Colorado apartment water bills: what fees are barred

Colorado law allows landlords or their agents to divide apartment water costs among tenants at the same residential premises through a ratio utility billing system, subject to limits on what they charge.

Here’s what can be added to shared water bills, what landlords must disclose in a rental agreement and what you can do about a prohibited charge.

What extra charges may a landlord or billing agent add when allocating apartment water costs among tenants?

Under a ratio utility billing system, a landlord or agent cannot add a markup, surcharge, administrative fee or other amount above the utility’s actual charges, except as otherwise permitted by law. Colorado law also bars a landlord or agent from requiring a tenant to pay a utility-related fee, charge or amount above what the provider charges for service to the tenant’s dwelling unit, except for amounts charged under section 38-12-801 (3)(a)(VI) or subsection (4.5).

The total billed to all tenants at the residential premises cannot exceed the provider’s charge for service to the entire premises. Utility costs for common areas or shared facilities cannot be allocated to tenants through the ratio utility billing system.

What must a landlord disclose in the rental agreement about how apartment utility charges are calculated?

A landlord using a ratio utility billing system must clearly and conspicuously disclose the allocation method for your dwelling unit in the rental agreement or an addendum.

What remedies may be available to a tenant charged a fee prohibited by Colorado’s pricing law?

In a property dispute, if you are aggrieved by a violation, you may send the alleged violator a written demand seeking reimbursement of an unlawfully imposed fee, charge or amount and any actual damages. You may instead use the demand to notify the alleged violator that you refuse to pay a prohibited fee, charge or amount.

If the alleged violator declines to make full legal tender of the fees, charges, amounts or damages demanded, or refuses to stop charging you within 14 days after receiving the written demand, the violator is liable for actual damages plus 18% interest, compounded annually. A violation of HB25-1090 constitutes a deceptive, unfair and unconscionable act or practice and is subject to penalties under the Colorado Consumer Protection Act.