A legal victory for the state of Colorado means some DU student renters may be entitled to compensation. The settlement between the state of Colorado and property management company Four Star Realty, which was reached in early January, found that the company must pay nearly one million dollars in damages against renters for violating the state’s security deposit policy and Consumer Protections Act.
Boulder-based real estate company, Four Star, specializes in student rentals across the state, specifically in the Denver and Boulder regions. The money from their settlement will go towards affected renters who were unfairly charged during their leases.
The joint investigation into Four Star by Colorado Attorney General Phil Weiser and 20th Judicial District Attorney Michael Dougherty claimed that the company frequently charged renters unnecessary and unstipulated fees. Because Four Star specializes in student rentals, some DU students have likely been affected by these unfair fees.
Filings from the lawsuit claimed Four Star charged fees for events including repairs that never happened, normal wear and tear, “moveout coordination” and “rekeying” of previous tenants’ locks. They also were accused of withholding security deposits for normal wear and tear, a process illegal in the state of Colorado.
“What this settlement does is provide significant monetary relief in the form of restitution and refunds for consumers who were mistreated and will now get money put back in their pockets,” Attorney General Phil Weizer said in a press conference.
Because Four Star Realty specializes in student rentals, their tenants often lacked the vital rental experience, confidence and legal understanding to advocate for themselves. Students are also more likely to look for short and unique-term leases, which can limit their rental options and reduce their desire to stand up to unfair renting practices.
“They’re not taken seriously because they are viewed as transient populations,” Sturm College of Law Professor Sarah Schindler said. “Most students will only remain for the four years of college, and often even less than that, so there isn’t a strong desire for the landlord to develop a relationship with them.”
Professor Schindler, who researches and teaches property, land use and real estate law, also feels that renters across the board are not aware of their Colorado and federal rights to fair renting practices. According to the Implied Warranty of Habitability, every Colorado rental property must by law be generally safe and “fit for human habilitation.”
“You are entitled to a habitable place to live, and you can’t waive that,” Professor Schindler said. “So if you rent a place, and then you find out it’s like, covered with rats, and the heat doesn’t work, and all of these things … there are certain protections that you have under state law.”
Professor Schindler recommends that all renters, especially students, advocate for themselves and their rentals by contesting false fees, incorrect billing statements, and unlivable conditions with their landlords. She also says renters should meticulously document any damages, relevant landlord interactions and rental issues by taking videos and pictures with timestamps.
Since the settlement was reached, Four Star has made changes in accordance with the state attorney general’s office. Now, the company is no longer allowed to charge fees for normal processes like paintings and carpet cleanings. They also must follow stringent procedures documenting all fees, security deposits and damages.
As for DU students who have rented from Four Star, they may be entitled to settlement money based on unfair fees charged to them while renting from Four Star. Any renter who lived in a Four Star Realty unit between January 2020 and December 2023 should report a complaint to the attorney general’s office here. Other students seeking legal advice about their leases can contact Colorado Housing Connects for services.
