Colorado Security Deposit Law

Maximum deposit

Landlords may not require a security deposit greater than two months' rent (C.R.S. § 38-12-102.5). (C.R.S. § 38-12-102.5, C.R.S. § 38-12-106 (pet deposit and pet rent))

Two months' rent. A separate refundable pet deposit of up to $300 (and pet rent up to the greater of $35/month or 1.5% of monthly rent) is allowed under C.R.S. § 38-12-106.

Return deadline

Return the deposit, minus any itemized deductions, within 30 days after the lease ends or the tenant surrenders the unit, whichever is later; a lease can extend this to no more than 60 days (C.R.S. § 38-12-103(1)(a), as amended by HB 25-1249). (C.R.S. § 38-12-103(1)(a), as amended by HB 25-1249 (2025 Colo. Sess. Laws ch. 401), C.R.S. § 38-12-103 (pre-2026 text))

Itemized statement of deductions

If you keep any part of the deposit, send a written statement listing the exact reasons with the balance, and on the tenant's written request provide supporting photos, receipts and invoices within 14 days (C.R.S. § 38-12-103(1), (8)). (C.R.S. § 38-12-103(1)(a), (8), as amended by HB 25-1249)

Interest on the deposit

Colorado law does not require landlords to pay interest on security deposits. (C.R.S. tit. 38, art. 12, pt. 1 (silent on interest))

Penalty for wrongful withholding

A landlord who wrongfully keeps a deposit, such as by missing the deadline, giving vague reasons or keeping it in bad faith, owes three times the amount withheld plus attorney fees, but only if it does not refund within 7 days after the tenant's written demand (C.R.S. § 38-12-103(2)-(3.5)). (C.R.S. § 38-12-103(2), (2.5), (3), (3.5), as amended by HB 25-1249, C.R.S. § 38-12-104(4) (gas-hazard case: twice the deposit))

Where the deposit is held

Colorado's deposit statutes cap and govern the return of deposits but say nothing about where a landlord must keep them (C.R.S. §§ 38-12-102.5 to 38-12-104). (C.R.S. §§ 38-12-102 to 38-12-104)

Receipt or written notice of the deposit

No Colorado statute requires a written receipt for a security deposit or notice of the depository (C.R.S. §§ 38-12-102.5 to 38-12-104). (C.R.S. §§ 38-12-102.5 to 38-12-104)

Move-in condition checklist

Colorado has no move-in checklist requirement; since 2026 the landlord must instead offer a pre-move-out walk-through on request, and deductions are barred for conditions that preexisted the tenancy (C.R.S. § 38-12-103(1)(b), (1.5), as amended by HB 25-1249). (C.R.S. § 38-12-103(1.5) (HB 25-1249, 2025 Colo. Sess. Laws ch. 401))

Pet deposits

A Colorado landlord may take no more than $300 as an extra pet deposit, it must be refundable, and monthly pet rent is capped at the greater of $35 or 1.5% of rent (C.R.S. § 38-12-106). (C.R.S. § 38-12-106, HB 23-1068, 2023 Colo. Sess. Laws ch. 416)

The pet deposit is in addition to the general two-month cap; 'pet animal' follows C.R.S. § 35-80-102(10).

Nonrefundable fees

Since 2026 Colorado bans a list of landlord fees, including fees for property taxes, common-area upkeep, the landlord's own habitability duties, late payment of non-rent charges and services not provided (C.R.S. § 6-1-737(4), added by HB 25-1090). (C.R.S. § 6-1-737(4) (HB 25-1090, 2025 Colo. Sess. Laws ch. 94), C.R.S. § 38-12-106(1))

Payment-processing fees are barred unless a cost-free method is reasonably accessible, and fees may not rise more than 2% during a lease of one year or less; a violation is a deceptive trade practice and the pet deposit must be refundable (§ 38-12-106(1)).

Small-landlord exemptions

Colorado's deposit cap, return and pet-deposit rules apply to all residential landlords with no small-landlord exemption (C.R.S. §§ 38-12-102.5 to 38-12-106). (C.R.S. §§ 38-12-102.5 to 38-12-106)

Deposit alternatives and installments

Colorado has not enacted rules for deposit-waiver products, surety bonds or deposit installments (C.R.S. title 38, art. 12, part 1; 2025 and 2026 OLLS digests). (C.R.S. §§ 38-12-101 to 38-12-106, OLLS Digest of Bills 2026)