How Colorado's occupancy limit ban will change the Fort Collins rental market
On April 15th, 2024, Governor Jared Polis signed into law a new bill named “Prohibit Residential Occupancy Limits.” This bill will effectively end Fort Collins’ occupancy limit ordinance commonly known as “U+2” by July 1st. For decades, U+2 has prohibited more than three unrelated people from sharing one home, regardless of the number of bedrooms.
For property owners, this means that homes can now legally be leased to more than three renters. Fort Collins Mayor Jenny Arndt told CBS News Colorado that there are an estimated 15,000 vacant bedrooms in the city. Rental properties with four or more bedrooms will now have new opportunities to increase the number of allowable tenants and as a result, collect additional rent.
For CSU student renters, and all renters in the Fort Collins area, this change provides greater flexibility when searching for housing and coordinating with potential roommates. The ability to legally split rent with a higher number of roommates will likely lead to more affordable rental costs per person. Renters will also save when it comes to splitting other shared expenses such as utilities, cable, and internet.
Mascot Property Management actively monitors home rental prices in Fort Collins and will be tracking how this bill impacts rental rates in the months ahead. Our historical data shows that in the past, some homeowners have obtained special exemptions or have knowingly violated U+2 by listing properties that allow more than three tenants. On average, these properties were listed at $500-$800 more per month for each additional bedroom.
As a large influx of bedrooms becomes legally available for rent in Fort Collins, Mascot Property Management will continue to monitor the effects of this bill on the local rental market.
