Colorado Politics

Proposed evictions bill fails to improve housing stability while threatening higher rents | OPINION

No landlord wants to evict a tenant for non-payment of rent. That is true for large housing providers, small “mom-and-pop” owners and nonprofit housing rental providers alike. Evictions are financially and emotionally costly for everyone involved. But when rent goes unpaid, eviction is the only legal way to regain possession of a rental housing unit so it can return to the housing market. 

The Colorado General Assembly is currently debating House Bill 26-1106. This legislation would create legal red tape that will further delay the eviction process. Though the bill may reduce eviction filings on paper by limiting how many cases courts can process, it would not help one tenant pay their rent or help a single landlord — some with only a handful of units — recoup the average $8,000 to $10,000 that each eviction costs.

Though there are good intentions behind HB 26-1106, it does nothing to address the underlying issue of tenants struggling to pay rent. Most housing providers already work with tenants who fall behind. Payment plans, rental assistance programs and other solutions are often the first step because eviction is costly and time-consuming for everyone involved. But when those efforts fail, the legal process must be able to move forward in a reasonable timeframe. Extending the process even longer does not help tenants catch up on rent — it only prolongs an already difficult situation.

Evictions hurt tenants. And not just the tenants evicted. When a rental home is occupied by someone who is not paying rent, that unit cannot be rented by someone who can. Until that non-paying tenant moves out, that home is not part of the rental housing supply.

Higher numbers of housing units on the market result in lower rent. Don’t believe me? You can rent an apartment along the Front Range for less today than you could in 2023. HB 26-1106, however, will slow the eviction process even more than the current 4-month process. That is time units are unavailable to other renters in the market which results in higher rents for all tenants.

Evictions regulations themselves also increase rents. Extensive research shows those costs ultimately get passed on to other tenants. Eviction regulations such as HB 26-1106 are shown to increase rent by 5.9% to 6.5%. That means the cost of this bill won’t be footed by the government, taxpayers or even housing providers. It will be renters themselves saddled with the bill.

Evictions also hurt housing providers by driving up their costs. I work for a large housing provider, but I also personally own two rental condos. I have worked for nonprofit rental housing providers and public housing authorities. Though these organizations have different missions and resources, they all share one basic reality: they must cover their costs. If they cannot cover their costs, they must receive additional funding from the private sector or government agencies. Otherwise, they go out of business.

Evictions can be devastating to both tenants and landlords. Nobody wants evictions. But sometimes tenants cannot pay rent. Unreasonably extending the eviction process only makes the problem of eviction worse. Ultimately, HB 26-1106 will not help people stay in their homes long-term. It will only lengthen the process and further raise the costs of eviction for all who are involved.

HB 26-1106 moves Colorado in the wrong direction. If lawmakers want to reduce evictions, keep housing affordable and actually provide families with housing stability, the focus should be on helping tenants stay current on rent and increasing housing supply — not slowing down the legal process that returns homes to the market.

The most effective way to reduce evictions is simple: build more housing, increase supply and make it easier for more Coloradans to find a place they can afford. HB 26-1106 not only fails to do those things but will lead to the exact opposite.

Rocky Sundling is a Colorado housing professional, rental property owner and longtime advocate for the multifamily housing industry with more than 35 years of experience.

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