Security Deposit Laws in Colorado (2026): Major Changes Coming
Big changes are happening. Colorado just overhauled its security deposit laws, and if you rent in this state, you need to know what’s different. The new rules kick in January 1, 2026, and they change the game for both tenants and landlords.
Let’s break down exactly what these laws mean for you.
What Is a Security Deposit?
A security deposit is money you pay upfront when you rent a place. It’s not the landlord’s money. It’s yours. The landlord just holds onto it during your lease.
The deposit protects landlords from unpaid rent or damage beyond normal wear and tear. But here’s the thing. Landlords can’t just keep your deposit for any reason they dream up. Colorado law is very specific about what they can and can’t do.
How Much Can Landlords Charge?
Colorado caps security deposits at two months’ rent. That’s the maximum allowed. If your rent is $1,500 per month, your landlord can’t demand more than $3,000 as a security deposit.
Mobile home parks have different rules. They can only charge one month’s rent as a deposit.
Pet owners, listen up. Landlords can charge an extra pet deposit of up to $300. This doesn’t count toward the two-month cap. So you could pay your regular deposit plus the pet deposit on top.
Service animals and emotional support animals are exempt. Landlords cannot charge a pet deposit for these animals.
What Are the New 2026 Rules?
House Bill 25-1249 changed everything. Governor Jared Polis signed it into law on June 3, 2025. These changes take effect on January 1, 2026.
Here’s what’s different.
Normal Wear and Tear Gets Expanded Protection
The law now defines normal wear and tear more clearly. It includes deterioration from everyday use without negligence or carelessness. Light carpet staining, paint scuffs, minor nail holes, fading paint. These are all normal wear and tear.
Landlords cannot charge you for this stuff anymore.
Carpet Replacement Rules
This one’s huge. Landlords can only charge for carpet damage if the carpet is less than 10 years old. If your landlord hasn’t replaced the carpet in 10 years, they can’t deduct replacement costs from your deposit.
Even then, they can only charge for substantial and irreparable damage. And only for the specific damaged area, not the whole room.
Paint Deductions Are Limited
Same deal with paint. Landlords can only deduct for substantial damage that goes beyond normal wear and tear. Touch-up painting for ordinary scuffs or nail holes? Not allowed.
They can only charge to repaint the damaged area. Not the entire unit.
Pre-Existing Damage Is Off-Limits
Landlords cannot keep any part of your deposit for damage that existed before you moved in. Period. This seems obvious, but it wasn’t always spelled out in the law.
Document everything when you move in. Take photos and videos of every room.
Walk-Through Inspections
You can now request a walk-through inspection before you move out. The landlord must conduct it if reasonably practical. This can be done in person or virtually.
Do this. It gives you a chance to see what the landlord thinks is damaged and potentially fix minor issues before you leave.
Documentation Requirements
If your landlord keeps any part of your deposit, they must provide documentation within 14 days of your request. This includes photos, inspection forms, receipts, invoices, or estimates.
They have to show proof of the damage and the cost to fix it.
How Long Do Landlords Have to Return Deposits?
Landlords must return your security deposit within 30 days after your lease ends or you move out, whichever comes last. Your lease might say up to 60 days, which is legal. But 60 days is the absolute maximum.
Anything longer violates Colorado law.
If your landlord keeps part of your deposit, they must send you a written statement explaining exactly why. This statement must list the specific reasons for each deduction. And it must come with whatever portion of your deposit remains.
The landlord can mail this to your last known address. Make sure you leave a forwarding address.
What Can Landlords Deduct From Your Deposit?
Landlords can only keep your deposit for specific reasons. Here’s what’s allowed:
Unpaid rent. If you owe rent when you move out, the landlord can deduct it.
Unpaid utilities. If utilities were your responsibility and you didn’t pay them, the landlord can take that from your deposit.
Other unpaid charges listed in your lease. These must be lawful charges that were spelled out in your rental agreement.
Damage beyond normal wear and tear that didn’t exist before you moved in. The landlord must prove the damage happened during your tenancy.
That’s it. Those are the only valid reasons.
What Can’t Landlords Charge You For?
The new law explicitly bans several common deductions. Landlords cannot charge you for:
Routine cleaning when the home is in reasonably clean condition. If you leave the place generally clean, they can’t deduct professional cleaning fees.
Normal wear and tear. We covered this, but it’s worth repeating. Everyday deterioration from living there is not your problem.
Pre-existing damage. Anything that was already wrong when you moved in cannot be charged to you.
Carpet older than 10 years. If the carpet is ancient, that’s on the landlord.
Minor paint touch-ups. Small scuffs and nail holes are expected.
Automatic cleaning fees in your lease are now void and unenforceable. Even if your lease says you’ll be charged a cleaning fee, that clause is illegal as of January 1, 2026.
What Happens If Landlords Don’t Follow the Rules?
Colorado takes security deposit violations seriously. Very seriously.
If your landlord doesn’t return your deposit or provide a written explanation within the required time, they forfeit all rights to keep any portion of it. They lose everything.
But it gets worse for landlords who wrongfully keep deposits.
Triple Damages
Tenants can sue for triple the amount wrongfully withheld. Plus attorney fees and court costs. This is called treble damages.
Not sure what counts as “bad faith”? The new law spells it out.
A landlord retains a deposit in bad faith if they:
Fail to provide the required written statement and documentation on time.
Provide a written statement that doesn’t list exact reasons for keeping the deposit.
Fail to return the remaining deposit amount on time.
Retain an amount that unreasonably exceeds actual damages.
Keep the deposit for unlawful, retaliatory, or discriminatory purposes.
The law presumes bad faith if the landlord keeps more than 125% of the actual damage costs. So if repairs actually cost $400, but the landlord keeps $500 or more, that’s presumed bad faith.
Seven-Day Notice Requirement
Before you can sue for triple damages, you must give your landlord seven days’ notice. This notice must state you intend to file legal proceedings.
Send it by certified mail or email. Keep proof you sent it.
Many landlords will settle once they get this notice. They know the law, and they know they’ll lose in court.
Burden of Proof
In court, the landlord has to prove their deductions were legitimate. Not you. The burden is on them to show the damage existed, it wasn’t pre-existing, it exceeded normal wear and tear, and the costs were reasonable.
This is huge. Most legal disputes put the burden on the person bringing the lawsuit. Not here.
Special Circumstances
Property Sale
When a rental property is sold, the original landlord must either transfer your deposit to the new owner or return it to you. They have 60 days after the sale to do this.
If they transfer it to the new owner, they must notify you in writing with the new owner’s name and address.
Returned Checks
Sometimes landlords mail deposit refunds and the check gets returned. Maybe you moved and the forwarding address expired. Maybe the check got lost.
Under the new law, landlords must hold returned payments for at least one year. If you request it, they must send you the payment within 15 days.
Victim Protections
If you’re a victim of domestic violence, sexual assault, or stalking, special protections apply. The law prevents landlords from charging you for damage caused by the perpetrator during documented incidents.
You’ll need documentation like a police report, protection order, or other qualified evidence.
How to Protect Your Security Deposit
Want to make sure you get your deposit back? Follow these steps.
At Move-In
Document everything. Take photos and videos of every room, closet, and surface. Note any existing damage, stains, or wear.
Get a move-in inspection checklist if your landlord provides one. If not, create your own. Email it to your landlord so there’s a record.
Look for pre-existing issues. Check the carpet for stains. Look for paint damage. Test all appliances. Document everything.
During Your Tenancy
Keep the place clean. Regular maintenance goes a long way.
Report maintenance issues promptly. If something breaks, tell your landlord right away. Get it in writing.
Don’t ignore small problems. That tiny leak can become major water damage. Fix issues early or make sure your landlord does.
At Move-Out
Clean thoroughly. Vacuum, mop, wipe down surfaces. A clean unit makes it harder for landlords to claim excessive cleaning fees.
Request a walk-through inspection. Do this before you completely move out if possible. The landlord can point out issues, and you might have time to fix them.
Take move-out photos and videos. Document the condition just like you did at move-in. This is your proof the place was in good shape.
Remove all your belongings. Don’t leave anything behind. Even trash or unwanted furniture can result in removal fees.
Provide a forwarding address. Make sure your landlord knows where to send your deposit.
Keep Records
Save everything. Lease agreements, move-in checklists, repair requests, photos, videos, emails. Everything.
This documentation is gold if you end up in a dispute.
What If Your Landlord Keeps Your Deposit Wrongfully?
First, send a demand letter. Explain why you believe the deductions were improper. Reference the specific Colorado statutes. Give them seven days to respond.
Many landlords will settle at this point. They don’t want to go to court.
If that doesn’t work, you can file a lawsuit. Small claims court handles cases up to $7,500. You don’t need a lawyer for small claims, though you can hire one.
The landlord has to prove their deductions were legitimate. Remember, the burden is on them.
If you win, you could get triple damages plus attorney fees and court costs. That’s a powerful incentive for landlords to play fair.
Consider consulting with an attorney. Many attorneys offer free consultations for security deposit cases. Some will work on contingency, meaning they only get paid if you win.
Maximum Deposit Amounts and Fees
Let’s talk about other charges landlords might try to add.
Late Fees
Colorado caps late fees at $50 or 5% of the monthly rent, whichever is greater. So if your rent is $1,200, the maximum late fee is $60. If your rent is $700, the maximum is $50.
Landlords cannot stack multiple late fees or compound them. One late fee per late payment.
Pet Rent
Besides the pet deposit, landlords can charge monthly pet rent. The maximum is $35 per month or 1.5% of the monthly rent, whichever is greater.
Move-In Costs
Landlords can charge first month’s rent plus a security deposit. Total move-in costs cannot exceed three months’ rent (first month plus two months’ security deposit).
They cannot disguise additional fees as something else. Calling it a “leasing fee” doesn’t make it legal if it’s really just an extra deposit.
Important Dates and Deadlines
Let’s recap the key timelines.
30 days (or up to 60 if specified in lease): Landlord must return deposit or provide written statement.
14 days: Landlord must provide documentation of deductions if tenant requests it.
7 days: Tenant must give notice before filing lawsuit for wrongful withholding.
1 year: Landlord must hold returned refund checks and disburse within 15 days of tenant request.
January 1, 2026: New HB 25-1249 rules take effect.
Mark these dates. They matter.
Why These Laws Matter
Security deposits can be substantial. Two months’ rent in Denver or Boulder could easily be $3,000 to $5,000. That’s real money.
Many tenants struggle to get deposits back. Unscrupulous landlords find excuses to keep deposits they shouldn’t. The new laws make it harder for them to get away with it.
Colorado decided tenants needed stronger protections. The expanded definition of normal wear and tear, the carpet age rule, the documentation requirements, all of these help level the playing field.
Landlords still have legitimate reasons to keep deposits. Unpaid rent, actual damage, those are fair. But now they have to prove it.
Frequently Asked Questions
Can my landlord charge more than two months’ rent as a security deposit?
No. Colorado law caps security deposits at two months’ rent for standard rentals. The only exception is mobile home parks, where the limit is one month’s rent.
What if my lease says I have to pay a non-refundable cleaning fee?
That clause is void and unenforceable as of January 1, 2026. Automatic cleaning fees are illegal. Your landlord can only deduct actual cleaning costs if you leave the place substantially dirtier than when you moved in.
Can my landlord charge me for carpet replacement if the carpet is 12 years old?
No. If the carpet hasn’t been replaced within the 10 years before your lease ended, the landlord cannot charge you for replacement. Even if you damaged it. Carpet older than 10 years is considered at the end of its useful life.
What happens if my landlord doesn’t return my deposit within 30 days?
They forfeit all rights to keep any portion of your deposit. You can demand the full amount back. If they refuse, you can sue for triple damages plus attorney fees.
Do I need to give my landlord notice before I sue?
Yes. You must send a written notice at least seven days before filing legal proceedings. This notice should state your intent to sue and demand return of the wrongfully withheld deposit.
Can my landlord deduct for normal wear and tear?
No. Colorado law explicitly prohibits deductions for normal wear and tear. This includes everyday deterioration like light carpet wear, minor paint scuffs, and general aging of the property.
What if damage existed before I moved in?
Your landlord cannot charge you for pre-existing damage. This is why move-in documentation is critical. Take photos and videos of any existing issues when you first move in.
Can I request to see documentation of charges?
Yes. You can request all documentation related to deposit deductions within 14 days. The landlord must provide photos, receipts, invoices, and estimates.
Final Thoughts
Colorado’s new security deposit laws are a win for tenants. They clarify what landlords can and can’t do. They expand protections against unfair charges. And they increase penalties for landlords who break the rules.
Know your rights. Document everything. Keep records. And don’t let landlords take advantage of you.
If your landlord wrongfully keeps your deposit, fight back. The law is on your side. With triple damages plus attorney fees at stake, many cases settle quickly.
Stay informed, protect yourself, and get your deposit back. You earned it.
References
- Colorado House Bill 25-1249: Tenant Security Deposit Protections – http://leg.colorado.gov/bills/HB25-1249
- Colorado Revised Statutes Section 38-12-103: Return of Security Deposit – https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.pdf
- Colorado Revised Statutes Section 38-12-102: Definitions – https://colorado.public.law/statutes/crs_38-12-102
- Colorado Judicial Branch: Security Deposits Legal Help – https://lawhelp.colorado.gov/security-deposits
- Otten Johnson Law: Changes to the Colorado Security Deposit Statute – https://www.ottenjohnson.com/news/changes-to-the-colorado-security-deposit-statute-to-take-effect-january-1-2026/