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There Is a new bill, Residential health and safety act, that will drastically alter rental properties both single family and multifamily properties. Are you ready? The bill’s title sounds innocuous, but the true intent of the bill is lurking in the details and will impact every rental property owner. What should you do now to get ready for the proposed changes? 3 steps every rental property owner should take
What is in the bill? 3 profound changes for rental owners
In 2008, Colorado passed a law whereas the “warranty of habitability” is implied in every rental agreement for a residential property. The current law provides remedies for tenants where a current property uninhabitable, unsafe, etc… The new law makes 3 major changes
Why is this bill so impactful?
The Colorado Apartment association said: “ The current bill would open the door to minor complaints being used to avoid paying rent, a situation that the 2008 legislation specifically tried to avoid while offering a viable path for repair and remedy. “ Furthermore, this bill will create a path to more litigation over mold and the definition of habitability. This bill will substantially increase expenses for property owners. Who is going to absorb these new expenses?
How will the market react?
Money doesn’t grow on trees! Someone will be impacted by the expenses of the new law. Although the law is well intentioned, it is ironic that this bill was designed to protect lower income tenants, but the exact opposite will occur as the expenses and risks associated with this bill will have to go somewhere. Lower tier tenants will feel the pain the most as property owners no longer provide appliances and raise rents to help absorb costs from the new regulations.
What should you do? 3 steps every property owner should take
On paper the bill looks well intentioned, but the unintended consequences will be profound. This new bill will do just the opposite of its intent hurting lower income tenants. The market will adapt to the new legislation and rents will increase to compensate.
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Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in the Colorado Real Estate Journal, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the state.
When you call you will speak directly to the decision makers and get an honest answer quickly. They are recognized in the industry as the leader in hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all they need is their simple one page application (no upfront fees or other games)