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COLORADO NOW AN ATTRACTIVE LIMITED LIABILITY STATE
The Colorado Supreme Court recently ruled that owners and
managers of limited liability companies (LLC) now have less exposure to
personal liability and no fiduciary duty toward creditors should the company
Limited liability companies are primarily governed by each
state’s LLC Act and LLC operating agreement. It is in this way that courts
across the nation are being asked to determine a standard for LLC
accountability. This landmark ruling makes Colorado very attractive to potential owners
and managers forming new LLCs and serves as a precedent for other states.
The rental industry in Colorado could stand to benefit greatly
because of this appealing reduction to personal liability. Existing property
owners operating under LLC can now take a deep breath and new property owners
will be drawn to the state for its lower risk investment potential.
The 2019 legislative session has started and depending on which state you conduct business in, there is a lot going on. Many local governments have started to introduce bills that may negatively impact the multi-family housing industry.
Colorado has introduced two bills with a third one on the way.
Colorado House Bill 19-1118 addresses the time period to cure a lease violation.
The current law requires a landlord to give the tenant 3 days to cure a lease violation. The most common violation is failure to pay rent. When the tenant violates the lease agreement, you post them with a 3-day notice. If they don’t pay within the 3-day time frame the eviction process is started.
HB 19-1118 would change the 3-day rule to 14 days.
Depending on the lease agreement many landlords don’t post a 3-day notice until the 4th of the month. This puts them at a higher financial risk if this new law passes. The new time frame puts the landlord towards the end of the month before even sending the 3-day …
If you are
not paying attention to what’s going on with your state legislature, it’s time
to wake up and get in the game. Rent Control was passed in Oregon and there is
already talk about expanding it across the nation. Colorado moves closer to
passing rental application reform with HB19-1106 and will impact fees and
possibly time frames for criminal record usage. Recently the
state of Oregon became the first in the country to implement a statewide rent
control law. The new law prevents property owners from raising the annual rent
more then 7%. Many groups are looking at this as a quick solution to provide
affordable housing in markets all over the country. Rent control
is under serious consideration by law makers all over the United States. If
rent control legislation is passed everywhere it is currently being discussed
nearly 1/3 of the country’s rental housing would be impacted by rent control. Advocates
site California, Maryland, New York, New Jersey, and Washington DC, as