I am renting individual rooms in a single family house to unrelated individuals. I do not live at this property. What are some of the legal differences in this arrangement? Does your premade rental agreement cover this type of rental?

Thanks for reaching out. Renting individual rooms in a house you don't live in is allowed in many parts of Colorado, but it puts you in a different legal position than an owner who lives on-site or rents the whole house to one tenant. Here are some of the main differences based on the information you provided in your question:

• You may lose some "owner-occupied" exemptions. Certain Colorado rules give owners who live in the home lighter treatment. Because you don't live there, those exemptions generally won't apply to you. Most notably, Colorado's "for cause" eviction law, which limits when a landlord can end or refuse to renew a tenancy, is more likely to apply to you. You may also lose an exemption under fair housing law. Depending on the number of rooms you’re renting out, you may be putting yourself in the category of an owner who rents out more than 5 properties, meaning you're subject to rules requiring mandatory mediation for some individuals. 

• Your city's rules matter most. Zoning, occupancy limits, and rental licensing are set locally, and many cities treat renting by the room differently from renting a whole house. Some limit the number of unrelated people who can live together. Some cities require a rental license. Some hold the owner responsible for over-occupancy even if the owner doesn't live there. HOA covenants may also restrict room rentals, depending on their exact wording.

• Short stays can change how the house is classified. If rooms are rented for fewer than 30 days, the city may treat the house as a short-term rental or, in some cases, as a lodge, with separate licensing and inspection requirements. This is a serious situation in Denver, especially if you’re not going to live there. 

• Standard landlord duties apply to each tenant, including habitability, required lease language, security deposits, and evictions.

• You're responsible for shared spaces. You must keep kitchens, hallways, stairs, and other common areas reasonably safe. A lease clause saying you aren't liable for your own negligence generally won't hold up in Colorado.

• Fair housing still applies. You can't discriminate against tenants, and you must consider reasonable accommodation requests from tenants with disabilities, including requests for assistance animals.

The details depend heavily on which city your house is in, how many people live there, how long they stay, and any HOA rules. 

Our lease packages include three leases, one of which is a roommate agreement. However, given the complexity of individual room rentals, a one-hour paid legal consultation could be beneficial to you. You can schedule a consultation online or call 303-688-0944.