Deciding whether or not to break a lease can be nerve-wracking for tenants and landlords in Colorado.
No matter your role, breaching your legally binding contract can have severe financial and legal consequences. We’re glad you’re here to educate yourself while considering such an impactful decision.
To get you up to speed, we’ve thoroughly reviewed Colorado landlord-tenant law, made sense of newly implemented regulations, and organized all the relevant information you need in this article.
Let’s get started.
If you’re a landlord or a tenant contemplating breaking a lease, re-read the lease in question before making any big decisions. Reviewing the contract you’ve signed could go a long way toward answering any critical questions you have while planning your next move.
Those who have agreed to week-to-week or month-to-month leases might be able to end their contract simply by giving their landlord a seven- or 30-day move-out notice.
However, those who have agreed to a fixed-term lease with a definitive end date might have a tougher time getting out of their contract. Rigid rental agreements allow tenants and landlords less flexibility when attempting to end their leases without repercussions.
According to Colorado’s Revised Statutes (§ 38-12), tenants and landlords can terminate rental agreements without fear of legal fallout under these certain circumstances.
According to Colorado’s “Warranty of Habitability” statute, if a rental unit becomes uninhabitable for a tenant, they might have legal grounds to terminate the lease early.
Some examples of an uninhabitable rental include:
If your residence becomes uninhabitable, document the problem and contact your landlord to resolve the issue as soon as possible. If they don’t address the problem within a reasonable timeframe, you have the right to choose between the following options:
The Servicemembers Civil Relief Act (SCRA) states that If active military members are called to duty and must vacate their residence for 90 days or longer, they can lawfully end their lease agreement without repercussions.
The SCRA is a federal law that applies to service members in all 50 states within the following organizations:
If a tenant is a victim of domestic violence, domestic abuse, unlawful sexual behavior, or stalking and fears imminent danger for themselves or their children, they can provide their landlord with documentation of the crimes and exit their lease without further obligations.
Landlords can’t include any clauses in lease agreements that allow them to impose penalties or terminate the rental contract due to calls made to the residence for assistance or emergency services provided due to any of the crimes listed above.
Tenants experiencing any of the above crimes should call law enforcement, document the issue in detail, and notify their landlord as soon as possible.
If a landlord becomes aware of a gas-related hazardous condition that endangers their tenants, they must repair the issue within 72 business hours of receiving written notification of the hazard. Tenants can leave the premises and render their rental agreements null and void if their landlord doesn’t fix the hazard before the deadline.
Additionally, the landlord must return the tenant’s security deposit (or appropriate portion) and refund any rent paid for dates after tenants vacate within 72 business hours of exiting the property.
If a tenant breaches the terms of their rental agreement and doesn’t remedy the situation after the landlord gives them a fair chance to resolve the issue, they leave themselves vulnerable to eviction.
Tenant breaches of contract that warrant eviction include:
Further, if a landlord breaches the terms of their rental agreement and a tenant can’t fully use or enjoy the rental property, the tenant might have legal grounds to terminate the rental contract without consequence.
Landlord breaches of contract that warrant lease-breaking include:
Lastly, both tenants and landlords might be able to exercise a clause in the rental contract that allows them to nullify their lease under certain circumstances.
A few examples of common lease cancellation clauses are:
Clauses like these are why it’s crucial to always re-read your lease before deciding whether or not to break it. You could avoid potential fees, unpaid rent, negative references, and legal action by exercising an exit clause in your rental agreement.
Whether you’re going through a breakup, moving across the country for a new job, or simply want to live somewhere new, you likely don’t have legal grounds to break your lease in Colorado.
That said, you still have options:
Option #1: Negotiate a lease termination with your landlord. Communicate with your landlord and explain why you need to end your lease early. If they’re flexible and understanding, they might be willing to find a new tenant and nullify the agreement.
Option #2: Find a subletter to take over your lease (if your agreement allows it). Colorado landlords aren’t required to permit subletters, so finding a renter to step into your place may not be an option. Re-read your contract or talk to your landlord to see if this alternative is possible.
If you’re a landlord who wishes to break a lease and remove a tenant without properly evicting them, you could face legal consequences if you attempt to do so.
Instead, you should try the following:
Option #1: Negotiate a lease termination with your tenant. Talk to your tenant and explain why you’d like to end the lease prematurely. To increase your odds, consider offering to find them a new rental or cover their moving expenses.
Option #2: Attempt to buy your tenant out of the lease. If you and your tenant can’t negotiate a lease termination, consider offering them a reasonable sum of money to end their lease and move out early.
Legal Note: Unless you have a reason to evict your tenant, you cannot force them to leave your property before the lease ends. Doing so would be illegal and could expose you to potential legal action from your tenant.
Tenants who can’t negotiate a lease termination or find a subletter could face the following consequences:
According to Colorado State Law, both landlords and tenants are afforded certain rights and responsibilities by the government. Here are a few:
If you’re a landlord or tenant searching for legal assistance, visit our Colorado Landlord-Tenant Law Page for an extensive list of resources.
Or, visit one of the following websites:
TurboTenant, which boasts a large number of free features, can help landlords lessen the chances of a broken lease by:
Sign up for a free TurboTenant account today to learn how property management software can simplify your rental management.
Certain states allow landlords and tenants to back out of a lease after they’ve signed it during a “cooling off period.” Colorado isn’t one of them.
If you sign a rental agreement in Colorado, you immediately become legally bound to its terms.
Breaking a lease won’t directly harm a tenant’s credit score in Colorado (or any other state, for that matter). Still, landlords might report a tenant’s unpaid debts to credit agencies, which could affect their credit.
Passed by Colorado Governor Jared Polis in April 2024, the “Just Cause Eviction” law mandates that landlords must have a justifiable reason for evicting tenants. Until Polis signed the bill, Colorado landlords could evict tenants at their discretion as long as they followed proper move-out notice procedures.
Under the “Just Cause Eviction” law mentioned above, Colorado landlords must offer tenants a lease renewal at the end of their contract unless they have a valid and justifiable reason such as:
