New Denver Law Requiring Licenses for ALL Property Managers(including self managed)

What's the scoop?

In the last couple of years, we have seen a lot of change to real estate laws, and it seems the next couple will be no exception. Beginning January 1, 2023, all multifamily properties within the city and county of Denver will be requiring a license to manage them, even if they are self-managed. This goes for anything that is not considered single family housing. Unfortunately, there will changes in the single family realm as well...Beginning on January 1, 2024, a license will be required for any person to offer, provide, or operate a residential rental property consisting of a single unit. This includes single-family homes, single units within a rowhouse, and single units in an apartment building or condominium. Primary residences offered as short-term rentals (less than thirty days) may be exempted from the City’s separate residential licensing requirement.

Denver City Council approved an ordinance requiring all residential property managers to obtain a license from the city.

You're probably wondering, what exactly is a property manager? A property manager is someone who manages real estate for a fee. Some common tasks performed by property managers include:

• collecting rent payments from tenants
• communicating with tenants on repairs and lease violations
• handling disputes between tenants and landlords
• dealing with maintenance issues and repairs

The new law requires all residential property managers/ home owners to obtain a license from the city. The license will last for 4 years. The new laws will take effect on January 1 2023 (multi-family) followed by January 1 2024 (for Residential) . If you are currently a property manager or a home owner managing your property, be ready for these changes.

The cost of a property manager’s license will be based on the number of units managed

The cost of a property manager’s license will be based on the number of units managed. For example, if you manage one unit in Denver, you must pay $50 per year; if you manage two unit to ten units, you must pay $100 per year; and so on. The fee is paid by either the property owner or property manager.

This may have an impact on rental values in the area

This law could have a significant impact on rental values in the area, as well as home ownership. When individuals are required to obtain a license for property management, there is an increased cost that must be passed on to the tenant.

As one of the most popular parts of Denver, this change could mean that you'll see increases in your monthly rent or home sale price in order to offset the licensing fees and other expenses associated with complying with this new regulation.

This could be good for consumers as it imposes some standards on what you can expect from someone who's licensed.

This is a good thing for consumers. It will help them protect themselves from bad property managers and make sure they are getting the best service possible.

The regulations will also give landlords a better sense of security when it comes to their investments. If they know that the property manager they choose has been through the rigorous changes in past years, they can be more confident in the decision.

Keep yourself up to date.

We hope that you enjoyed reading about the new law in Colorado. As always, we’ll keep you up to date with any updates on this legislation and other legal developments that affect your business. If you have any questions about how this new law may affect your rental business, please feel free to reach out to us at 3034832372 or email us at sales@rentcoloradohomes.com

Thanks for reading, I hope you found this article helpful. Stay tuned for more on this new law we will be putting out weekly information on this issue.

Michael Nash- Marketing Director