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Colorado security deposit law
Short answer: A Colorado landlord has 30 days after the lease ends or the tenant moves out (whichever is later) to return the deposit or send a written statement of the exact reasons for keeping any of it. A lease can stretch that to 60 days. Deposits are capped at two months' rent, and 2026 changes made the rules much tougher on landlords.
| Deadline to return the deposit | 30 days after the lease ends or the tenant moves out, whichever is later. A lease can allow up to 60 days. |
|---|---|
| Limit on how much a landlord can charge | Two monthly rent payments (since August 7, 2023). |
| Itemized list of deductions | Yes. A written statement listing the exact reasons for keeping any money, sent with the balance. If the tenant asks in writing, the landlord must hand over the supporting photos, inspection reports, receipts, invoices or estimates within 14 days. |
| Interest on the deposit | Not required by state law. |
| Penalty if the landlord breaks the rules | A landlord who breaks the rules forfeits the right to keep any of the deposit. Wrongful retention can cost three times the amount withheld, plus attorney's fees and court costs, if the landlord doesn't pay within 7 days after the tenant's written demand. Keeping 125% or more of actual damages is presumed to be bad faith. |
| What the tenant has to do | Before suing, send the landlord a written demand and notice that you plan to sue at least 7 days ahead. Ask for a walk-through before you move out. |
| The law | Colorado Revised Statutes 38-12-102.5 and 38-12-103, as amended by House Bill 25-1249 (effective January 1, 2026) |
Official law: Colorado Revised Statutes 38-12-102.5 and 38-12-103, as amended by House Bill 25-1249 (effective January 1, 2026). Checked against the statute on 2026-11-04.
Good to know
- Since January 1, 2026, the landlord must do a walk-through inspection (in person or by video) if the tenant asks, before move-out and after furniture is out.
- Nothing can be kept for normal wear and tear or for damage that existed before the tenancy. Lease clauses charging for those are void.
- Replacing carpet throughout the unit can't be charged unless it's substantially and irreparably damaged, and carpet older than 10 years can't be treated as damaged. Painting the whole interior can't be charged unless the paint is substantially damaged throughout.
- The refund can go by mail to the last known address or by secure electronic transfer if the tenant agrees, and the statement can go by email.
Tips for landlords
- Do a written move-in inspection and have the tenant sign it. Take dated photos of every room, including inside appliances and closets.
- Collect the tenant's forwarding address in writing at move-out.
- Put the itemized list and the refund in the mail well before the deadline, and keep proof of mailing.
- Normal wear and tear (faded paint, light carpet wear, small nail holes) usually can't be charged. Damage beyond that can.
Tips for tenants
- Take your own dated photos and video on move-in day and move-out day.
- Give your landlord your forwarding address in writing, and keep a copy.
- If the deadline passes, send a written demand letter that cites the law above before going to small claims court.
Common questions
How long does a landlord have to return a security deposit in Colorado?
30 days after the lease ends or the tenant moves out, whichever is later. A lease can allow up to 60 days.
Is there a limit on security deposits in Colorado?
Two monthly rent payments (since August 7, 2023).
Does a landlord in Colorado have to itemize deductions?
Yes. A written statement listing the exact reasons for keeping any money, sent with the balance. If the tenant asks in writing, the landlord must hand over the supporting photos, inspection reports, receipts, invoices or estimates within 14 days.