Landlord Tenant Security Deposits in Colorado
Security deposits are often the first financial commitment a tenant makes when moving into a rental property, but they can also be a source of frustration when it comes time to get that money back. Tenants worry about getting their money back so they can move into a new property. Landlords want to make sure they are covered for any damage renters have left behind.
If you’re involved in a dispute over landlord tenant security deposits in Colorado, contact the Denver office of Flaxman Law Group to speak to an attorney. Just call 970-999-0530 to schedule your consultation.
Understanding Colorado Security Deposit Law
In Colorado, security deposits are often required by landlords to protect against potential damage or unpaid rent. Colorado law mandates that a security deposit cannot be used for normal wear and tear but can be used to cover damages beyond regular use or any unpaid rent.
Tenants should be aware that if they have complied with the terms of the lease and left the property in good condition, they are entitled to a full refund of their deposit, less any allowable deductions.
Security Deposit Requirements and Limits
In Colorado, many landlords request a security deposit that is equal to one or two months’ rent. The law allows a security deposit of up to a single month’s rent for a mobile home spot in a trailer park or two months’ rent for a multi-wide mobile home. For most other rental units, there is no legal upper limit for security deposits.
Some landlords charge additional fees to tenants who have pets. Pet fees are allowed in Colorado. However, for service animals and emotional support animals, landlords may not charge a pet fee. This is because these animals are there to support someone with a disability, and charging an additional fee would violate state and federal anti-discrimination and fair housing laws.
Landlord tenant security deposits in Colorado need to be returned once the tenant moves out. There are specific rules governing this. In general, the landlord must return the security deposit within 60 days. In some cases, leases may specify a different timeframe for returning the money, but the time frame in the lease agreement must not be more than 60 days.
Landlords do have the right to withhold some of the security deposit for damage done to the property. However, they must provide an itemized list of the charges. Landlords cannot deduct for normal wear and tear, such as regular scuffs or faded paint. They can only deduct part of the deposit for excessive damage, such as holes in the walls. If the tenant disputes any charges, they have the right to challenge the deductions and take legal action if necessary.
Handling the Security Deposit
Once a lease agreement is signed, the landlord is responsible for properly handling the security deposit. This includes collecting the deposit and ensuring it is stored in a secure manner. While Colorado law does not require landlords to place security deposits in a separate escrow account, it is considered a best practice to keep the money in a separate account from the landlord’s own money to protect both parties.
In Colorado, landlords are not required to keep security deposits in interest-bearing accounts and do not have to keep the money in a specific type of account or specific financial institution. It is up to the landlord. They just need to ensure the money is kept safe.
It’s essential for both landlords and tenants to keep a record of the security deposit. Landlords should provide tenants with a written receipt or acknowledgment of the deposit, including the amount and the date it was paid. This helps avoid misunderstandings later, especially if the building is sold during the renter’s tenancy. Tenants should also keep a copy of any written records and photographs of the property’s condition when moving in, as this can serve as proof if disputes arise about the deposit later.
Returning the Security Deposit
At the end of the lease, landlords must return the security deposit to the tenant within 30-60 days after the tenant has vacated the rental property, depending on what is written in the lease agreement. In rare cases, landlords may need to return the deposit more quickly. For example, if there is a hazardous gas leak in the rental, landlords may need to return the deposit within 72 hours of the tenant moving out.
Failure to return the deposit within the specified period could result in penalties for the landlord. If there are no issues or deductions to be made, the landlord is obligated to return the full amount of the security deposit.
If deductions are necessary, the landlord must provide an itemized list of the charges within that 30-60 day window. This list should outline the cost of any repairs, cleaning, or other expenses that the landlord claims were incurred due to the tenant’s actions. These charges must be reasonable and related to damage or conditions beyond normal wear and tear. Landlords can only deduct from security deposits for the following:
- Rent owed or other agreed-up charges that have not been paid by the tenant
- The tenant moved out before the lease ended, effectively depriving the landlord of rental income
- Money owing for utilities
- The damage to the rental goes beyond normal wear and tear
Tenants have the right to challenge any deductions they feel are unjustified. If the landlord fails to return the security deposit or provide an adequate explanation of deductions, tenants can pursue legal action to recover the full deposit, including any court costs or damages.
Change of Property Ownership and Security Deposits
Under Colorado law, if a property is sold during a lease, the landlord can transfer the security deposit to the new owner and provide the tenant with written notice of the transfer. This notice should include the name and contact information of the new landlord, along with confirmation that the deposit has been handed over. The new owner is then responsible for returning the security deposit at the end of the lease term.
Alternatively, the seller can return the security deposit or part of it to the tenant at the time of the sale.
In either case, if the tenant’s security deposit is not transferred correctly or if there’s confusion during the change of ownership, the tenant has the right to pursue legal action to recover the deposit from either the old or new landlord. Tenants can ask for written confirmation that the security deposit was transferred and ensure that the new landlord acknowledges receipt of the deposit.
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Tenant’s Rights and Remedies under Colorado Security Deposit Laws
Here are the key rights tenants have under Colorado security deposit laws:
- Right to a full refund (minus legal deductions). Tenants are entitled to the return of their full security deposit, minus only reasonable and necessary deductions for damages beyond normal wear and tear or for unpaid rent. If no deductions are made, the landlord must return the full deposit.
- Right to an itemized list of deductions. If any deductions are made from the security deposit, landlords are required to provide a detailed, itemized list within 30-60 days, depending on the timeline listed in the lease agreement. The list should clearly outline what repairs or costs were incurred and how the deductions were calculated. Tenants have the right to dispute any unjustified deductions.
- Right to timely return of deposit. Colorado law requires that landlords return the security deposit within 30-60 days after the tenant has moved out, and much sooner in the case of an emergency, such as a gas leak.
- Right to legal action. If a landlord refuses to return the security deposit or provides an inadequate itemized list, tenants can take legal action to recover the amount owed, as well as any additional damages or court costs. If a landlord tries to keep the deposit past 60 days, landlords may lose the right to deduct any amount and tenants have the right to sue to recover up to three times the security deposit amount.
The challenge is that many tenants are not aware of their rights. If you are a renter and your landlord is trying to illegally withhold some or all of your security deposit, you can contact a landlord-tenant dispute attorney for advice.
Landlord’s Obligations and Liabilities
Landlords in Colorado have specific legal obligations when it comes to handling security deposits:
- Proper handling and documentation. Landlords must provide tenants with a written receipt or acknowledgment of the deposit at the time it is paid, clearly outlining the amount and the conditions under which it may be withheld. Landlords are also required to maintain accurate records of all security deposit transactions.
- Timely return of the deposit. Colorado law mandates that landlords return the security deposit within 30-60 days after the tenant has vacated the property, or in as little as 72 hours in emergency cases. If the landlord fails to do so, they may be required to pay up to three times the amount of the security deposit as a penalty. The deposit must be returned to the tenant unless the landlord can justify deductions for damages or unpaid rent with proper documentation.
- Itemized list of deductions. If deductions are made from the security deposit, the landlord must provide an itemized list of those deductions to the tenant within 30-60 days. This list should detail the repairs, damages, or other costs that were incurred, along with the corresponding amounts. It can be helpful for landlords to consult with contractors in the case of property damage, to get estimates which can determine how much should be deducted.
If a landlord fails to comply with security deposit laws, they can be held liable and the tenant has the right to sue. In some cases, tenants may be entitled to recover up to three times the amount of the security deposit, along with any court costs and legal fees.
Security deposits are a common cause of landlord-tenant disputes. The most common cause of disagreement is over deductions. A landlord may want to withhold some of the security deposit for what they perceive as damage. If the tenant has lived in the rental for some time, especially, they may argue that the damage is all normal wear and tear.
In general, normal wear and tear includes the following:
- Moderate uncleanliness, such as some dust
- Black spots on mirrors
- Worn down parts on appliances
- Worn enamel or rust on appliances
- Loose tiles or floorboards
- Mold and mildew in the bathroom
Excessive damage that could require a deduction of part of a deposit can include:
- Gouges on the floors or walls
- Water damage from windows being left open
- Missing or broken appliances, curtains, blinds, and shower rods
- Missing or broken bathroom fixtures
- Dents in appliances
Even in cases where damage is significant, landlords can only deduct what is reasonable. For example, if there is a broken or bent shower rod, landlords cannot try to deduct hundreds of dollars for that repair.
The best way for landlords and tenants to protect themselves is to do a thorough walk-through at the start and end of a lease. Both landlords and tenants should take photos and videos of the state of the property on move-in day and on the day of moving out. This can help establish the condition of the property and when any possible damage took place.
If you are still having trouble with a disagreement over security deposits, contact the Denver office of Flaxman Law Group at 970-999-0530. Our legal team would be happy to offer you a consultation to discuss your options, whether you are a landlord or tenant. Should you work with us, our lead Denver attorney, Steven Flaxman, will personally oversee your case from start to finish. Our team is compassionate, dedicated, and responsive. We get results and we treat you with respect. In fact, you will have your attorney’s personal cell phone number, so you can stay in touch at all times.
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Landlord-Tenant Dispute Clients Often Ask Us
These Important Questions
A landlord can typically keep all or part of your security deposit to cover unpaid rent, damage beyond normal wear and tear, or other lease violations. However, they must provide an itemized list of deductions and return any remaining amount within a specific timeframe, as required by local laws.
With a proven track record and a client-focused approach, we strive to make the legal process as stress-free as possible. Trust our offices in Colorado and Florida to provide honest representation throughout your landlord-tenant dispute. Contact Flaxman Law Group today so we can assist you with your landlord-tenant issue.
Landlords must always provide notice and cannot evict without going through proper court process, unless the lease or local laws specify otherwise. For example, in cases of criminal activity or immediate danger to the property, the landlord may proceed with an expedited eviction. Always check your lease and local tenant laws for specific requirements.
If your landlord fails to address necessary repairs after you've notified them in writing, you may have options such as:
Withholding rent (where allowed by law).
Making the repair yourself and deducting the cost from your rent. Reporting the issue to local housing authorities.
Seeking legal remedies in court. Document all communication and the condition of the property to strengthen your case.
The length of the eviction process varies depending on local laws and the circumstances of the case. It can take anywhere from a few weeks to several months. Generally, the process involves:
- A formal notice period.
- Filing of an eviction lawsuit.
- A court hearing.
- Enforcement of the eviction by local authorities, if necessary.
- Tenants may appeal or request delays, which can extend the timeline.
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Skillfully navigated complex landlord-tenant conflicts, advocating for fair resolutions and protecting clients’ rights in rental and lease agreements.
Protecting Tenant Rights:
Helped hundreds of tenants recover withheld security deposits, terminate leases, transfer units, or obtain alternative housing in cases involving habitability issues.
Preventing Wrongful Evictions:
Represented tenants to successfully block unlawful eviction attempts, ensuring their housing rights were upheld.
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Assisted landlords in evicting problematic tenants and recovering compensation for property damages, lost income, and other related losses.