HB 26-1196

HB 26-1196, also known as Tenant Data Information, is a Colorado bill that requires landlords who manage five or more rental units to inform prospective tenants about the information they will use for tenant screening and the specific reasons why an application might be denied. Additionally, these landlords must offer their tenants the option of positive rent reporting, which involves sharing on-time rent payments with credit agencies to help improve a tenant's credit score. Landlords cannot charge extra fees or raise rents because of this service, and tenants can opt out at any time. The bill has been signed into law, meaning it is now enforceable in Colorado.

Official Summary

Section 2 of the bill provides that, prior to seeking to obtain information about a prospective tenant for a tenant screening, a landlord shall provide a written notice to the prospective tenant or post the notice in a conspicuous location. The notice must include the following:      The information and data that the landlord will attempt to access to conduct the tenant screening; and      The specific criteria that would result in the landlord's denial of the prospective tenant's application.      Section 3 requires that, before entering into a lease agreement with a prospective tenant, a landlord that is responsible for 5 or more dwelling units or that receives certain financial assistance (covered landlord) shall offer to the prospective tenant the option for positive rent reporting to at least one consumer reporting agency. If a tenant declines a covered landlord's initial positive rent reporting offer and enters into a lease agreement with the covered landlord, the covered landlord shall offer to the tenant the option for positive rent reporting to at least one consumer reporting agency any time that the covered landlord and the tenant renew the lease agreement.      If a tenant accepts a covered landlord's offer of positive rent reporting, the covered landlord shall send the tenant's rental payment information, including the tenant's full name and date of rent payment, to at least one consumer reporting agency each time the tenant pays rent. A covered landlord shall not charge a tenant for positive rent reporting or pass on the cost of positive rent reporting to a tenant by raising rent prices. A tenant that has opted into positive rent reporting may opt out at any time by notifying the tenant's covered landlord.      Section 1 provides that the failure of a covered landlord to comply with new positive rent reporting requirements is an unfair and deceptive trade practice.      The bill requires a landlord to: Comply with applicable court rules governing the protection and redaction of personal identifying information in eviction filings; Redact personal identifying information from supporting documents submitted to a court; and Include certain information in all rental applications.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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