Security deposit law in Colorado

Two months' rent. The return rule is 30 days. The controlling text is Colo. Rev. Stat. § 38-12-102 to 104.

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Colorado's deposit ceiling

Two months' rent.

A 2023 law caps a residential deposit at two months' rent; before that Colorado set no statutory ceiling.

Colorado's return deadline

30 days.

The default deadline is 30 days after the tenancy ends, and a written lease may extend it to no more than 60 days. Once the tenant demands the money, a wrongful withholding must be cured within seven days or the penalty attaches, so treat a demand letter as urgent.

The itemized statement rule

A written statement listing the exact reasons for any deduction is required, and failing to provide it within the deadline forfeits your right to keep any of the deposit. That forfeiture is automatic, not discretionary.

Account and interest rules

Colorado sets no separate-account or interest requirement. Hold the deposit apart from operating funds anyway.

Exposure for wrongful withholding

Treble damages plus attorney fees (willful).

Willful retention in violation of the statute exposes you to treble damages, three times the amount wrongfully withheld, plus the tenant's attorney fees and court costs. Missing the written-statement deadline is itself a forfeiture of the right to deduct, which is how most landlords reach the penalty.

Compare Colorado with neighboring states

• Wyoming: no statutory limit; return rule: 30 days.
• Nebraska: one month's rent; return rule: 14 days.
• Kansas: one month's rent; return rule: 30 days.
• Oklahoma: no statutory limit; return rule: 30 days after demand.
• New Mexico: one month's rent; return rule: 30 days.
• Utah: no statutory limit; return rule: 30 days.
• Arizona: one and a half months' rent; return rule: 14 business days.