Colorado security deposit laws are detailed under the Colorado Revised Statutes (C.R.S.) under Title 38, Article 12, Sections 101 to 104. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Colorado law. Please note that rules and regulations may vary by municipality.
A landlord shall not require a tenant to submit a security deposit in an amount that exceeds the amount of two monthly rent payments under the rental agreement.
For pets, a landlord shall not demand an additional deposit of more than $300 and it must be refundable.
Colorado law does not specifically mandate how a landlord must hold the security deposit. However, it is common practice for landlords to place security deposits in a separate bank account to ensure that the funds are available when needed.
Colorado law does not require landlords notify tenants about the location of their security deposit.
Colorado law does not require landlords to pay interest on security deposits.
Landlords must return the security deposit, along with an itemized list of any deductions, within one month (30 days) after the lease ends and the tenant vacates the property. However, if the lease agreement specifies a longer period, the return of the deposit can be extended up to 60 days.
The landlord must provide the tenant with a written, itemized statement of any deductions within the timeline specified.
If the tenant disputes the deductions, they should first provide a written notice to the landlord detailing their dispute and explaining why they believe the deductions or the return of the deposit is incorrect.
If the dispute cannot be resolved through direct negotiation, the tenant and landlord may seek mediation services. Mediation is a voluntary process where a neutral third party helps facilitate a resolution.
If mediation fails or is not an option, the tenant may file a claim in small claims court. In small claims court, the tenant can seek the return of the disputed portion of the security deposit along with any additional damages.
Colorado landlords may only deduct from the security deposit for:
If a landlord fails to return the security deposit within the legal timeframe or fails to provide an itemized list of deductions, the tenant can sue the landlord in small claims court. If the court finds in favor of the tenant, the landlord may be required to pay the tenant three times the amount of the security deposit wrongfully withheld, plus attorney’s fees and court costs.
Lease Termination: If the lease is terminated early by the tenant, the landlord may retain a portion of the security deposit to cover any unpaid rent or breach of the lease terms.
Damage to Property: If the tenant causes significant damage to the property, the landlord may use the security deposit to cover repair costs, but any remaining amount must be returned to the tenant.
DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or warranties regarding the accuracy, completeness, or reliability of the information presented.