Key Points
Landlords must accept Portable Tenant Screening Reports (PTSRs) directly from tenant applicants.
For subsidized applicants, PTSRs are NOT required to include credit history, credit scores, or adverse credit events.
Landlords must accept PTSRs as provided but are not obligated to base rental decisions solely on these reports.
Landlords may continue to perform their own background and credit checks but may NOT charge applicants for these screenings.
Applies to all Colorado landlords and housing providers.
In an effort to reduce application costs and create more equitable access to rental housing, Colorado recently passed HB25-1236. The legislation, titled Concerning the Screening of a Prospective Residential Tenant by a Landlord, goes into effect on January 1, 2026, and significantly changes how landlords and property managers must handle tenant screening.
Portable Tenant Screening Reports (PTSRs)
Previously, Colorado law allowed applicants to submit Portable Tenant Screening Reports (PTSRs), directly to landlords, but landlords were allowed to required those to reports to come through an authorized consumer reporting agency such as TransUnion or Experian. This requirement led to complications due to federal regulations restricting the sharing of applicant information without explicit permissions.
HB25-1236 repeals this provision, allowing applicants to provide screening reports directly to landlords without using third-party platforms.
Provisions Regarding Subsidized Applicants
The bill introduces important exceptions for applicants who receive housing subsidies such as Section 8 housing. In these cases, the submitted PTSR is NOT required to include credit-related information, including credit scores, credit history, or adverse credit events. This aligns with Colorado’s legal mandate requiring landlords to accept housing subsidies and also disallowing landlords from considering credit information for subsidized housing applicants.
Practical Impact for Landlords and Housing Providers
Landlords must accept tenant screening reports directly from applicants and may not refuse reports based on how they are delivered. While acceptance of PTSRs is mandatory, landlords retain the right to conduct their own background and credit checks but they may NOT charge the applicant for costs. For subsidized tenants, credit information may NOT be used in rental decisions.
These requirements apply universally to all property owners, landlords, housing providers and property managers in Colorado, regardless of number of properties owned or management structure.
HB25-1236 represents a significant shift in tenant screening procedures designed to reduce barriers for applicants and protect subsidized tenants. Landlords and housing providers must implement these changes by January 1, 2026, to maintain compliance and avoid potential penalties.
Grace Property Management will fully comply with this new law while still maintaining quality standards for all of our valued applicants, tenants, and property owners.
At Grace Property Management, we believe that when property management is performed with integrity and transparency, both tenants and landlords benefit. Property management is not just our business - it is a relationship between us, our owner-clients, and our tenant-residents.
If these are important to you, we may be a good fit to provide you, your property, and your tenant-resident with our full-service property management services.
Feel free to reach out to us for assistance.
Grace Property Management & Real Estate
Serving real estate investors and residents since 1978.
www.RentGrace.com
303-255-1990
