✓ Law Verified June 2026
This guide explains colorado security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Colorado law, verified as of June 2026.
In This Colorado Guide:
Colorado Security Deposit Rules at a Glance
| Maximum deposit | No more than 1 month’s rent (reduced from 2 months under HB25-1249, effective January 1, 2026). Tenants may request to pay the deposit in installments over up to 6 months. |
| Return deadline | 30 days after lease termination or surrender of the premises, whichever occurs last. The lease may specify a longer period, but it cannot exceed 60 days. If the landlord misses this deadline, the landlord forfeits all rights to retain any portion of the deposit. |
| Itemized deductions required | YES. The landlord must provide a written itemized statement listing the exact reasons for retaining any portion of the deposit. If a tenant requests supporting documentation (photographs, inspection forms, reports, receipts, invoices, or estimates), the landlord must provide it within 14 days of the request. |
| Interest on deposit required | NO. Colorado does not require landlords to pay interest on security deposits or hold them in interest-bearing accounts. Exception: the City of Boulder has a local ordinance requiring landlords to pay interest on deposits (check current Boulder municipal code for the rate). |
| Penalty for late/bad-faith return | If the landlord fails to return the deposit or provide the required written itemized statement within the deadline (30 days, or up to 60 if the lease specifies), the landlord forfeits all rights to retain any portion of the deposit. If the landlord willfully and in bad faith retains a deposit in violation of the statute, many tenants can recover treble (3x) the amount wrongfully withheld, plus reasonable attorney fees and court costs. A landlord is presumed to have retained an unreasonable amount if the amount withheld is 125% or more of the actual damages. The tenant must give the landlord written notice (7-day demand letter sent by first-class mail) of intent to file legal proceedings before suing. |
Move-in/move-out walkthrough: YES, if requested. Under HB25-1249 (effective January 1, 2026), if either the landlord or the tenant requests a walk-through inspection, the landlord must conduct one at a mutually convenient time before lease termination or surrender, after the tenant has had the opportunity to remove furniture.
The inspection may be in person or virtual. The purpose is to identify in writing any damage or defective conditions beyond normal wear and tear that did not preexist the tenancy. Landlords are not required to proactively offer a walkthrough, but must provide one upon request.
Separate deposit account: NO. Colorado does not require landlords to hold security deposits in a separate or escrow account. The deposit may be commingled with other landlord funds.
What Your Landlord Can and Cannot Deduct in Colorado
Unpaid rent; unpaid utility charges; repair costs for damage beyond normal wear and tear that did not preexist the tenancy; cleaning costs to restore the unit to substantially the same cleanliness as when the lease began (but not for normal-use cleaning); and repair work or cleaning the tenant specifically contracted for but failed to complete.
Carpet replacement may only be deducted if there is substantial and irreparable damage beyond normal wear and tear that did not preexist the tenancy — and carpet that was not replaced in the 10 years before tenancy ended cannot be deemed substantially and irreparably damaged.
Paint may only be deducted if there is substantial damage beyond normal wear and tear that did not preexist the tenancy. A landlord cannot charge for full carpet or paint replacement if only a portion is damaged.
Normal wear and tear vs damage: Colorado defines normal wear and tear as deterioration, damage, or uncleanliness that occurs based upon the use for which a rental unit is intended or reasonably and typically used, without negligence, carelessness, accident, or abuse by the tenant, household members, invitees, or guests. Normal wear and tear does NOT include uncleanliness that renders the unit substantially less clean than when the lease began.
Examples of normal wear and tear include minor scuffs, small nail holes, light carpet wear or matting, and faded paint. Substantial and irreparable carpet damage or substantial paint damage beyond normal wear is tenant responsibility — but only if it did not preexist the tenancy.
How to Get Your Deposit Back in Colorado
Step 1: Send a 7-day demand letter by first-class mail (you may also send a copy by certified mail for proof) requesting return of the deposit and stating your intent to file legal proceedings if not returned. Step 2: If the landlord does not comply within 7 days, you may file a claim in Colorado County Court (small claims division) in the county where the rental property is located.
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The small claims limit is 7500. Filing fees range from 31 to 55 depending on the claim amount.
You do not need an attorney for small claims court. Bring move-in and move-out photos, your lease, the demand letter and proof of mailing, and any deduction statements the landlord provided. If the court finds the landlord willfully and wrongfully withheld the deposit, you may be awarded treble damages plus attorney fees and costs.
You may also contact Colorado Legal Services for free legal help if you are low-income, or file a consumer complaint with the Colorado Attorney General at coag.gov.
Other Colorado deposit rules: Tenants may request to pay the security deposit in installments over up to 6 months rather than all at once. Carpet that has not been replaced in the 10 years preceding the end of tenancy cannot be deemed substantially and irreparably damaged — landlords cannot deduct for old carpet. Landlords cannot charge for full carpet or paint replacement when only a portion is damaged.
A landlord is presumed to have retained an unreasonable amount if the retention is 125% or more of actual damages (creating a presumption of bad faith). HB25-1249 also strengthened protections regarding preexisting damage — landlords cannot deduct for conditions that preexisted the tenancy. The Colorado Division of Real Estate provides guidance on HB25-1249 at https://dre.colorado.gov/hb25-1249-summary.
Your landlord’s insurance won’t cover your stuff
Renters insurance protects your belongings for a few dollars a month.
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Official Colorado Sources & Resources
- Colorado Attorney General: https://coag.gov/office-sections/consumer-protection/
- Colorado Security Deposit Statute: https://leg.colorado.gov/bills/hb25-1249
- U.S. Department of Housing and Urban Development: hud.gov
- Cornell Legal Information Institute: law.cornell.edu/wex
Understanding Colorado Security Deposit Law
Your Colorado security deposit is your money until the landlord proves a lawful deduction. Colorado security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Colorado security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.
Document the condition of your unit at move-in and move-out — photos are the best protection for your Colorado security deposit.
This Colorado security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.
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Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.