Colorado security deposit law

• Return the deposit, or a written statement of exact reasons for keeping any part plus the balance, within 30 days after the lease ends or the unit is surrendered, whichever is later.
• The lease may set a longer period, but no more than 60 days after the later of lease termination or surrender.

Sending the statement, payment, and documents to the tenant's last-known address, or to any email the landlord knows of, counts as compliance. A refund returned undelivered must be held at least one year and paid within 15 days of the tenant's request.

Required: Yes. Written statement listing the exact reasons for keeping any part. If the tenant makes a written request, the landlord must also provide relevant documentation in its possession or control (photographs, inspection forms or reports, receipts, invoices, or estimates); the law ties this to a statement given within 14 days after the tenant's written request.

Normal wear and tear is deterioration, damage, or uncleanliness from intended or typical use without negligence, carelessness, accident, or abuse. It doesn't include uncleanliness that leaves the unit substantially less clean than at move-in. No deductions for wear and tear or pre-existing damage. Whole-unit carpet replacement only for substantial irreparable damage, and never for carpet more than 10 years old. Whole-unit painting only for substantial damage throughout.

Any lease term charging the tenant for repairs, cleaning, or other work due to normal wear and tear or pre-existing damage is void.

• Interest required: No. No statewide interest requirement.
• Separate account required: No. No separate-account requirement.
• Move-in inspection required: No. No move-in inspection required. On either party's request, if reasonable and practicable, they must do a move-out walk-through (in person or by video) before the lease ends, after the tenant has had a chance to remove furniture.

Wrongful retention: treble the amount wrongfully withheld, plus reasonable attorney fees and court costs. The tenant must first send a written demand and notice of intent to sue, and may sue for treble damages only if the landlord doesn't return the money within 7 days. Any noncompliance also forfeits the landlord's right to keep any of the deposit.

Withholding is wrongful if the statement or documents are late, reasons aren't exact, the balance isn't returned on time, or the retention is in bad faith. Bad faith includes keeping an amount that unreasonably exceeds actual damages (presumed at 125% or more of actual damages), keeping money without actual cause, keeping an amount the landlord knew or should have known exceeded actual damages, or keeping it for an unlawful, retaliatory, or discriminatory purpose. The landlord bears the burden of proof. A landlord who kept money in good faith and otherwise complied, but reasonably kept more than actual damages, owes only the excess plus court costs (no treble).

County court small claims up to $7,500, not counting interest and costs. Court information

Before filing, many tenants send a written demand first. Write a Colorado demand letter →

• Deductions are allowed only for unpaid rent, unpaid utilities, other lawful lease charges, and necessary repairs for damage beyond normal wear and tear that didn't pre-exist the tenancy.
• Refunds may be sent by electronic transfer with the tenant's consent.
• SB 26-054: starting Jan. 1, 2027, the two-month cap won't apply to post-closing occupancy agreements where the landlord bought the home from the tenant.
• The walk-through and carpet/paint rules don't apply to mobile home park lots.

• HB 25-1249 (enrolled), amending C.R.S. §§ 38-12-102, 38-12-103 Retrieved October 11, 2026.
• SB 26-054 (amending C.R.S. § 38-12-102.5) Retrieved October 11, 2026.
• Colorado Judicial Branch – Small Claims Retrieved October 11, 2026.

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.