Security Deposit Return Deadlines & Deductions in Colorado

At a glance

Requirements one by one

Return deadline

The clock starts on the later of lease termination and surrender of the premises. C.R.S. § 38-12-103(1)(a) says “whichever occurs last”: if the lease ends before the tenant gives up the unit, the 30-day period starts at surrender. A lease may specify a longer period, but no more than 60 days.

Itemized statement and documentation

If the landlord keeps any portion, § 38-12-103(1)(a) requires a written statement listing the exact reasons, delivered with the balance and any documentation that subsection (8) requires. The 14-day wording in § 38-12-103(8) describes a statement the landlord provides within 14 days after a tenant's written request. When that condition is met, the landlord must also provide relevant photos, reports, receipts, invoices, or estimates in its possession or control. The provision does not say the tenant must request documents within 14 days after receiving a statement.

Permitted deductions

C.R.S. § 38-12-103(1)(b) limits “actual cause” to unpaid rent, unpaid utilities, other lawful lease charges, and necessary repair of damage beyond normal wear and tear that did not preexist the tenancy. Under § 38-12-102(4), normal wear includes ordinary uncleanliness; substantially less clean than at lease start is treated differently.

C.R.S. § 38-12-103(11) distinguishes replacing carpet or paint throughout a unit from replacing damaged portions. Whole-unit replacement has a whole-unit damage test, while damaged portions may qualify on their own facts. Carpet cannot be deemed substantially and irreparably damaged if it was not replaced with new carpet within the 10 years before termination or surrender. That lookback is measured at the end of the tenancy.

Deposit cap

Current § 38-12-102.5(1) caps the ordinary deposit at two months' rent. A separate § 38-12-106 limit allows no more than $300 as an additional refundable pet deposit. The narrow future exception to the two-month cap is described below.

Consequences of noncompliance

Under § 38-12-103(2), a landlord that fails to comply with the section or otherwise wrongfully withholds a deposit forfeits the right to retain any part. For treble damages, § 38-12-103(3) requires a written demand and notice of intent to sue, followed by seven days without return of the wrongfully held amount. The tenant can then seek three times that amount, reasonable attorney fees, and court costs.

C.R.S. § 38-12-103(3.5) presumes an amount is unreasonably above actual damages when it reaches 125% of them. The landlord bears the burden of proving actual damages. A landlord that retained an amount in good faith, met the section's other requirements, and reasonably overestimated damages owes only the excess and court costs under the stated exception.

What trips people up

The cap has a future exception, but the ordinary return rules remain. The 2026 amendment to § 38-12-102.5(2) is already in the compiled statute, yet its post-closing occupancy exception applies only on and after January 1, 2027. It concerns a buyer who purchased the residence from the seller-tenant under a post-closing occupancy agreement; it does not change the 30-day return clock or the four ordinary deduction categories.

Common questions

Can the refund be sent electronically?

Yes, with the tenant's consent. C.R.S. § 38-12-103(10) permits a secured electronic transfer; mailing to the tenant's last-known address is another listed method.

What if a mailed refund is returned to the landlord?

C.R.S. § 38-12-103(9) requires the landlord to hold the returned payment for at least one year after receiving it and to disburse it within 15 calendar days after the tenant requests it.

Statutes and sources

• C.R.S. §§ 38-12-102, -102.5, -103, and -106 — current definitions, cap, return and deduction rules, remedy, and pet deposit. Official 2026 Colorado Revised Statutes, Title 38 (accessed 2026-10-02).
• 2026 Colo. Sess. Laws ch. 61 (SB 26-054) — official bill history and effective-date record for the future post-closing occupancy exception. Colorado General Assembly bill page (status checked 2026-10-02).