Colorado Statewide Rule

Colorado Security Deposit Law: 2-Month Cap, 30-Day Return, Treble Damages

Heavy RestrictionsApplies statewide across Colorado (2026)

Key Facts

Deposit cap: 2 months' rent (§ 38-12-102.5)
Return deadline: 30 days; up to 60 if lease specifies
Itemized statement: Required for any deductions
Statute: Colo. Rev. Stat. § 38-12-102.5 to -104
Penalty: Treble damages + attorney fees (willful)

Last verified: September 5, 2026

Summary

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.

38-12-103. Return of security deposit. (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.

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Full Breakdown

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.

Violations & Penalties

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.

Frequently Asked Questions

How much can a landlord charge for a security deposit in Colorado?

No more than two months' rent. Colo. Rev. Stat. § 38-12-102.5 bars landlords from requiring a residential security deposit exceeding two monthly rent payments, effective August 7, 2023.

How long does a landlord have to return a security deposit in Colorado?

30 days after the lease ends or the tenant surrenders the premises, whichever is later. A lease may set a longer period, but it cannot exceed 60 days (§ 38-12-103, as amended effective January 1, 2026).

What can a landlord deduct from a security deposit in Colorado?

Unpaid rent and actual damages beyond normal wear and tear. The landlord must give a written statement listing the exact reasons for any deduction; retaining 125% or more of actual damages is presumed unreasonable.

Sources

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