Quick Facts | Answer |
Maximum / Limit | Mobile homes: 1 month’s rent Other housing: 2 months’ rent (starting August 2023) |
Receipt Requirement | Yes |
Inventory Requirement | None |
Interest Requirement | None |
To learn about laws on security deposit returns in Colorado, click here.
Maximum Security Deposit Allowed in Colorado
The maximum security deposit on a rental unit is two months’ rent in Colorado, except in mobile home parks, where the security deposit is limited to one month’s rent.
home will continue to be one month’s rent.
Can Landlords Charge an Additional Pet Deposit in Colorado?
Yes, landlords can collect an additional pet deposit in Colorado, except for service dogs and emotional support animals. The maximum allowed amount for a pet deposit is $300.
If a landlord collects a pet deposit in Colorado, it must be handled according to the same rules as a security deposit.
In addition to a $300 pet deposit, a landlord can also charge pet rent up to $35/month or 1.5% of the monthly rent (whichever is greater).
How Much Rent Can a Landlord Collect Upfront in Colorado?
There is no limit on the amount of rent that can be collected upfront in Colorado. Many states have a limit on the amount of rent that can be collected at once, but Colorado does not.
However, starting August 7. 2023. due to recently approved legislation, landlords can only collect the first month’s rent plus two additional months’ rent whether called a “security deposit” or “last month’s rent.”
Security Deposit Collections in Colorado
While other states have additional requirements for landlords that collect a security deposit, such as providing certain documentation of the condition of the unit at move-in, Colorado does not.
Do Landlords Have to Provide a Receipt for the Security Deposit in Colorado?
In Colorado, landlords are required to provide a receipt for the security deposit for payments made in person by cash or money order.
If the tenant pays by cash or money order but does not pay in person, the landlord is only required to provide a receipt upon request. If requested, the receipt must be provided within 7 days.
Receipts can be provided electronically, but landlords must provide a paper copy if requested by the tenant.
What Obligations Do Landlords Have to Establish the Condition at Move-in in Colorado?
Colorado law does not require landlords to document or establish the property’s condition at move-in. While other states legally require a written inventory of damages to be completed when collecting a security deposit, Colorado does not.
Security Deposit Holdings in Colorado
Colorado law does not require landlords to hold security deposits separate from other funds except for mobile homes.
Landlords of mobile home spaces in Colorado must place each security deposit into a separate trust account. The security deposit cannot be commingled with any other funds.
Are Tenants Entitled to Interest on Their Security Deposit in Colorado?
Colorado law does not require landlords to provide interest on held security deposits, but local governments may enact their own rules regarding security deposit interest, like in Boulder.
Tenants in Boulder are entitled to interest on their security deposits, except for mobile homes. The minimum interest rate is based on the average of one-year certificates of deposit.
How Are Security Deposits Accounted for in Colorado?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Colorado?
When a property is sold in Colorado, the seller must either:
- Transfer the security deposit to the new owner and notify the tenant in writing of the new owner’s name and address; or
- Return the security deposit to the tenant
In either case, the original landlord can make any allowed deductions first.
Sources
- 1 C.R.S. § 38-12-207
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The owner of a mobile home park or the owner’s agents may charge a security deposit in an amount not greater than one month’s rent.
Source Link - 2 Colo. Rev. Stat. § 38-12-106(1) & (2)
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(1) A landlord shall not demand or receive an additional security deposit of more than three hundred dollars from a prospective or current tenant as a condition of permitting the tenant’s pet animal to reside at the residential premises with the tenant, and the security deposit must be refundable to the tenant. (2) A landlord shall not demand or receive additional rent from a tenant as a condition of permitting the tenant’s pet animal to reside at the residential premises with the tenant in an amount that exceeds thirty-five dollars per month or one and one-half percent per month of the tenant’s monthly rent, whichever amount is greater. - 3 C.R.S. § 38-12-102
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”Security deposit“ means any advance or deposit of money, regardless of its denomination, the primary function of which is to secure the performance of a rental agreement for a residential premises or any part of a residential premises.
Source Link - 4 C.R.S. § 38-12-802
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Upon receiving any payment made in person by a tenant with cash or a money order, a landlord shall contemporaneously provide the tenant with a receipt indicating the amount the tenant paid and the date of payment.
Source Link - 5 C.R.S. § 38-12-802
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If the landlord receives a payment that is not delivered in person by the tenant with cash or a money order, if requested by the tenant, the landlord shall, within seven days after the request, provide the tenant with a receipt…
Source Link - 6 C.R.S. § 38-12-802
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A landlord may provide the tenant with an electronic receipt, unless the tenant requests a paper receipt…
Source Link - 7 C.R.S. § 38-12-207
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…a landlord shall deposit each security deposit into a separate trust account to be administered by the landlord as a private trustee…the landlord shall not commingle the trust funds with other money…
Source Link - 8 Boulder Mun. Code § 12-2-6
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No person having custody of a security deposit for residential property shall fail to return accrued interest on the security deposit within one month after termination of the lease or surrender and acceptance of the premises, whichever occurs last…
Source Link - 9 Boulder Mun. Code § 12-2-6
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…do not apply to any security deposit paid to a mobile home park on account of the lease of a mobile home space.
Source Link - 10 Boulder Mun. Code § 12-2-7
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The rate of interest to be paid upon the refund of security deposits shall be determined by the manager by averaging the interest rates being paid on one-year certificates of deposit by three banks doing business within the city…
Source Link - 11 C.R.S. § 38-12-103
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Upon cessation of his interest in the dwelling unit, whether by sale…the person in possession of the security deposit…shall, within a reasonable time…transfer the funds, or…return the funds…
Source Link - 12 C.R.S. § 38-12-103
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Transfer the funds, or any remainder after lawful deductions…
Source Link