Colorado Security Deposit Rules: Caps, Lawful Deductions & Penalties (2026)

How much a landlord can charge, and which deductions are actually legal

At a glance

Who this covers — and who it does not

This page covers how much a landlord may charge in Colorado, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.

It does not cover:

How much the landlord may charge in the first place

Two months' rent (C.R.S. § 38-12-102.5). A landlord may not require a security deposit exceeding the amount of two monthly rent payments under the rental agreement. A separate pet security deposit is limited to an additional $300 and must be refundable.

Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.

Which deductions the statute permits

Claimed deductionPermitted in Colorado
Nonpayment of rent or abandonment of the premisesPermitted, if substantiated
Nonpayment of utility charges, repair work, or cleaning contracted for by the tenantPermitted, if substantiated
Nonpayment of other lawful charges listed in the leasePermitted, if substantiated
Necessary repair work for damage or defective conditions that exceed normal wear and tear and did not preexist the tenancyPermitted, if substantiated

Which deductions the statute does not permit

Claimed deductionPermitted in Colorado
Normal wear and tearNot permitted
Any damage or defective condition that preexisted the tenancyNot permitted
Any retention without a written statement + documentation within 30 daysNot permitted
Carpet replacement without substantial and irreparable damage (and carpet not replaced within 10 years cannot be deemed substantially damaged)Not permitted
Repainting without substantial damage exceeding normal wear and tearNot permitted

Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.

Who has to prove what

In any court action brought by a tenant under this section, the landlord bears the burden of proving that the withholding was not wrongful and that the landlord complied with the requirements of this section — including proving the amount of actual damages incurred (as amended 2026-01-01).

In Colorado the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. C.R.S. § 38-12-103(3)(b), (3.5)(c) ↗

What you can claim if deductions are unlawful

Tools that exist in Colorado

30 days — the 2026 amendment shortened the deadline

Effective January 1, 2026, HB 25-1249 changed the return deadline from "one month" to a specific "thirty days" (still extendable by lease up to 60 days). Older summaries that say "one month" are now outdated.

C.R.S. § 38-12-103(1)(a) ↗

Treble damages keyed to the wrongfully withheld amount

Colorado awards three times the amount wrongfully withheld (not the full deposit), plus attorney fees and court costs. It requires a 7-day written demand first; a landlord who returns everything within that 7 days avoids the treble penalty.

C.R.S. § 38-12-103(3)(a), (3)(c) ↗

The 125% bad-faith presumption

If the amount retained is 125% or more of the actual damages incurred, it is presumed to unreasonably exceed actual damages (bad faith). The landlord bears the burden of proving actual damages.

C.R.S. § 38-12-103(3.5)(b), (3.5)(c) ↗

Documentation on request within 14 days

If the landlord provides a written statement, the tenant may request supporting documentation (photographs, inspection reports, receipts, invoices, estimates), and the landlord must provide it within 14 days of a written request (as amended 2026-01-01).

C.R.S. § 38-12-103(8) ↗

Statute of limitations: 6 years on a written contract

A deposit claim under a written lease is an action on a written contract, subject to a 6-year limitations period under C.R.S. § 13-80-103.5.

C.R.S. § 13-80-103.5 ↗

Common landlord defences and how to answer them

““I kept the deposit for cleaning and repairs.””

Colorado requires a written statement listing the exact reasons for retention, plus relevant documentation, within 30 days. Normal wear and tear and preexisting damage cannot be charged. Provide the specific reasons and documentation, or return my deposit.

C.R.S. § 38-12-103(1)(a)

““The carpet and paint needed replacing.””

Carpet replacement requires substantial and irreparable damage beyond normal wear, and carpet not replaced within the last 10 years cannot be deemed substantially damaged (as amended 2026-01-01). Repainting likewise requires substantial damage. Ordinary wear is not chargeable.

C.R.S. § 38-12-103(11)

““You never gave notice before suing.””

I provided the required written demand and notice of intention to file at least 7 days before filing, as required by § 38-12-103(3)(a). My treble-damages claim is therefore properly before the court.

C.R.S. § 38-12-103(3)(a)

Where sources disagree

Some widely circulated summaries of Colorado deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.

Return deadline (one month vs 30 days)

SourceWhat it says
Pre-2026 summariesone month
C.R.S. § 38-12-103(1)(a) as amended by HB 25-1249thirty days (effective 2026-01-01)

What we follow: 30 days

HB 25-1249 expressly changed "one month" to "thirty days" effective January 1, 2026. This data reflects current law as of 2026-10-15.

Deposit cap (none vs two months)

SourceWhat it says
Some 2025 articlesno statewide cap
C.R.S. § 38-12-102.5two months' rent (since 2023)

What we follow: Two months' rent

§ 38-12-102.5, added by SB 23-184 (effective 2023-08-07), caps deposits at two months' rent. The "no cap" claim refers to a cap proposed in early HB 25-1249 drafts that did not survive, not to the existing statutory cap.

Sources and how to verify them

Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.

StatuteLast verifiedSource
C.R.S. § 38-12-103(1)(a) 2026-10-15 official text ↗
C.R.S. § 38-12-103(3)(a), (3)(c) 2026-10-15 official text ↗
C.R.S. § 38-12-103(3)(a) 2026-10-15 official text ↗
C.R.S. § 38-12-103(3)(b), (3.5)(c) 2026-10-15 official text ↗
C.R.S. § 38-12-103(3.5)(b), (3.5)(c) 2026-10-15 official text ↗
C.R.S. § 38-12-103(8) 2026-10-15 official text ↗
C.R.S. § 13-80-103.5 2026-10-15 official text ↗

Primary reference: C.R.S. § 38-12-103. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.

When you need a lawyer instead of a tool

A self-help letter is the right starting point for a single deposit you can document. Get legal help if:

Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.

More Colorado guides

Colorado Security Deposit Return

→ All Colorado tenant rights topics

Common questions

What can a landlord not deduct from my Colorado deposit?

The statute does not permit deductions for: normal wear and tear; any damage or defective condition that preexisted the tenancy; any retention without a written statement + documentation within 30 days; carpet replacement without substantial and irreparable damage (and carpet not replaced within 10 years cannot be deemed substantially damaged); repainting without substantial damage exceeding normal wear and tear.

Who has to prove that a deduction was justified in Colorado?

The landlord. In any court action brought by a tenant under this section, the landlord bears the burden of proving that the withholding was not wrongful and that the landlord complied with the requirements of this section — including proving the amount of actual damages incurred (as amended 2026-01-01).

How much can a landlord charge as a deposit in Colorado?

Two months' rent (C.R.S. § 38-12-102.5). A landlord may not require a security deposit exceeding the amount of two monthly rent payments under the rental agreement. A separate pet security deposit is limited to an additional $300 and must be refundable.

Is ordinary wear and tear deductible from my Colorado deposit?

No. Normal wear and tear; Repainting without substantial damage exceeding normal wear and tear