Cal. Civ. Code § 38-12-903
Rental application fee - limitations.
Operative Text
(1) A landlord shall not charge a prospective tenant a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord's costs in processing the rental application. The landlord's costs may be based on: (a) The actual expense the landlord incurs in processing the rental application; or (b) The average expense the landlord incurs per prospective tenant in the course of processing multiple rental applications. (2) A landlord shall not charge a prospective tenant a rental application fee: (a) That is in a different amount than a rental application fee charged to another prospective tenant who applies to rent: (I) The same dwelling unit; or (II) If the landlord offers more than one dwelling unit for rent at the same time, any other dwelling unit offered by the landlord; or (b) If the prospective tenant provides to the landlord a portable tenant screening report pursuant to section 38-12-904 (1.5). (3) (a) A landlord shall provide to any prospective tenant who has paid a rental application fee either a disclosure of the landlord's anticipated expenses for which the fee will be used or an itemization of the landlord's actual expenses incurred. If a landlord charges an amount based on the average cost of processing the rental application, the landlord shall include information regarding how that average rental application fee is determined. (b) A landlord shall provide every prospective tenant with a receipt for any application fee received. The landlord may provide a prospective tenant an electronic receipt unless the prospective tenant requests a paper receipt, in which case the landlord shall provide the prospective tenant a paper receipt. (4) A landlord who receives a rental application fee from a prospective tenant and does not use the entire amount of the fee to cover the landlord's costs in processing the rental application shall remit to the prospective tenant the remaining amount of the fee. The landlord shall make a good-faith effort to remit such amount within twenty calendar days after processing the application.
Colorado Revised Statutes § 38-12-903 limits what landlords may charge prospective tenants as a rental application fee. The fee can only cover the landlord's actual or average processing costs, must be the same amount charged to all applicants competing for the same or simultaneously offered units, and cannot be charged at all when an applicant presents a qualifying portable tenant screening report. Landlords must provide a disclosure or itemization of how the fee is used, issue a receipt, and refund any unused portion within roughly twenty calendar days of processing the application.
Plain English — not legal advice.
Under Colo. Rev. Stat. § 38-12-903, compliant operators generally set application fees at no more than their documented actual or calculated average processing costs, apply the same fee amount consistently across all applicants for the same or concurrently listed units, and waive the fee entirely when an applicant presents a portable tenant screening report under § 38-12-904(1.5). Operators typically provide each applicant with a written or electronic disclosure of anticipated or actual expenses, issue a receipt promptly upon collection, and remit any unspent balance within twenty calendar days of completing the application review. Maintaining clear records of how average fees are calculated helps demonstrate compliance with the statute's cost-basis requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Colo. Rev. Stat. § 38-12-903 gives prospective tenants the right to have application fees capped at the landlord's actual or average processing costs, to be charged the same fee as other applicants for the same or simultaneously offered units, and to avoid any fee altogether by presenting a portable tenant screening report under § 38-12-904(1.5). Tenants are also entitled to a receipt and a written disclosure or itemization of how the fee is used, and to a refund of any unused portion within about twenty calendar days. Those who believe a landlord has violated these requirements may consider contacting a local tenant-rights organization, filing a complaint with a relevant Colorado consumer-protection authority, or consulting a housing attorney to understand available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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