Colorado just changed the tenant screening game. Starting January 1, 2026, House Bill 25-1236 requires landlords across the state to accept Portable Tenant Screening Reports (PTSRs) directly from rental applicants, and that means rethinking how you evaluate prospective tenants.
If you manage rental properties in Colorado, this law affects you. Whether you own a single-family home or a small apartment building, understanding these new requirements protects you from legal penalties while potentially streamlining your screening process.
Here's everything you need to know about HB25-1236 and how it impacts your rental business.
A PTSR is a comprehensive background report that tenants obtain themselves and can reuse across multiple rental applications. Think of it as a "rental passport" that applicants control and share with prospective landlords.
According to HB25-1236, every valid PTSR must contain these specific elements:
Identity Verification
Government-issued ID confirmation and authentication to prevent fraud and ensure the applicant is who they claim to be.
Credit History
A comprehensive credit report from one of the three major bureaus (Equifax, Experian, or TransUnion), including payment patterns, outstanding debts, and any derogatory marks.
Criminal Background Check
Records search covering felony and misdemeanor convictions. Note: Colorado law restricts how landlords can use certain criminal history in housing decisions.
Eviction History
Court records showing any prior eviction filings or judgments. This includes both completed evictions and cases that were filed but not finalized.
Exception for Subsidized Housing Applicants
If a tenant applies with a housing voucher (Section 8, LIHTC, etc.), the PTSR does not need to include credit history or credit scores ,and you cannot use credit information to deny their application.
The goal? Reduce barriers for renters while giving landlords reliable, verified information to make informed decisions. For more details on how portable tenant screening works, platforms like Rent with Clara simplify the entire process.
Under HB25-1236, landlords must accept a PTSR if the tenant obtained it within the past 30 days. This means if an applicant created their screening report on March 1st, you're required to accept it through March 30th ,no exceptions.
The 30-day window protects both parties: tenants get reasonable time to apply to multiple properties without paying for duplicate screenings, while landlords receive information that's recent enough to make informed decisions.
Key point: The law doesn't prevent you from requesting updated documentation if circumstances warrant it, but you cannot reject a PTSR solely because it's old ,as long as it falls within the 30-day acceptance window, you must honor it. Understanding Colorado's tenant screening requirements helps you stay compliant from day one.
If an applicant submits a compliant PTSR, you cannot charge them an additional screening fee. The tenant has already paid for their background check ,you're not allowed to double-charge for the same information.
What you can still charge:
What you cannot charge:
This change can actually benefit landlords by reducing tenant screening costs while maintaining thorough background verification.
This is critical: if a tenant applies with a housing voucher (Section 8, Housing Choice Voucher, LIHTC, or any other rental assistance program), different rules apply.
For voucher holders:
This provision aims to eliminate credit-based discrimination against voucher holders, who often face unfair barriers in the rental market despite having guaranteed rent payments. Learn more about screening Section 8 tenants in Colorado to ensure you're following the law correctly.
Here's what the law actually requires regarding PTSR delivery:
Tenants control their reports. The applicant must provide the PTSR directly to you ,either as a digital file, printed document, or through a secure link they generate and share.
Third-party screening platforms can create PTSRs. Companies like Rent with Clara, RentSpree, or other tenant screening services can generate compliant reports. The key distinction: the tenant obtains the report from the platform, then delivers it to you themselves.
You cannot require a specific platform. If a tenant brings you a PTSR from any compliant service, you must accept it. You cannot mandate that applicants use your preferred screening company or reject reports from platforms you're unfamiliar with.
Direct agency delivery is allowed. If a tenant authorizes a screening company to send their PTSR directly to you on their behalf, that satisfies the law's requirements ,as long as the tenant initiated and controlled that authorization.
Bottom line: The tenant owns and controls their screening report. Your job is to accept whatever compliant PTSR they provide, regardless of which service generated it or how they choose to deliver it to you. For landlords looking to streamline this process, creating a rental application that accepts PTSRs is a smart first step.
HB25-1236 doesn't eliminate your ability to screen tenants thoroughly. You retain significant flexibility:
Request Additional DocumentationYou can ask for supplemental information beyond the PTSR, such as:
Conduct Your Own ScreeningIf a tenant doesn't provide a PTSR, you can still run traditional background checks and charge standard screening fees (within Colorado's legal limits).
Set Your Own Tenant CriteriaThe law doesn't dictate your approval standards. You can still establish income requirements, rental history expectations, and other legitimate screening criteria ,as long as they comply with fair housing laws. Many landlords find that best practices for tenant screening help them balance compliance with thorough evaluation.
Verify PTSR AuthenticityYou're allowed to contact the screening company that generated the PTSR to confirm its validity and ensure it hasn't been altered or fabricated.
Enforcement of HB25-1236 falls under the Colorado Attorney General's office, as outlined in C.R.S. § 38-12-905. This statute grants the Attorney General authority to investigate violations and pursue civil penalties against landlords who fail to comply with PTSR requirements.
If you refuse to accept a valid PTSR, charge illegal screening fees, or violate the subsidized housing provisions, tenants can file complaints directly with the Attorney General's Consumer Protection Section.
What this means for landlords: The state takes PTSR compliance seriously. Violations aren't just civil matters between you and a tenant ,they can trigger official investigations and result in statutory penalties, legal fees, and potential damage to your rental business reputation.
Potential consequences include:
For detailed information about enforcement mechanisms, review the full text of Colorado HB25-1236 on the Colorado General Assembly website.
Update Your Application Process
Revise rental applications to include a section where tenants can indicate they're providing a PTSR. Make it clear that submitting a PTSR eliminates screening fees.
Train Your Property Management Team
If you work with property managers or leasing agents, ensure they understand the new requirements and know how to verify PTSR compliance.
Review Your Fee Structure
Audit your current application and screening fees to ensure they align with HB25-1236. Separate legitimate application costs from screening-related charges.
Establish PTSR Verification Procedures
Create a simple checklist to confirm that submitted PTSRs contain all required components and fall within the 60-day acceptance window.
Update Lease Agreements and Disclosures
Work with a Colorado real estate attorney to ensure your rental documents reflect the new PTSR requirements and subsidized housing provisions. The Colorado Attorney General's guidance on landlord-tenant law provides helpful context for compliance.
While HB25-1236 requires adjustments, it offers real advantages for independent landlords:
Faster Application Processing
Pre-verified PTSRs mean you can evaluate applicants immediately instead of waiting days for screening results. Quicker decisions lead to shorter vacancy periods.
Reduced Screening Costs
When tenants provide PTSRs, you eliminate out-of-pocket expenses for credit checks and background reports. Over multiple turnovers, this adds up.
Lower Fraud Risk
PTSRs use verified data sources including identity authentication, credit bureaus, and official court records. This multi-layered verification reduces the risk of falsified documents.
Simplified Compliance
Standardized reports create clear expectations and reduce legal ambiguity. You know exactly what information you're receiving and what the law requires. To understand the broader context of these changes, read about Colorado's portable tenant screening report implementation timeline.
Rent with Clara helps Colorado landlords navigate HB25-1236 with confidence. Our platform generates fully compliant PTSRs that meet all statutory requirements ,identity verification, credit history, criminal background, and eviction records ,while giving tenants control over their screening reports.
For landlords, this means:
Learn how Rent with Clara simplifies tenant screening for Colorado landlords
HB25-1236 represents a significant shift in Colorado's rental market, but it doesn't have to complicate your screening process. By understanding the requirements, updating your procedures, and leveraging compliant screening tools, you can maintain thorough tenant evaluation while meeting the new legal standards.
The law takes effect January 1, 2026 ,giving you time to prepare. Start now by reviewing your current screening process, consulting with a real estate attorney if needed, and exploring PTSR platforms that simplify compliance. For additional resources, the National Apartment Association's guide to portable screening reports offers industry-wide perspective on this growing trend.
Questions about how HB25-1236 affects your rental properties?
Contact Rent with Clara for personalized guidance
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