A Colorado sublease agreement allows an existing tenant to rent (or “sublet”) all or part of their rental property to another tenant (or “subtenant”) as long as the original lease doesn’t prohibit it.
A sublessor must honor the terms of the sublease agreement (as well as the original lease) and follow all state laws regarding the eviction process, security deposits, and all other landlord-tenant matters.
Laws & Requirements
Sublease and Assignment Provision Laws: Colorado Landlord-Tenant Handbook, p.3.
Landlord-Tenant Laws: Title 38, Article 12 of the Colorado Revised Statutes.
Security Deposit Obligations: The security deposit must be returned within one month of the end of the sublease unless otherwise agreed upon and no more than 60 days.
Notices: Subtenants must receive three days’ written notice to pay rent or leave. They also need to get the following day’s notice of the intent to not renew the sublease and/or original lease, depending on how long the tenant has lived at the rental: 91 days (a year or longer); 28 days (six months or longer but less than a year); 21 days (a month or longer but less than six months); three days (a week or longer but less than a month); one day (less than a week).
Permission to Sublet
In Colorado, subleases can only happen with the landlord’s permission.
- Laws: There are no specific Colorado laws about a tenant’s right to sublet. The original lease agreement establishes if subletting is allowed.
- Explicit Written Consent: Yes.
- Landlord’s Right to Reject: Landlords can deny subleasing with valid and reasonable grounds. If the lease lacks subleasing provisions, landlords cannot unreasonably refuse subletting permission.
Tax Obligations
Lodgings Tax
- Colorado imposes state sales tax (2.9%), county lodgings tax, and special district taxes on rentals lasting less than 30 consecutive days.
- HB 20-1093 grants counties authority to regulate short-term rentals, leading to diverse local requirements, including bans or permit limitations.
Tax Rates by County
- In Grand Junction, taxes applicable to short-term rentals include City of Grand Junction Sales Tax (3.39%), State of Colorado Sales Tax (2.90%), Mesa County Sales Tax (2.37%), and a Lodgings Tax (6%).
- Specific cities like Vail and Steamboat Springs may have an extra marketing district tax.
Filing Frequency
- Tax returns should be filed with the Colorado Department of Revenue based on the assigned filing frequency, which may be monthly, quarterly, or annually.
- Monthly returns are due by the 20th day of the month following the end of the filing period, quarterly returns share the same deadline, and annual returns are also due by the 20th day of the month following the end of the filing period.
Making Payments
- Tax returns for short-term rentals must be filed with the Department of Revenue.
- Filings can be done via paper or online, with credit card payments accepted, though they may involve additional charges.
Sample
Related Documents
Rental Application
Allows landlords to screen applicants before offering a lease agreement.