Colorado Month-to-Month Rental Agreement

Colorado Month-to-Month Rental Agreement – Complete Guide

A month-to-month rental agreement (also called a periodic tenancy) is a flexible lease arrangement that automatically renews each month until terminated by either the landlord or tenant. This guide covers everything Colorado landlords need to know about month-to-month tenancies under current law, including the significant changes brought by HB 24-1098.

What is a Month-to-Month Tenancy?

Unlike a fixed-term lease (typically 12 months), a month-to-month tenancy has no set end date. The tenancy continues indefinitely, renewing automatically each month, until either party provides proper notice to terminate. This arrangement offers flexibility for both landlords and tenants but comes with different legal considerations.

HB 24-1098 Just Cause Requirements (Effective January 1, 2025)

Colorado’s House Bill 24-1098 fundamentally changed month-to-month tenancies. Once a month-to-month tenancy has been in effect for 12 months or longer, landlords must have just cause to terminate. This is a major change from prior law.

Valid Just Cause Reason	Description
Non-Payment	Tenant failed to pay rent
Lease Violation	Material breach of rental agreement terms
Criminal/Nuisance	Criminal activity or substantial nuisance
Owner Move-In	Landlord or immediate family moving in
Withdrawal from Market	Removing unit from rental market
Demolition/Renovation	Substantial renovation or demolition
Government Order	Required to vacate by government order
Tenant Refused Renewal	Tenant rejected renewal offer

Notice Requirements for Termination

Under C.R.S. § 13-40-107, either party may terminate a month-to-month tenancy by providing written notice at least 21 days before the end of any rental period.

How the 21-Day Notice Works:

• Notice must be in writing
• Must be delivered at least 21 days before the end of a rental period
• The termination date must be the last day of a rental period
• For tenancies of 12+ months, landlord must have just cause

Example:

If rent is due on the 1st and you want to terminate effective April 30, notice must be delivered by April 9 at the latest (21 days before April 30).

Security Deposit Rules

Colorado has specific rules for security deposits that apply to all residential tenancies:

• Maximum amount: 2 months’ rent
• Return deadline: 30 days (or 60 if specified in writing)
• Itemized statement: Required if any deductions are made
• Penalty for violations: Landlord may owe treble (3x) damages

Pet Deposit and Rent Caps

Colorado law (C.R.S. § 38-12-104.5) caps pet-related fees:

• Pet deposit: Maximum $300
• Monthly pet rent: Maximum $35

Late Fee Restrictions

Under C.R.S. § 38-12-105:

• Grace period: 7 days (cannot charge late fee until day 8)
• Maximum late fee: Greater of $50 or 5% of monthly rent

Required Disclosures

Colorado landlords must provide these disclosures:

• Lead-Based Paint Disclosure – Required for pre-1978 housing (federal)
• Radon Gas Disclosure – Required for all rentals (C.R.S. § 38-12-803)
• Bed Bug Disclosure – Required for all rentals (HB19-1328)
• Warranty of Habitability Disclosure – Required 2025+ (SB 24-094)

Advantages of Month-to-Month Tenancies

For Landlords:

• Flexibility to adjust rent with proper notice
• Ability to terminate for market reasons (with just cause after 12 months)
• No long-term commitment if tenant is problematic

For Tenants:

• Flexibility to move with only 21 days notice
• No penalty for early termination
• Just cause protection after 12 months

Converting Fixed-Term Lease to Month-to-Month

Many fixed-term leases automatically convert to month-to-month tenancies when they expire if neither party takes action. Check your existing lease language – it may specify automatic conversion or require a new agreement.