Breaking a Lease in Colorado: 2024 Landlord/Tenant Guide

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.

Review Your Lease Before Taking Action

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.

Legal Reasons for Breaking a Lease in Colorado

According to Colorado’s Revised Statutes (§ 38-12), tenants and landlords can terminate rental agreements without fear of legal fallout under these certain circumstances.

Residence is Uninhabitable

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:

• Non-functioning appliances
• A leaky roof or broken windows that let water in
• No access to hot water or heating
• Unaddressed pest infestation
• Plumbing or electrical problems
• Non-compliance with other health and safety codes

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:

• Repair the issue yourself and deduct the cost from the rent
• Withhold your rent payment until the issue is addressed
• End the lease and move out early without penalty (if the landlord is unresponsive)

Military Service

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:

• Army
• Marine Corps
• Navy
• Air Force
• Coast Guard
• Members of the Reserve component
• National Guard
• Commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration

Tenant is a Victim of Domestic Violence or Other Crimes

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.

Landlord Fails to Fix a Gas-Related Hazard

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.

Breach of Contract

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:

• Failure to pay rent (by the end of a seven-day grace period)
• Significant damage to the property caused by the tenant or their guests
• Disruptive behavior by the tenant or their guests
• Safety hazards caused by the tenant or their guests

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:

• Failure to provide essential services to the tenant
• Repeated privacy violations of the tenant or their guests
• Landlord harassment of the tenant or their guests

Early Termination Clause in Agreement

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:

• Tenant must vacate due to mandatory job relocation
• Natural disasters destroy the rental property
• Civil unrest leaves tenants in danger
• Urgent repairs render the rental uninhabitable

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.

Tenants Breaking a Lease Without Legal Justification

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.

Landlords Breaking a Lease Without Legal Justification

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.

What are the Penalties for Tenants Breaking a Lease in Colorado?

Tenants who can’t negotiate a lease termination or find a subletter could face the following consequences:

• Forfeited security deposit: Landlords often deduct rent payments or fees from a tenant’s security deposit to compensate for missed payments or fees.
• Owed rent and/or fees: Beyond security deposits, landlords might pursue money from tenants that cover unpaid rent and/or early termination fees.
• Lawsuits: Tenants who don’t pay the landlord for missed rent or fees are vulnerable to lawsuits from the property owner.
• Unfavorable references: Tenants who break their contracts could receive negative references from their landlords, making it harder to find their next rental.

Landlord/Tenant Rights and Responsibilities

According to Colorado State Law, both landlords and tenants are afforded certain rights and responsibilities by the government. Here are a few:

Landlords Have the Right To:

• Issue an Unconditional Quit Notice to tenants who violate their lease
• Charge tenants fees for late rent not paid within seven days of the due date
• Dispose of a tenant’s abandoned property after 30 days from the last contact

Landlords Are Responsible For:

• Fixing or repairing properties upon tenant’s request to ensure they remain inhabitable
• Returning the security deposit to the tenant within 60 days of the move-out date
• Offering a lease renewal to tenants, with certain exceptions

Tenants Have the Right To:

• Withhold rent if the landlord fails to fix something that renders the rental uninhabitable
• Receive their security deposit (or appropriate portion of it) back from the landlord within 60 days of the move-out date
• Sue their landlord if they fail to return their security deposit (up to $7,500)

Tenants Are Responsible For:

• Paying rent to the landlord within seven days of the due date
• Maintaining the property and abiding by the terms of the lease
• Retrieving abandoned property within 30 days of the last contact with the landlord

Legal Help for Landlords and Tenants

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:

• Colorado Bar Association Lawyer Referral Service: Connects Coloradans with lawyers who specialize in landlord-tenant law
• Colorado Housing Connects: Housing helplines that assist residents and tenants with legal questions
• Colorado Legal Services: Offers free and affordable legal services to low-income Colorado residents

Prevent Broken Leases with TurboTenant

TurboTenant, which boasts a large number of free features, can help landlords lessen the chances of a broken lease by:

• Screening applicants to ensure landlords choose trustworthy and reliable renters
• Generating Colorado-specific lease agreements that protect landlords and discourage lease breaking
• Coordinating repairs and maintenance to keep rentals functional and inhabitable
• Processing rent payments for seamless digital payments, invoicing, and accounting

Sign up for a free TurboTenant account today to learn how property management software can simplify your rental management.

Breaking a Lease in Colorado FAQs