Colorado Sublease Agreement
A Colorado sublease agreement is a legal contract that allows an existing tenant, referred to as the “Sublessor,” to rent out all or a portion of their rental property to another tenant, known as the “Sublessee,” in exchange for regular payments. The original lease remains in effect and dictates the terms of the tenancy.

Colorado Sublease Agreement
Right to Sublet
In Colorado, there is no specific state law that grants tenants the right to sublet their rental property. Tenants must obtain explicit written consent from their landlord to sublet. If the original lease does not explicitly prohibit subleasing, the landlord cannot unreasonably withhold permission to sublet. However, landlords retain the right to reject a subtenant based on valid reasons, such as a criminal history or low income.
Standardized Colorado Sublease Agreements
A typical Colorado sublease agreement includes several key components:
- Names of the Parties: Identification of the Sublessor and Sublessee.
- Rental Unit Location: Address of the rental unit as per the master lease.
- Term: Start and end dates of the sublease.
- Rent: Amount of rent, payment schedule, and payment method.
- Late Fees: Policy regarding late rent payments and applicable fees.
- Utilities: Specification of which utilities are paid by the Sublessor and Sublessee.
- Liability: Responsibility for damages incurred by the Sublessee.
- Authorized Occupants: List of individuals authorized to reside in the rental unit.
- Security Deposit: Amount (limited to two months’ rent) and conditions for its return.
- Return of Security Deposit: Requirement to return the deposit within one month, unless otherwise agreed (up to 60 days).
- Inventory of Included Items: List of items included in the rental.
- Improvements to the Rental Unit: Conditions under which the Sublessee may make changes to the unit.
- Lead-Based Paint Notice: Required notice for units built before 1978.
- Master Lease Inclusion: Attachment of the master lease and any exceptions.
- Disputes: Procedures for resolving disputes between Sublessor and Sublessee.
- Smoking Policy: Restrictions on smoking within the rental unit.
- Landlord’s Consent: Description of how the landlord’s consent is obtained.
Tax Implications of a Sublease
For short-term rentals, defined as rentals lasting 30 days or less, Colorado imposes various taxes. These include:
- State Sales Tax: 2.9%
- County Sales Tax
- City Sales and Lodgings Tax
- County Lodgings Tax
- City Marketing District Tax (in some municipalities)
Local regulations can vary significantly, with some municipalities banning short-term rentals entirely or limiting the number of available permits.
Example of Tax Rates
In Grand Junction, the following taxes apply to short-term rentals:
- City of Grand Junction Sales Tax: 3.39%
- State of Colorado Sales Tax: 2.90%
- Mesa County Sales Tax: 2.37%
- Lodgings Tax: 6%
Filing Frequency
Tax returns for short-term rentals must be filed with the Colorado Department of Revenue. The deadlines for filing vary based on the assigned frequency, which may be monthly, quarterly, or annually.
Statutes
- Colo. Rev. Stat. § 38-12-102.5 – Security deposits – maximum amount
- Colo. Rev. Stat. § 38-12-103 – Return of security deposit
- Colo. Rev. Stat. § 38-12-103(1) – Return of security deposit
- Colo. Rev. Stat. § 38-12-103(2) – Return of security deposit
- Colo. Rev. Stat. § 38 – 12
- Colo. Rev. Stat. § 38-12-104 – Return of security deposit – hazardous condition – gas appliance
- Colo. Rev. Stat. § 38-12-105 – Late fees charged to tenants and mobile home owners – maximum late fee amounts – prohibited acts – penalties – period to cure violations – remedies – unfair or deceptive trade practice
- Colo. Rev. Stat. § 38-12-106 – Security deposits – limitation on pet security deposit and rent – definition
- C.R.S. 38-12-507 – Breach of warranty of habitability – tenant’s remedies
- C.R.S. 38-12-507-2 – Breach of warranty of habitability – tenant’s remedies
- C.R.S. 38-20-116 – Abandoned property – notice of sale – definitions
- C.R.S. 13-40-107-4 – Notice to terminate tenancy
- C.R.S. 13-40-107-1a – Notice to terminate tenancy
- C.R.S. 13-40-107-1b – Notice to terminate tenancy
- C.R.S. 13-40-107-1c – Notice to terminate tenancy
- C.R.S. 13-40-107-1d – Notice to terminate tenancy
- C.R.S. 13-40-107-1e – Notice to terminate tenancy
- C.R.S. 13-40-107.5-c – Termination of tenancy for substantial violation – definition – legislative declaration
- C.R.S. 13-40-104 – Unlawful detention defined – definitions
- C.R.S. 13-40-104-1d – Unlawful detention defined – definitions
- C.R.S. 13-40-104-e.5 – Unlawful detention defined – definitions
- C.R.S. 38-12-510 – Unlawful removal or exclusion
- C.R.S. 38-12-505 – Uninhabitable residential premises – habitability procedures – rules – definition
- C.R.S. 38-12-402-1 – Protection for victims of unlawful sexual behavior, stalking, or domestic violence
- C.R.S. 38-12-402-2 – Protection for victims of unlawful sexual behavior, stalking, or domestic violence
- C.R.S. 38-12-509 – Prohibition on retaliation
- C.R.S. 13-6-403 – Jurisdiction of small claims court – limitations
- C.R.S. 13-6-403-2c – Jurisdiction of small claims court – limitations
- Colo. Rev. Stat. § 38-12-701 – Notice of rent increase
- Colo. Rev. Stat. § 38-12-903 – Rental application fee – limitations
- Colo. Rev. Stat. § 13-21-109 – Recovery of damages for checks, drafts, or orders not paid upon presentment
- Colo. Rev. Stat. § 13-40-123 – Damages
- Colo. Rev. Stat. § 38-12-1004 – Bed bugs – access to dwelling unit and personal belongings – notice – costs
FAQs
Yes, in Colorado, tenants must obtain explicit written consent from their landlord to sublet their apartment. If the original lease does not prohibit subleasing, the landlord cannot unreasonably withhold permission.
A Colorado sublease agreement typically includes the names of the parties, rental unit location, term of the sublease, rent amount, late fees, utilities, liability clauses, authorized occupants, security deposit details, and a smoking policy, among other provisions.
Short-term rentals in Colorado, defined as rentals of 30 days or less, are subject to various taxes, including a 2.9% state sales tax, county sales tax, city sales and lodgings tax, and potentially a special district tax. Local regulations may also require permits.
In Colorado, landlords are required to return the security deposit within one month after the tenant vacates the rental unit or the lease term ends, unless otherwise agreed upon, with a maximum period of 60 days.
Yes, even after granting permission to sublet, a landlord in Colorado can reject a subtenant based on valid reasons, such as the subtenant’s criminal history or insufficient income.
If your lease does not explicitly prohibit subleasing, the landlord cannot unreasonably refuse permission to sublet. However, it is still advisable to inform the landlord of your intent to sublet.
A Landlord Consent Form is a document that tenants can use to formally request permission from their landlord to sublet their rental unit. It helps ensure that the subleasing arrangement is documented and agreed upon by all parties involved.
In Colorado, subtenants must receive a written notice of three days to pay rent or vacate. Additionally, they must be informed of the intent not to renew the sublease with varying notice periods based on the duration of their tenancy.