Colorado Mandates Portable Rental Applications for Landlords

As a landlord, you’re used to fielding inquiries from prospective tenants. But recently, you’ve noticed an uptick in the number of renters wanting to know whether you accept portable rental applications. 

Also known as a tenant screening report, portable rental applications are essentially credit and background checks tenants can share with landlords when looking for a place to rent. And yes, in most cases, Colorado landlords leasing residential units are now legally required to accept portable rental applications from prospective tenants. 

While convenient for tenants, portable rental applications can present challenges for landlords, from obfuscation of report details to strict regulatory non-compliance penalties.

This article gives a brief overview of the recent rule and what it does – and doesn’t – mean for landlords like you. 

Background checks give landlords essential information about prospective renters, including their criminal background and rental history. In the past, landlords didn’t have to worry about insufficient reports because they could simply deny potential renters who refused to participate. 

However, that changed in 2023, when Colorado became the first state to require landlords to accept portable tenant screening reports.

Representative Stephanie Vigil was the primary sponsor of a bill amending this Colorado law. During the 2023 legislative session, she noted that application fees weren’t feasible for most renters.

“For people on a really tight budget, this can deplete your limited funds really quickly,” said Vigil.

HB23-1099 promised prospective renters the ability to pay for one background check that could then be shared with multiple landlords simultaneously. At the time, landlords criticized the bill for lacking clear standards for background check service providers. And since the law went into effect, it’s been reported that would-be renters have found the process hard to navigate as well. 

Given all that, here’s the latest you need to know about portable background checks in Colorado and your rights. 

HB23-1099 gives prospective tenants the right to offer their own background check. If your potential tenant’s portable rental application passes legal muster, you can’t charge a rental application fee or a verification fee to run your own check.

With that said, HB23-1099 gives landlords the right to reject a report that’s missing any of the following factoids: 

• Name

• Address

• Employment verification or income estimate report

• Criminal background (including local convictions)

• Rental history

• Credit history

Landlords can also deny a screening report that’s more than 30 days old.

As a landlord, you can also deny a portable background check from a reporting agency that denies you a copy of the prospective tenant’s report. 

It is also unlawful for consumer reporting agencies and third-party websites supplying portable background checks to charge landlords to access and use screening reports as part of the rental application process. C.R.S. 38-12-904(1.5)(a)

Any legitimate consumer reporting agency failing to cooperate with a landlord is a major red flag and reflects badly on your prospective tenant. 

Believe it or not, HB23-1099 doesn’t apply to all landlords. Specifically, if you:

• Limit the number of application fees they accept to one at a time

• Refund the rejected tenant’s application fee before accepting another

The benefits of using your own screening report include the freedom to choose a system that provides data you deem sufficient in whether or not you want to rent to a prospective tenant. 

Landlords who honor this exception are not legally required to accept portable background checks from prospective tenants.

Whether you’re suspicious of your potential tenant’s portable rental application or think you may qualify for the exception but aren’t quite sure, Robinson & Henry can help. you qualify for an exception, Colorado rental laws are complex, and our eviction and landlord attorneys can help you avoid liability for a misunderstanding. Call (720) 844-8538 to begin your case assessment.