What is Letty's Act?
House Bill 25-1108 (HB 1108), officially known as "Letty's Act," protects families from lease penalties when a tenant dies. The bill passed both the Colorado House and Senate unanimously, demonstrating broad legislative support. Taking effect September 1, 2025 (subject to referendum through 2026), this law is codified in C.R.S. § 38-12-801(3.5) and applies to rental agreements entered into on or after the effective date.
The Story Behind the Law
In January 2024, Leticia "Letty" Farrer passed away unexpectedly in her Loveland apartment. Her family received a bill exceeding $3,200 in early-termination fees from her landlord.The lease agreement contained a clause stating that tenants could not be released from their rental obligations "for any reason, including death." This meant Letty's family was legally obligated to pay rent for months beyond her passing, along with forfeited move-in discounts and various penalties.Her son shared this experience with Colorado lawmakers, leading to legislation that prevents other families from facing similar financial burdens during bereavement.
Key Legal Provisions
Bill Summary
- Effective Date: September 1, 2025 (subject to referendum)
- Applies To: New rental agreements entered into on or after the effective date
- Existing Leases: Not retroactively affected; current agreements remain governed by original terms
Prohibited Lease Clauses (Now Void and Unenforceable)
- When a rental agreement is terminated due to a tenant's death, the following provisions become void:
Liquidated Damages
- Property managers cannot charge predetermined penalty amounts for early termination due to death
Rent Acceleration
- Landlords cannot require payment of future rent beyond the end of the month in which the tenant died OR more than 10 business days after the unit is vacated following notice of the tenant's death, whichever timeline is later
- Both timelines depend on proper notice of death being provided to the landlord
Penalty Fees
- Early termination fees specifically related to death are prohibited
- Families cannot be required to reimburse move-in discounts or promotional offers
Streamlined Possession Process
The law simplifies how landlords regain possession of rental units, eliminating the need for formal eviction proceedings. Property managers can take possession without court action when either:
- The deceased tenant's estate representative formally notifies the landlord of surrender, OR
- Thirty days after the tenant's death when rent remains unpaid OR substantially all personal property has been removed
Security Deposit Rights Preserved
Property managers retain important rights regarding security deposits:
- Landlords may retain deposits for damage specifically caused by the death itself
- Standard security deposit rules continue to apply for all other damages
- Normal wear and tear provisions and pre-existing damage exclusions remain in effect
Compliance Requirements for Property Managers
Immediate Action Items
Property managers must complete these tasks before September 1, 2025:Audit Current Lease Agreements
- Review all lease templates and addendums
- Identify clauses that will become void under Letty's Act
- Work with legal counsel to ensure compliance
Update Lease Templates
- Remove liquidated damages provisions
- Eliminate excessive rent acceleration clauses
- Delete penalty fees for death-related early termination
Develop New Procedures
- Create step-by-step protocols for death-related terminations
- Establish notification requirements and possession timelines
- Design compassionate family communication procedures
Train Staff
- Ensure all team members understand new requirements
- Practice handling sensitive situations with empathy
- Review legal procedures and timelines
Financial Planning Adjustments
Property managers should advise clients to:
- Budget for potential limited rent loss (capped by the law's timelines)
- Adjust revenue projections to exclude traditional early termination fees
- Factor non-recoverable concessions into initial pricing decisions
- Rely primarily on security deposits for property protection
Springs Homes For Rent: Our Company Response
Our Proactive Preparation
At Springs Homes For Rent, we're implementing comprehensive changes to ensure full compliance with Letty's Act before the September 1, 2025 effective date.Lease Agreement Overhaul Our legal team is auditing all lease agreements currently in use and eliminating any provisions that would violate Letty's Act, including liquidated damages clauses, rent acceleration terms, and penalty fees for early termination due to death.Updated Policies and Procedures We're developing new written protocols specifically for death-related lease terminations that comply with the law's requirements while protecting our clients' business interests. These procedures clearly outline timelines, notification requirements, and possession processes.Staff Training Program We're ensuring all property management team members understand when and how we can take possession of units without court proceedings, including the 30-day timeline and specific conditions that must be met.Compassionate Communication Protocols We're creating sensitive scripts and procedures for interacting with grieving families. Our staff will be trained to handle these conversations with empathy while clearly explaining the legal process and any remaining obligations.
How We'll Protect Your Investment
Your Security Deposit Protection Remains Strong While Letty's Act restricts certain charges, your investment protection through security deposits remains intact:
- We can retain deposits for damage specifically caused by the death itself
- All standard security deposit rules continue to apply for other damages
- Your ability to recover legitimate property damage costs is fully preserved
Efficient Possession Process The new law eliminates costly eviction proceedings in these situations. We can take possession without court action under the specific conditions outlined in the law, saving you both time and money while handling these situations professionally and compassionately.
Our Commitment to You
We'll handle these situations with the professionalism and sensitivity they require while ensuring your property rights and financial interests are protected under the new law. This balanced approach allows us to support grieving families while maintaining the strong investment protection you expect from our property management services.At Springs Homes For Rent, we're ready for Letty's Act. Contact us to learn more about how our proactive compliance protects your investment while providing compassionate service during difficult times.
