| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Costs of damage Damages due to abandonment Unpaid cleaning services Any other reasonable deductions |
| Return Deadline | 1 Month to 60 days or 72 hours |
| Itemized Deductions | Required |
| Penalty for Late Return | 3x Amount due + court costs + attorneys’ fees |
For laws on security deposit collections and holdings in Colorado, click here.
Some cities and counties may have regulations which are different than those presented here. Always check local laws.
Security Deposit Deductions in Colorado
In Colorado, the following things can be deducted from security deposits:
- Unpaid rent and utilities
- Costs of damage excluding normal wear and tear
- Monetary damage as a result of abandonment
- Unpaid cleaning services
- Other reasonable deductions
In Colorado, landlords can make any deductions from the security deposit that are reasonable in amount and nature. This may include a lost key charge or unpaid late fee. The deductions do not need to be listed in the lease agreement, but landlords cannot charge for normal wear and tear under any circumstance.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear in Colorado?
Colorado has a legal definition for “normal wear and tear,” unlike many states. The law provides this definition:
“Normal wear and tear” means deterioration that occurs, based upon the use… [as] intended, without negligence, carelessness, accident, or abuse… by the tenant or home owner or members of the tenant’s or home owner’s household or their invitees or guests.
Examples of normal wear and tear include:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
Colorado law defines “damage” as deterioration caused by negligence, carelessness, accident, or abuse from tenants and people on the property with their permission.
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Colorado?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Colorado?
Landlords can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Colorado?
Landlords in Colorado can charge a cleaning fee, but the landlord cannot charge for cleaning done as a result of normal wear and tear. Landlords can also make deductions from the security deposit for cleaning services contracted by the tenant.
Landlords can offer a service to deep clean the kitchen upon request by the tenant and deduct the charge from the security deposit if it is unpaid when the lease term ends.
Can the Landlord Charge for Painting in Colorado?
Landlords in Colorado can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Colorado
Landlords must return a security deposit within 1 month from the date the tenant vacates the rental unit or the lease term ends, whichever is later (or up to 60 days in some situations). If deductions are to be made from the security deposit, an itemized statement of deductions must be provided.
How Long Do Landlords Have to Return Security Deposits in Colorado?
Colorado landlords have 1 month after the tenant vacates the rental unit or the lease term ends, whichever is later, to return any remaining portion of the security deposit. The lease agreement can specify a longer period to return the security deposit, up to 60 days.
If a tenant vacates their rental unit due to the landlord’s failure to repair a hazardous condition, the landlord must return any remaining portion of the security deposit within 72 hours after the tenant vacates the rental unit. If the 72nd hour falls on a weekend or holiday, the landlord has until noon the next day to return the security deposit.
Do Landlords Owe Interest on Security Deposits 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.
In Boulder, tenants 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 Do Landlords Give Notice?
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent by mail to the tenant’s last known address.
Can a Security Deposit Be Used for Last Month’s Rent in Colorado?
Colorado law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Colorado
If landlords do not return the security deposit or provide an itemized statement of any deductions within the required time period, tenants can file for damages in court up to three times the owed deposit, plus court costs and reasonable attorneys’ fees.
However, the tenant must notify the landlord in writing at least 7 days before filing to give the landlord a last chance to return the deposit.
Tenants can also take legal action against a landlord for unreasonable deductions.
How Can Tenants File a Dispute for a Security Deposit in Colorado?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of County Court if the amount of damages is less than $7,500. If the amount is greater, the tenant must file a civil case in the County Court.
A small claims case regarding the return of a security deposit must be filed within 1 or 6 years depending on whether the claim includes triple damages.
Cases are filed in County Court where the property is located or where the defendant lives, works or has an office. An attorney is not required but permitted upon approval by the court. Filing fees are $31 or $55, depending on the amount sought in damages.
Sources
- 1 Colo. Rev. Stat. § 38-12-103(1) & (2)
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(1) 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.
(2) 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.
Source Link - 2 Colo. Rev. Stat. § 38-12-102(4)
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“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 (6.5), 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.
Source Link
- 3 Colo. Rev. Stat. § 38-12-104(4)
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If the landlord does not have the repairs made within seventy-two hours excluding a Saturday, Sunday, or a legal holiday, and the condition of the building remains hazardous, the tenant may opt to vacate the premises. After the tenant vacates the premises, the lease or other rental agreement between the landlord and tenant becomes null and void, all rights and future obligations between the landlord and tenant pursuant to the lease or other rental agreement terminate, and the tenant may demand the immediate return of all or any portion of the security deposit held by the landlord to which the tenant is entitled. The landlord shall have seventy-two hours following the tenant’s vacation of the premises to deliver to the tenant all of, or the appropriate portion of, the security deposit plus any rent rebate owed to the tenant for rent paid by the tenant for the period of time after the tenant has vacated. If the seventy-second hour falls on a Saturday, Sunday, or legal holiday, the security deposit must be delivered by noon on the next day that is not a Saturday, Sunday, or legal holiday. The tenant shall provide the landlord with a correct forwarding address. 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 payments required by this section to the forwarding address of the tenant. Nothing in this section shall preclude the landlord from withholding the security deposit for nonpayment of rent or for nonpayment of utility charges, repair work, or cleaning contracted for by the tenant. If the tenant does not receive the entire security deposit or a portion of the security deposit together with a written statement listing the exact reasons for the retention of any portion of the security deposit within the time period provided for in this section, the retention of the security deposit shall be deemed willful and wrongful and, notwithstanding the provisions of section 38-12-103(3), shall entitle the tenant to twice the amount of the security deposit and to reasonable attorney fees.
Source Link - 4 Boulder Mun. Code § 12-2-6(a) & (f)
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(a) 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, and according to the provisions of state law concerning the return of the related security deposit, notice of any deductions therefrom, and the legality of such deductions. Any additional accrued interest shall be returned at the time of the return of the related security deposit, subject to the same provisions of state law.
…
(f) This section and Section 12-2-5, “Ownership of Security Deposit and Payment of Interest,” B.R.C. 1981, 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 - 5 Boulder Mun. Code § 12-2-7(a)
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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 that, in the view of the manager, provide indicia of being significant participants in the local banking industry. This average interest rate will be calculated as of December 15 of each year or, if that date falls on a weekend or holiday, on the first business day thereafter. The manager’s determination of the rate shall be final. The rate shall be published in a newspaper of general circulation or posted on a city internet site that is accessible to members of the general public. The average interest rate so determined shall be rounded no more than two places to the right of the decimal point. It shall become the rate of interest paid on any security deposit that is provided to a landlord during the calendar year starting on January 1 of the year immediately following the date of the manager’s determination.
Source Link - 6 Colo. Rev. Stat. § 38-12-103(3)
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(a) 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.
(b) 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.
Source Link - 7 Colo. Rev. Stat. § 13-6-403
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(a) The small claims court has concurrent original jurisdiction with the county and district courts in all civil actions in which the debt, damage, or value of the personal property claimed by either the plaintiff or the defendant, exclusive of interest and costs, does not exceed seven thousand five hundred dollars, including such civil penalties as may be provided by law. By way of further example, and not limitation, the small claims court has jurisdiction to hear and determine actions in tort and assess damages in tort actions not to exceed seven thousand five hundred dollars.
(b) The small claims court division also has concurrent original jurisdiction with the county and district courts in actions where a party seeks:
(I) To enforce rights and responsibilities arising under the declaration, bylaws, covenants, or other governing documents of a unit owners’ association, as defined in section 38-33.3-103 (3), in relation to disputes arising from assessments, fines, or fees owed to the unit owners’ association and for which the amount at issue does not exceed seven thousand five hundred dollars, exclusive of interest and costs.
(II) To enforce a restrictive covenant on residential property and the amount required to comply with the covenant does not exceed seven thousand five hundred dollars, exclusive of interest and costs;
(III) Replevin if the value of the property sought does not exceed seven thousand five hundred dollars; and
(IV) To enforce a contract by specific performance or to disaffirm, avoid, or rescind a contract and the amount at issue does not exceed seven thousand five hundred dollars.
Source Link
