Colorado security deposit rules
Colorado limits security deposits to 2 months' rent (effective August 7, 2023); a separate refundable pet deposit is capped at $300. The deposit must be returned one month after termination of the lease or surrender and acceptance of the premises, whichever occurs last; the lease may specify a longer period not exceeding 60 days, with an itemised list of any deductions. No interest is owed on the deposit under state law.
What the law requires
2 months' rent (effective August 7, 2023); a separate refundable pet deposit is capped at $300. Returned One month after termination of the lease or surrender and acceptance of the premises, whichever occurs last; the lease may specify a longer period not exceeding 60 days. Cap of 2 months' rent enacted by SB23-184 (effective Aug 7, 2023). HB25-1249 (signed June 3, 2025, effective Jan 1, 2026) amends § 38-12-103: deposits are tenant property held by the landlord as fiduciary custodian; no deductions for normal wear and tear or pre-existing damage; landlord must furnish supporting documentation (photos, invoices, estimates) within 14 days of a tenant's written request; carpet/paint deduction limits; walk-through inspection on request. The legislature's bill page and public.law text (current through Fall 2025) show the cap still at 2 months; a secondary blog claim that HB25-1249 cut the cap to 1 month could not be confirmed and the signed-act PDF host blocked download, so treat the 2-month figure as the verified statute text. 'One month' return period is recorded as 30 days.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 30-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Pets: Additional pet security deposit may not exceed $300 and must be refundable; pet rent may not exceed the greater of $35/month or 1.5% of monthly rent (C.R.S. § 38-12-106, HB23-1068, effective Jan 1, 2024).
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing Colo. Rev. Stat. § 38-12-102.5; § 38-12-103(1); § 38-12-106. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Colorado rules
- Late fees: No late fee until rent is at least 7 calendar days late; the fee may not exceed the greater of $50 or 5% of the past-due rent. Fee must be disclosed in the lease, only one fee per late payment, no interest on late fees, no eviction or lease termination for unpaid late fees alone, and the fee must be noticed in writing within 180 days of the due date. Late fee calculator.
- Notice to end a tenancy: 21 days' written notice for a tenancy of one month or longer but less than 6 months; 28 days for 6 months to 1 year; 91 days for 1 year or longer (§ 13-40-107(1)). After 12 months of occupancy, HB24-1098 (§ 38-12-1303) bars a landlord from terminating or refusing to renew without cause; no-fault grounds (demolition/conversion, substantial repairs, owner or family move-in, sale of a single-family home/townhome/duplex/triplex/condo, tenant refusal of reasonable renewal terms, repeated late payment) require 90 days' notice. Notice calculator.
- All rules on one page: Colorado landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Colorado?
2 months' rent (effective August 7, 2023); a separate refundable pet deposit is capped at $300. Cap of 2 months' rent enacted by SB23-184 (effective Aug 7, 2023). HB25-1249 (signed June 3, 2025, effective Jan 1, 2026) amends § 38-12-103: deposits are tenant property held by the landlord as fiduciary custodian; no deductions for normal wear and tear or pre-existing damage; landlord must furnish supporting documentation (photos, invoices, estimates) within 14 days of a tenant's written request; carpet/paint deduction limits; walk-through inspection on request. The legislature's bill page and public.law text (current through Fall 2025) show the cap still at 2 months; a secondary blog claim that HB25-1249 cut the cap to 1 month could not be confirmed and the signed-act PDF host blocked download, so treat the 2-month figure as the verified statute text. 'One month' return period is recorded as 30 days.
How long does a landlord have to return a security deposit in Colorado?
One month after termination of the lease or surrender and acceptance of the premises, whichever occurs last; the lease may specify a longer period not exceeding 60 days. The statute is Colo. Rev. Stat. § 38-12-102.5; § 38-12-103(1); § 38-12-106.
Does a Colorado landlord have to pay interest on the security deposit?
No. Colorado law does not require interest on residential security deposits.
Are pet deposits limited in Colorado?
Additional pet security deposit may not exceed $300 and must be refundable; pet rent may not exceed the greater of $35/month or 1.5% of monthly rent (C.R.S. § 38-12-106, HB23-1068, effective Jan 1, 2024).