That sneaky trick landlords use to hide your real rent cost is now illegal in Colorado

New law forces businesses to show full prices

Colorado rang in 2026 with a new rule that hits landlords and businesses where it counts: the price tag.

The Protections Against Deceptive Pricing Practices Act took effect Jan. 1 and requires every business to show one total price that includes all mandatory fees.

No more advertising a low number and tacking on extras later. That trick, known as “drip pricing,” is now a violation of state law.

The change hits rental housing hardest.

Democrats pushed the bill through in the spring

Gov. Jared Polis signed HB 25-1090 on April 21, 2025, after a party-line push from Democratic lawmakers.

Reps. Emily Sirota and Naquetta Ricks sponsored the bill in the House, while Sens. Lisa Cutter and Mike Weissman carried it through the Senate.

The House passed it 41-21, and the Senate followed 22-12.

The bill builds on a 2023 Colorado law that first went after certain rental junk fees, but this version reaches far beyond housing.

Renters said hidden costs added up fast

Landlords can no longer advertise a base rent and hide mandatory costs like amenity fees, parking, or trash service.

During committee hearings, some Colorado tenants said those extras added $150 to $180 a month on top of what they thought they’d pay.

Now, all unavoidable costs must show up in one rental price across listings, ads, and leases. Utility charges billed directly by a third-party provider, like gas or electricity, can still sit outside that total.

Certain separate charges are now off-limits

The law bans landlords from charging separately for services that are part of their basic duties. Fees for services a tenant never actually gets are also out.

Payment processing fees can only stay if the landlord offers at least one free way to pay rent. And costs like pest control and trash removal now belong inside the total rent price.

The goal is simple: tenants should know what they owe before they sign anything.

Fee hikes face new caps during leases

For leases of one year or less, landlords cannot raise non-utility fees by more than 2% during the lease term.

When they pass along costs from outside services, the markup tops out at 2% of the service cost or $10 a month, whichever is less.

Landlords also cannot charge tenants more for utilities than what the utility company actually bills for that unit. Any lease clause that requires paying a fee banned by this law is automatically void.

Rule breakers face steep penalties

Violations count as deceptive trade practices under the Colorado Consumer Protection Act. A tenant who spots an overcharge can send a written demand for a refund.

If the landlord does not pay or stop the charge within 14 days, they owe actual damages plus 18% annual interest, compounded yearly. Tenants do not need to jump through any special hoops before filing a lawsuit.

The Colorado Attorney General can also step in to investigate complaints and take action.

Tenants can fight back on their own

If something looks off on a bill, tenants should start by reviewing their lease and monthly statements for charges that were not disclosed up front.

The next step is sending a written demand to the landlord asking for a refund. Keeping copies of the lease, ads, and billing statements helps build a paper trail.

Anyone who does not get a response can file a complaint with the Colorado Attorney General’s office.

The law does not cap rent itself

One thing HB 25-1090 does not do: limit how much a landlord can charge for rent. Landlords can raise their base rent to make up for the revenue they lose from banned fees.

Colorado law does require written notice before a rent increase and limits hikes to once every 12 months per tenant.

Housing advocates have noted that some landlords are already raising base rent or adding new lease addenda to offset the change.

Critics point to gaps in the law

Republican lawmakers argued the bill holds businesses to a standard the government does not follow, since government-imposed fees stay outside the total price requirement.

Some landlords and property managers worry that folding fees into base rent could make housing look more expensive on paper.

The Denver Metro Tenants Union has reported that some landlords are trying to find loopholes, like requiring tenants to sign addenda with new charges. Advocates want stronger enforcement.

A major settlement set the tone early

Complaints about junk fees started coming into the Colorado Attorney General’s office shortly after the law took effect.

Separately, in December 2025, the FTC and Colorado AG reached a $24 million settlement with Greystar, the nation’s largest rental property manager, for hiding mandatory fees from tenants since 2019.

That case used existing consumer protection law, not HB 25-1090. But it sent a clear signal about how seriously regulators plan to enforce pricing transparency.

Other states are following the same path

Colorado is not alone. The FTC finalized its own junk fees rule in December 2024, covering live-event tickets and short-term lodging, which took effect May 12, 2025.

California, Minnesota, Massachusetts, Connecticut, Virginia, and Oregon have passed their own pricing transparency laws.

The White House Council of Economic Advisers estimated junk fees cost Americans roughly $90 billion a year, or more than $650 per household.

Colorado’s law goes further than the federal rule because it covers many industries.

Enforcement is just getting started

The Attorney General’s office has not yet released detailed guidance on how it will handle violations.

Legal experts say open questions remain, like how the law applies differently to residential versus commercial landlords.

Both tenants and landlords should review their leases and pricing to make sure they meet the new rules. More states are expected to pass similar laws in 2026, which could build momentum toward a broader federal standard.

This article was created with AI assistance and human editing.

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