SECURITY DEPOSIT DEMAND LETTER
STATE OF COLORADO
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Colorado law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory penalties, damages, and attorney's fees.
I. COLORADO LEGAL FRAMEWORK
A. Governing Law
Security deposits in Colorado are governed by the Colorado Security Deposit Act, Colo. Rev. Stat. Section 38-12-101 through 38-12-104.
B. Security Deposit Limits
Colorado law does not impose a statutory limit on the amount of security deposit a landlord may charge. However, the amount must be disclosed in the lease agreement.
C. Return Deadline
Pursuant to Colo. Rev. Stat. Section 38-12-103(1):
- Default deadline: Security deposit must be returned within one (1) month (30 days) after termination of the tenancy and surrender of the premises
- Extended deadline: The lease may specify a longer period, up to a maximum of sixty (60) days
- The lease must specify the deadline in writing; if it does not, the default 30-day period applies
D. Itemization Requirements
Under Colo. Rev. Stat. Section 38-12-103(1), if the landlord retains any portion of the deposit, they must provide:
- A written statement listing the exact reasons for retention
- The specific amounts retained for each reason
E. Permissible Deductions
Under Colo. Rev. Stat. Section 38-12-103, a landlord may retain from the security deposit amounts for:
- Unpaid rent
- Abandonment of the premises during the lease term
- Repair work for damage caused by the tenant beyond normal wear and tear
- Cleaning of the premises
- Other breaches of the lease agreement
F. Separate Account Requirement
Colorado law does not require that security deposits be held in a separate account or that interest be paid to tenants.
G. Move-In Condition Statement
Under Colo. Rev. Stat. Section 38-12-103(2), the landlord must provide a written statement of the condition of the premises at the time of move-in. This statement is critical for determining what constitutes tenant-caused damage versus pre-existing conditions.
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Lease-Specified Return Period | [30/60] days |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated Colorado law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory period required under Colo. Rev. Stat. Section 38-12-103(1).
[ ] Failure to Provide Itemization: You have failed to provide a written statement listing the exact reasons for retention and specific amounts withheld.
[ ] Failure to Provide Move-In Statement: You failed to provide a written statement of the condition of the premises at move-in as required by Colo. Rev. Stat. Section 38-12-103(2).
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Willful Retention: You have willfully retained the deposit without lawful basis, as evidenced by: [DESCRIBE EVIDENCE OF WILLFUL RETENTION]
IV. NORMAL WEAR AND TEAR
Colorado law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Minor settling cracks in walls
[ ] Other: [SPECIFY]
V. DAMAGES AND PENALTIES
A. Return of Security Deposit
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Total Deposits Due | $[AMOUNT] |
B. Statutory Penalties - Willful Retention (Treble Damages)
Under Colo. Rev. Stat. Section 38-12-103(3), if a landlord willfully retains a security deposit in violation of the statute, the tenant may recover:
- Treble (3x) the amount wrongfully withheld
- Plus reasonable attorney's fees and court costs
Penalty Calculation:
- Amount Wrongfully Withheld: $[AMOUNT]
- Treble Damages (3x): $[AMOUNT]
- Total Penalty: $[AMOUNT]
C. Forfeiture for Failure to Provide Move-In Statement
Under Colo. Rev. Stat. Section 38-12-103(2), if the landlord fails to provide a written move-in condition statement, the landlord forfeits the right to withhold any portion of the deposit for repair or cleaning.
D. Attorney's Fees and Costs
Under Colo. Rev. Stat. Section 38-12-103(3), a tenant who prevails in an action for willful retention is entitled to recover reasonable attorney's fees and court costs.
E. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Statutory Penalty (3x) | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in condition statement (if provided)
[ ] Move-out inspection report/checklist
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]
-
Statutory Penalties: Pay to our Client the statutory penalty for willful retention: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in Colorado County Court Small Claims Division (for claims up to $7,500) or County Court for return of the deposit, treble damages, attorney's fees, and costs.
-
Seek Maximum Penalties: Request the court impose treble damages for willful retention pursuant to Colo. Rev. Stat. Section 38-12-103(3).
-
Seek Attorney's Fees: Request the court award reasonable attorney's fees and court costs.
-
Report Violations: Report your conduct to:
- Colorado Attorney General - Consumer Protection Section
- Colorado Division of Housing
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[COLORADO BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
COLORADO SECURITY DEPOSIT QUICK REFERENCE
| Element | Colorado Requirement |
|---|---|
| Governing Statute | Colo. Rev. Stat. Section 38-12-101 through 104 |
| Deposit Limit | No statutory limit |
| Return Deadline | 30 days (default); up to 60 days if specified in lease |
| Itemization Required | Yes |
| Receipts Required | No, but advisable |
| Interest Required | No |
| Separate Account Required | No |
| Move-In Statement | Required |
| Penalty for Violation | 3x (treble) wrongfully withheld for willful retention |
| Attorney's Fees | Yes - for willful retention |
| Small Claims Limit | $7,500 |
COLORADO-SPECIFIC PRACTICE NOTES
[ ] Treble Damages: Colorado provides for significant penalties (3x damages) for willful retention. This is one of the strongest tenant protections in the country.
[ ] Move-In Condition Statement Critical: If the landlord failed to provide a move-in condition statement, they forfeit the right to make deductions for repairs or cleaning. Always check for this.
[ ] Lease-Specified Deadline: The deadline can be extended to 60 days if specified in the lease. Verify the lease terms carefully.
[ ] "Willful" Standard: To recover treble damages, the tenant must prove the landlord's retention was "willful" - meaning intentional and without good faith belief in the right to retain.
[ ] Small Claims Court: For claims up to $7,500, file in Colorado County Court Small Claims Division. This is an efficient forum for security deposit disputes.
[ ] Denver Specific: Denver has additional housing regulations. Check for local ordinances that may provide additional protections.
[ ] Boulder Specific: Boulder has a rental licensing program with additional tenant protections.
[ ] Mountain Communities: Vacation rentals in mountain communities may have different lease structures. Verify which laws apply.
[ ] No Interest Required: Unlike some states, Colorado does not require payment of interest on security deposits.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Colorado attorney before use.