Denver’s rental market is entering a new compliance era. National enforcement actions and a sweeping new Colorado law are fundamentally reshaping how landlords structure, advertise, and disclose rent.
For years, some housing providers relied on advertising low rent prices and then adding mandatory fees later in the leasing process. That approach is now facing aggressive scrutiny from the Colorado Attorney General’s Office and federal regulators — and the consequences are significant.
With a $24 million settlement involving one of the nation’s largest property management companies finalized in December 2025, and House Bill 25-1090 taking effect January 1, 2026, transparency is no longer optional. For Denver landlords, understanding these changes is essential to protecting your business.
Key Takeaways
Total Monthly Leasing Price Must Be Displayed Upfront – All mandatory, non-government fees must be included in the advertised total price.
Mandatory Fees Must Be Rolled Into Base Rent – Charges for services like trash, pest control, and amenities can no longer appear as separate recurring add-ons.
Restrictions on Common Area Maintenance (CAM) Charges – Passing through certain property-wide operational costs as separate monthly fees is limited.
Fee Increases Are Capped – Certain unavoidable recurring charges cannot increase more than 2% annually.
Enforcement Is Active – Both the Federal Trade Commission and state regulators are closely monitoring compliance.
Hidden Fees and the Shift Toward Transparent Rental Costs
Across Colorado, lawmakers have targeted practices that obscure the true cost of renting. Historically, some landlords advertised attractive base rent numbers, only to add mandatory fees during the sales process.
These charges often included:
Valet trash services
Package concierge programs
Pest control
Administrative or processing fees
Amenity access charges
By the time prospective tenants reached lease signing, the total monthly rent costs were significantly higher than initially advertised.
Under the new law, landlords must present a single total monthly leasing price that includes all mandatory, non-government fees. That total price must appear more prominently than any other pricing information in advertising rental housing.
This means no more separating required services from the core rental price in a way that misleads consumers.
The Hidden Fees Lawsuit and Enforcement Momentum
The recent hidden fees lawsuit involving a national property management giant sent shockwaves through the industry. Federal regulators alleged the company misled consumers by advertising low rent prices and later adding mandatory fees that substantially increased monthly rent costs.
The settlement requires the company to:
Clearly disclose the total monthly price
Stop advertising practices that could be interpreted as illegally misrepresenting costs
Offer at least one fee-free method for tenants to pay rent
Reform internal advertising and compliance procedures
The company agreed to pay 23 million dollars as part of a broader $24 million resolution announced Tuesday.
FTC Chairman Andrew Ferguson emphasized that the FTC’s expectations are straightforward: landlords must advertise the true cost of rental housing.
This enforcement effort is not limited to Colorado. Eight other states, including Minnesota, Massachusetts, and Connecticut, have taken similar action against large housing providers.
Rental Costs, Rent Prices, and What Changes for Landlords
One important clarification for landlords: transparency requirements do not automatically mean reduced revenue.
Instead, they require restructuring how rent prices are presented.
Previously, some rental housing providers separated mandatory services from base rent. Under the new framework, those services must be included in the total monthly price.
As a result, base rent may appear higher on listings — but the overall financial outcome should remain similar if pricing is structured properly.
Landlords must also:
Avoid adding mandatory fees late in the leasing process
Ensure advertised prices match the full rental price
Clearly disclose any nonrefundable application fee
Provide accurate lease documentation
These rules aim to eliminate “drip pricing,” where fees are revealed incrementally.
From a compliance perspective, this is about consumer protection and preventing confusion during renting decisions, even as landlords refine pricing strategies for maximum occupancy in Denver rentals.
Federal Regulators, Algorithmic Pricing, and Broader Legal Pressure
Beyond fee transparency, federal regulators are also examining algorithm-driven pricing systems.
Colorado is participating in a multi-state lawsuit alleging that certain rent-setting software tools encouraged landlords to coordinate rent prices in violation of state and federal laws.
Federal regulators alleged that such systems may have artificially inflated rent prices by discouraging competition.
While that case is ongoing, it highlights a broader trend: regulators are scrutinizing not just advertising practices, but also pricing strategies themselves.
For landlords, this means — and should prompt you to regularly measure your rental property management team's performance against compliance and revenue goals:
Reviewing pricing methodologies
Ensuring compliance with state and federal laws
Avoiding any practices that could appear anti-competitive
Regulatory oversight is expanding rapidly, and compliance must extend beyond surface-level advertising changes.
New Requirements Under Colorado Law (Effective January 1, 2026)
House Bill 25-1090 introduces clear structural requirements:
1. Upfront Total Pricing
Rental advertisements must display a single total price that includes all mandatory, non-government fees.
2. No Separate Common Area Maintenance Fees
Landlords are restricted from passing common area maintenance costs as separate monthly charges.
3. Fee Increase Cap
Recurring, unavoidable fees are capped at a 2% annual increase.
4. Mandatory Free Payment Option
At least one payment method must be offered without processing fees.
5. Enforcement Authority
Tenants may demand reimbursement if landlords fail to comply.
This law brings much-needed clarity to the marketplace — but it also increases compliance responsibility for property owners.
Practical Steps for Denver Landlords
To protect your company and maintain trust with renters, consider the following actions:
Audit All Mandatory Fees
Identify every recurring charge currently imposed on tenants. Determine which must be incorporated into base rent.
Update Marketing and Advertising
Ensure your website, online listings, and leasing materials display the total monthly leasing price clearly and prominently.
Review Lease Agreements
Confirm that leases accurately reflect the total monthly rent and comply with disclosure standards, incorporating essential lease clauses every Colorado landlord should include and updating terms to align with the top lease clauses Denver landlords need for 2026.
Evaluate Payment Systems
Verify that tenants can pay rent through at least one method without a processing fee, and consider stress-free rent collection strategies for on-time payments alongside Denver-specific rent collection tips for landlords to keep cash flow predictable and compliant.
Monitor Regulatory Developments
With enforcement expanding across other states, additional guidance may emerge from the Federal Trade Commission, and Colorado landlords should track essential rental agreement updates driven by new-year legislation to keep leases aligned with evolving law.
Proactive compliance protects not only your revenue, but your reputation.
FAQs for Denver Landlords
1. Will combining fees into base rent change my total revenue?
Not necessarily. The law focuses on how rental price information is presented. If structured correctly, your overall income may remain consistent — but transparency is required.
2. Can I still charge a nonrefundable application fee?
Yes, but it must be clearly disclosed. The advertised monthly rent must reflect recurring mandatory charges tied to occupancy, and it should fit within a fair and transparent rent collection process in Denver that begins with smart property management steps before a lease is signed.
3. What are the penalties for non-compliance?
Violations of the Colorado Consumer Protection Act or the FTC Act can result in significant financial penalties, investigations, and mandatory operational reforms, making it critical to understand whether a real estate license is required for rental management in Colorado and if you personally need a real estate license to manage rentals.
Non-compliance risks also increase when late or missing payments lead to disputes, so Denver landlords should be prepared with practical guidance for handling non-payment and late rent issues, especially if you are moving from accidental landlord to intentional investor in Denver and need strong systems for screening and communication. Proactive compliance extends to marketing and tenant placement as well, which is why many owners rely on quick tenant-finding tips tailored to Denver landlords to fill units efficiently while staying within the law.
Compliance Is a Competitive Advantage
Denver’s rental housing market is entering a new phase defined by transparency and accountability. State and federal enforcement actions demonstrate that regulators are serious about eliminating deceptive pricing practices.
For landlords, this shift presents both risk and opportunity.
By adopting clear pricing, accurate advertising, and compliant leasing processes, you not only avoid penalties — you build trust with tenants and strengthen long-term asset performance.
At PMI Elevation, we help Denver property owners navigate evolving regulations, structure compliant leases, and optimize rent strategy while protecting profitability.
If you want expert guidance on aligning your rental operations with current Colorado law, contact us today!
In today’s regulatory environment, proactive compliance isn’t just smart — it’s essential.
