Colorado caps residential security deposits at two months' rent. Landlords must return the deposit, with an itemized written statement of any deductions, within 30 days of lease termination (up to 60 days if the lease says so). Willful retention exposes a landlord to treble damages plus attorney fees.
Under Colo. Rev. Stat. § 38-12-102.5, a landlord may not require a security deposit exceeding two months' rent (effective August 7, 2023). Section 38-12-103, as amended by HB25-1249 effective January 1, 2026, requires the deposit to be returned within 30 days after lease termination or surrender of the premises, or a longer period set by the lease "but not to exceed sixty days." If any amount is withheld, the landlord must provide "a written statement listing the exact reasons for the retention." Missing the deadline waives the landlord's right to keep any portion. A landlord is presumed to have withheld an unreasonable amount if the retention is 125% or more of actual damages.
Willful retention of a deposit in violation of § 38-12-103 makes a landlord liable for "treble the amount of that portion of the security deposit wrongfully withheld," plus reasonable attorney fees and court costs. The tenant must give 7 days' written notice before suing.
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