Colorado Pet Rent Laws in 2025: A Guide for Landlords

By the Hemlane Team

Three months ago I got a frantic call from a landlord in Boulder. She had just been hit with a complaint because she charged $50 a month for a tenant's golden retriever. Turns out she had no idea Colorado passed limits on pet charges back in 2024.

"Nobody told me!" she kept saying. And honestly? She's not wrong. Unless you're actively following state legislature updates or working with a property manager who does, these changes are easy to miss.

So let me save you the headache she went through. We're going to talk about what you can actually charge tenants for pets, what the state won't let you do anymore, and how to write rental policies that keep you out of trouble.

No legal jargon. No corporate-speak. Just straight answers from someone who's been helping Colorado landlords navigate this stuff since the law changed.

How We Got Here

Here's some context that matters: roughly half of Colorado households have pets, according to data from PawlicyAdvisor. Nationally, it's even higher—the American Pet Products Association puts the number at about 66%.

Before 2024, there were literally zero restrictions on what landlords could charge. I've seen pet deposits over $1,000. Monthly fees of $100 per animal. Some landlords were basically pricing pets out of existence, whether they meant to or not.

The Colorado legislature looked at this and said, "Okay, this is creating a housing access problem." So they passed House Bill 23-1068. Governor Polis signed it. Effective date: January 1, 2024.

Now we've got standardized limits. Love it or hate it that's where we are at.

The Two Numbers That Matter

Forget everything else for a second. This is what you need tattooed on your brain:

Number One: Monthly Pet Rent Caps

You can charge pet rent. That did not go away. But there's now a ceiling: $35 per month OR 1.5% of the monthly rent whichever is higher.

Let me show you what this looks like in practice:

• Small apartment, $1,000/month - 1.5% = $15, but you can still charge up to $35
• Average rental, $1,800/month - 1.5% = $27, so max is $35
• Nicer place, $3,000/month - 1.5% = $45, so you can charge $45
• High-end property, $5,000/month - 1.5% = $75, so you can charge $75

See the pattern? Lower-rent properties are stuck at $35. Higher rent places get more breathing room. The legislature specifically designed it this way so luxury rentals were not artificially capped at the same amount as studios.

Number Two: Pet Deposits Are Capped and Must Be Refundable

Here is the bigger change for most landlords: maximum $300 for pet deposits and it has to be refundable.

The whole "non-refundable pet fee" thing? That's done. Gone. The Colorado Division of Housing has made it clear in their guidance—if you're collecting money upfront for a pet, it's a deposit under state law. Which means refundable.

Now before you panic, if a tenant's animal tears up your property, you can absolutely deduct those costs. Take photos, get repair estimates, provide itemized receipts and follow the timeline in Colorado Revised Statutes § 38-12-103. You have 30 days if you are returning the full deposit and 60 days if you are making deductions.

Same process you would use for regular security deposits.

Quick Update for 2025

The dollar amounts have not changed since the law took effect. Still $35 (or 1.5%). Still $300 max deposit.

But there's adjacent legislation some landlords need to know about: House Bill 25-1207. This one's specific to affordable housing properties, think Low-Income Housing Tax Credit developments or anything getting public subsidies.

If you are a private landlord renting out a single-family home or a regular apartment building, this probably doesn't touch you. But if you work with subsidized housing programs, check with your attorney about additional requirements.

Service Animals: Where Good Landlords Get Sued

Real talk, this is where I see the most expensive mistakes happen.

Service animals and emotional support animals are not legally considered pets.

I'm going to repeat that because it costs landlords thousands of dollars when they get it wrong- assistance animals are NOT pets under the Fair Housing Act or Colorado law.

Which means:

• Zero pet rent
• Zero pet deposits
• Zero fees of any kind

Doesn't matter if your lease says "no animals allowed." Does not matter if you have been running a pet-free building for twenty years. If a tenant has a legitimate need for a service animal or ESA you have to accommodate it.

Understanding the Difference

Service animals are covered under the Americans with Disabilities Act. We are talking about dogs sometimes miniature horses trained to perform specific tasks for someone with a disability.

Real examples:

• Dog alerts owner before seizure happens
• Dog guides a blind person through spaces
• Dog opens doors for someone in wheelchair
• Dog interrupts self-harm behaviors for someone with PTSD

Emotional support animals provide therapeutic benefit to someone with a mental health condition but do not require task-specific training. These fall under Fair Housing protections for housing though they do not get public access rights like service dogs.

What You Can Actually Ask

For service animals, if the disability isn't obvious, the Department of Justice says you can ask two questions:

1. Do you need this animal because of a disability?
2. What task is the animal trained to do?

That's it. You cannot ask for medical documentation. You cannot demand training certificates. Those "official service dog registry" websites you see online? Mostly scams.

For ESAs, you have slightly more leeway. You can request a letter from a licensed healthcare provider like a therapist, a psychiatrist and a doctor, confirming the tenant has a disability-related need for the animal. The letter should be recent (not from five years ago) and come from someone with an actual treatment relationship.

What you absolutely cannot do:

• Charge any fees whatsoever
• Force tenants to register through a specific website
• Deny the accommodation just because you donott want animals

BUT, and this is crucial, tenants are still on the hook for damage. Service dog destroys carpet? ESA cat scratches up doors? Those costs come out of the security deposit, same like any other damage a tenant causes.

Writing a Pet Policy That Won't Get You Sued

Your lease is your shield. But only if you write it properly.

Spell Out Exactly What's Allowed

Don't be vague. Specify:

• Animal types (dogs and cats okay, max 2 animals)
• Size restrictions if you have them (under 40 pounds, for example)
• Breed limitations if applicable—but be careful here, Denver repealed their pit bull ban in 2020, and breed restrictions can backfire
• What's absolutely prohibited (exotic animals, anything on the Colorado Parks and Wildlife restricted list, farm animals)

Fun fact: Colorado law prohibits keeping bears, mountain lions and venomous reptiles as pets. Probably not relevant to your duplex but you never know.

List Out Tenant Responsibilities

Be explicit about expectations:

• Pick up waste immediately in the yard, balcony and litter boxes
• Control excessive barking or noise
• Keep animals leashed in common areas
• Report any pet damage within 24 hours
• Show proof of vaccinations and local licensing at move-in and every year after

Write Your Charges in Plain Language

Example:

"Monthly pet rent: $35 per pet [adjust based on your calculation]
Pet deposit: $300 (refundable, regardless of number of pets)

Deposit will be returned within 30 days of move-out if the property shows no pet damage beyond normal wear and tear. If deductions are necessary, itemized accounting will be provided within 60 days per Colorado statute."

Define Consequences for Violations

What happens when someone breaks the rules:

• First violation: written warning 7 days to fix the problem
• Second violation: formal notice requiring correction or removal of the animal
• Continued violations: lease termination proceedings begin

Document everything. Photos, dates, written notices, neighbor complaints. All of it.

Include Your Assistance Animal Language

Something like:

"Service animals and emotional support animals are not pets under this lease. No pet rent or deposits will be charged for assistance animals. Tenants remain financially responsible for property damage caused by any animal. Disability-related documentation may be requested per Fair Housing requirements."

This covers you legally while making expectations crystal clear.

Mistakes That Will Cost You Money

Mistake #1: Calling it a "non-refundable fee"

Can't do this anymore in Colorado. It's a deposit. It's refundable. End of story.

Mistake #2: Charging for assistance animals

I know a landlord who charged $35/month for a tenant's ESA because "I thought it was just like any other pet." Fair housing complaint, legal fees, settlement payment. Total cost? Over $8,000.

Do not be that person.

Mistake #3: Enforcing rules inconsistently

If you waive the deposit for your friend's cousin but charge full price to the next applicant, you're creating liability. Discrimination claims come from inconsistent application of policies.

Mistake #4: Never updating your lease

I still see landlords using lease templates from 2019. Laws change. Your documents need to change too. Annual review minimum, preferably with an attorney.

Can Tenants Negotiate?

They can ask. You can say no.

The law sets maximums, not minimums. Some landlords advertise "no pet fees" to attract better tenants in competitive markets. Others charge the full amount because they've been burned before.

My personal philosophy: if you've got a great tenant with excellent rental history and a small, well-behaved dog, maybe charging the full $35 feels petty. But if you're renting a house with a yard to tenants with three large dogs, that $35 might not even cover your increased landscaping costs.

Business decision. Your call.

What About Pet-Sitting?

Had this question last week from a landlord in Fort Collins: "My tenant is watching her mom's dog for two weeks while she's on vacation. Does that violate the no-pets clause?"

Technically, if your lease says "no animals without written approval," then yes, any animal could be considered a violation.

Practically? Most landlords don't want to be jerks about temporary situations.

My recommendation: add language permitting short-term pet-sitting (define it as 30 days maximum per year) with 48 hours advance notice. Solves the problem before it becomes one.

Staying Compliant: What Actually Matters

Here's your action list:

✅ Review the lease template every year
✅ Verify pet rent doesn't exceed $35 or 1.5% of rent
✅ Confirm pet deposit is refundable and under $300
✅ Include detailed pet section in every single lease
✅ Keep written records of pet approvals
✅ Collect vaccination and licensing documents at move-in and renewal
✅ Take timestamped photos before tenant moves in
✅ Respond to accommodation requests within 10 business days
✅ Make sure anyone managing your properties understands assistance animal rules

If you're handling multiple properties, something like Hemlane's platform can automate most of this—separate deposit tracking, document storage, automated reminders. Saves hours and prevents stupid mistakes.

Bottom Line

Look, I get that some landlords hate these restrictions. "My property, my rules" and all that.

But here's reality: most pet damage doesn't hit $300. And when it does exceed that, you've still got the regular security deposit to cover costs.

More importantly, from a business perspective, pet owners tend to stay longer. They're not moving every year chasing cheaper rent. They found a place that accepts their animal, and they're sticking around.

That stability has value. Lower turnover means fewer vacancy costs, less advertising, fewer background checks and less wear-and-tear from move-outs.

So yeah, HB 23-1068 changed the game. But it didn't make pet-friendly rentals unprofitable. You just need clear policies, consistent enforcement and proper documentation.

Do those three things and you'll be fine.

Hemlane helps Colorado landlords manage pet policies, track deposits, and stay compliant without the manual headaches.

FAQ

What's the maximum pet rent in Colorado now?
$35/month or 1.5% of monthly rent, whichever is higher. So if rent is $3,000, you can charge up to $45/month.

Is that $35 per pet or total?
Per pet, assuming each charge stays within the 1.5% threshold.

What if pet damage costs more than $300?
Use the regular security deposit for additional costs. Follow standard deduction procedures under Colorado law.

Do I have to allow ESAs even with a no-pets policy?
Yes. Fair Housing Act requires accommodation regardless of your pet restrictions.

Can I require pet insurance from tenants?
Not prohibited by law, but uncommon. Include it in your lease if you want to require it.

Can I evict someone who gets an unauthorized pet?
If they violated a no-pets clause, yes. But not if it's a legitimate service animal or ESA—those require accommodation.

How do I verify an ESA is real?
Request documentation from licensed healthcare provider with established treatment relationship. Online "ESA certificates" aren't legally valid.