Governed by the Colorado Revised Statutes (originally enacted in 1885), residential late fees are strictly regulated under C.R.S. § 38-12-105. Following sweeping changes passed in 2021 (S.B. 173), which became effective on October 1, 2021, landlords must strictly adhere to both minimum grace periods and maximum financial caps.

Eviction Warning: In Colorado, landlords are strictly prohibited from terminating a tenancy or filing an eviction lawsuit (unlawful detainer, typically filed in County Court) solely based on a tenant's failure to pay a late fee. Evictions must be based on unpaid rent.

Official Law Citation: The rules and regulations outlined on this page are strictly configured under the official Colorado Revised Statutes (C.R.S. § 38-12-105)Preview unavailable.

The Mandatory 7-Day Grace Period

In Colorado, a landlord cannot legally assess or charge a late fee until a rent payment is late by at least seven (7) full calendar days.

For example, if rent is uniformly due on the 1st of the month, a tenant has through the 8th to submit payment. If the payment arrives on the 9th, only then can a late fee be legally applied.

The Financial Cap: $50 or 5%

Colorado sets a stringent statutory maximum on the amount of a late fee. A residential late fee cannot exceed:

• A flat fee of $50, OR
• 5% of the past due rent amount. (Whichever of those two sums is greater).

A landlord is prohibited from stacking late fees. The fee cannot be charged more than once for the same late payment unless the combined total still remains underneath the 5% / $50 ceiling.

Illegal Late Fee Practices

The following actions regarding late fees are explicitly illegal in Colorado:

1. Charging Interest: A landlord cannot charge accrued interest on an unpaid late fee.
2. Hidden Fees: Any applied late fee must be explicitly detailed and disclosed within the written lease agreement prior to signing.
3. Application of Payments: A landlord cannot apply a tenant's standard rent payment toward an outstanding late fee balance first. Rent payments must be applied to rent.
4. Subsidy Late Fees: Landlords are strictly prohibited from charging late fees on the portion of rent owed by a government or non-profit housing subsidy provider (like Section 8 components).
5. Notice Requirements: A landlord must provide written notice of a late fee within 180 days after the rent payment initially became due; otherwise, the right to collect that fee is forfeited.

If a Colorado landlord violates these extremely precise late fee rules, they are liable for an initial $50 penalty payable to the tenant. If the violation is not cured within seven days of written notice, the landlord is liable for additional statutory penalties between $150 and $1,000 per violation, plus the tenant's attorney's fees and court costs. Landlords may also be barred from recovering possession in an eviction action if the violation is raised as an affirmative defense.

Automatically Apply Legal Late Fees

Never risk accidentally charging a late fee on day 5 and facing a $1,000 fine. Landager automatically tracks the exact Colorado 7-day grace period for every property and flawlessly calculates the 5% state-mandated maximum, so your ledgers are always mathematically perfect and legally compliant.

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How Landager Helps

Landager tracks lease terms, required compliance items, and accounting records - making it easy to stay compliant with Colorado regulations.

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