Security Deposit and Damage Deposit Rules for Colorado Renters

If you’re renting a home or apartment in Colorado, understanding your rights about deposits is essential for protecting your money and maintaining a good relationship with your landlord. Many renters are unsure about the difference between a security deposit and a damage deposit, what the law requires, and how to ensure their deposit is handled fairly under Colorado law.

What is the Difference Between a Security Deposit and Damage Deposit?

In Colorado, most residential leases use the term security deposit. This deposit is money paid by a renter to the landlord before moving in, and it’s designed to protect the landlord from losses such as unpaid rent or damages caused by the renter.

• Security Deposit: Legally defined as any deposit of money to ensure that the renter will perform under the rental agreement. It can cover unpaid rent, damage beyond normal wear and tear, and certain other costs.
• Damage Deposit: Although some leases use this term, Colorado law treats damage deposits as a type of security deposit. Both are regulated under the same rules and tenant protections.

So, whether your rental agreement mentions a security deposit, damage deposit, or both, they fall under Colorado’s general rules for renter deposits.

How Much Can a Landlord Charge for a Security or Damage Deposit?

Colorado law does not set a legal maximum for the amount a landlord can charge as a deposit. However, the deposit amount should be reasonable and clearly listed in your lease agreement. Always request a receipt and a detailed written agreement that outlines the deposit amount and conditions for its return.

Return of Security and Damage Deposits: What Are Your Rights?

At the end of your lease, your landlord must return your deposit (minus any allowable deductions) within a specific timeframe. According to Colorado Revised Statutes Title 38 Article 12 Section 38-12-103:

• Your landlord must return your deposit within one month (30 days) of your lease ending and you moving out, unless your lease agreement specifies a longer period (up to 60 days).
• If any amount is withheld (for example, to cover damages or unpaid rent beyond normal wear and tear), your landlord must provide a written statement detailing the deductions.
• Failure to return the deposit or provide an itemized list of deductions within the legal timeframe may make the landlord liable for up to three times the amount wrongfully withheld plus court costs and attorney’s fees.¹

Common Reasons for Deposit Deductions

Landlords can deduct from your deposit only for:

• Unpaid rent
• Damage to the property beyond normal wear and tear
• Unpaid utility bills (if specified in your lease)
• Other reasons clearly stated in your lease

Official Forms and Practical Steps for Renters

Colorado does not provide a specific state-issued form for requesting the return of your deposit or disputing deposit deductions. However, renters can take official action if there’s a dispute:

• Move-Out Letter (Security Deposit Demand Letter): While not an official state form, this letter should be sent to your landlord if your deposit is not returned within the legal timeframe. State your move-out date, request the return of your deposit, and reference Colorado law.

If you need to escalate your claim, you may file in Colorado Small Claims Court (part of the Colorado Judicial Branch), which handles most tenant-landlord money disputes. Forms and instructions can be found here.

• JDF 250 Complaint (Small Claims Court): Used to file an official complaint to recover your deposit. Complete online or at your county court. Find the form and instructions here.

Where to Get Help

The Colorado Judicial Branch oversees residential tenancy disputes, including deposit issues. Their site offers resources, forms, and guidance for both renters and landlords.

FAQ: Colorado Rental Deposits

1. Can a landlord charge both a security and a damage deposit in Colorado?
   While a landlord may list both in your lease, Colorado law treats all such deposits as a security deposit and applies the same protections and rules to both.
2. What counts as normal wear and tear?
   Normal wear and tear covers damage that happens with regular use (like carpet fading). Damage beyond this—such as holes in walls—can be deducted from your deposit.
3. How long does my landlord have to return my deposit?
   Usually, the landlord has 30 days after lease termination to return your deposit; this can be extended to 60 days if your lease specifies.
4. What should I do if my deposit isn’t returned?
   Send a written request citing Colorado law, and if needed, file a claim with Colorado Small Claims Court to recover your deposit and any penalties.
5. Where can I file a complaint or get more help?
   You can file a complaint in Colorado Small Claims Court. For more help, visit the Colorado Judicial Branch’s self-help page.

Key Takeaways for Colorado Renters

• All deposits—security, damage, or otherwise—are protected under Colorado’s security deposit laws.
• Your landlord must return your deposit (minus proven deductions for unpaid rent or excess damage) within 30–60 days.
• If you believe your deposit was wrongfully withheld, you can take legal action through Colorado Small Claims Court.

Knowing these rights can help you confidently navigate renting and move-ins/outs in Colorado.

Need Help? Resources for Renters

• Colorado Judicial Branch – Official portal for small claims and tenant-landlord disputes.
• Colorado Department of Local Affairs – Division of Housing – Information on tenant protections and housing rights.
• Small Claims Court Self-Help – How-to guides and forms for deposit disputes.
• Colorado Housing Search – Local housing support and resources for renters.

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1. Colorado Revised Statutes Title 38 Article 12 (Landlord and Tenant Law)
2. Colorado Judicial Branch – Residential Tenancy Disputes
3. Colorado Division of Housing – Tenant Protections

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