Security Deposit Demand Letter - Colorado

COLORADO SECURITY DEPOSIT DEMAND LETTER

[LAW FIRM / TENANT NAME]
[Street address]
[City, Colorado ZIP]
[Phone] | [Email]

[__/__/____]

VIA [CERTIFIED MAIL / EMAIL / OTHER TRACEABLE METHOD]

[Landlord / property manager name]
[Address]
[City, State ZIP]
[Email, if used]

Re: Demand for return of security deposit and notice of intended legal proceedings
Tenant: [________________________________]
Rental property: [________________________________]
Lease termination date: [__/__/____]
Date premises surrendered: [__/__/____]
Deposit paid: $[________]
Amount returned: $[________]
Amount retained: $[________]

Dear [Landlord / Manager]:

I represent [Tenant name] concerning the security deposit for the property above. This letter demands return of $[________] that you retained and gives notice of the Tenant's intention to file a court action if the amount is not returned within seven days after you receive this letter. See C.R.S. § 38-12-103(3)(a)-(c).

1. Return deadline and accounting

The lease [does / does not] specify a return period of [____] days. Under C.R.S. § 38-12-103(1)(a), the default deadline is 30 days after the later of lease termination or surrender of the premises; a lease may specify a longer period of no more than 60 days. The deadline here was [__/__/____].

The landlord [did / did not] return the deposit balance by that date. The landlord [did / did not] deliver a written statement listing the exact reasons for any retention and the balance due. The statement, payment, and any documentation required by § 38-12-103(8) were [sent / not sent] to [the tenant's last-known address / an email address of which the landlord had actual notice], as applicable.

2. Grounds for this demand

Select only grounds supported by the records and attach the relevant evidence.

☐ Late return or missing itemization. The deadline passed without the required return, exact written reasons for retention, or payment of the remaining balance. C.R.S. § 38-12-103(1)(a), (2.5)(a)-(c).

☐ No actual cause for deduction. The deduction for [describe] is not unpaid rent, unpaid utilities, another lawful charge listed in the lease, or necessary repair of damage beyond normal wear and tear that did not preexist the tenancy. C.R.S. § 38-12-103(1)(b).

☐ Normal wear and tear or preexisting condition. The condition [describe] reflects ordinary intended or typical use without negligence, carelessness, accident, or abuse, or existed before this tenancy. The current definition also distinguishes uncleanliness that leaves the unit substantially less clean than at the beginning. C.R.S. §§ 38-12-102(4), 38-12-103(1)(a).

☐ Excessive or bad-faith retention. The amount kept for [describe] [unreasonably exceeds actual damage / lacked actual cause / was known or should have been known to exceed actual damage / served an unlawful, retaliatory, or discriminatory purpose]. C.R.S. § 38-12-103(3.5)(a). An amount at least 125% of actual damages is presumed unreasonably excessive under subsection (3.5)(b).

☐ Whole-unit carpet or paint charge. The landlord charged for replacement of all carpet or painting throughout the unit without the substantial damage required by C.R.S. § 38-12-103(11). [Describe the affected areas, carpet age, and evidence.] Subsection (11) has specific limits, including a ten-year rule for carpet; check whether the mobile-home exception in subsection (12) applies.

☐ Requested documentation missing. For a lease terminated or premises surrendered on or after January 1, 2026, the Tenant requested supporting documentation in writing on [__/__/____]. The landlord delivered a written retention statement within 14 days after that request but did not provide relevant documentation in its possession or control, such as photographs, inspection records, receipts, invoices, or estimates. C.R.S. § 38-12-103(8).

☐ Walk-through request. The Tenant requested a walk-through on [__/__/____]. Describe the request and response: [________________________________]. C.R.S. § 38-12-103(1.5) applies if a walk-through was reasonable and practicable; subsection (12) excludes certain mobile-home rentals.

3. Remedy and seven-day notice

Under C.R.S. § 38-12-103(2), a landlord that fails to comply with that section or otherwise wrongfully withholds a deposit forfeits the right to withhold any portion under the section. Section 38-12-103(3)(a) provides treble the wrongfully withheld portion, together with reasonable attorney fees and court costs. The tenant may sue for that remedy only if the landlord fails to return the entire deposit or withheld portion within seven days after receiving the demand and notice of intended suit. C.R.S. § 38-12-103(3)(c).

The treble amount already includes the underlying deposit portion; do not add that portion again to the three-times figure. The statute also has a limited good-faith over-retention rule in § 38-12-103(3.5)(d); evaluate it against the evidence before claiming treble damages.

Return $[________] within seven days after receipt of this letter. Send payment to [name and address / agreed secure electronic transfer]. Please also send the exact written basis for any deduction and the relevant supporting records. If payment is not received within that period, the Tenant intends to file a court action seeking available statutory relief without further demand.

4. Supporting records

Enclosed: ☐ Lease ☐ Deposit receipt ☐ Move-in records ☐ Move-out photographs ☐ Surrender and key-return record ☐ Landlord's statement ☐ Repair records ☐ Written documentation request ☐ Other: [________________].

Please direct your written response to [contact] at [address/email]. The Tenant reserves all rights and remedies.

Sincerely,

[Signature]
[Name and title]
[Attorney registration number, if applicable]

ATTORNEY REVIEW NOTES

• Current law. The 2026 compilation of C.R.S. § 38-12-103 reflects amendments effective January 1, 2026. Its treble-damages trigger is wrongful retention, with a seven-day demand and notice prerequisite. Earlier cases discussing “willful retention” construed an older version; determine which version governs the transaction.
• Documentation. Current § 38-12-103(8) ties production of relevant records to a written tenant request and a landlord statement within 14 days of that request. It does not establish a $50 receipt threshold.
• Move-in evidence. Photographs and inspection records can prove preexisting conditions. Section 38-12-103 does not require a landlord to issue a move-in condition statement or make failure to do so a ground of forfeiture.
• Court amount. C.R.S. § 13-6-403(1)(a) permits small claims up to $7,500, including civil penalties, exclusive of interest and costs. C.R.S. § 13-6-104(1) permits county court civil claims up to $25,000. Check the full amount sought before choosing a court.
• Deposit size. C.R.S. § 38-12-102.5(1) generally limits a security deposit to two monthly rent payments; subsection (2) states an exception beginning January 1, 2027.

SOURCES AND REFERENCES

• Current Colorado Revised Statutes, Title 38, §§ 38-12-102(4), 38-12-102.5, 38-12-103: https://olls.info/crs/crs2026-title-38.htm
• Current Colorado Revised Statutes, Title 13, §§ 13-6-104(1), 13-6-403(1)(a): https://olls.info/crs/crs2026-title-13.htm