Leases and Property Management
Lease fundamentals
A lease transfers possession, not title. Colorado requires a writing for leases longer than one year (statute of frauds). Know the estate for years, periodic tenancy (month-to-month), and tenancy at will. The landlord owes a warranty of habitability - water, heat, plumbing, safety - and may not retaliate against a tenant who complains or asserts rights.
Security deposits
Colorado sets no cap on most deposits. The landlord must return the deposit or deliver a written itemized statement of deductions within one month of termination, unless the lease allows a longer period up to 60 days. Wrongful withholding can expose the landlord to double or treble damages plus attorney fees. Deposits are trust funds for a property manager and never commingled with the owner's operating money.
Management is brokerage
Managing property for others - renting, collecting rents, negotiating leases - is brokerage under Colorado law and requires a broker license and a written property management agreement. Eviction goes through the courts (forcible entry and detainer); self-help lockouts are unlawful.
Traps: assuming a pet deposit can be labeled nonrefundable without lease language; treating an automatic cleaning fee as permitted; handling rent for a friend 'informally' (unlicensed brokerage); overlooking that Colorado protects additional classes beyond federal fair housing, including source of income and sexual orientation.
Rule of thumb: 30 days to account, 60 if the lease says so, with an itemized list for every dollar kept.