Colorado’s Tenant Laws Push Small Landlords Out of the Rental Market

Written by:

Rudi Davis

Date:

28 Jan 2026

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Colorado’s new tenant protection laws, enacted in spring and summer 2024, are driving many small landlords out of the rental market, says Christine Belin, a Denver-based real estate broker at Evernest. While these laws aim to protect renters, Belin argues they are forcing mom-and-pop landlords, those who own just one or a few properties, to exit rather than adapt to the new rules.

The Impact of the 90-Day Notice Rule

The core of the new regulations is a strict 90-day notice requirement for tenants who have lived in a property for at least a year. Landlords can only ask tenants to move out for specific, legally defined reasons. Evictions are now limited to clear-cut violations, such as nonpayment of rent or significant lease breaches, and casual or convenience-based evictions are no longer allowed.

If a landlord wants to sell a property, the law requires them to list it for sale within a set timeframe, typically 60 or 90 days after notifying the tenant, according to Belin. For landlords planning to move back in themselves, the process is permitted but must be closely documented and justified. Removing a tenant for property condition issues has become almost impossible unless there is a detailed, documented record of lease violations.

“You have to give a 90-day notice to a tenant who has been living in your home at least 12 months, and you can only ask them to move out for very, very specific reasons,” Belin says. She notes that landlords must now plan months and maintain thorough records to comply with the law.

For small investors, this creates a mismatch between their typical business plans and the legal requirements. An owner who bought a property intending to hold it for several years and then sell now faces months of planning and strict compliance to exit the investment.

Who Really Owns Denver’s Rentals?

Belin points to a gap between public perception and the reality of the rental market. Many tenants assume their landlords are large corporations, but most Denver rental homes are owned by individuals or families with one or two properties—often former primary residences. “There’s a distortion of renters viewing investors as these big corporations, but it tends to be your neighbor—someone who just has a handful of properties, or maybe just one,” she explains.

These small landlords, Belin says, do not have deep financial reserves. Rising insurance premiums and tighter margins since 2022 have already made it more difficult for them to turn a profit. The new laws add to that pressure, making rental ownership less attractive. “Those margins have gotten smaller and smaller, especially since 2022 and 2023, with insurance and now the new laws. It just makes it very challenging to be a landlord in Denver,” Belin says.

Regulatory Hurdles Add Up

Colorado’s 2022 licensing requirement added another layer of bureaucracy. While not a significant obstacle on its own, Belin says it added to the growing list of requirements that landlords must manage. “Licensing is not a large hurdle, but it creates another barrier for some people,” she notes.

The cumulative effect of these regulations is making small-scale rental ownership less viable. Owners must now invest more time and money into compliance, record-keeping, and tenant management—burdens that larger, institutional landlords are better equipped to handle.

Institutional vs. Individual Owners

The rental market is becoming more concentrated as individual owners exit and larger firms take over. Belin warns that this was not the intended goal of tenant protection laws, but it is becoming the reality. “It becomes very challenging for those smaller mom-and-pop investors, which is the majority of investors for rental homes,” she says.

Institutional investors, however, have not rushed in to fill the gap. High interest rates and tighter acquisition models have led many large firms to pause new purchases in Denver. “Major institutional investors, some have just completely pulled back and are waiting for some things to change,” Belin reports.

Small investors who remain in the market are adapting by shifting away from traditional single-family rentals. Some are exploring alternative investment strategies or redeploying capital outside the Denver area.

Adapting to the New Landscape

Belin helps her clients navigate this environment through careful planning, tenant coordination, and strategic timing of property sales. She works to find move-out timelines that benefit both landlords and tenants, even if they do not match lease expiration dates. Preparing properties for sale and avoiding distressed transactions are now key parts of her service.

“I help our owners coordinate with tenants to get them to move out or occasionally purchase the property themselves,” Belin says. Her goal is to help investors realize the value of their holdings without violating new regulations.

Evernest has expanded its services to handle these transitions across its 50-market footprint, with Belin leading efforts in Colorado since 2021. The company combines property management and brokerage, providing a model for navigating both operational and transactional challenges in the new regulatory climate.

What Comes Next for Small Landlords

Whether other real estate firms adopt similar integrated approaches may depend on how quickly the industry recognizes that Colorado’s tenant protection laws have changed the economics of small-scale rental ownership. For now, many small landlords are choosing to leave the market rather than adapt, reshaping the landscape for renters and investors alike. The long-term effect may be a Denver rental market increasingly dominated by large firms, with fewer opportunities for individual owners to participate.