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Colorado Security Deposit Law, in Plain English

Colorado rewrote its deposit statute effective January 1, 2026 — and the new version is built around evidence. Normal wear and tear now has a legal definition, the tenant can demand every photo and receipt behind a deduction, either side can call a walk-through, and a landlord who can't prove a charge faces triple damages. Here's how C.R.S. § 38-12-103 actually works now, for both sides of the lease.

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30 daysDeadline after termination to return the deposit or send a written statement of exact reasons for retention (lease may extend to 60)
2 months' rentMaximum deposit (C.R.S. § 38-12-102.5)
14 daysThe landlord's window to hand over photos, reports, receipts, and invoices when the tenant asks
7 daysWritten notice the tenant must give before suing for treble damages
3xTreble damages plus attorney's fees for bad-faith retention — with the burden of proof on the landlord

Two months' rent — a cap that's only three years old

Since August 2023, C.R.S. § 38-12-102.5 caps a Colorado security deposit at two monthly rent payments, regardless of lease length or unit type. Guides that still say Colorado has no cap are working from the old law.

Normal wear and tear, finally defined — and a list of what can't be charged

The 2026 amendments replaced decades of argument with a definition: normal wear and tear is deterioration from intended use without negligence, carelessness, accident, or abuse. A landlord may not retain any amount for it, nor for any damage or defective condition that preexisted the tenancy — and lease clauses that try to charge for either are void as against public policy. The statute then names names. No deductions for light staining, matting, or ordinary cleaning-related carpet wear. No carpet replacement charge at all if the carpet is more than 10 years old. No interior repainting charge unless there's substantial damage beyond normal wear and tear that wasn't already there at move-in. What's left: reasonable amounts for unpaid rent or other lawful charges listed in the lease, and necessary repair of damage that genuinely exceeds normal wear and tear. Everything in that second category now turns on one question — what did the unit look like on day one?

Either side can call a walk-through — and the tenant can demand the file

Since January 1, 2026, either the landlord or the tenant may request a walk-through inspection before the lease ends, at a mutually convenient time, in person or by video, to identify damage beyond normal wear and tear. Request it in writing. Attend it. Photograph what both of you see. Then the rule that changes the whole dynamic: on the tenant's request, the landlord must provide within 14 days all documentation in its possession supporting any retention — photographs, inspection forms or reports, receipts, invoices, or estimates. A landlord who never photographed the unit at move-in has nothing to produce, and under the new statute the landlord carries the burden of proving the withholding was lawful.

Colorado now lets tenants demand the photos. Have them.

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Colorado law requires landlords to provide supporting documentation, including photographs, on request. PropInspect helps you capture a dated, room-by-room record. PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with Colorado law or a particular result in a deposit dispute.

After move-out: 30 days — or up to 60 if the lease says so

Within 30 days of the lease ending or the tenant surrendering the unit, the landlord must return the deposit or send a written statement listing the exact reasons for any amount retained, mailed or emailed to the tenant's last known address. A written lease may extend that window, but never beyond 60 days. A deposit check returned as undeliverable doesn't disappear: the landlord must hold the money for at least one year and release it within 15 days of the tenant's written request. Leaving a forwarding address in writing at move-out keeps things simpler than that.

When it goes wrong: seven days' notice, then treble damages

A landlord who retains a deposit in bad faith owes three times the amount wrongfully withheld, plus attorney's fees and court costs. Bad faith means retaining an amount unreasonably exceeding actual damages — and retaining 125% or more of actual damages is presumed unreasonable — or retaining without cause, or for an unlawful, retaliatory, or discriminatory purpose. Two procedural points matter. First, the tenant must send written notice at least 7 days before filing, demanding return and stating the intent to sue — a step that settles many cases on its own. Second, in court the landlord carries the burden of proving both compliance with § 38-12-103 and that the withholding wasn't wrongful. The party with the photos usually wins that argument before it starts. Deposit disputes go to the county court's small claims division, which hears claims up to $7,500; tripled claims above that go to county court civil. The winning file: the lease, the retention statement, the 14-day documentation response, the 7-day notice, and dated room-by-room photos from both ends of the tenancy.

Sources and official texts

The official sources for this guide are HB25-1249, Tenant Security Deposit Protections — the 2025 bill that rewrote § 38-12-103, effective January 1, 2026; C.R.S. § 38-12-103 — return of security deposit (current text); C.R.S. § 38-12-102.5 — the two-month maximum; and the Colorado Judicial Branch Small Claims page ($7,500 limit).

Frequently asked questions

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

30 days after the lease ends or you surrender the unit — unless your written lease sets a longer period, which can't exceed 60 days. Within that window the landlord must return the deposit or mail/email you a written statement of the exact reasons for keeping any part of it.

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

No more than two monthly rent payments (C.R.S. § 38-12-102.5), a cap in force since August 2023. Older guides saying Colorado has no cap are out of date.

What can a landlord deduct from a deposit in Colorado?

Only reasonable amounts for unpaid rent or other lawful charges in the lease, and for necessary repairs of damage beyond normal wear and tear. Since January 1, 2026, the statute defines normal wear and tear (deterioration from intended use without negligence or abuse), bans charging for preexisting conditions, bars carpet replacement charges when the carpet is over 10 years old, and limits repainting charges to substantial damage.

Can I request a move-out walkthrough in Colorado?

Yes — since January 1, 2026, either the landlord or the tenant can request a walk-through inspection before the lease ends, at a mutually convenient time, in person or by video, to identify any damage beyond normal wear and tear. Request it in writing, attend it, and photograph what you both see.

My landlord kept money. Can I see the evidence?

Yes. Ask in writing, and the landlord must provide within 14 days all documentation supporting the retention — photographs, inspection forms or reports, receipts, invoices, and estimates. A landlord who has none has a problem in court, because the landlord carries the burden of proving the withholding was lawful.

What are treble damages in Colorado, and how do I claim them?

Three times the amount wrongfully withheld, plus attorney's fees and costs, when the landlord retained money in bad faith — an amount unreasonably exceeding actual damages (125% or more of actual damages is presumed unreasonable), retention without cause, or retention for an unlawful, retaliatory, or discriminatory reason. Before filing, you must send written notice demanding return and stating you intend to sue, at least 7 days ahead.

What if my deposit check was returned as undeliverable?

The landlord must hold the money for at least one year and release it within 15 days of your written request. Send a forwarding address in writing at move-out so it never gets to that point.

Where do deposit disputes go in Colorado?

The county court's small claims division handles claims up to $7,500 — informal and inexpensive. Bring the lease, the written statement of reasons (or proof none arrived), the documentation you requested, your 7-day notice, and dated move-in and move-out photos.

Walk the unit. The report's already done.

Photos, video and notes land in the right room as you go. Share one link before you're back at the office: the repair person sees what to fix, the tenant sees why, the owner sees everything.

Done at the door, not at your desk
One link for everyone. No account, no app.
Dated, room-by-room proof for when the deposit is due

First inspection free, then $0.99. No subscription.

Start an inspection See a sample report

PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with Colorado law or a particular result in a deposit dispute.

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