Colorado Security Deposit Law: Deadlines & Penalties

Colorado landlords must return the security deposit within 30 days after the lease ends or the tenant surrenders the unit, whichever is later. A lease can set a longer period, but never more than 60 days. Landlords can't deduct for normal wear and tear or for damage that existed before the tenancy, and since January 1, 2026 ordinary uncleanliness from normal use also counts as wear and tear, unless the unit is left substantially less clean than at move-in.

If the landlord keeps any part of the deposit, it must send a written statement listing the exact reasons for each deduction, along with the balance. Under changes that took effect January 1, 2026, a tenant can ask in writing for the landlord's relevant documentation, such as photos, inspection reports, receipts, invoices or estimates. Either side can also request a walk-through inspection before move-out.

Wrongful retention can make the landlord liable for three times the amount withheld, plus reasonable legal fees and court costs. Before suing for that amount, the tenant must give written notice of the demand and intent to file at least seven days in advance, and the landlord can avoid treble damages by returning the money within those seven days. In court the landlord carries the burden of proving the withholding was proper. Small claims court hears cases up to $7,500.