Breaking a Lease Penalty in Colorado (2024): Max Cost & FAQs (2024)

Last Updated: October 13, 2023 by Phil Ahn

In Colorado, tenants that break their lease early may be held liable for all remaining rent due and any property damage. In addition, landlords in Colorado are not required to make reasonable efforts to re-rent and may still be able to charge the old tenant when a new tenant cannot be found.

Breaking a Lease Early Without Penalty in Colorado

In Colorado, a tenant may break a lease without penalty under the following circ*mstances:

• Violations of theimplied warranty of habitability
• Unenforceable, illegal, or void lease
• Domestic or sexual violence
• Retaliation against the tenant for requesting a repair or reporting to a government entity
• Early termination clause
• Refusal to reasonably accommodate a tenant with physical or mental disability
• Permanent change in military station resulting in relocation
• Death of the sole tenant
• Harassment or violations of the tenant’s privacy

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In Colorado, a landlordcancharge an early termination fee if the tenant breaks a lease early, but it must be written into the contract along with the terms. For example, a landlord may require 30-days’ notice and 2 months’ rent in order to break the lease early.

How Much Remaining Rent Could Tenants Owe in Colorado?

Coloradodoes nothave a law limiting the amount a tenant owes a landlord when breaking a lease early. A tenant could be liable for the remaining rent through the life of the lease. However, a landlordmustmitigate damages and seek to replace the tenant.

Landlord’s Duty to Mitigate Damages in Colorado

In Colorado, a landlord must make a reasonable effort to re-rent their unit when a renter has broken a lease early. If the landlord is able to find a new renter, the original occupant who broke the lease no longer has to make rental payments. This is called a landlord’s duty to “mitigate damages .”

Although the law gives no definition of what reasonable effort means when re-renting the unit, some examples include:

• The landlord must prepare the property for a new tenant in the same way they would as if they were between leases
• The landlord must advertise the rental vacancy

However, if a landlordcannotfind a new tenant, the prior tenant is still liable for the remaining rent owed under their lease.

A landlord isnotrequired to fill the unit withanytenant who wants to move in. The landlord is allowed to apply the same standards that they apply to all rental applications, such as having sufficient income to cover rent.

Tenant’s Right to Sublet in Colorado

A tenantcanlegally sublet in Colorado, but only with the explicit permission of the landlord. Unless the lease states otherwise, a tenant’s right to sublease is contingent upon receiving the landlord’s written consent.

Even though a tenant might have permission to sublet, the landlord retains the right to reject a prospective tenant. Reasons for rejection might include the subtenant being financially unable to make the lease payments.

If a tenant subleases their unit without the landlord’s explicit written permission, the tenant is in breach of the lease. In Colorado, a lease violation permits a landlordto evict the tenant and subtenant(starting with a10 Day Notice to Comply or Vacate) andto sue the original tenantfor any resulting damages.

In addition, the subtenantalsomay have grounds to take legal action if the original tenant sublet the unit without the landlord’s permission.

Consequences for Moving Out Early in Colorado

If a tenant breaks their lease and moves out early, the potential consequences include:

• The landlord keeping the security deposit
• The landlord suing the tenant for damages
• A lower credit score
• A potential bad reference in the future

Can the Landlord Keep the Security Deposit?

If a tenant breaks a lease early, a landlord can keep all or part of the security deposit. The amount kept by the landlord depends on how much the tenant still owes in damages and the remaining rent.

When a tenant breaks a lease early, the landlord can deduct from the deposit the amount of rent the landlord loses until a new tenant starts paying. If the owed rent becomes larger than the amount of the security deposit, then the landlord can hold the tenant liable for the difference—assuming the landlord has made a reasonable effort to re-rent the unit.

Similarly, a landlord can deduct from the deposit any property-related costs such as damage the tenant caused to the premises. These damages need to be caused by the tenant’s negligence or carelessness rather than from normalwear and tear.

Can the Tenant Be Sued for Damages?

If a tenant breaks a lease early in Colorado, the landlordcansue a tenant for a breach of contract for the remaining rent due or for any property damage. Damages for less than $7,500 are considered “small claims” in Colorado and should be filed in the Colorado Small Claims Court.

If a landlord files in Small Claims Court, theycannotbring a claim for more than $7,500. If suing for damages greater than $7,500, a landlord can file a claim in the Circuit Court for the county in which they live.