When you move into a new apartment or rental home, you’ll likely be asked to pay a security deposit. This payment acts as a form of protection for the landlord in the event you damage the property, violate the lease, or have unpaid rent. Regulated under state law, security deposits help to ensure fairness, transparency, and accountability between landlords and tenants. However, they are often a great point of contention between landlords and tenants after a tenancy ends. If you believe your security deposit is being wrongfully withheld, an experienced Colorado security deposit dispute attorney can guide you through the legal process, ensuring your rights are protected and your funds are returned.
Is there a Limit on Security Deposit Amounts in Colorado?
Many states have a legal cap on the amount that landlords can charge for a security deposit, and Colorado is no exception. As cited in Colorado Revised Statutes § 38-12-102.5, “a landlord shall not require a tenant to submit a security deposit in an amount that exceeds the amount of two monthly rent payments under the rental agreement.” Additionally, if a tenant has a pet, the landlord cannot charge more than $300 for a refundable pet security deposit.
How Long Do Landlords Have to Return Your Security Deposit?
Under Colorado Revised Statutes § 38-12-103, landlords are required to return a tenant’s security deposit within 30 days after the lease ends and the tenant has vacated the property and returned all keys. However, if explicitly stated in the lease agreement, this timeframe can be extended up to 60 days.
If a landlord intends to keep any portion of the security deposit, they must provide a written, itemized statement detailing the reason for deductions. Failing to return the deposit or provide this written explanation within the specified timeframe can expose landlords to serious legal consequences, including potential liability for three times the amount wrongfully withheld plus attorney’s fees and court costs.
What Can Landlords Legally Deduct from Your Security Deposit?
Colorado law allows landlords to deduct from a tenant’s security deposit for specific and legitimate reasons, including:
- Unpaid rent or late fees owed
- Unpaid utility bills
- Damage beyond ordinary wear-and-tear
- Cleaning charges
If a landlord makes deductions for any of these aforementioned reasons, they must be supported with evidence, such as photos, receipts, or repair estimates.
To protect yourself, document the conditions of your rental both when moving in and when moving out. Photos, videos, and written evidence can be incredibly valuable to the success of your claim should the matter escalate to a legal dispute.
What Can’t Landlords Legally Deduct from Your Security Deposit?
Though landlords can make deductions for the specified reasons above, they cannot withhold money for “normal wear-and-tear” to the property that occurs “without negligence, carelessness, accident or abuse.” Some examples of normal wear-and-tear include:
- Minor scuffs
- Minor nail holes
- Slightly worn flooring
- Faded paint
Charging tenants for these normal signs of use is unlawful and could result in the tenant taking legal action to recover their funds.