Free Colorado Rental Application Fee Receipt
Colorado sets no dollar ceiling on a rental application fee. It does something harder to comply with. Under the Rental Application Fairness Act you may not charge the fee unless the whole of it goes on your costs of processing the application — and under § 38-12-903(2)(a) you must charge every applicant for the same unit, and every applicant for any other unit you are offering at the same time, the identical amount. Those two rules pull against each other, and the way Colorado reconciles them is the average-cost basis in § 38-12-903(1)(b). Every paying applicant is owed a receipt and a costs disclosure; anything unspent goes back with a good-faith effort within twenty calendar days after processing. This generator produces the receipt and records the cost basis behind it.
Colorado is easy to describe in one line and hard to comply with in practice. The one line is that there is no cap: the Rental Application Fairness Act, at C.R.S. §§ 38-12-901 to 38-12-905, nowhere states a maximum application fee. What it states instead is that you may not charge the fee at all unless the entire amount goes on your costs of processing the application, which converts the question from what may I charge into what can I show I spent. That much is widely reported. What is much less widely reported, and what this page is organised around, is the second sentence of the section. § 38-12-903(2)(a) requires the fee to be the same amount for every applicant for the same dwelling unit, and — if you are offering more than one unit for rent at the same time — the same amount for applicants across every unit you are then offering. That is an obligation a landlord can breach without any bad intent whatsoever, simply by running a cheaper screening product on a small property and a fuller one on a larger property in the same week, or by adjusting a fee mid-vacancy when a vendor changes its pricing. It also sits in tension with the actual-cost basis, because actual costs vary from applicant to applicant and the fee is not allowed to. Colorado supplies the reconciliation itself, in the average-cost basis at § 38-12-903(1)(b), but taking that route brings its own duty: you have to be able to explain to the applicant how the average was derived. Around those two rules sit a receipt duty owed to every paying applicant, a costs disclosure or itemization, a twenty-day remittance clock that runs from processing rather than from any decision you make, an outright bar on charging where a portable tenant screening report is supplied, and a remedy in § 38-12-905 of two thousand five hundred dollars plus costs and attorney fees, collapsing to fifty dollars if you cure within seven calendar days of being told. Everything below is written from the certified 2026 text of those sections.
Build the record
Fill in the fields below and the generator produces a dated PDF you can print, sign and give to the applicant, keeping a copy for your file. Because the disclosure has to be made before the fee is accepted, print it once for the applicant before you take the money and again once the outcome is known. Nothing is stored and there is no charge. Fields you leave blank print as a dash so you can complete them by hand.
The cost limit and the equal-fee rule pull in opposite directions — and the average-cost basis is how Colorado lets you satisfy both
Start with the shape of § 38-12-903(1), because it is not a cap. It provides that a landlord shall not charge a prospective tenant a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord’s costs in processing the rental application. The permission to charge is conditional on the destination of the money. A fee of any size is lawful if the whole of it is genuinely consumed by processing costs; a fee of any size is unlawful to the extent it is not. That is why § 38-12-903(4) exists as the correction mechanism rather than as an afterthought: a landlord who receives a fee and does not use all of it on processing costs shall remit the remainder. The subsection then names two permitted ways of computing the figure, and they behave very differently. Under § 38-12-903(1)(a) the landlord’s costs may be based on the actual expense incurred in processing that application. Under § 38-12-903(1)(b) they may instead be based on the average expense incurred per prospective tenant in the course of processing multiple applications. The first is precise and self-documenting: the vendor charged you a specific amount for this applicant, and the invoice proves it. The second is a portfolio figure that smooths across applicants. Now put the equal-fee rule next to them, and the problem becomes obvious. § 38-12-903(2)(a) says you may not charge an amount different from the amount charged to another prospective tenant applying for the same dwelling unit, or — where you offer more than one dwelling unit for rent at the same time — for any other dwelling unit you are offering. Actual costs are not uniform. A credit-and-eviction package on one applicant may cost you less than the same package on an applicant with an out-of-state history requiring an extra county search; a co-signer adds a report; a vendor changes its rate card on the first of the month. If you price strictly on actual expense and you have three units on the market, you will end up charging different applicants different amounts, and the equal-fee rule does not care that each figure was independently justifiable. The average-cost basis is the reconciliation, and Colorado attaches a condition to it. § 38-12-903(3)(a) provides that where a landlord charges an amount based on the average cost of processing the rental application, the landlord shall include information regarding how that average rental application fee is determined. So the route that makes the equal-fee rule workable is also the route that obliges you to show your arithmetic. In practice that means writing down, once, the population of applications you averaged over, the period, the cost components included, and the resulting figure — and being willing to hand that explanation to an applicant. It is a small document, and having it is the difference between a defensible fee and an unexplained one. One more consequence, because it is the one landlords miss. If the average moves, the fee has to move for everyone at once, not for the next applicant only. A landlord who raises the fee from one figure to another partway through a vacancy has, on the face of § 38-12-903(2)(a), charged two different amounts to applicants for the same unit. The safe practice is to review the average on a fixed cycle, change it between vacancies rather than during one, and record the date the new figure took effect.
Watch: Colorado Rental Application Fee Receipt explained
Colorado application fee at a glance
Settle this first: how much may a Colorado landlord charge?
Exactly what it costs you, and not a cent of margin. § 38-12-903(1) is drafted as a prohibition rather than a cap: a landlord shall not charge a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord’s costs in processing the application. There is no dollar figure anywhere in the section. The permitted basis is either the actual expense incurred in processing that application — § 38-12-903(1)(a) — or the average expense per prospective tenant across multiple applications, § 38-12-903(1)(b). A fee set to make money, to discourage casual applicants, or to cover general office overhead is not a fee measured by either of those bases, and the section does not permit it
The equal-fee rule, and it is wider than the same unit
§ 38-12-903(2)(a) bars charging an amount different from the fee charged to another applicant for the same dwelling unit — and, where you offer more than one unit for rent at the same time, from the fee charged to an applicant for any other unit you are then offering. One number across the whole of your live inventory, for as long as it is live
A receipt for everyone, and a costs disclosure with it
§ 38-12-903(3)(b) requires a receipt for any application fee received, from every prospective tenant — electronic is fine unless the applicant asks for paper, in which case paper is owed. § 38-12-903(3)(a) separately requires either a disclosure of anticipated expenses or an itemization of actual ones, plus, on an average-cost fee, how the average was determined
Twenty days, and the clock starts at processing
§ 38-12-903(4): a landlord who does not use the entire fee on processing costs shall remit the remaining amount, making a good-faith effort within twenty calendar days after processing the application. Not twenty days from the decision, not from move-in, not from the applicant asking — from processing
The Rental Application Fairness Act, section by section
§ 38-12-901 — short title. The part is the “Rental Application Fairness Act”. § 38-12-902 — definitions. Includes “landlord” (owner, manager, lessor or sublessor of a dwelling unit), “amount of income”, and the definition of a “portable tenant screening report” — a consumer report prepared at the request of a prospective tenant. § 38-12-903 — rental application fee, limitations. (1) no fee unless the entire amount covers processing costs, computed on actual expense (1)(a) or average expense per prospective tenant across multiple applications (1)(b). (2)(a) no fee in a different amount from that charged to another applicant for the same unit, or — where more than one unit is offered for rent at the same time — for any other unit offered. (2)(b) no fee where the applicant supplies a portable tenant screening report under § 38-12-904(1.5). (3)(a) every paying applicant gets either a disclosure of anticipated expenses or an itemization of actual ones, plus, on an average-cost fee, how the average is determined. (3)(b) a receipt for any fee received, from every prospective tenant, electronic unless paper is requested. (4) remit the unused remainder, good-faith effort within twenty calendar days after processing. § 38-12-904 — consideration of applications. Seven-year look-back on rental and credit history; restrictions on criminal history including a bar on considering arrest records and convictions older than five years, with listed exceptions; income rules capped at two hundred per cent of the annual cost of rent; a duty to accept a portable tenant screening report; the advisement duty and its placement rules; the (1.5)(f) opt-out; and, at (2), a written denial notice stating the reasons, with a copy of the consumer report and a dispute advisement where one was obtained, on a good-faith effort within twenty calendar days of the decision. § 38-12-905 — violations. Two thousand five hundred dollars plus court costs and reasonable attorney fees; seven calendar days’ pre-suit notice; cure within seven calendar days of notice reduces liability to a fifty-dollar penalty; a bad-faith meritless claim exposes the claimant to the landlord’s costs and fees. What this page did not research. No Colorado case law. No municipal ordinance — Denver and Boulder both regulate rental housing and neither was examined. The consumer-reporting definitions cross-referenced by the part, at C.R.S. § 5-18-103 and § 5-18-106, were not read. Federal requirements are described in general terms only.
How to take a Colorado application fee correctly
Fix one fee amount for everything you have on the market
§ 38-12-903(2)(a) makes the amount uniform across applicants for the same unit and, while you have more than one unit offered for rent at the same time, across every unit you are offering. Decide the number before the first listing goes up, apply it to all of them, and do not vary it because one property is cheaper to screen for or because an applicant looks like more work.
Choose the actual-cost or the average-cost basis deliberately, and write down which
Actual expense under § 38-12-903(1)(a) is the cleanest evidence but is hard to square with the equal-fee rule when several units are live. Average expense per prospective tenant under § 38-12-903(1)(b) solves that, at the price of the duty in § 38-12-903(3)(a) to explain how the average was determined. Pick one, record the date you adopted it, and keep the working.
Publish the portable-screening-report advisement before you take any screening step
§ 38-12-904(1.5)(d) requires the advisement prior to taking any action relating to tenant screening for which you would expect to collect an application fee, in substantially the language the subsection sets out, and § 38-12-904(1.5)(e) tells you where it has to appear and in what type size. Doing this after the fee is collected is doing it too late.
Check whether the applicant has supplied a portable tenant screening report
If they have, § 38-12-903(2)(b) means there is no application fee to take at all, and § 38-12-904(1.5)(c) means you may not charge for accessing or using the report either. The conditions you may impose on the report are the ones listed in § 38-12-904(1.5)(b) and no others.
Issue the receipt and the costs statement at the point of payment
The receipt under § 38-12-903(3)(b) is owed to every prospective tenant who pays, and must be on paper if paper is requested. The disclosure or itemization under § 38-12-903(3)(a) can be given with it. Issuing both together at payment is simpler than remembering to send one later, and it is the moment an applicant expects a document.
Reconcile what you actually spent, and remit the remainder within twenty days of processing
§ 38-12-903(4) requires a good-faith effort to remit the unused portion within twenty calendar days after processing the application. Diarise it from the processing date, not from the day you make a decision, and record the amount, the date and the method of the remittance against the applicant’s file.
If someone tells you that you have got it wrong, treat the seven days as the priority
§ 38-12-905(3) reduces liability to a fifty-dollar penalty where the landlord corrects or cures the violation not more than seven calendar days after receiving notice of it. § 38-12-905(1) is two thousand five hundred dollars plus costs and reasonable attorney fees if you do not. The gap between those two numbers is a week.
About the Colorado application fee receipt
The generator above produces the receipt § 38-12-903(3)(b) requires you to give every prospective tenant who pays an application fee, together with a place to record the costs position that § 38-12-903(3)(a) and § 38-12-903(4) turn on. Colorado does not prescribe a form, so this is not a statutory form and is not captioned as one. It records the parties and the unit, the amount received with its date and method, the screening company used, the criteria applied, the outcome, and the refund position. Two things it deliberately does not do. It does not print a dollar ceiling, because the Act contains none and a number invented for a form is a number a landlord would rely on. And it is not, by itself, the average-cost explanation: if your fee is set on the average expense per prospective tenant, § 38-12-903(3)(a) requires you to include information about how that average is determined, which is a short written statement you prepare once and attach. Remember the paper rule. An electronic receipt is permitted unless the applicant requests a paper one, so the printable output here is what satisfies that request. Nothing is stored and there is no charge. Fields left blank print as a dash.
What the Rental Application Fairness Act requires you to be able to show
- That the entire fee went on processing costs. § 38-12-903(1) permits the charge only on that condition, so the spend is the justification for the charge.
- Which basis you used, actual or average. § 38-12-903(1)(a) and (1)(b) are alternatives, and the disclosure duty differs depending which you chose.
- How an average fee was determined. Required expressly by § 38-12-903(3)(a): the population, the period, the components and the resulting figure.
- That every applicant for the same unit was charged the same amount. The first limb of § 38-12-903(2)(a).
- That every applicant for any other unit offered at the same time was charged the same amount. The second limb, and the one that reaches across your live inventory.
- The receipt you issued to each paying applicant. § 38-12-903(3)(b), on paper where paper was requested.
- The disclosure of anticipated expenses, or the itemization of actual ones. § 38-12-903(3)(a) requires one or the other for every paying applicant.
- The date the application was processed. It starts the twenty-calendar-day remittance clock in § 38-12-903(4).
- The amount remitted, when and how. The duty is to remit the remaining amount with a good-faith effort inside that window.
- That the portable-report advisement was published before any screening step. § 38-12-904(1.5)(d) and its placement and type-size rules in (1.5)(e).
- That no fee was charged where a portable tenant screening report was supplied. § 38-12-903(2)(b), and no access or use charge under § 38-12-904(1.5)(c).
- Your denial notice where an application was refused. § 38-12-904(2) requires written reasons, and the consumer report plus a dispute advisement where one was obtained.
- Any local requirement you are also meeting. No municipal ordinance was researched for this page.
Common mistakes with Colorado application fees
- Charging different amounts for different properties on the market at once. § 38-12-903(2)(a) reaches every unit you are offering for rent at the same time, not just the unit applied for. A cheaper fee on the small holding and a fuller one on the larger building breaches it while both are listed.
- Varying the fee mid-vacancy. Two applicants for the same unit charged two different amounts is the plainest possible breach of the first limb, and a vendor price change partway through a letting is the usual cause.
- Pricing on actual cost while several units are live. Actual expense varies by applicant, and the equal-fee rule does not permit the fee to vary with it. This is what the average-cost basis in § 38-12-903(1)(b) is for.
- Using the average basis without being able to explain the average. § 38-12-903(3)(a) requires information about how the average was determined. An unexplained average is an unjustified fee.
- Building margin, overhead or a deterrent into the fee. The permission in § 38-12-903(1) is conditional on the entire amount covering processing costs. Anything above that is money you have to remit under § 38-12-903(4).
- Skipping the receipt because the payment was online. § 38-12-903(3)(b) requires a receipt for any fee received from every prospective tenant. Electronic is fine — until the applicant asks for paper, at which point paper is owed.
- Treating the disclosure and the receipt as the same document duty. They are separate paragraphs, (3)(a) and (3)(b), and doing one does not discharge the other.
- Running the twenty days from your decision. § 38-12-903(4) runs the good-faith effort from processing the application. A landlord who sits on a file for a fortnight before deciding has already spent most of the window.
- Charging a fee anyway when a portable tenant screening report is supplied. § 38-12-903(2)(b) removes the fee entirely in that case, and § 38-12-904(1.5)(c) forbids charging for access to or use of the report.
- Publishing the portable-report advisement in the wrong place, or too small. § 38-12-904(1.5)(e) specifies the locations and, for three of them, twelve-point bold-faced type.
- Assuming the § 38-12-904(1.5)(f) opt-out applies because you are small. It has two conditions and both must hold: not accepting more than one application fee at a time for the unit, and refunding the total fee within twenty calendar days of written communication declining to enter into a lease.
- Ignoring a complaint for a week. § 38-12-905(3) turns a two thousand five hundred dollar exposure into a fifty-dollar penalty if the violation is cured within seven calendar days of notice. Nothing else on this page has that leverage.
Is there a maximum rental application fee in Colorado?
No. There is no dollar cap anywhere in the Rental Application Fairness Act. What § 38-12-903(1) says instead is that a landlord shall not charge a prospective tenant a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord’s costs in processing the application.
That drafting matters. It is not a ceiling you must stay under; it is a permission that exists only while the money is being spent on the thing it was collected for. A fee is lawful in whatever amount your processing genuinely costs, and unlawful to the extent it exceeds that — which is why § 38-12-903(4) then requires the unused remainder to be remitted rather than treating an overcharge as a fine-able offence in itself.
The section gives you two ways to compute the figure. § 38-12-903(1)(a) allows the actual expense you incur in processing that application. § 38-12-903(1)(b) allows the average expense you incur per prospective tenant in the course of processing multiple applications. Both are permitted; they are not equally easy to live with, for reasons the next section sets out.
What is Colorado’s equal-fee rule, and how wide is it?
§ 38-12-903(2)(a) prohibits charging a prospective tenant a rental application fee in an amount different from a fee charged to another prospective tenant who applies to rent either the same dwelling unit, or — if the landlord offers more than one dwelling unit for rent at the same time — any other dwelling unit offered by the landlord.
Read the second limb slowly, because it is the one that surprises people. It is not confined to the unit the applicant applied for. While you have more than one unit on the market simultaneously, the comparison set is every unit you are then offering. A landlord with a studio, a two-bedroom and a house all advertised in the same week is running a single permitted fee amount across all three, not three fee amounts calibrated to three properties.
Two things follow, and both are easy to get wrong without any intention to do so.
First, differential pricing by property type breaches it. Charging less on a cheaper unit feels generous and is exactly what the subsection forbids while both units are offered at the same time. So does charging more for a larger property on the theory that its applicants require deeper screening.
Second, changing the fee during a live vacancy breaches the first limb. If your screening vendor raises its rate on the first of the month and you pass that through immediately, applicants for the same unit before and after that date have been charged different amounts. The subsection compares amounts charged to applicants for the same unit; it does not ask whether each figure was independently justifiable at the time.
The practical answer is to treat the fee as a published number that changes on a cycle rather than a cost that floats. Set it, apply it everywhere, review it between lettings, and record the date any new figure took effect.
How do you satisfy the cost limit and the equal-fee rule at the same time?
By using the average-cost basis in § 38-12-903(1)(b), and by writing down how you derived the average. That is the reconciliation Colorado itself supplies, and it is the single most useful thing on this page.
The tension is real. Actual costs are not uniform: an applicant with an out-of-state rental history may need an extra search; a co-applicant or guarantor adds a report; a vendor’s per-pull price differs between products. Price on strict actual expense with three units advertised and you will charge different applicants different amounts, which the equal-fee rule prohibits. Price on the average expense per prospective tenant and the number is the same for everyone by construction.
Taking that route engages § 38-12-903(3)(a)’s second sentence: where the landlord charges an amount based on the average cost of processing the application, the landlord shall include information regarding how that average rental application fee is determined. So the price of the workable option is transparency about the arithmetic.
A worked example makes the shape of it clear. Suppose over the previous quarter you processed forty applications. Your screening vendor billed a credit and eviction package on every one, a criminal search on most, and a small number attracted an additional county search. You total the vendor invoices attributable to those applications, divide by forty, and arrive at a per-applicant average. That average, and nothing else, becomes your fee. The written explanation you owe under § 38-12-903(3)(a) says which quarter you averaged, how many applications were in the population, which cost components were included, and what the resulting figure is. It fits on half a page and it is the same document for every applicant.
Two cautions about it. The average must be an average of costs you actually incur in processing applications — the subsection speaks of the expense the landlord incurs per prospective tenant in the course of processing multiple rental applications, not of a budgeted allowance. And when the average changes, the fee changes for everyone from a stated date, not for the next applicant through the door, or you have recreated the equal-fee problem you used the average to solve.
What must a Colorado landlord give an applicant who pays a fee?
Two separate documents, under two separate paragraphs, and satisfying one does not satisfy the other.
A receipt, to everyone. § 38-12-903(3)(b) requires the landlord to provide every prospective tenant with a receipt for any application fee received. There is no threshold and no exception for online payment. The landlord may provide an electronic receipt unless the prospective tenant requests a paper receipt, in which case a paper receipt is owed. That is a request the applicant can make at any point, so the ability to print one matters even in an entirely digital process.
A costs statement, in one of two forms. § 38-12-903(3)(a) requires the landlord to provide any prospective tenant who has paid a fee with either a disclosure of the landlord’s anticipated expenses for which the fee will be used or an itemization of the landlord’s actual expenses incurred. Either discharges it. A disclosure of anticipated expenses can be prepared once and issued at payment; an itemization of actual expenses has to wait until the spending is known. Most landlords will find the anticipated-expenses disclosure simpler, and it pairs naturally with the receipt in a single handover at the point of payment.
If the fee is set on the average basis, the average-methodology information rides on the same document. Practically, that means one page given to every applicant: what the fee is, what it will be spent on, and how the figure was derived.
When must an unused Colorado application fee be refunded?
§ 38-12-903(4) provides that a landlord who receives a rental application fee and does not use the entire amount to cover the costs of processing the application shall remit the remaining amount to the prospective tenant, and shall make a good-faith effort to remit that amount within twenty calendar days after processing the application.
Three details in that sentence do real work.
The trigger is arithmetic, not rejection. The duty arises whenever the whole fee was not consumed by processing costs. It applies to an approved applicant just as much as a rejected one. If your fee is set at the average and this applicant’s processing happened to cost less than the average, there is a remainder, and it is owed.
The clock runs from processing. Not from the decision, not from move-in, not from the applicant asking for their money back. A landlord who takes a fortnight to reach a decision after the screening came back has already used most of the twenty days.
The standard is a good-faith effort. The subsection asks for the effort within the window rather than guaranteed receipt of funds, which is realistic where an applicant has moved on and is not answering. What it makes essential is a record: the date you attempted the remittance, the method, the amount, and any subsequent attempts. A good-faith effort you cannot evidence is indistinguishable from no effort at all.
When can a Colorado landlord not charge an application fee at all?
Where the prospective tenant provides a portable tenant screening report. § 38-12-903(2)(b) prohibits charging a rental application fee in that case, and § 38-12-904(1.5)(c) separately prohibits charging the applicant a fee to access or use the report.
The surrounding machinery is in § 38-12-904(1.5). A landlord shall accept a portable tenant screening report from a prospective tenant, subject only to the conditions the subsection allows the landlord to impose: that the report was completed within the previous thirty days; that it is made available to the landlord at no cost to access or use in the application process; and a statement from the prospective tenant that there has been no material change to the information in it — name, address, bankruptcy status, criminal history or eviction history — since it was generated. Those are the conditions the statute lists, and a landlord who invents further ones is adding requirements the subsection does not contain.
A definition sits behind all of this at § 38-12-902(2.5): a portable tenant screening report is a consumer report prepared at the request of the prospective tenant, from a consumer reporting agency, carrying specified information about the applicant and the date through which that information is current.
What is the portable-report advisement, and where must it appear?
§ 38-12-904(1.5)(d) requires that, prior to taking any action relating to tenant screening for which the landlord would expect to collect an application fee, the landlord advise the prospective tenant, using substantially similar language, of two things: that the applicant has the right to provide a portable tenant screening report as defined in § 38-12-902(2.5); and that if the applicant does so, the landlord is prohibited from charging a rental application fee or from charging a fee for the landlord to access or use the report.
The timing word is the one to notice. The advisement is owed before any screening action for which you would expect to collect a fee. It is not a disclosure you attach to a receipt after the money is in, because by then the applicant has already lost the choice the advisement exists to give them.
§ 38-12-904(1.5)(e) then tells you where it has to go, requiring the advisement in a location and by a method reasonably likely to reach prospective tenants, including any of the following: in advertisements and other public notices of the unit’s availability, displayed in at least twelve-point, bold-faced type unless the size, format or display requirements of the advertisement make that impracticable, in which case the font and size must match the rest of the notice; on the home page of a website maintained by the landlord or the landlord’s agent, including a property management company, in at least twelve-point bold-faced type; in a paper or online rental application, in at least twelve-point bold-faced type; or orally, directly to the prospective tenant, with a written confirmation of receipt by the prospective tenant.
The oral route is the one to be careful with. It is permitted, but it requires the applicant’s written confirmation that they received the advisement, which is a document you have to obtain and keep. For most operations, putting the advisement in the application form and on the website is considerably less work than collecting confirmations.
Can a Colorado landlord opt out of the portable-report regime?
Yes, on strict conditions. § 38-12-904(1.5)(f) exempts a landlord from the requirements in (1.5)(a) to (1.5)(e) — that is, from the duty to accept a portable report and from the advisement and placement duties — where the landlord does both of the following.
- Does not accept more than one application fee at a time for a dwelling unit or, if the unit is rented to more than one occupant, does not accept more than one application fee at a time from each prospective tenant or tenant group for the unit.
- Refunds the total amount of the application fee to each prospective tenant within twenty calendar days after written communication, from either the landlord or the landlord’s agent or from the prospective tenant, declining to enter into a lease agreement for the unit.
Both limbs, together. This is a genuine alternative model rather than a small-landlord exemption: it describes an operation that processes one application at a time and returns the whole fee — not merely the unused part — when the letting does not proceed. A landlord who queues several applicants for one unit does not qualify, however small the portfolio, and a landlord who refunds only the unspent balance does not qualify either.
Note also what the opt-out does not touch. It is an exemption from (1.5)(a) to (1.5)(e). The fee rules in § 38-12-903 — the cost limit, the equal-fee rule, the receipt, the disclosure, the remittance duty — sit outside it and continue to apply.
What are the penalties for getting a Colorado application fee wrong?
§ 38-12-905(1) provides that, subject to the exceptions in subsections (3) and (5), a landlord who violates any provision of the part is liable to the aggrieved prospective tenant for two thousand five hundred dollars, plus court costs and reasonable attorney fees.
Two features of the enforcement structure are worth planning around.
There is a pre-suit notice, and it is short. § 38-12-905(2) requires a person intending to file such an action to notify the landlord of that intention not less than seven calendar days before filing.
There is a cure window of the same length, and it is decisive. § 38-12-905(3) provides that a landlord who corrects or cures a violation not more than seven calendar days after receiving notice of it shall pay the aggrieved prospective tenant a penalty of fifty dollars but is otherwise not liable for the damages in subsection (1). The difference between the two outcomes is a week of attention. That is the single strongest argument for having a named person who opens complaints about fees on the day they arrive.
§ 38-12-905(4) runs the other way: a person who purposefully and in bad faith brings a meritless claim under the part is liable for the landlord’s court costs and reasonable attorney fees in defending it. And § 38-12-905(5) carries a heavier structure for violations of the income provisions in § 38-12-904(1)(c) and (1)(d) — an initial fifty-dollar penalty, and, where the violation is not cured under subsection (3), a statutory penalty of two thousand five hundred dollars in addition to that initial penalty and to any economic damages, court costs and attorney fees, with no requirement to exhaust administrative remedies.
What changes for Colorado rental applications on 1 January 2027?
A new disclosure duty inside the application form itself. The certified 2026 text carries § 38-12-904(1.7), added by HB 26-1196, with an editor’s note recording that the subsection is effective January 1, 2027.
From that date, a landlord shall include in all rental applications: a notice to prospective tenants regarding the information and data the landlord will attempt to access when conducting a tenant screening; a general description of the factors the landlord will consider when evaluating an application, including credit history, rental history, income and criminal background where applicable; and whether the landlord uses a third-party tenant screening service, and if so the name of that service.
The subsection adds that nothing in it requires a landlord to adopt or disclose fixed disqualifying criteria — so this is a description of what you look at, not a published scoring rubric you are then bound by.
Because this page is written from the 2026 edition, treat the date as the operative planning point: the application form you are using now will need this content added before the start of 2027, and it sits alongside, not instead of, the portable-report advisement already required by § 38-12-904(1.5)(d). One further change is already in force rather than pending: HB 25-1236 repealed § 38-12-904(1.5)(b)(II) with effect from 1 January 2026, removing one of the conditions a landlord could previously impose on a portable report. Guidance written before that date may still list it.
What may a Colorado landlord actually consider once the fee is spent?
The fee pays for screening, and § 38-12-904(1) constrains what that screening may take into account. This is not a fee rule, but a landlord who charges lawfully and then screens unlawfully has still breached the same part, and § 38-12-905 attaches to any provision of it.
In outline: where rental or credit history is used as a criterion, the landlord shall not consider any rental or credit history beyond seven years immediately preceding the date of the application. Where criminal history is used, the landlord shall not consider an arrest record from any time, nor any conviction that occurred more than five years before the date of the application — with express exceptions for certain methamphetamine manufacturing and distribution offences, offences requiring registration as a sex offender, and offences described in the parts of title 18 the subsection identifies.
The income provisions are stricter still. For an applicant seeking to rent with the assistance of a housing subsidy, the landlord shall not consider or inquire about the applicant’s amount of income except to determine that annual income equals or exceeds two hundred per cent of the portion of the annual rent the applicant is to pay, and shall not consider a credit score, adverse credit event, or lack of a credit score unless federal law requires it. For an applicant without a subsidy, the same two-hundred-per-cent limit applies to the whole annual rent, and the landlord shall not require an applicant to have income exceeding it. § 38-12-904(1.8) makes a violation of those income provisions unlawful discrimination on the basis of amount of income under C.R.S. § 24-34-502(1)(q), with the enforcement and penalties of that regime available in addition to anything in this part.
Finally, § 38-12-904(2) requires a written denial notice stating the reasons for a denial; where the application resulted in the landlord obtaining a consumer report, a copy of that report and an advisement of the applicant’s right to dispute its accuracy with the consumer reporting agency; and, where a proprietary screening system prevents the specific criteria being cited, a copy of the screening company’s report with only the proprietary information redacted. The notice may be electronic unless a paper one is requested, and the landlord shall make a good-faith effort to provide it not more than twenty calendar days after deciding to deny.
The federal layer that applies alongside the Colorado rules
Everything above is Colorado law. The screening the fee pays for is also governed by a federal consumer-reporting regime, and this page describes that layer in general terms only — it was not researched from primary sources here, and nothing in this section should be read as a verified statement of federal requirements.
In broad outline: where a landlord obtains a consumer report about an applicant and that report contributes to a decision to reject them, to charge them more, or to impose different terms, federal law generally requires the applicant to be told, and to be given what they need to identify the reporting agency and dispute what it holds. That is the adverse-action framework, and it operates independently of the Colorado denial notice, not as a substitute for it. The practical consequence is that a single well-drafted denial letter usually has to satisfy both: the state requirement to state reasons and supply the report, and the federal requirement to identify the agency and explain dispute rights.
Separately, federal fair-housing law governs the substance of screening decisions across protected characteristics. That has an obvious contact point with the equal-fee rule: charging different applicants different amounts is a fee problem under § 38-12-903(2)(a), and doing so in a pattern that tracks a protected characteristic is a considerably more serious problem under a different body of law entirely. Uniform pricing is not only the statutory requirement here; it is also the practice that keeps the two questions apart.
Where the application fee sits in the rest of Colorado law
An application fee is not a deposit and should never share a ledger line with one. Money taken to consider an applicant is governed by § 38-12-903; money taken to secure performance under a tenancy is a deposit with its own limits and its own return obligations. See Colorado security deposit laws for the money taken at signing.
What you may lawfully consider in the screening the fee pays for, and what a denial requires once a consumer report has driven it, are treated at greater length in our guide to Colorado tenant screening laws, which covers the § 38-12-904 criteria and the denial-notice duty in detail.
For the wider framework of the tenancy — notice periods, entry, repairs, rent increases and termination — see Colorado landlord-tenant laws.
Bottom line
Colorado does not cap the application fee with a number — it caps it with your own costs, and then makes you charge every applicant the same. Under C.R.S. § 38-12-903(1) you may not charge a rental application fee at all unless you use the entire amount to cover your costs of processing the application, computed either on the actual expense for that application or on the average expense per prospective tenant across multiple applications. § 38-12-903(2)(a) then adds the obligation that catches most landlords out: the fee may not differ from the fee charged to another applicant for the same unit — and, if you are offering more than one unit for rent at the same time, from the fee charged to an applicant for any other unit you are then offering. You must hand every paying applicant a receipt, plus either a disclosure of anticipated expenses or an itemization of actual ones, and you must explain how any average was worked out. Anything you did not spend goes back, with a good-faith effort within twenty calendar days after processing. And you may not charge the fee at all where the applicant supplies a portable tenant screening report. The remedy under § 38-12-905 is two thousand five hundred dollars plus court costs and reasonable attorney fees — reduced to a fifty-dollar penalty if you cure within seven calendar days of notice.
Frequently Asked Questions
Is there a maximum rental application fee in Colorado?
No. C.R.S. 38-12-903 sets no dollar cap. It provides instead that a landlord shall not charge a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord’s costs in processing the application, based either on the actual expense for that application or on the average expense per prospective tenant across multiple applications.
Does Colorado require the same application fee for every applicant?
Yes. C.R.S. 38-12-903(2)(a) prohibits charging an amount different from the fee charged to another prospective tenant applying for the same dwelling unit and, where the landlord offers more than one dwelling unit for rent at the same time, for any other dwelling unit the landlord is offering. One fee amount applies across everything on the market at once.
Does a Colorado landlord have to give a receipt for an application fee?
Yes. C.R.S. 38-12-903(3)(b) requires a receipt for any application fee received, to every prospective tenant. An electronic receipt is permitted unless the applicant requests a paper receipt, in which case a paper receipt must be provided.
When must a Colorado landlord refund an unused application fee?
C.R.S. 38-12-903(4) requires a landlord who does not use the entire fee on processing costs to remit the remaining amount, making a good-faith effort to do so within twenty calendar days after processing the application. The clock runs from processing, not from the decision.
Can a Colorado landlord charge a fee if the applicant supplies a portable tenant screening report?
No. C.R.S. 38-12-903(2)(b) prohibits a rental application fee where the prospective tenant provides a portable tenant screening report under 38-12-904(1.5), and 38-12-904(1.5)(c) separately prohibits charging the applicant to access or use that report.
What must a Colorado landlord tell applicants before screening them?
Under C.R.S. 38-12-904(1.5)(d), before taking any action relating to tenant screening for which the landlord would expect to collect an application fee, the landlord must advise the applicant of the right to provide a portable tenant screening report and that supplying one bars both an application fee and any access or use fee. Placement rules in 38-12-904(1.5)(e) require twelve-point bold-faced type in advertisements, on the landlord’s website home page or in the rental application, or an oral advisement with written confirmation of receipt.
What is the penalty for breaching Colorado’s application fee rules?
C.R.S. 38-12-905(1) makes a landlord who violates any provision of the part liable to the aggrieved prospective tenant for two thousand five hundred dollars plus court costs and reasonable attorney fees. A person intending to sue must give seven calendar days’ notice, and a landlord who cures within seven calendar days of that notice pays a fifty-dollar penalty instead.
What changes for Colorado rental applications in 2027?
C.R.S. 38-12-904(1.7), added by HB 26-1196 and effective January 1, 2027, requires all rental applications to include a notice of the information the landlord will attempt to access when screening, a general description of the factors considered, and whether a third-party screening service is used and its name. It does not require the landlord to adopt or disclose fixed disqualifying criteria.
How can a Colorado landlord charge an average-cost application fee lawfully?
C.R.S. 38-12-903(1)(b) permits a fee based on the average expense the landlord incurs per prospective tenant across multiple applications, and 38-12-903(3)(a) then requires the landlord to include information about how that average is determined. Record the population of applications averaged, the period, the cost components and the resulting figure, and change the figure for all applicants from a stated date rather than partway through a vacancy.
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