Rent Help in Denver: Where to Turn Before You Borrow

When rent or an Xcel Energy bill is due and the money is not there, a loan is not your only choice, and it is often not the best one. This guide explains where to look for rent help in Denver, how to talk to a landlord or utility, and what a small loan would really cost in Denver, Colorado if you decide you need one. Help that never has to be repaid should come first.

Start with a call to 2-1-1

Mile High United Way runs 2-1-1 for the Denver area. Dial 2-1-1 and say what is happening: rent behind, a shutoff notice, or both. They can point you to programs that fit your situation, so you do not have to call agency after agency on your own.

Ask which rent, utility and food programs are open right now. Programs run out of money and reopen, so the answer can change from month to month. Make this call before you think about borrowing.

Talk to your landlord early

Many landlords would rather work out a plan than start a long, costly process. If you know you will be short, tell your landlord before the due date, not after. Be specific about what you can pay and when.

• Offer dates, such as “half on the 5th and the rest on the 20th.”
• Ask for the plan in writing, even a short email that both sides confirm.
• Mention any assistance you have applied for.
• Keep copies of every message and payment receipt.

Know your rights as a Denver renter

Falling behind on rent is stressful, but you have protections. In Colorado, only a court can evict a tenant. If you get court papers, do not ignore them, and ask for help right away.

The security deposit has rules too. A Colorado landlord must return the deposit, or a written list of reasons for keeping any of it, within one month after the lease ends or you leave, whichever is later. A lease can extend that time, but to no more than 60 days (C.R.S. § 38-12-103). That matters if you plan to move somewhere cheaper and need the deposit back.

Ask Xcel Energy for a payment arrangement

Xcel Energy provides electricity and natural gas in Denver. If a bill is past due, call before any disconnection date and ask about a payment arrangement for the past-due balance. Xcel also offers income-qualified affordability programs, so ask whether your household might qualify for a lower bill going forward.

Spreading a past-due balance over several months can be far cheaper than any loan. Write down the date, the name of the person you spoke with, and the terms you agreed to.

Apply for LEAP and ask Energy Outreach Colorado

LEAP, the Low-income Energy Assistance Program, is run by the Colorado Department of Human Services. It helps with winter heating bills, and you apply through Colorado PEAK. Enrollment is open only at certain times, so check the current dates and apply early, since funding is limited.

Energy Outreach Colorado is a nonprofit that helps income-qualified households with past-due energy bills. Requirements and funding change, so ask what the rules are now and what paperwork you need.

Gather your documents first

Incomplete applications are a common reason help gets delayed. Before you apply, collect the basics:

• Photo identification for the adult applying.
• Proof of income, such as recent pay stubs or a benefits letter.
• Your lease or a record of what rent you owe.
• The past-due utility bill or shutoff notice.

Our loan application checklist covers a similar list of papers, and having them organized helps with assistance programs too.

If your request is denied, keep going

A denial is not always final. Funding can reopen, rules can change, and a second call to 2-1-1 may turn up a program you missed. Ask why you were denied. If a missing document was the reason, fix it and reapply.

If the problem is legal, such as a debt collector or an eviction case, Colorado Legal Services helps low-income residents with civil problems like these. Free legal help can change the outcome, especially if you act early.

Extra places to ask

Airmen, Guardians and their families can ask about emergency help from the Air Force Aid Society through Buckley Space Force Base in Aurora, next to Denver. Students at the Auraria Campus, the University of Denver or another school should ask the financial aid or student services office about emergency aid and food help.

Weather can upset a budget too. Denver is one of the most hail-prone urban areas in the country, and winters bring heavy snow and cold snaps. If hail damaged your car or roof, call your insurer first. Our guide to disaster and emergency loans in Denver has more detail.

If you still need a loan, know the Colorado rules

Colorado is a 36% APR state. What people once called a payday loan is now a small installment loan, called a deferred deposit loan in state law. A lender may not lend you more than $500 at one time, and the minimum term is six months. If you repay early, the lender must refund a prorated share of the finance charge. You can also cancel the loan on or before 5 p.m. the next business day after you take it.

Here is what that looks like at 36% APR, repaid in six equal monthly payments:

• $300 costs about $32.28 in interest, about $55.38 a month, and about $332.28 repaid in total.
• $500 costs about $53.79 in interest, about $92.30 a month, and about $553.79 repaid in total.

Those payments run for six months, so be sure your budget can handle them. A $92.30 payment on top of next month’s rent is a real strain if your income is unsteady. Borrow only the exact gap. Our page on payday loans in Denver explains how these loans work today.

Cheaper options than a high-cost loan

A credit union is often the least expensive place to borrow. Federal credit unions can offer payday alternative loans, which carry at most 28% interest plus an application fee of at most $20. Membership rules vary, so check whether you qualify.

As an illustration only, $1,000 at 18% a year over 12 months is about $91.68 a month and about $100.16 in interest. Ask any lender for the APR in writing, and compare offers in credit unions vs. high-cost lenders in Denver.

Protect yourself from bad deals

People behind on rent are often targeted by offers that sound easy. Before you sign anything, slow down.

• Confirm the lender is licensed with the Colorado Attorney General. License search and complaints are at coag.gov.
• Read the full fee disclosure and ask for the APR in writing.
• Online and out-of-state lenders must follow Colorado law when lending to Coloradans, whatever they claim.

Read your rights as a Colorado loan borrower before you apply.

This article is educational and is not financial or legal advice. Before you borrow, confirm the lender is licensed with the Colorado Attorney General — Consumer Credit Unit (UCCC Administrator), and read the fee disclosure in full.