The state of Colorado has recently enacted new laws and regulations regarding security deposits and renter fees. Here is a comprehensive summary of Colorado security deposit law.
What is the security deposit amount the landlord can collect?
As of August 2023, Colorado caps security deposit at two months’ rent to protect your property in the event of damages and unpaid rent. This does not include mobile home parks for which there is a one- or two-month security deposit limit depending on whether it is a multi-wide unit or not.
Can the property manager/owner collect a fee for pets?
A pet deposit separate from the apartment security deposit is allowed in the state of Colorado. Service pets are an exemption, and disabled persons with service pets do not have to pay an additional security deposit. However, if a service dog causes damages, the renter is still liable for covering costs incurred.
How does the security deposit need to be held?
There are no regulations requiring how a security deposit needs to be held in the state of Colorado.
Colorado law doesn’t require landlords to pay interest on security deposits. However, there are local ordinances in some Colorado cities that have specific rules. For example, Boulder has specific security deposit interest requirements for rental licenses.
Is the property manager/owner required to tell the resident where the deposit is held?
Colorado security deposit law does not require property managers to tell residents where the security deposit is held.
What can the property manager/owner deduct from the security deposit?
Property owners operating in Colorado may use the security deposit for various things, including unpaid rent or utilities, repairs to the unit, unpaid cleaning services, and property abandonment. The security deposit cannot be used for normal wear and tear repairs.
How long does the property manager/owner have to return the security deposit after the lease has ended?
Colorado security deposit law states that property managers must return the security deposit within two months from the lease termination or when the renter leaves the property (the latter of the two) unless otherwise written in the rental agreement.
In the event that a renter vacates the premises due to a property owner’s failure to repair hazardous items, the security deposit must be returned within 72 hours of the tenant vacating the property.
What penalties does the property manager/owner face if they do not return the security deposit on time?
Property owners in Colorado that do return the security deposit on time, do not provide an itemized list of deductions, or have failed to repair hazardous may be fined up to triple the amount of the security charges plus court and attorney fees.
What is the process for the property manager/owner to claim the security deposit funds?
Property managers in Colorado who want to claim a part of the security deposit or the entire security deposit must mail a written notice and return the security deposit remainder (after additional costs have been incurred, if any). The security deposit remainder must include an itemized list of the deductions.
Can the resident apply their security deposit towards last month’s rent?
Residents in the state of Colorado cannot choose to use the security deposit for their last month’s rent, unless the property owner agrees upon it in writing.
Summary of the Housing Bills Enacted in the 2023 Regular Session of the Colorado General Assembly
SB23-184: Protections For Residential Tenants
Main Provisions:
- Landlords, with exceptions, are restricted from considering or inquiring about certain information related to a prospective tenant’s amount of income and credit history.
- A prospective tenant’s required annual income cannot exceed 200% of the annual cost of rent.
- Penalties for violating the new prohibitions are introduced.
- Security deposits can’t exceed the amount of 2 monthly rent payments.
- In eviction proceedings, tenants can assert as an affirmative defense that their landlord has violated specific state laws concerning unfair housing practices.
Effective Date: August 7, 2023
HB23-1095: Prohibited Provisions In Rental Agreements
Main Provisions:
- Amends existing law by prohibiting rental agreements from including any clause that assigns a penalty for eviction notices or actions resulting from rental agreement violations.
- Any fee-shifting clause must be reasonable and awarded to the prevailing party in court disputes.
- Prohibits rental agreements from waiving various rights, including the right to a jury trial and specific class or collective actions.
- Rental agreements cannot include specific fees, penalties, or provisions related to nonrenewal notices or define other fees as “rent.”
- Introduces provisions regarding third-party services and utility payments under subsidy programs.
- Specifies mobile homes, duplexes, triplexes, and primary residence considerations exceptions.
Effective Date: August 7, 2023
Disclaimer & Sources:
Qira aims to keep this information as up-to-date as possible. The content provided here is informational and should not replace legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.
