General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- A landlord may not require a security deposit larger than two months of rent.
- From January 1, 2026, the landlord must return the deposit within 30 days after the lease ends or the premises are surrendered, whichever is later, unless the lease allows a longer period of up to 60 days.
- Any amount kept needs a written statement of the exact reasons, sent with the balance, and the landlord must share photos, receipts or estimates on the tenant's written request.
- Wrongful withholding forfeits the right to keep any part of the deposit and, if the landlord does not pay within 7 days after the tenant's written demand, exposes the landlord to three times the amount withheld plus attorney fees and costs.
Colorado caps deposits at two months of rent. From January 1, 2026 landlords have 30 days, or up to 60 if the lease says so, to return the deposit with a written statement of the exact reasons for any deduction.
Colorado security deposits at a glance
| Rule | Colorado | Law |
|---|---|---|
| Deposit limit | A landlord may not require a security deposit larger than two months of rent. | C.R.S. section 38-12-102.5 |
| Deadline to return the deposit | From January 1, 2026, the landlord must return the deposit within 30 days after the lease ends or the premises are surrendered, whichever is later, unless the lease allows a longer period of up to 60 days. | C.R.S. section 38-12-103 (HB 25-1249) |
| Itemized deductions | Any amount kept needs a written statement of the exact reasons, sent with the balance, and the landlord must share photos, receipts or estimates on the tenant's written request. | C.R.S. section 38-12-103 |
| Penalty for wrongful withholding | Wrongful withholding forfeits the right to keep any part of the deposit and, if the landlord does not pay within 7 days after the tenant's written demand, exposes the landlord to three times the amount withheld plus attorney fees and costs. | C.R.S. section 38-12-103 |
How much you can collect
Deposit limit. A landlord may not require a security deposit larger than two months of rent. (C.R.S. section 38-12-102.5)
Holding the deposit
Receipts and notices. A deposit may not be kept for normal wear and tear or for damage that existed before the tenancy, and a lease clause charging tenants for those items is void. (C.R.S. section 38-12-103 (HB 25-1249))
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. Any amount kept needs a written statement of the exact reasons, sent with the balance, and the landlord must share photos, receipts or estimates on the tenant's written request. (C.R.S. section 38-12-103)
Returning the deposit
Deadline to return the deposit. From January 1, 2026, the landlord must return the deposit within 30 days after the lease ends or the premises are surrendered, whichever is later, unless the lease allows a longer period of up to 60 days. (C.R.S. section 38-12-103 (HB 25-1249))
Penalties for wrongful withholding
Penalty for wrongful withholding. Wrongful withholding forfeits the right to keep any part of the deposit and, if the landlord does not pay within 7 days after the tenant's written demand, exposes the landlord to three times the amount withheld plus attorney fees and costs. (C.R.S. section 38-12-103)
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these Colorado rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Colorado attorney about your situation.
Laws named on this page
- C.R.S. section 38-12-102.5
- C.R.S. section 38-12-103 (HB 25-1249)
- C.R.S. section 38-12-103
Official sources
Colorado forms for this topic
Letters and checklists for this topic
Asked by landlords in this state.
Is there a limit on security deposits in Colorado?
A landlord may not require a security deposit larger than two months of rent. Source: C.R.S. section 38-12-102.5.
How long does a Colorado landlord have to return a deposit?
From January 1, 2026, the landlord must return the deposit within 30 days after the lease ends or the premises are surrendered, whichever is later, unless the lease allows a longer period of up to 60 days. Source: C.R.S. section 38-12-103 (HB 25-1249).
What happens if a Colorado landlord keeps a deposit wrongly?
Wrongful withholding forfeits the right to keep any part of the deposit and, if the landlord does not pay within 7 days after the tenant's written demand, exposes the landlord to three times the amount withheld plus attorney fees and costs. Source: C.R.S. section 38-12-103.