Key Points
The licensing program only applies to properties located in Denver County
There are two different deadlines dependent on your property type
A licensed inspector must inspect the property before the application can be made
The Denver Rental Licensing Program is a newer required program for rental properties located in Denver County. It is important for real estate investors to begin the application process early as this mandatory process may be time-consuming to complete.
These are 5 aspects to be aware of when owning a rental property in Denver, Colorado.
This only applies to properties located in Denver County.
We do expect other cities and counties to incorporate similar programs in the future.
The application deadlines are dependent on the type of property:
Multi Family properties (which include any property with more than one unit) - must apply by 1/1/2023
Single-family properties - must apply by 1/1/2024
Before an application can be made, the property must be inspected by a qualified and licensed third-party inspector.
Property owners may not simply use a local handyman service for inspections. Because there are very few licensed inspectors, Denver real estate investors should expect delays from scheduling to completing the inspection with the inspector.
Real estate investors should expect to pay fees associated with this process including the inspector fee, potential property repairs for items noted on the property inspection, application fees, and licensing fees.
Once a Denver rental license is approved, it will be valid for 4 years.
Commonly missed items that will cause the property to fail the property inspection include:
Fire extinguishers must be installed, this is a new regulation.
One mandatory GFI outlet must be installed in each bathroom.
If a property fails the inspection, the landlord has 90 days to correct any failed items. If repairs are not completed in this 90-day period, then the application process must begin from the start including a new initial property inspection.
The link below shows the actual property inspection document that inspectors will be using for their property inspections. This list includes the requirements such as a duel egress window for below-ground level properties and property water temperature requirements.
Grace Property Management will oversee and handle this entire process on behalf of our real estate investor clients.
Grace Property Management is honored to work with Colorado real estate investors and residents since 1978 - providing safe, clean, and fair-priced housing to tenants of all income levels.
Grace Property Management & Real Estate can be contacted at www.RentGrace.com or 303-255-1990.
