Changes the Future of Rental Management in Denver
HB25-1108 reflects a significant shift in Colorado rental law by limiting penalties and fees imposed due to the death of a tenant. Understanding the history, intent, and requirements of Letty’s Act allows landlords and property managers to protect their investments while staying compliant with evolving state legislation.
With the law having taken effect in September 2025, staying compliant now will ensure a smoother transition and help avoid costly legal issues tied to unenforceable lease terms. Updating rental agreements, adjusting internal procedures, and understanding possession and security deposit rules will be essential for landlords operating in Metro Denver and South Metro Denver.
If you have questions about how Letty’s Act may impact your rental properties or want guidance updating your lease agreements, PMI Elevation is here to help. Contact us today to learn more about compliant, stress-free property management solutions.
