Hello greetings from Colorado Springs, my name is Lance Kohler I'm the managing broker for Cornerstone Real Estate Team. Today I'd like to give you the first of several legislative updates for the 2024 legislative session.
The first bill I'd like to talk about today is House Bill 1098 and the title is cause required for eviction of a residential tenant. So House Bill 1098 was signed by the governor and is effective as of April 19th 2024, what that does is it takes what we used to call a non-renewal when a tenant's lease would end and the property management company or the landlord would not renew the lease the contract would end the tenant would move out and the landlord would look for a new prospective tenant or you know perhaps do renovations or move family in ETC any number of reasons you may have that contract end. A former non-renewal in this bill is called a no fault eviction and so that's the terminology I'm going to use moving forward.
One of the biggest things in this bill is that landlords must now provide 90 days notice to a tenant if they intend to not renew the lease at the end of the lease, so you have to provide 90 days notice for a no-fault eviction is the terminology in the lease. What we used to call a non-renewal, and the landlord is limited to six conditions under which you cannot renew the lease, if you don't meet these six conditions the lease you must offer the tenant a similar lease a similar reasonable lease to go on with their tenancy.
There six specific conditions under which you can issue a 90 days notice for non-renewal or no fault eviction, demolition and conversion of the property if you're demolishing it or converting it to a short-term rental for example substantial repairs that are going to take several months and would require the occupants to move out and there's a couple caveats that I'll cover here in a minute for a couple of these six conditions.
Third condition landlord use, if you as a landlord are moving back into the property or if you have family members who are moving back into the property that is one of the reasons that you can provide a notice of no-fault eviction. If you are placing the home for sale you're removing it from the rental market and you're putting it on the sales market. If you offer the tenant a new rental agreement with reasonable terms, and reasonable terms is not really defined in the bill but we'll talk about that a little bit later in this presentation. If they decline to sign a new rental agreement you can provide them a 90 days notice of no fault eviction. The sixth condition under which you can provide the tenants 90 days notice of no fault eviction is a history of late payments, and that means the tenant has paid late more than twice after you have posted notice to cure so it's not just they're a day late or two days late you have to have posted notice to your and they have to have paid after that time has expired.
Those are a couple additional terms, the sale I mentioned if you're selling the house, you're taking it off the rental market and putting it on the sales market, that only applies to a single family rental does not apply to a multi-family rental, if you have a 4 unit apartment complex and you are going to sell, that doesn't mean you can terminate all the leases. If the owner is moving in there is caveat if the owner is active duty military, they don't have to provide 90 days notice but they must provide 45 days notice. And the condition under which the tenant was late paying rent three times, the landlord must have served notice and the time frame for the tenant to cure must have expired.
There are two types of properties, a covered property would be a property that has a federally backed mortgage or the tenant has received federal subsidy housing payments, and under those conditions you would have to provide them 30 days notice, if there is no mortgage on the property or if it's a private loan for example you must provide them 10 days notice. And with this substantial repairs and renovations, if the renovations take 6 months or less, 180 days or less then the tenant has the right of first refusal, meaning if your renovation and repairs are only going to take 4 months you have to offer the tenant the opportunity to move back into the property before you can list it and lease it to someone else.
Some other changes of note from this bill, again this is House Bill 1098 in serving notices you must make two attempts on two different days and attempt to provide serve the notice in person so you're looking for a tenant who is on the lease that you can provide that notice to in person, it must state on the notice the day that the time frame will expire. I talked about a 30 day time frame and a 10 day time frame, you have to specify that date on the notice, it cannot say 10 days from now it has to be 10 days from the time that you have served it. You cannot list any attorney fees and the 90 day notice if you are providing them a notice of non-renewal or a no fault eviction notice of no fault eviction the 90 day notice, must state the specific reason and in some cases the timeline that you are not renewing the lease.
Some other minor change other changes that are in this bill, one is that the initial if the initial term of the lease if the tenant has lived there for less than 11 months then these conditions don't apply, and then two weeks is a recommended time frame for allowing a tenant to decide on renewing the lease you have to give them a physical copy of the lease to let them review it and determine if they wish to renew.
That was House Bill 1098 cause required for eviction of a residential tenant, and that was the first of several updates that we'll provide legislative updates on for the 2024 session. Thank you for your time thanks for listening make it a great day!