The Secret Cost of a Bad Property Manager

Your rental

What could go wrong

• A vacancy that drags on

  Slow to list, slow to answer calls, showings only when it suits the manager.

  Extra days empty

   

  A day's rent is the monthly rent times 12, divided by 365.

• A bad tenant, or an eviction done wrong

  Weak screening lets the wrong tenant in. A notice served wrong sends the case back to the start. Colorado's standard demand for rent is 10 days, 30 days for homes with a federally backed mortgage or subsidy. The numbers below are a mild case: we have seen evictions run nine months, and the cleanup and repairs after an eviction are usually the most expensive turnover there is.

  Months of rent lost

  Court and attorney costs (dollars)$

   

  Notice periods: C.R.S. § 13-40-104 and the federal CARES Act. Court costs are your own estimate.

• Repairs put off

  A repair that waits is a bigger bill later. Since 2024, a habitability problem that is not fixed in time can cut the rent the tenant owes by half for that period, or to nothing if it affects health or safety. Many managers have not caught up with the 2024 changes, and the owner carries that risk.

  Months the problem goes unfixed

   

  Counted at the 50% reduction. Rent reduction: C.R.S. § 38-12-507 (SB24-094). The bigger repair bill is not counted.

• A security deposit kept the wrong way

  Miss the deadline for the written statement of reasons and the right to keep any of it is gone. Keep it wrongly on purpose and the tenant can recover three times the amount, plus attorney fees.

   

  Three times the full deposit you entered above. C.R.S. § 38-12-103. The tenant's attorney fees are not counted.

• Rental application rules broken

  Fees above cost, no portable screening report option, or no written reason for a denial.

  Applicants affected

   

  $2,500 per applicant, plus costs and attorney fees ($50 if fixed within 7 days of the applicant's notice). C.R.S. § 38-12-905.

• Late fees above the legal limit

  Colorado caps a late fee at $50 or 5% of the late rent, whichever is more, and only after rent is 7 days late.

  Late fees charged wrong

   

  Up to $1,000 per fee if not fixed within 7 days of the tenant's written notice, plus the tenant's damages, costs and fees. C.R.S. § 38-12-105.

• A fair housing complaint

  An advertisement that says "No Section 8," a pet fee charged on an assistance animal, or a question that should never be asked.

   

  Up to $10,000 for a first violation before the Colorado Civil Rights Commission, before damages and fees. C.R.S. § 24-34-508.

• A missed lead paint disclosure

  Only for homes built before 1978. Every lease needs the federal lead paint disclosure and pamphlet.

   

  Up to $22,263 per violation, and a knowing violator owes the tenant three times their damages. 42 U.S.C. § 4852d; 40 C.F.R. § 19.4.

• Fees the law no longer allows

  Since January 2026, Colorado bans many add-on fees in residential leases and treats them as deceptive trade practices.

   

  Up to $20,000 per violation (50,000 involving an elderly person) under the Colorado Consumer Protection Act. HB25-1090.