§ 38-12-103 — Return of security deposit
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(1) [ Editor's note: This version of
subsection (1) is effective until January 1, 2026. ] 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. A landlord shall not retain the security deposit to
cover normal wear and tear. If a tenant terminates the lease pursuant to section 38-12-402 (2)(a) and provides the documentation required pursuant to section 38-12-402 (2)(a.5), the tenant is not liable for damage to the dwelling unit caused by the
responsible party or during the course of an incident of unlawful sexual behavior,
stalking, domestic violence, or domestic abuse, and any amount of money that the
landlord retains from the security deposit must comply with section 38-12-402
(2)(b). 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 must be accompanied by payment of the difference
between any sum deposited and the amount retained. A landlord is deemed to have
complied with this section by mailing the statement and any payment required to
the last-known address of the tenant. This section does not preclude a 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.
(1) [ Editor's note: This version of subsection (1) is effective January 1, 2026. ]
(a) A landlord shall, within thirty days after the termination of a lease or surrender
of a 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. A landlord shall not retain the
security deposit to cover normal wear and tear or for any damage or defective
condition that preexisted the tenancy. If a tenant terminates the lease pursuant to
section 38-12-402 (2)(a) and provides the documentation required pursuant to
section 38-12-402 (2)(a.5), the tenant is not liable for damage to the dwelling unit
caused by the responsible party or during the course of an incident of unlawful
sexual behavior, stalking, domestic violence, or domestic abuse, and any amount of
money that the landlord retains from the security deposit must comply with section
38-12-402 (2)(b). 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 landlord delivers the statement, the landlord shall also deliver the
difference between any sum deposited and the amount retained, along with any
relevant documentation required by subsection (8) of this section. A landlord is
deemed to have complied with this requirement by sending the statement, any
required payment, and any required documentation to the last-known address of
the tenant or to any email address for the tenant that the landlord has actual notice
of by sending any required payment to the tenant in accordance with subsection
(10) of this section.
(b) Except as provided in subsection (3.5)(a)(IV) of this section, a landlord has
actual cause to retain reasonable amounts from the security deposit only for:
(I) Nonpayment of rent;
(II) Nonpayment of utility charges;
(III) Nonpayment of other lawful charges listed in the lease; or
(IV) Necessary repair work for damage or defective conditions that exceed
normal wear and tear and did not preexist the tenancy.
(1.5) [ Editor's note: Subsection (1.5) is effective January 1, 2026. ] Upon a
landlord's or tenant's request, if reasonable and practicable, the landlord and
tenant shall conduct a walk-through inspection, either in person or via a
telecommunication-assisted interactive walk-through, of the dwelling unit to
identify in writing any damage or defective conditions that are beyond normal wear
and tear and that did not preexist the tenancy. The landlord shall provide a walk-through inspection at a tenant's request, at a time that is mutually convenient to
the parties, before the termination of the lease or the surrender of the premises,
and after the tenant has had the opportunity to remove furniture.
(2) [ Editor's note: This version of subsection (2) is effective until January 1,
2026. ] The failure of a landlord to provide a written statement within the required
time specified in subsection (1) of this section shall work a forfeiture of all his rights
to withhold any portion of the security deposit under this section.
(2) [ Editor's note: This version of subsection (2) is effective January 1, 2026. ] If a landlord fails to comply with the requirements of this section or otherwise
wrongfully withholds a security deposit or any portion of a security deposit, the
landlord forfeits the landlord's rights to withhold any portion of the security deposit
under this section.
(2.5) [ Editor's note: Subsection (2.5) is effective January 1, 2026. ] A landlord
is deemed to have wrongfully withheld a security deposit or any portion of it in
violation of this section if the landlord:
(a) Fails to timely provide the written statement required by subsection (1) of
this section and all relevant documentation required by subsection (8) of this
section;
(b) Provides a written statement that fails to list the exact reasons for the
retention of any portion of the security deposit;
(c) Fails to return the difference between any sum deposited and the amount
retained within the time specified in subsection (1) of this section; or
(d) Retains a security deposit or any portion of it in bad faith as described in
subsection (3.5) of this section.
(3) [ Editor's note: This version of subsection (3) is effective until January 1,
2026. ]
(a) The willful retention of a security deposit in violation of this section shall render
a landlord liable for treble the amount of that portion of the security deposit
wrongfully withheld from the tenant, together with reasonable attorney fees and
court costs; except that the tenant has the obligation to give notice to the landlord
of his intention to file legal proceedings a minimum of seven days prior to filing said
action.
(b) In any court action brought by a tenant under this section, the landlord
shall bear the burden of proving that his withholding of the security deposit or any
portion of it was not wrongful.
(3) [ Editor's note: This version of subsection (3) is effective January 1, 2026. ]
(a) The wrongful retention of a security deposit in violation of this section renders a
landlord liable for treble the amount of that portion of the security deposit
wrongfully withheld from the tenant, together with reasonable attorney fees and
court costs; except that the tenant shall notify the landlord of the tenant's demand
for the return of the security deposit and intention to file legal proceedings at least
seven days before filing the action.
(b) In a court action brought by a tenant under this section, the landlord
bears the burden of proving that the landlord's withholding of the security deposit
or any portion of it was not wrongful and that the landlord complied with the
requirements of this section.
(c) A tenant may bring a court action for treble damages, reasonable
attorney fees, and court costs only if the landlord fails to return the entire security
deposit or any withheld portion to the tenant within seven days after receiving a
demand and notice of the tenant's intention to file legal proceedings as described
in subsection (3)(a) of this section.
(3.5) [ Editor's note: Subsection (3.5) is effective January 1, 2026. ]
(a) A landlord retains a security deposit or any portion of it in bad faith if the
amount retained by the landlord:
(I) Unreasonably exceeds the amount of actual damages the landlord
incurred;
(II) Is retained without actual cause existing for the retention of the amount;
(III) Is an amount the landlord knew or should have known exceeded the
actual damages the landlord incurred or would incur; or
(IV) Is retained solely or in part for an unlawful, retaliatory, or discriminatory
purpose.
(b) An amount retained by a landlord is presumed to unreasonably exceed
the amount of actual damages the landlord incurred if the amount retained is one
hundred twenty-five percent or greater than the actual damages incurred. Nothing
in this subsection (3.5)(b) prevents a court or jury from finding that a lesser amount
retained by a landlord unreasonably exceeds the amount of actual damages the
landlord incurred.
(c) In a court action brought by a tenant under this section, the landlord
bears the burden of proving the amount of actual damages the landlord incurred.
(d) If a landlord retains a security deposit or any portion of it in good faith
and otherwise complies with all requirements of this section but is found in a civil
action to have reasonably retained an amount that exceeded the actual damages
the landlord incurred, the landlord shall be liable to the tenant only for the excess
amount retained and court costs.
(4) [ Editor's note: This version of the introductory portion of subsection (4) is
effective until January 1, 2026. ] Upon cessation of his interest in the dwelling unit,
whether by sale, assignment, death, appointment of a receiver, or otherwise, the
person in possession of the security deposit, including but not limited to the
landlord, his agent, or his executor, shall, within a reasonable time:
(4) [ Editor's note: This version of the introductory portion of subsection (4) is
effective January 1, 2026. ] Upon cessation of a landlord's interest in a dwelling unit,
whether by sale, assignment, death, appointment of a receiver, or otherwise, the
person in possession of the tenant's security deposit, including the landlord, the
landlord's agent, or the landlord's executor, shall, within sixty days:
(a) Transfer the funds, or any remainder after lawful deductions under
subsection (1) of this section, to the landlord's successor in interest and notify the
tenant by mail of such transfer and of the transferee's name and address; or
(b) Return the funds, or any remainder after lawful deductions under
subsection (1) of this section, to the tenant.
(5) Upon compliance with subsection (4) of this section, the person in
possession of the security deposit shall be relieved of further liability.
(6) Upon receipt of transferred funds under subsection (4)(a) of this section,
the transferee, in relation to such funds, shall be deemed to have all of the rights
and obligations of a landlord holding the funds as a security deposit.
(7) [ Editor's note: This version of subsection (7) is effective until January 1,
2026. ] Any provision, whether oral or written, in or pertaining to a rental agreement
whereby any provision of this section for the benefit of a tenant or members of his
household is waived shall be deemed to be against public policy and shall be void.
(7) [ Editor's note: This version of subsection (7) is effective January 1, 2026. ]
(a) Any provision, whether oral or written, in or pertaining to a rental agreement
whereby a provision of this part 1 that is for the benefit of a tenant or members of
the tenant's household is waived or modified is deemed to be against public policy
and void.
(b) A provision, whether oral or written, in or pertaining to a rental
agreement, which provision assigns a fee or charge to a tenant for repairs, cleaning,
or other necessary work due to normal wear and tear or for any damage or
defective condition that preexists the tenancy, is deemed to be against public
policy and void.
(8) [ Editor's note: Subsection (8) is effective January 1, 2026. ] For a
termination of a lease or a surrender of the premises on or after January 1, 2026, if a
landlord provides a tenant with a written statement pursuant to subsection (1) of
this section within fourteen days after a written request by the tenant, the landlord
shall provide documentation in the landlord's possession or control, including
photographs, inspection forms or reports, receipts, invoices, or estimates, that is
relevant to the retention of the tenant's security deposit or any portion of the
security deposit.
(9) [ Editor's note: Subsection (9) is effective January 1, 2026. ] If a landlord's
payment refunding a tenant's security deposit or any portion of it as required by
this section is returned to the landlord after it is sent to the tenant's last-known
address, the landlord shall hold the payment for at least one year after receiving it
and shall disburse the payment to the tenant within fifteen calendar days after the
tenant's request.
(10) [ Editor's note: Subsection (10) is effective January 1, 2026. ] A landlord
may send a payment refunding a tenant's security deposit or any portion of it as
required by this section to the tenant by mailing the payment to the tenant's last-known address or, with the tenant's consent, by using a secured electronic transfer
of funds.
(11) [ Editor's note: Subsection (11) is effective January 1, 2026. ]
(a) A landlord does not have actual cause to retain any amount of a security deposit
to pay for the replacement of carpet throughout a dwelling unit unless there is
substantial and irreparable damage to the carpet that exceeds normal wear and
tear and did not preexist the tenancy. Nothing in this subsection (11)(a) precludes a
landlord from having actual cause to retain any amount of a security deposit to pay
for the replacement of carpet in a portion or portions of the dwelling unit if there is
substantial and irreparable damage to a portion or portions of the carpet that
exceeds normal wear and tear and did not preexist the tenancy.
(b) A landlord does not have actual cause to retain any amount of a security
deposit to pay for painting throughout the interior of a dwelling unit unless there is
substantial damage to the paint of the interior walls or ceiling throughout the entire
dwelling unit that exceeds normal wear and tear and did not preexist the tenancy.
Nothing in this subsection (11)(b) precludes a landlord from having actual cause to
retain any amount of a security deposit to pay for the replacement of paint in a
portion or portions of the dwelling unit if there is substantial damage to a portion or
portions of the paint on the interior walls or ceiling that exceeds normal wear and
tear and did not preexist the tenancy.
(c) A landlord shall not deem carpet to be substantially and irreparably
damaged if the carpet has not been replaced with new carpet within ten years
preceding the termination of the lease or surrender of the premises.
(12) [ Editor's note: Subsection (12) is effective January 1, 2026. ] Notwithstanding any provision of this section to the contrary, subsections (1.5) and
(11) of this section do not apply to a rental agreement concerning the occupancy of
a mobile home, as defined in section 38-12-201.5 (5), in a mobile home park, as
defined in section 38-12-201.5 (6).
Colorado § 38-12-103 (Return of security deposit) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.