Security Deposits
A security deposit is any deposit of money with the primary function to secure a rental agreement for residential property. Colorado Revised Statutes § 38-12-102(2) (see below for link to law).
Return of the Security Deposit
Within one month after the lease ends or you return the property to your landlord, he or she must return the security deposit to you or mail you a written statement of the exact reasons why he or she is keeping part or all of the deposit. A written lease may extend the time for your landlord to return the deposit up to 60 days. It is important for you to provide a new address to your landlord when you move out, because your landlord only has to send the refund and/or written statement to your last known address. Your landlord may not keep the deposit for normal wear and tear but may keep the security deposit for nonpayment of rent, late fees, abandonment of the property, utility bills, repair work, cleaning and/or other contractual fees, such as attorney fees and court costs. For more information on return of a security deposit, read Colorado Revised Statutes § 38-12-103(1) (see below links to law).
Normal Wear and Tear
Normal wear and tear is minor damage to property that occurs due to the use of the property as intended, without negligence, carelessness, accident or abuse by the tenants or their guests. Colorado Revised Statutes § 38-12-102(1) (see below for link to law). Your landlord cannot keep the security deposit to cover normal wear and tear.
Failure to Return the Security Deposit or Provide an Accounting
If your landlord does not send a written statement to you within the time limit, he or she gives up the right to keep any of the deposit. Your landlord may be liable for three times the amount of the deposit he or she keeps plus attorney fees and court costs, if he or she willfully and wrongfully keeps part or all of the deposit. For more information on landlord liability for not returning a security deposit, read Colorado Revised Statutes § 38-12-103 (see below for link to law).
Filing a Lawsuit
In order to sue for three times the amount of the deposit that your landlord has wrongfully kept, you tenant must give written notice to your landlord of your intent to sue at least seven days before filing the lawsuit. You may want to send this letter by certified mail, return receipt requested. (If you would like information on filing a case in small claims court, go to the small claims court decision tree on the main topic page.) At trial, your landlord must prove that keeping the deposit or any portion of it was not wrongful. In evaluating damage to the property, it is very helpful if you and your landlord have pictures of the condition of the property (apartment or house, including yard) from when you moved in and when you moved out.
Links to Laws
Definitions
Colorado Revised Statutes § 38-12-103
Return of Security Deposit
Colorado Revised Statutes § 38-12-103
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