Colorado security deposit law: the 30-day rule, the 2-month cap, and treble damages for wrongful retention

The rule

Within 30 days after the termination of the lease or the surrender and acceptance of the premises — whichever occurs last — the landlord must return the full deposit or supply a written statement itemizing each deduction, together with the balance owed. Colo. Rev. Stat. § 38-12-103.

The lease may set a longer period, but it can never exceed 60 days. The deposit may be mailed to the last known address or, with the tenant’s consent, sent by a secure electronic transfer.

The 30-day figure applies as of January 1, 2026, when HB 25-1249 rewrote the statute; the earlier text read "one month."

Deductions

If no written statement of deductions is provided within the deadline, the landlord forfeits the right to retain any portion of the deposit. Colo. Rev. Stat. § 38-12-103(2).

Deductions may not cover preexisting damage or defects, and the statute now states that replacing all the carpet is not by itself a valid ground for withholding. Colo. Rev. Stat. § 38-12-103(11).

In a lawsuit over the deposit, the burden is on the landlord to prove that the withholding was not wrongful. Colo. Rev. Stat. § 38-12-103(3)(b).

The penalty — wrongful retention

The rewritten statute calls the violation wrongful retention. A landlord who wrongfully withholds part of the deposit is liable for treble the amount wrongfully withheld, together with reasonable attorney’s fees and court costs. Colo. Rev. Stat. § 38-12-103(3)(a).

The treble remedy has a gate: before filing suit, the tenant must first send a written demand stating an intent to bring an action. Treble damages are available only if the landlord still does not refund within 7 days of receiving that demand.

The cap and where a claim goes

The deposit is capped at two months’ rent (Colo. Rev. Stat. § 38-12-102.5, added by SB 23-184, effective August 7, 2023). A pet deposit is allowed in addition, capped at $300, and it must be refundable (Colo. Rev. Stat. § 38-12-106(1)). From January 1, 2027, sale-leaseback (post-closing occupancy) agreements are exempt from the two-month cap under SB 26-054.

Deposit claims go to County Court small claims (limit $7,500). The filing fee is $31 for claims of $500 or less and $55 for claims between $500.01 and $7,500; a fee waiver is available.

Common questions

How long does a Colorado landlord have to return a deposit?

30 days after the termination of the lease or the surrender and acceptance of the premises, whichever occurs last. The lease may extend the period, but never beyond 60 days. Colo. Rev. Stat. § 38-12-103.

What does "wrongful retention" mean in Colorado?

It is the term used by the rewritten statute (HB 25-1249) for a landlord wrongfully withholding deposit money. It carries treble damages plus reasonable attorney’s fees and court costs — but only after the tenant sends a written demand stating an intent to sue, and the landlord still does not refund within 7 days of receiving it. Colo. Rev. Stat. § 38-12-103(3)(a).

How much can a Colorado landlord charge for a deposit?

Two months’ rent (Colo. Rev. Stat. § 38-12-102.5). A pet deposit is allowed in addition, capped at $300, and it must be refundable (Colo. Rev. Stat. § 38-12-106(1)).

What happens if a Colorado landlord misses the deadline?

If no written statement of deductions was provided in time, the landlord forfeits the right to retain any portion of the deposit (§ 38-12-103(2)). If the withholding was wrongful, treble damages plus fees and costs are available after the 7-day written demand (§ 38-12-103(3)(a)).

Is this legal advice?

No. This page is general information about Colorado law, with sources. It is not tailored to your situation and we are not a law firm.

Related guides

• How long does a landlord have to return a security deposit?
• How much can a landlord charge for a security deposit?
• California security deposit law: the 21-day rule and what it costs a landlord to get it wrong
• Texas security deposit law: the 30-day rule and the bad-faith penalty