Colorado Pet Deposit and Pet Rent Limits (HB23-1068) and How to Still Profit From Pet-Friendly Rentals

The two caps

HB23-1068, the Pet Animal Ownership in Housing Act, took effect January 1, 2024. It sets two limits for residential landlords.

Most sources describe the $300 limit as applying per pet; read the statute or ask an attorney before charging multiple deposits for multiple animals.

Pet rent at common Denver rents

Refundable means refundable

The pet deposit follows the same logic as a regular security deposit: you can keep it only for actual damage caused by the pet, beyond normal wear and tear, and only with the paperwork to show it. Colorado housing guidance treats upfront pet money as a deposit, so a “non-refundable pet fee” invites a dispute. The deposit return and documentation rules from HB25-1249 apply to deductions.

Remember the overall cap too: SB23-184 limits the regular security deposit to two months’ rent.

Assistance animals are not pets

Under federal and Colorado fair housing law, service animals and emotional support animals are assistance animals. You cannot charge a pet deposit or pet rent for them, and “no pets” policies don’t apply. You may ask for reliable documentation when the disability or need is not obvious, and the tenant remains responsible for actual damage the animal causes, which you can deduct from the regular security deposit.

What HB23-1068 doesn’t change

• You can still say no to pets. The law limits charges; it doesn’t require you to accept pets.
• You can still screen pets for species, size and behavior history, subject to HOA rules and your insurance policy.
• Insurers: the law limits homeowner’s insurers from refusing coverage based on a dog’s breed alone, with exceptions for dogs known to be dangerous.
• Evictions: an animal can’t be treated as the tenant’s personal property for seizure; if a tenant is removed, the pet goes to animal control and the tenant is told where to find it.

How HB25-1090 affects pet charges

Colorado’s junk fee law treats optional fees separately from the advertised total price. Pet rent is optional because tenants without pets don’t pay it, so it doesn’t have to be in the headline rent, but it must be disclosed accurately. See the junk fee law guide.

Is a pet-friendly rental still worth it?

Usually, yes. A large share of renters have pets, so a no-pets policy shrinks your applicant pool. On a $2,400 home, a pet-friendly policy at the cap brings in $432 a year of pet rent. More important, a home that leases even a week faster saves about $550 in lost rent at that price.

The tradeoff is damage risk. Manage it with:

1. A clear written pet policy and addendum.
2. Pet screening: vaccination records, prior landlord references, a photo, and the animal’s size and age.
3. Durable finishes: luxury vinyl plank instead of carpet in high-traffic rooms.
4. Documented move-in and annual inspections.
5. Renter’s liability coverage that includes animal liability, where permitted.

What to put in a pet addendum

1. The specific animal approved: species, breed, name, weight and age.
2. The pet deposit amount (no more than $300) and that it is refundable.
3. Monthly pet rent within the HB23-1068 cap.
4. Waste cleanup, leash and noise rules.
5. A requirement to report new animals before they move in.
6. How pet damage will be assessed at move-out.

Pet damage vs. normal wear and tear

Light scratches in a finished floor from normal pet traffic are generally wear and tear. Chewed trim, urine-soaked carpet or pad, and torn screens are damage. As with any deduction, take dated photos at move-in and move-out and keep repair invoices, because the 14-day documentation rule applies to pet deductions too.

Running the numbers on a pet-friendly policy

On a $2,400 home, maximum pet rent of $36 a month adds $432 a year, and the $300 deposit covers small repairs. Compare that with the vacancy you avoid: Denver listings that accept pets reach a bigger share of applicants, and a home that leases one week sooner saves roughly $550 in rent. Even after one moderate pet-damage repair every few years, a well-screened pet policy usually comes out ahead.

Two cautions. First, check HOA rules before you approve a pet in a condo or townhome, because some associations restrict size, breed or number. Second, confirm that your landlord insurance policy covers animal liability for the animal you approve.

How Denver Rental Managers handles this

We screen every pet, separate assistance-animal requests from pet applications, and keep pet charges inside Colorado’s caps. On our Premier plan, we also cover up to $2,500 in pet damage beyond the deposit for pets we approved. See our guarantees.

This guide is general information, not legal advice. Confirm current rules with the Colorado Division of Real Estate or an attorney.