Colorado’s Security Deposit Law
Please do not rely on the information provided in this article. This information is not intended to be legal advice.
C.R.S. 38-12-103 (1) (2022): The Colorado Security Deposit Law Basics
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).
C.R.S. 38-12-103 (2) (2022): Failure To Provide A Written Statement
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).
C.R.S. 38-12-103 (3)(a) (2022): Treble Damages Plus Attorney Fees And Court Costs For Wrongful Withholding
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).
C.R.S. 38-12-103 (3)(a) (2022): Burden Of Proof Shifted To The Landlord
In any court action brought by a tenant under this section, the landlord shall bear the burden of proving that his withholding of the security deposit or any portion of it was not wrongful. C.R.S. 38-12-103 (3)(b) (2022).
C.R.S. 38-12-102 (4) (2022): The Definition Of Normal Wear And Tear
“Normal wear and tear” means deterioration that occurs, based upon the use for which a rental unit or mobile home space, as defined in section 38-12-201.5 (7), is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or home owner or members of the tenant’s or home owner’s household, or their invitees or guests. C.R.S. 38-12-102 (4) (2022).
IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. LEGISLATION IN THIS AREA IS CHANGING ALL THE TIME. DO NO RELY ON THIS ARTICLE. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY.
Has your landlord withheld your security deposit? Have you done nothing wrong? If you live in Colorado, you may have certain rights.
C.R.S. 38-12-103 is Colorado’s security deposit law. Landlords must follow very strict steps to retain any portion of your security deposit.
A quick overview imposes certain duties on the landlord.
One Month: The landlord shall within one month of the termination (or surrender and acceptance) of the lease return the full security deposit? Time Exception: The one-month standard can be extended up to 60 days if contained in your lease agreement. Other Exemptions: The statute does not apply in certain situations. Talk to an attorney.
Retention: A landlord may retain a portion or all of your security deposit for cause. They may not retain any portion of the deposit for normal wear and tear. Normal Wear and Tear: Think of your house like a car. It needs oil changes and overtime things tend to break. Normal Wear and Tear. Now consider you take your car drag racing and you blow the motor. Not Normal Wear and Tear. What constitutes normal wear and tear depends on the circumstances.
Written Notice: To retain any portion of the security deposit, the landlord must provide the tenant with a written statement (text, mail, email) listing the exact reasons for the retention of any portion of the security deposit. Forfeiture: Failure to provide such written notice within the prescribed time works a forfeiture of any rights to retain the deposit. Note: Receipt of the statement does not appear to be required. A landlord can comply by mailing the statement to the tenant’s last known address.
Remainder Of Deposit: The written statement must be accompanied by the remainder of the deposit. Therefore, the best practice is to provide a cost breakdown.
My Landlord has not provided me with a written statement. What now?
You must provide the landlord with notice that you intend to file legal proceedings based on C.R.S. 38-12-103. Ideally, the notice at a minimum should state 1) your name and current mailing address; 2) enough information to identify the lease; 3) the date the lease terminated (or the date the lease was surrendered and accepted); 4) the date the landlord was supposed to return the deposit and/or provide a written statement; 5) that the landlord has failed to provide a written statement; 6) that pursuant to the statue they have forfeited any right to the security deposit; and 7) a demand for the return of the full security deposit. Next, you should deliver it to the landlord. Ideally, you should both email it and mail it to the landlord. Look at your lease. The lease itself often contains instructions on how a tenant should deliver notice to the landlord.
Good Tenant Suggestion: The statute says you must wait for at least 7-days prior to filing litigation to trigger the willful section. Rather than day counting, I suggest that you include a demand for the landlord to return the deposit within 14-days of receiving notice. This is not required by law. From a moral perspective, as a tenant, you should not be looking for ways to get back at your landlord or make money. The statute is intended to protect tenants.
I Have Sent Notice Of My Intent To File Legal Litigation Pursuant To The Colorado Security Deposit Statue To The Landlord. What Now?
If the landlord returns the deposit, great. If not, failure to return the security deposit triggers subsection 3(a) of the statute.
A landlord that willfully retains a security deposit in violation of the statue, after providing notice and allowing the prescribed period of time to pass, shall be liable for treble damages and reasonable attorney fees and costs. That means if you pursue legal action, you could be entitled to 3x your initial security deposit. In addition, the landlord must pay your reasonable attorney fees and costs.
Also, call an attorney, if you have not done so already. Why not? The worst that can happen is that the attorney turns you down or that you do not like them. The statute authorizes attorney fees and court costs if the security deposit is wrongfully withheld so it may be beneficial to talk to one.
Here at Larranaga Law, I will often consider security deposit claims for contingency fee arrangements. I offer free 30-minute case evaluations as well.
IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. LEGISLATION IN THIS AREA IS CHANGING ALL THE TIME. DO NO RELY ON THIS ARTICLE. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY.
My landlord provided me with a statement, took my entire deposit, and there is no way it was accurate.
Did you know that C.R.S. 38-12-103 shifts the burden of proving that a security deposit was properly withheld to the landlord? A lawsuit cannot be based on mere suspicions. You must have a reasonable basis to believe that the statement is not accurate. If you can articulate a reason you may have a claim.
You must still provide the landlord with notice although it should be carefully tailored to fit your personal needs.
IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. LEGISLATION IN THIS AREA IS CHANGING ALL THE TIME. DO NO RELY ON THIS ARTICLE. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY.
My landlord walked into my apartment, removed everything, and changed the locks.
Okay, this situation is not directly covered by this statute. But it may be covered under the unlawful eviction or theft statute.
If something feels off about the way your lease ended or how your landlord conducted themselves during the lease, contact an attorney.
IMPORTANT DISCLAIMER: THE INFORMATION CONTAINED IN THIS ARTICLE IS NOT LEGAL ADVICE. LEGISLATION IN THIS AREA IS CHANGING ALL THE TIME. DO NOT RELY ON THIS ARTICLE. FAILURE TO PROPERLY APPLY THE LAW CAN BE DETRIMENTAL TO YOUR CLAIM AND RESULT IN A LAWSUIT AGAINST YOU. CONTACT AN ATTORNEY.