Key points:
Property owners and managers must now include a Radon disclosure in your lease agreement
Colorado is keeping tenant-residents safe by providing all radon information
Over the past few months, we've covered various laws enacted by the Colorado legislature, impacting real estate investors in Colorado. These changes ranged from tenant screening reports to landlord credit score assessments. The newest law is SB23-206, which introduces new Radon rules for landlords and property transactions.
Colorado is known for having high levels of Radon, an invisible gas that can pose health risks. The title of this bill is "Concerning Information about Radon in Residential Real Property Transactions." While it primarily focuses on property sales, it does have implications for tenants and property managers.
Here's what you need to know:
1️. Radon Disclosure in Lease Agreements: Landlords are now required to include a Radon disclosure in the lease agreement provided to tenants before signing. This disclosure must be property-specific and must give detailed information about Radon in the home.
2️. Sharing Radon Records: Landlords must provide tenants with any records and reports related to Radon, including previous tests and concentrations found.
3️. Radon Concentrations: If Radon concentrations have been detected or mitigated in the property, landlords must inform the tenant about these findings.
4. Radon Mitigation Systems: If the property already has a Radon mitigation system in place, information about it must be shared with the tenant.
In addition to these property-specific disclosures, landlords must provide tenants with a general Radon information document, such as the one released by the EPA. Failure to provide this information allows a tenant to void the lease agreement with no penalty. Click here to view this required disclosure.
What happens if elevated radon levels are detected in an existing property?
If either the tenant or landlord conducts a Radon test, and the measurement exceeds a specified level (typically 4 picocuries per liter), the landlord is required to mitigate Radon at the expense of the landlord. Currently, the estimated cost to install a radon mitigation system is from $1500.
This new law may not be overly burdensome, but it's vital for property managers and tenants to be aware of its implications, as it will affect residential rentals in Colorado.
At Grace Property Management, we are here to assist you. If you're a current owner-client, rest assured that we'll take care of these Radon-related matters as part of our full-service property management service to you. If you have any questions or need guidance, feel free to reach out to us.
We believe that when property management is performed with integrity, both tenants and landlords benefit. Property Management is not just our business - it is a relationship between us, our owner-clients, and our tenant-residents. If these are important to you, we may be a good fit to provide you, your property, and your tenant residence with our award-winning property management service. Feel free to reach out to us for assistance.
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