Two large property management firms that handle affordable apartments have settled a case alleging they illegally denied units to tenant prospects based on dated information regarding possible criminal convictions, Attorney General Phil Weiser announced Wednesday.

Avail Property Management Inc. and PK Management, LLC, jointly manage some 4,000 rental units at a dozen properties around the state, according to Weiser’s office.

As part of a settlement, the firms agreed to avoid screening tenants based on conviction information dating from over five years ago and to steer clear of information about arrests and charges that hadn’t resulted in convictions.

$300,000 settlement

The firms also agreed to pay $300,000 to cover attorneys’ fees and to be used in support of consumer fraud and antitrust enforcement and consumer education.

State investigators alleged that the firms had denied tenancy to applicants based on arrests, deferred judgments and convictions that occurred over five years before. Such actions are in violation of Colorado’s Rental Application Fairness Act, passed by the Colorado legislature in 2019 and the Colorado Consumer Protection Act enacted in 1969.

In addition to the dollar settlement and the prohibition regarding specific screening practices, the firms also agreed to review third-party screening recommendations rather than relying on background screening vendors and to document their compliance to the attorney general for two years. 

Both firms had used a third-party background screening service in screening tenant applicants, the statement noted.

Weiser’s office noted that many of the properties managed by the firms were ones supported through government programs specifically aimed at providing housing affordability and that some properties served seniors.