Colorado Rent Late Fees: 2025 Complete Guide

By RentLateFee Legal Team • November 21, 2025 • 13 min read

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Colorado's Unique "Greater Of" Late Fee Structure

Colorado stands apart from most states with its distinctive late fee regulation: landlords can charge $50 OR 5% of monthly rent, whichever is GREATER. This "greater of" formula, codified in Colorado Revised Statutes § 38-12-102, creates a landlord-friendly framework while also establishing clear maximum limits that protect tenants from excessive fees.

This comprehensive guide examines Colorado's late fee laws, mandatory grace periods, eviction restrictions, and practical strategies for both landlords and tenants in 2025.

The $50 or 5% "Greater Of" Rule

Under Colorado Revised Statutes § 38-12-102(1)(a), residential landlords can charge the greater of:

$50 flat fee, OR
5% of monthly rent

How the Calculation Works

The landlord compares both amounts and charges whichever is higher:

Example 1: $800 Monthly Rent

5% of $800 = $40
Comparison: $50 (flat) vs. $40 (percentage)
Allowable fee: $50 (the greater amount)

Example 2: $1,200 Monthly Rent

5% of $1,200 = $60
Comparison: $50 (flat) vs. $60 (percentage)
Allowable fee: $60 (the greater amount)

Example 3: $2,000 Monthly Rent

5% of $2,000 = $100
Comparison: $50 (flat) vs. $100 (percentage)
Allowable fee: $100 (the greater amount)

Breakpoint: At exactly $1,000 monthly rent, both calculations equal $50, so the fee is $50 either way.

Why This Matters

For lower-rent properties (under $1,000/month), the $50 flat fee ensures landlords can recover minimum administrative costs. For higher-rent properties (over $1,000/month), the 5% percentage ensures fees scale proportionally with the rent amount.

Source: Colorado Revised Statutes § 38-12-102(1)(a)

Mandatory Grace Periods

Colorado law requires landlords to provide grace periods before charging late fees, with different minimums for different property types:

Residential Rentals: 7-Day Grace Period

Under C.R.S. § 38-12-102(1)(a), traditional residential leases (apartments, houses, condos) must include at least a 7-day grace period before late fees can be charged.

Example:

Rent due: October 1
Grace period: October 1-7
Late fee can begin: October 8

Mobile Home Parks: 10-Day Grace Period

C.R.S. § 38-12-203 provides enhanced protections for mobile home park residents, requiring a 10-day grace period before late fees apply.

Example:

Rent due: November 1
Grace period: November 1-10
Late fee can begin: November 11

Longer Grace Periods Allowed

Landlords can offer longer grace periods (e.g., 10 days, 14 days) but cannot shorten them below the statutory minimums. Any lease provision attempting to reduce grace periods is void and unenforceable.

Sources: C.R.S. § 38-12-102(1)(a), C.R.S. § 38-12-203

Critical Restriction: Cannot Evict for Unpaid Late Fees

One of Colorado's most significant tenant protections is found in C.R.S. § 13-40-104(1)(d.5): landlords cannot evict tenants solely for unpaid late fees.

What This Means

Landlords cannot include late fees in the 10-day Demand for Compliance or Possession notice
Late fees cannot be grounds for eviction proceedings
Tenants can withhold late fee payment without risking eviction

How Landlords Can Recover Late Fees

Landlords must pursue late fees through alternative means:

Security deposit deductions: Deduct unpaid fees at move-out
Small claims court: Sue for unpaid fees (up to $7,500 in Colorado)
Payment agreements: Negotiate repayment plans with tenants
Collection agencies: Report to credit bureaus or hire collectors

This restriction significantly weakens late fee enforcement compared to states where unpaid fees can trigger eviction.

Source: C.R.S. § 13-40-104(1)(d.5)

Eviction Process for Nonpayment of Rent

While late fees cannot trigger eviction, unpaid rent can. Colorado's eviction process includes:

10-Day Demand for Compliance or Possession

Under C.R.S. § 13-40-104(1)(d), landlords must provide a 10-day written notice for nonpayment of rent before filing eviction. The notice must:

Specify the exact rent amount owed (excluding late fees)
Provide 10 days for the tenant to pay
Warn that eviction will be pursued if unpaid

Key Point: Late Fees Excluded

Because C.R.S. § 13-40-104(1)(d.5) prohibits eviction for unpaid late fees, they must be excluded from the 10-day notice. Including them may invalidate the notice and require the landlord to start over.

Source: C.R.S. § 13-40-104

Security Deposit Rules

Under C.R.S. § 38-12-103, Colorado landlords can deduct unpaid late fees from security deposits, but must:

Provide an itemized statement within 60 days of tenant move-out (or within 30 days if no deductions are made)
Include documentation proving fees were properly charged per lease terms
Return any remaining deposit to the tenant

Failure to comply can result in the tenant recovering:

The full security deposit amount
Treble damages (three times the withheld amount)
Attorney's fees and court costs

Source: C.R.S. § 38-12-103

Key Colorado Statutes

Landlords and tenants should reference:

C.R.S. § 38-12-102: Late fee limits ($50 or 5%, whichever is greater) and 7-day grace period
C.R.S. § 38-12-203: Mobile home park protections (10-day grace period)
C.R.S. § 13-40-104: Eviction procedures and prohibition on evicting for unpaid late fees
C.R.S. § 38-12-103: Security deposit requirements (60-day deadline)
C.R.S. § 38-12-104: Landlord obligations and tenant rights

Colorado's Warranty of Habitability statutes and local ordinances may provide additional protections.

Landlord Best Practices

1. Draft Compliant Lease Language

Include explicit late fee provisions stating:

Fee amount using the "greater of" formula
Grace period (minimum 7 days for residential, 10 days for mobile homes)
Clear disclosure that late fees cannot be grounds for eviction

Sample Clause: "Rent is due on the 1st of each month. Tenant has a 7-day grace period. If rent is not received by the 7th, a late fee will be charged equal to the GREATER of $50 or 5% of monthly rent, as permitted by Colorado Revised Statutes § 38-12-102. Late fees cannot be grounds for eviction and must be paid separately from rent."

2. Provide Written Notice of Late Fees

When charging fees, send documentation showing:

Original rent due date
Grace period expiration date
Late fee calculation (showing both $50 and 5% comparison)
New total balance

3. Never Include Late Fees in Eviction Notices

To avoid invalidating the 10-day notice and violating C.R.S. § 13-40-104(1)(d.5), always:

List only unpaid rent in eviction notices
Pursue late fees through security deposit deductions or court
Keep separate billing records for late fees

4. Maintain Detailed Records

Document all aspects of late fee policies:

Signed lease with fee provisions
Payment logs showing dates and amounts
Copies of all late fee notices sent
Communication history with tenants

5. Consider Payment Plans

Since eviction is not an option for unpaid late fees, consider offering payment plans to tenants experiencing temporary hardship.

Tenant Rights and Protections

Right to Challenge Excessive Fees

Colorado tenants can dispute late fees that exceed statutory limits by:

Written Notice: Inform landlord that fees violate C.R.S. § 38-12-102
Withholding Payment: Refuse to pay without risk of eviction
Small Claims Court: Sue for refund of improperly charged fees
Security Deposit Challenge: Contest deductions when moving out

Protection from Eviction for Unpaid Fees

C.R.S. § 13-40-104(1)(d.5) guarantees tenants cannot be evicted solely for unpaid late fees, providing strong leverage in fee disputes.

Protection from Retaliation

Under C.R.S. § 38-12-509, landlords cannot retaliate against tenants for:

Complaining to government agencies about property conditions
Exercising legal rights
Organizing tenant associations

Right to Repair and Deduct

Colorado tenants can withhold rent for serious habitability issues. Late fees may still apply if proper notice procedures are not followed.

Example Late Fee Calculations

Scenario 1: $700 Monthly Rent, 7-Day Grace

Rent due: January 1
Grace period ends: January 7
Tenant pays: January 10
Calculation: Greater of $50 or ($700 × 5% = $35)
Late fee: $50
Total owed: $750

Scenario 2: $1,500 Monthly Rent, 7-Day Grace

Rent due: February 1
Grace period ends: February 7
Tenant pays: February 12
Calculation: Greater of $50 or ($1,500 × 5% = $75)
Late fee: $75
Total owed: $1,575

Scenario 3: Mobile Home Park - $600 Rent, 10-Day Grace

Rent due: March 1
Grace period ends: March 10
Tenant pays: March 15
Calculation: Greater of $50 or ($600 × 5% = $30)
Late fee: $50
Total owed: $650

Scenario 4: $2,200 Monthly Rent, 7-Day Grace

Rent due: April 1
Grace period ends: April 7
Tenant pays: April 20
Calculation: Greater of $50 or ($2,200 × 5% = $110)
Late fee: $110
Total owed: $2,310

Common Mistakes to Avoid

For Landlords:

Charging fees before grace period ends: Violates C.R.S. § 38-12-102
Exceeding statutory limits: Charging more than the greater of $50 or 5%
Including late fees in eviction notices: Violates C.R.S. § 13-40-104(1)(d.5)
Attempting to evict for unpaid fees: Prohibited by statute
Shortening grace periods below minimums: 7 days for residential, 10 days for mobile homes
Failing to itemize security deposit deductions: Can result in treble damages

For Tenants:

Paying fees that exceed statutory limits: Know your rights under C.R.S. § 38-12-102
Assuming shorter grace periods are legal: Minimum 7 days for residential
Failing to document late payments: Keep records of payment dates
Not challenging improper fees: Dispute excessive fees promptly
Withholding rent instead of just late fees: Can lead to eviction for nonpayment of rent

Frequently Asked Questions

Q: What is the maximum late fee in Colorado?

A: Colorado law caps late fees at the GREATER of $50 OR 5% of monthly rent. For rent under $1,000, the fee is $50. For rent over $1,000, the fee is 5% of the rent amount.

Q: Is a grace period required in Colorado?

A: Yes. Colorado requires a minimum 7-day grace period for residential leases and 10 days for mobile home parks before late fees can be charged.

Q: Can my landlord evict me for unpaid late fees?

A: No. Colorado law (C.R.S. § 13-40-104(1)(d.5)) prohibits eviction for unpaid late fees. Landlords must pursue fees through security deposit deductions or small claims court.

Q: Can my landlord charge a daily late fee?

A: No. Colorado law establishes a single late fee limit: the greater of $50 or 5%. Daily fees or compounding fees are not permitted.

Q: What if my lease says I only have a 3-day grace period?

A: That provision is void and unenforceable. Colorado law mandates at least 7 days (10 days for mobile homes). The statutory minimum overrides any conflicting lease language.

Q: What if I disagree with a late fee?

A: Notify your landlord in writing that the fee exceeds statutory limits. You can withhold payment without risk of eviction. If the landlord deducts it from your security deposit, you can challenge the deduction or sue in small claims court.

Q: How long does my landlord have to return my security deposit?

A: 60 days if deductions are made (30 days if no deductions). Failure to comply can result in the tenant recovering treble damages plus attorney fees.

Conclusion

Colorado's "greater of $50 or 5%" late fee structure provides clear limits while protecting tenants through mandatory grace periods and eviction restrictions. Landlords must respect the 7-day residential (or 10-day mobile home) grace period and cannot evict for unpaid late fees. Tenants should understand their strong protections and challenge fees that exceed statutory limits.

Key Takeaways:

Late fees capped at the GREATER of $50 or 5% of monthly rent
7-day grace period required (10 days for mobile homes)
Cannot evict tenants for unpaid late fees
Late fees must be excluded from eviction notices
60-day deadline for security deposit itemization
Treble damages for improper deposit deductions

Use the RentLateFee.com calculator to verify Colorado late fee compliance and ensure your fees align with C.R.S. § 38-12-102. Whether setting landlord policies or checking tenant charges, understanding these rules protects your rights and prevents costly legal disputes.

Last Updated: November 2025. Consult with a Colorado-licensed attorney for specific legal advice.

🔗 Related State Guides

Understanding late fee regulations in neighboring states can help you compare different approaches and understand regional trends. Here are related state guides:

Additional Resources

Rent Late Fee Calculator - Calculate your state's legal maximum
Rent Grace Period Laws by State - Compare grace period requirements
Security Deposit Laws - Understand deposit regulations