How Long Does a Landlord Have to Return a Deposit in Colorado?
In Colorado, a landlord has 30 days or 60 days (lease specifies a longer period (statute max 60 days)) to return a security deposit. The deadline is measured from this trigger: 30 days: Termination of the lease or surrender and acceptance of the premises, whichever occurs last; 60 days (lease specifies a longer period (statute max 60 days)): Termination of the lease or surrender and acceptance of the premises, whichever occurs last. The verified penalty formula is Treble (3x) the amount of the security deposit portion wrongfully withheld, plus reasonable attorney fees and court costs. As of the 2026 amendment (HB25-1249), 'willful' retention was replaced with 'wrongful' retention as the trigger (C.R.S. 38-12-103(3)(a)), and a landlord is deemed to have wrongfully withheld a deposit if the landlord: (a) fails to timely provide the written statement/documentation, (b) provides a statement that fails to list exact reasons, (c) fails to return the difference owed within the deadline, or (d) retains the deposit 'in bad faith' (defined in new subsection (3.5) as retaining an amount that unreasonably exceeds actual damages - presumed if 125%+ of actual damages - retained without actual cause, an amount the landlord knew/should have known exceeded actual damages, or retained for an unlawful/retaliatory/discriminatory purpose). Tenant must first give the landlord written notice/demand and 7 days' notice of intent to sue before filing; treble damages/attorney fees are only recoverable if the landlord fails to return the full deposit or withheld portion within 7 days of that demand (new subsection (3)(c)). If a landlord retained in good faith, complied with all requirements, but a court finds the retained amount exceeded actual damages, liability is limited to the excess amount plus court costs only (no treble damages) - new subsection (3.5)(d)..
Key facts
| Deadline | 30 days; trigger: Termination of the lease or surrender and acceptance of the premises, whichever occurs last |
|---|---|
| Deadline (branch 2) | 60 days (lease specifies a longer period (statute max 60 days)); trigger: Termination of the lease or surrender and acceptance of the premises, whichever occurs last |
| Penalty formula | Treble (3x) the amount of the security deposit portion wrongfully withheld, plus reasonable attorney fees and court costs. As of the 2026 amendment (HB25-1249), 'willful' retention was replaced with 'wrongful' retention as the trigger (C.R.S. 38-12-103(3)(a)), and a landlord is deemed to have wrongfully withheld a deposit if the landlord: (a) fails to timely provide the written statement/documentation, (b) provides a statement that fails to list exact reasons, (c) fails to return the difference owed within the deadline, or (d) retains the deposit 'in bad faith' (defined in new subsection (3.5) as retaining an amount that unreasonably exceeds actual damages - presumed if 125%+ of actual damages - retained without actual cause, an amount the landlord knew/should have known exceeded actual damages, or retained for an unlawful/retaliatory/discriminatory purpose). Tenant must first give the landlord written notice/demand and 7 days' notice of intent to sue before filing; treble damages/attorney fees are only recoverable if the landlord fails to return the full deposit or withheld portion within 7 days of that demand (new subsection (3)(c)). If a landlord retained in good faith, complied with all requirements, but a court finds the retained amount exceeded actual damages, liability is limited to the excess amount plus court costs only (no treble damages) - new subsection (3.5)(d). |
| Bad faith required | Yes |
| Statute citation | C.R.S. 38-12-103 and 38-12-104 (Colorado Security Deposit Refund Act, Title 38, Article 12, Part 1); as amended by HB25-1249, effective January 1, 2026 |
Statute says
"A landlord shall, within THIRTY DAYS after the termination of a lease or surrender OF A premises, whichever occurs last, return to the tenant the full security deposit deposited with the landlord by the tenant, unless the lease agreement specifies a longer period of time, but not to exceed sixty days. A security deposit shall NOT be retained to cover normal wear and tear OR FOR ANY DAMAGE OR DEFECTIVE CONDITION THAT PREEXISTED THE TENANCY... The WRONGFUL retention of a security deposit in violation of this section RENDERS a landlord liable for treble the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorney fees and court costs; except that the tenant SHALL NOTIFY the landlord of THE TENANT'S DEMAND FOR THE RETURN OF THE SECURITY DEPOSIT AND intention to file legal proceedings AT LEAST seven days BEFORE filing THE action."
What this means
Read the deadline, trigger, and penalty together. Match the date you can prove to the trigger above, then compare the landlord's response to the rule in C.R.S. 38-12-103 and 38-12-104 (Colorado Security Deposit Refund Act, Title 38, Article 12, Part 1); as amended by HB25-1249, effective January 1, 2026.
FAQ
Does Denver have its own security deposit law?
No separate city security-deposit ordinance is listed in the verified data. Check the applicable Colorado law and local rules.
What happens if a landlord misses the Colorado deposit deadline?
The verified penalty formula is Treble (3x) the amount of the security deposit portion wrongfully withheld, plus reasonable attorney fees and court costs. As of the 2026 amendment (HB25-1249), 'willful' retention was replaced with 'wrongful' retention as the trigger (C.R.S. 38-12-103(3)(a)), and a landlord is deemed to have wrongfully withheld a deposit if the landlord: (a) fails to timely provide the written statement/documentation, (b) provides a statement that fails to list exact reasons, (c) fails to return the difference owed within the deadline, or (d) retains the deposit 'in bad faith' (defined in new subsection (3.5) as retaining an amount that unreasonably exceeds actual damages - presumed if 125%+ of actual damages - retained without actual cause, an amount the landlord knew/should have known exceeded actual damages, or retained for an unlawful/retaliatory/discriminatory purpose). Tenant must first give the landlord written notice/demand and 7 days' notice of intent to sue before filing; treble damages/attorney fees are only recoverable if the landlord fails to return the full deposit or withheld portion within 7 days of that demand (new subsection (3)(c)). If a landlord retained in good faith, complied with all requirements, but a court finds the retained amount exceeded actual damages, liability is limited to the excess amount plus court costs only (no treble damages) - new subsection (3.5)(d).. Keep the move-out date, forwarding address records, and any itemized statement before you act.
Does a demand letter change the legal deadline?
No. The deadline is still 30 days or 60 days (lease specifies a longer period (statute max 60 days)). The deadline trigger is 30 days: Termination of the lease or surrender and acceptance of the premises, whichever occurs last; 60 days (lease specifies a longer period (statute max 60 days)): Termination of the lease or surrender and acceptance of the premises, whichever occurs last. A letter documents the timeline and asks the landlord to resolve the deposit before the next step.
If the deadline passed
Send the letter that starts the clock and keeps the demand tied to the verified Colorado deadline.
build a Colorado demand letter
If the landlord stays silent, review landlord ignoring the deadline before choosing the next step.