By Elliot Goldbaum
In a brief filed with the Colorado Supreme Court on Friday, Attorney General Phil Weiser explained that the Colorado Consumer Protection Act, which forbids “deceptive trade practices,” applies to lease agreements with illegal provisions that misrepresent the rights and obligations of tenants.
The brief supports a lawsuit filed by three tenants against property management company Home Partners Holdings. The plaintiffs in the suit allege the company asks tenants to sign lease agreements containing provisions that are illegal under state housing laws, including charging illegal fees. The suit also alleges these types of form leases are used in hundreds or thousands of rental agreements in Colorado.
“Landlords who take advantage of renters by mispresenting what is a lawful lease term are breaking the law,” said Weiser. “It is wrong for landlords to deceive hardworking Colorado renters and mislead them into paying fees they don’t lawfully owe. They are now on notice that if they do so, they will face consequences.”
Deceiving tenants about lawful lease terms harms tenants. As 2017 research from legal scholars demonstrates, 65% of tenants who consulted their leases when faced with a landlord-tenant problem “reported that they ultimately acted in accordance with the provisions set forth in the lease” regardless of the lease’s legality.
The brief makes clear that tenants can take action against landlords who use lease terms that violate the law, and often leave renters confused. Renters are justified, the brief explains, in assuming that a landlord who hands them a lease with legal fallback language saying a provision is “subject to applicable law” or valid only “to the extent permissible by law” is complying with the law.
The lawsuit, Curran et al v. Home Partners Holdings LLC et al, was originally filed in May 2023.
Renters who believe their landlords are engaged in deceptive or other illegal business conduct are encouraged to file a complaint with the attorney general at StopFraudColorado.gov.
Elliot Goldbaum is Community Education & Communications Manager with the Attorney General’s office.