Colorado's Portable Tenant Screening Report (PTSR) law takes effect January 1, 2026. If you're a landlord in Colorado, you need to understand the implementation timeline, compliance deadlines, and penalties for violations.
This guide breaks down everything you need to know to prepare your business and avoid costly mistakes.
Key Dates and Deadlines
Get compliant with Clara before the January 1, 2026 deadline.
January 1, 2026: HB25-1236 Takes Effect
Starting January 1, 2026, all Colorado landlords must:
- Accept PTSRs directly from rental applicants
- Refrain from charging screening fees if a PTSR is provided
- Follow special rules for Section 8 and subsidized housing applicants
There is no grace period. Enforcement begins on day one.
Now Through December 31, 2025: Preparation Period
You have until January 1, 2026, to prepare. Use this time to:
- Review the PTSR requirements under HB25-1236 to avoid penalties
- Update your lease applications and screening policies
- Train staff on PTSR acceptance and verification
- Partner with a PTSR-compliant platform like Rent with Clara
Follow our guide on how to accept PTSRs correctly to ensure compliance.
The sooner you prepare, the smoother the transition will be.
What Landlords Must Do to Comply
1. Accept PTSRs from Applicants
If a rental applicant provides a valid PTSR (dated within the last 30 days), you must accept it. You cannot:
- Require applicants to use a different screening service
- Reject the PTSR without valid legal grounds
- Charge a screening fee if a PTSR is provided
2. Update Your Screening Policies
Review your current tenant screening policies and make sure they comply with HB25-1236. Key updates include:
- Stating that PTSRs are accepted
- Clarifying that applicants with PTSRs will not be charged screening fees
- Outlining special rules for Section 8 applicants (credit information not required in PTSR)
Don't forget the special Section 8 PTSR rules regarding credit information.
3. Train Your Team
If you have property managers, leasing agents, or administrative staff, make sure they understand:
- How to verify PTSR authenticity
- What information PTSRs must include
- How to handle Section 8 applicants
- What fees can and cannot be charged
4. Partner with a PTSR-Compliant Platform
Working with a PTSR provider like Rent with Clara simplifies compliance. You'll get:
- Immediate access to renter profiles and verified screening reports
- Fraud detection and identity verification
- Section 8 compliance built in
- No cost to landlords (renters pay the application fee)
Start your free account now to be ready when the law takes effect.
What Happens If You Don't Comply?
Penalties for Violating Colorado's PTSR Law
Colorado's portable tenant screening requirements were established under HB23-1099 in 2023. HB25-1236 amends these requirements, and violations may result in penalties under the existing enforcement framework.
Landlords who violate HB25-1236 may face:
- Civil penalties – Up to $2,500 payable to the aggrieved tenant (or $50 if the violation is cured within 7 days of notice)
- Court costs and attorney fees – Additional financial liability
- Attorney General enforcement – The Colorado Attorney General has authority to independently initiate enforcement actions
- Legal action from tenants – Tenants can sue for damages if you violate the law
- Fair housing complaints – Discriminatory practices may also trigger separate federal or state Fair Housing Act violations
Examples of Non-Compliance
Scenario 1: Rejecting a Valid PTSR
A landlord refuses to accept a PTSR and requires the applicant to use a third-party screening service.
Penalty: Civil penalty of up to $2,500 payable to the applicant (or $50 if cured within 7 days), plus court costs and attorney fees. Attorney General may also initiate enforcement action.
Scenario 2: Charging Screening Fees
A landlord charges a $50 screening fee to an applicant who provided a valid PTSR.
Penalty: Civil penalty of up to $2,500 payable to the applicant (or $50 if cured within 7 days), plus court costs and attorney fees. Refund of the screening fee may also be required.
Scenario 3: Requiring Credit Information from Section 8 Applicants in PTSRs
A landlord rejects a Section 8 applicant's PTSR because it does not include credit history, credit score, or adverse credit events.
Penalty: Civil penalty of up to $2,500 payable to the applicant (or $50 if cured within 7 days), plus court costs and attorney fees. May also trigger separate Fair Housing Act complaints.
Note: HB25-1236 exempts Section 8 and subsidized housing applicants from including credit information in their PTSRs. Landlords may still conduct independent credit checks on Section 8 applicants if permitted under applicable fair housing laws, but cannot reject a PTSR solely because it lacks credit information when the applicant uses a housing subsidy.
How to Avoid Penalties
- Accept all valid PTSRs (dated within 30 days)
- Do not charge screening fees or application fees if a valid PTSR is provided
- Do not reject Section 8 applicants' PTSRs for lacking credit information
- Keep records of all PTSRs and screening decisions
- Train staff on compliance requirements
Access the landlord compliance resources for Colorado rental laws.
Frequently Asked Questions
When does HB25-1236 take effect?
January 1, 2026. There is no grace period.
What if I don't accept PTSRs?
You will be in violation of Colorado law and may face civil penalties of up to $2,500 payable to the aggrieved tenant, plus court costs and attorney fees.
Can I continue using my current screening service?
Yes, for applicants who don't have PTSRs. But if an applicant provides a PTSR, you must accept it.
What if I've already charged a screening fee before January 1, 2026?
You're fine. The law only applies to applications submitted on or after January 1, 2026.
Do I have to accept expired PTSRs?
No. PTSRs are only valid for 30 days. If an applicant provides an expired report, you can request an updated version.
What if I suspect a PTSR is fraudulent?
Contact the PTSR provider to verify authenticity. Rent with Clara includes fraud detection and identity verification.
Do these rules apply to commercial properties?
No. HB25-1236 applies only to residential rental properties.
Can I charge application fees if a tenant provides a PTSR?
No. If a prospective tenant provides a valid PTSR, you cannot charge any application fee, regardless of what the fee covers. Application fees can only be charged to applicants who do not provide a PTSR.
What if I manage properties in multiple states?
HB25-1236 only applies to Colorado properties. Check local laws for other states.
Where can I find the full text of the law?
The official HB25-1236 effective date is January 1, 2026.
Compliance Checklist
Use this checklist to prepare for January 1, 2026:
- Read the full text of HB25-1236
- Update lease applications to state that PTSRs are accepted
- Revise screening policies to comply with PTSR requirements
- Train staff on PTSR acceptance and verification
- Partner with a PTSR-compliant platform (like Rent with Clara)
- Review Section 8 screening criteria (credit information not required in PTSR)
- Set up a system to verify PTSR authenticity
- Communicate changes to property managers and leasing agents
- Update your website and marketing materials
- Test your PTSR process with sample applications
How Rent with Clara Helps You Stay Compliant
Rent with Clara makes HB25-1236 compliance simple:
- Free for landlords – No subscription fees or per-report charges
- Immediate verification – Review applications in minutes, not days
- Fraud-resistant screening – Biometric verification and direct data integration
- Day validity – Meets Colorado's legal requirements
Renters pay a one-time fee, and landlords get unlimited access to verified screening reports.
Enforcement and Resources
For more information on Colorado's PTSR law enforcement and penalties, consult these authoritative sources:
- Learn about enforcement and penalties from the Colorado Attorney General
- Violations can result in Colorado landlord penalties including civil penalties and legal action
Final Thoughts
Colorado's PTSR law is coming. The January 1, 2026 deadline is firm, and enforcement will begin immediately.
The good news? Compliance doesn't have to be complicated. With the right tools, training, and preparation, you can meet HB25-1236 requirements without disrupting your business.
Don't wait until the last minute. Start preparing now, partner with a trusted PTSR provider, and make sure your team is ready.
Rent with Clara makes compliance simple, affordable, and stress-free. Sign up today and be ready when the law takes effect.
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