Colorado Security Deposits Act

Moving is hard enough without worrying about your security deposit.

According to the Colorado Revised Statutes (C.R.S.) law § 38-12-103, a residential landlord has 30 days after the termination of a lease or the surrender or acceptance of a property to return the tenant's security deposit. The 30-day limit may be increased if specified in the contract, but the deposit is always required to be returned in no more than 60 days unless written notice of damage is provided to the tenant.

Considerations

Knowing your rights can help protect your security deposit.

The landlord is allowed to retain a portion or all of the security deposit in the event of willful or negligent damage done by the tenant. Examples of such damage can be burns in the carpet, holes in the walls and missing items that were included with the rental. The security deposit cannot be retained for normal wear and tear on the rental, such as worn carpet and faded paint.

Landlord Requirements

The law requires that a security deposit be returned in 30 days.

The landlord is required to have proof that keeping any portion of the security deposit was justified. This proof must be submitted in writing to the tenant along with the return of any left over deposit. The landlord is required to mail the proof and the remaining deposit to the tenant's last known address. If the forwarding address left by the tenant is not correct, the landlord has still met the requirements of the law.

Tenant Requirements

Normal wear and tear repairs cannot be withheld from your deposit.

If the tenant has not received the deposit and/or a notice of withholding from the landlord within the time frame specified by the contract (no more than 60 days), the tenant then has the right to sue the landlord for the return of the security deposit. The tenant must first send notice of the intent to sue and then wait a minimum of seven days before filing suit in a Colorado court.

Penalties

Penalties can be costly if a landlord does not follow the law.

If the landlord keeps the security deposit without the proper notification to the tenant, the landlord can be held liable for triple the amount of the tenant's security deposit and attorney fees in court. Once the 30 (or 60) days have passed and the tenant has provided notice of their intent to sue, the entire security deposit must be returned within seven days, and no part of the deposit can be withheld by the landlord.

Expert Insight

A lawyer can help you understand the security deposits law.

When the landlord has followed the law and the damages exceed the amount of the security deposit, the landlord has the right to take the tenant to court to recover the cost of the repairs. But according to Douglas A. Turner, P.C., landlords must take care to learn the law regarding Colorado security deposits. Willful disobedience of the law can result in severe penalties and "big trouble" for the landlord.

References

• DouglasTurner.com: Landlords, Tenants & Security Deposits
• Docstoc: Colorado Security Deposit Interest
• Mesa County Sheriff's Office: Civil Services FAQS

Resources

• RentLaw.com:Normal Wear and Tear