Colorado Security Deposit Law Notice Example

IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. IF YOU DECIDE TO USE ALL OR PORTIONS OF THE EXAMPLES PROVIDED, PLEASE TAKE THEM TO AN ATTORNEY FOR REVIEW. DO NOT ASSUME THE INFORMATION IS ACCURATE. EVERY SITUATION IS DIFFERENT. AS SUCH, THERE IS NO SUCH THING AS GENERAL LEGAL ADVICE. YOU NEED TO TALK TO AN ATTORNEY. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY.

Being a tenant in Colorado can be confusing. A huge number of tenants face legal problems everyday and do not have representation. In general, landlords are better represented than tenants simply because most tenants either cannot afford an attorney, cannot find one, or do not take the time to look. Do not be afraid to call an attorney. It may not cost as much as you think.

I talk to tons of tenants on a monthly basis. Many are familiar with portions of the Colorado Security Deposit Law while others are not. Education is power. I have a separate article on the subject if you would like to learn more.

The Colorado legislature has seen fit to provide tenants with numerous protections against bad landlords. While these laws affect all landlords, they are not intended to punish good landlords. They are intended to ensure that no landlords try to push the limits. A few examples of problems that may have statutes that apply include late fees, rent increases, habitability, security deposits, bed bugs, and so on.

A good starting point for determining if you as a tenant need to contact legal counsel is the gut check. Does the landlord’s action feel wrong at your core? It is something another person should not be able to do to another. For example, does it seem wrong that your landlord would leave you without heat or water in the winter? Yes. Does it seem wrong that your landlord can keep your entire security deposit and not tell you why? Yes. In both the above situations there may be legal redress that is provided through statutes. But if you do not know the law you may be the tenant that complains but never gets any resolution.

Security Deposit

Let’s talk briefly about security deposits. In Colorado, the landlord has 30-60 days, depending on the lease, following the termination of the lease and/or the surrender and acceptance of the leased premises (whichever is later) to return either 1) your full security deposit; or 2) to provide you with a written statement listing the exact reasons for the retention of any portion of the security deposit plus the remaining deposit. The landlord cannot use the deposit to cover normal wear and tear items.

The 2022 version of the statute reads as follows.

A landlord shall, within one month after the termination of a lease or surrender and acceptance of the premises, whichever occurs last, return to the tenant the full security deposit deposited with the landlord by the tenant, unless the lease agreement specifies a longer period of time, but not to exceed sixty days. No security deposit shall be retained to cover normal wear and tear. In the event that actual cause exists for retaining any portion of the security deposit, the landlord shall provide the tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit. When the statement is delivered, it shall be accompanied by payment of the difference between any sum deposited and the amount retained. The landlord is deemed to have complied with this section by mailing said statement and any payment required to the last known address of the tenant. Nothing in this section shall preclude the landlord from retaining the security deposit for nonpayment of rent, abandonment of the premises, or nonpayment of utility charges, repair work, or cleaning contracted for by the tenant. C.R.S. 38-12-103 (1) (2022).

If the landlord fails to return your full deposit or provide the required statement, they can subject themselves to liability.

The 2022 version of the statute reads as follows.  

The willful retention of a security deposit in violation of this section shall render a landlord liable for treble the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorney fees and court costs; except that the tenant has the obligation to give notice to the landlord of his intention to file legal proceedings a minimum of seven days prior to filing said action. C.R.S. 38-12-103 (3)(a) (2022).

What does this mean? If the landlord has wrongfully withheld the tenant’s security deposit after the tenant has provided the proper notice of the tenant’s intent to file legal proceedings then the landlord may be liable for 3x the amount of the wrongfully withheld security deposit, attorney fees, and court costs. But be aware, the withholding must be willful and not every situation qualifies as willful.

If you notice, the legislator has seen fit to impose an attorney fee clause. Again, talk to an attorney. It may be more affordable than you think.

A great example of willful and wrongful withholding occurs when the landlord fails to 1) provide the tenant with any portion of their deposit; and 2) to provide them with the required written statement within the prescribed time forfeiting their right to retain the deposit. If the landlord still withholds the deposit after being provided with the proper notice, then they may be subject to those treble damages.

The 2022 version of the statute reads as follows.  

The failure of a landlord to provide a written statement within the required time specified in subsection (1) of this section shall work a forfeiture of all his rights to withhold any portion of the security deposit under this section. C.R.S. 38-12-103 (2) (2022).

I often get asked by tenants, what type of notice do I need to give my landlord? The correct answer is there is no specific form. It just needs to meet the statutory requirements. But before a tenant provides a landlord with notice, they should talk to an attorney to ensure 1) they qualify under the statute; and 2) there are no other problems.

A big misconception is that the landlord cannot sue you for damages if you qualify under the Colorado Security Deposit Law. Wrong. They can. The Colorado security deposit law only deals with the wrongful withholding of security deposits. It does not deal with the landlord’s right to sue you for damages under your lease.

Here are a few examples of notices the tenant may provide the landlord if they qualify.

IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. IF YOU DECIDE TO USE ALL OR PORTIONS OF THE EXAMPLES PROVIDED, PLEASE TAKE THEM TO AN ATTORNEY FOR REVIEW. DO NOT ASSUME THE INFORMATION IS ACCURATE. EVERY SITUATION IS DIFFERENT. AS SUCH, THERE IS NO SUCH THING AS GENERAL LEGAL ADVICE. YOU NEED TO TALK TO AN ATTORNEY. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY. SPECIFICALLY, THESE EXAMPLES MAY NOT APPLY TO YOUR EXACT SITUATION.

Example 1:

NOTICE OF LANDLORD’S FAILURE TO RETURN THE TENANTS SECURITY DEPOSIT AS REQUIRED BY C.R.S. 38-12-103 (2022) AND INTENT TO FILE LITIGATION

To: __[name of landlord]_______(Landlord)

From: __[name of tenant]______ (Tenant)

Date: __________________

Delivery Method: This notice has been both mailed via certified mail to the Landlord at _______________________________________________________________________  and emailed to the Landlord at _____________________________________________________.

Good afternoon,  

THIS LETTER IS TO INFORM YOU, THE LANDLORD, OF YOUR TENANT’S INTENT TO BRING LEGAL PROCEEDINGS AGAINST YOU FOR VIOLATING C.R.S. 38-12-103 (2022). YOU MUST RETURN THE TENANT’S FULL SECURITY DEPOSIT OF ________________________ WITHIN SEVEN DAYS OF RECEIVING THIS LETTER. THE TENANT INTENDS TO BRING LEGAL PROCEEDINGS AGAINST YOU FOR VIOLATING THE STATUTE AFTER THE SEVEN DAY PERIOD HAS PASSED IF SUCH SECURITY DEPOSIT IS NOT RETURNED IN FULL.

Basis For Violation

On [insert date], I ______________________________(Tenant) entered into a written lease with _________________________________________________(Landlord) for the lease of ___________________________________________________(Property) for residential use.

Pursuant to the lease the lease terminated on ________________________.  The Tenant surrendered possession of the Property and the Landlord Accepted the Property on ________________________________________________. The later of these two dates is ________________________.

o [check box if applicable] Because the lease does not specify, you had one month after the termination of the lease or surrender and acceptance of the premises, whichever occurs last, to return the full security deposit or to provide the Tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit plus the difference between any sum deposited and the amount retained.

o [check box if applicable] Pursuant to the lease, you had ____________ days (not to exceed 60) after the termination of the lease or surrender and acceptance of the premises, whichever occurs last, to return the full security deposit or to provide the Tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit plus the difference between any sum deposited and the amount retained.

The Landlord has violated C.R.S. 38-12-103 (2022) by:

o [check box if applicable] Failing to return the Tenant’s full security deposit and failing to provide the Tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit plus the difference between any sum deposited and the amount retained within the prescribed period of time as required by law. As a result, the Landlord has forfeited all rights to withhold any portion of the security deposit.

o [check box if applicable] Other: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

PLEASE MAIL THE FULL SECURITY DEPOSIT TO MY CURRENT ADDRESS AT: _____________________________________________________________________________.

Sincerely,

[Name of Tenant]

End Example.

Please note the o are check boxes that do not format properly online.

IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. IF YOU DECIDE TO USE ALL OR PORTIONS OF THE EXAMPLES PROVIDED, PLEASE TAKE THEM TO AN ATTORNEY FOR REVIEW. DO NOT ASSUME THE INFORMATION IS ACCURATE. EVERY SITUATION IS DIFFERENT. AS SUCH, THERE IS NO SUCH THING AS GENERAL LEGAL ADVICE. YOU NEED TO TALK TO AN ATTORNEY. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY. SPECIFICALLY, THESE EXAMPLES MAY NOT APPLY TO YOUR EXACT SITUATION.