Colorado rewrote its security deposit law for tenancies ending on or after January 1, 2026. Denver renters now have a 30 day refund deadline in most cases, a right to a move out walk through, a right to see the documents behind every deduction, and triple damages when money is wrongfully kept. In the city of Denver, about 171,900 of 335,400 occupied homes, or 51.2 percent, are rented, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Denver dataset, Table B25003). The median gross rent is $1,831 a month (Homzora Denver dataset, Table B25064), and the median renter household earns $71,437 a year (Homzora Denver dataset, Table B25119), so the median rent equals about 31 percent of the median renter household’s gross income.
This guide explains the current rules in plain English, with each rule linked to the statute it comes from.
Homzora is a housing research publisher, not a law firm. This article explains the law in plain English and is not legal advice for your situation.
Quick answers
- Cap: no more than two months’ rent (C.R.S. § 38-12-102.5).
- Refund deadline: 30 days after the lease ends or you surrender the unit, whichever is later; a lease may extend this to no more than 60 days (C.R.S. § 38-12-103).
- Walk through: either party may request one before the tenancy ends (C.R.S. § 38-12-103).
- Proof of deductions: the landlord must provide photos, receipts, invoices, or estimates within 14 days of your written request (C.R.S. § 38-12-103).
- Penalty: three times the amount wrongfully withheld, plus attorney fees and court costs, after a 7 day demand (C.R.S. § 38-12-103).
- Pet deposit: no more than $300, and it must be refundable (C.R.S. § 38-12-106).
How much a Denver landlord can charge
A landlord may not require a security deposit greater than two monthly rent payments (C.R.S. § 38-12-102.5). At Denver’s median gross rent of $1,831, that means a deposit of no more than $3,662. A separate pet deposit is capped at $300 and must be refundable, and monthly pet rent is limited to the greater of $35 or 1.5 percent of the monthly rent (C.R.S. § 38-12-106).
The 2026 changes
House Bill 25-1249 amended the deposit statute for conduct on or after January 1, 2026 (Colorado Division of Real Estate, HB25-1249 summary). The Colorado Division of Real Estate summarizes the main changes as a 30 day return deadline with a lease able to extend it to as long as 60 days, a walk through that either party can request, documentation of deductions on request, a presumption of bad faith for large overcharges, and a 60 day deadline to transfer deposits when a property is sold (Colorado Division of Real Estate, HB25-1249 summary).
The refund deadline
The landlord must return the full deposit, or give you a written statement listing the exact reasons for keeping any part of it together with the balance, within 30 days after the lease ends or you surrender the premises, whichever is later. A lease may set a longer period, but no more than 60 days (C.R.S. § 38-12-103).
The refund can be sent to your last known address or to an email address the landlord knows, and with your consent it can be paid by secured electronic transfer (C.R.S. § 38-12-103). If a refund is returned undelivered, the landlord must hold it for at least one year and pay it within 15 calendar days after you ask (C.R.S. § 38-12-103).
What can be deducted
A landlord may deduct unpaid rent, unpaid utilities, other lawful charges in the lease, and the cost of necessary repairs for damage beyond normal wear and tear that did not exist before your tenancy. No deduction is allowed for normal wear and tear or for damage that existed before you moved in (C.R.S. § 38-12-103).
Carpet and paint
A landlord may keep deposit money to replace carpet or repaint the whole unit only for substantial damage beyond normal wear and tear that cannot be repaired. Carpet that was not replaced in the 10 years before your lease ends cannot be treated as substantially damaged (C.R.S. § 38-12-103).
Void lease clauses
A lease clause that waives these protections, or that charges you for normal wear and tear or preexisting damage, is void (C.R.S. § 38-12-103).
The walk through
If either party asks, and it is reasonable and practicable, there must be a walk through of the unit, in person or by video. When the tenant asks, the landlord must hold it at a mutually convenient time before the tenancy ends, after the tenant has had a chance to remove furniture and belongings (C.R.S. § 38-12-103). Ask in writing a few weeks before you move out, and take your own photos and video during the walk through.
Your right to see the evidence
Within 14 days after you ask in writing, the landlord must give you the documentation behind any deduction, such as photos, inspection reports, receipts, invoices, or estimates (C.R.S. § 38-12-103). Asking for this documentation is often the fastest way to resolve a disputed charge.
Penalties for wrongful withholding
A landlord who does not comply with the statute loses the right to keep any part of the deposit (C.R.S. § 38-12-103). If a landlord willfully and wrongfully keeps money, the tenant may recover three times the amount wrongfully withheld, plus reasonable attorney fees and court costs, and the landlord has the burden of proving the withholding was not wrongful (C.R.S. § 38-12-103).
The 7 day demand
Before filing suit, you must give the landlord a demand and notice of your intent to sue at least 7 days in advance. Triple damages apply only if the landlord does not return the amount within those 7 days (C.R.S. § 38-12-103).
The 125 percent presumption
Keeping an amount equal to 125 percent or more of the landlord’s actual damages is presumed to be unreasonable, and a court may still find a smaller excess unreasonable. The landlord must prove its actual damages (C.R.S. § 38-12-103).
When the building is sold
When a rental changes hands, whoever holds the deposit has 60 days to either transfer it to the new owner and mail notice to the tenant, or return it to the tenant less lawful deductions (C.R.S. § 38-12-103). If your building is sold, ask the new owner in writing to confirm the amount it holds for you.
A special rule for gas hazards
If a landlord fails to repair a hazardous gas condition within 72 hours, not counting weekends and holidays, the tenant may leave and the lease becomes void. The landlord must then return the deposit within 72 hours, and a failure to do so is treated as willful, allowing the tenant to recover double the deposit plus attorney fees (C.R.S. § 38-12-104).
A worked example
Suppose you paid a deposit of $1,831, one month at the Denver median. You move out on June 30 after a walk through, and on August 15 you have received nothing. The 30 day deadline has passed (C.R.S. § 38-12-103). You send a written demand giving the landlord 7 days. If the landlord still keeps $600 without lawful basis, a court could award three times that amount, or $1,800, plus attorney fees and costs (C.R.S. § 38-12-103).
A sample demand letter
Date: 2026. To: [landlord]. Re: Security deposit for [address]. My tenancy ended and I surrendered the unit on 2026. Under C.R.S. Section 38-12-103, my deposit, or a written statement of the exact reasons for any amount kept, was due within [30 days or the period in my lease, up to 60]. [I have received neither.] [I dispute these deductions: (list).] Please also send the documentation for each deduction. This is my demand and notice of intent to file suit. If [amount] is not returned within 7 days, I intend to seek three times the amount wrongfully withheld, plus attorney fees and costs. Sincerely, [name], [forwarding address].
Denver rules every renter should know
- Written lease: since January 1, 2022, Denver requires a signed written lease before a tenant has lived in a unit for more than 30 days, with a copy to the tenant within 7 days (City and County of Denver, Eviction Help).
- Tenant Rights and Resources Notice: landlords must provide it at lease signing and with any demand for rent (City and County of Denver, Eviction Help).
- Rental license: anyone renting residential property in Denver for 30 days or more needs a residential rental license, and the license number must appear in advertisements (City and County of Denver, Residential Rental Property License).
- No lockouts: only the sheriff may carry out an eviction, and only after a court order (City and County of Denver, Eviction Help).
Key terms
- Surrender: returning possession of the unit, which can start the refund clock.
- Normal wear and tear: ordinary deterioration from everyday use, which cannot be deducted.
- Wrongful withholding: keeping money without lawful basis, which can trigger triple damages (C.R.S. § 38-12-103).
- Walk through: the joint inspection either side may request before the tenancy ends.
Build your evidence file
Landlord and tenant disputes are usually decided by documents. Keep these together from the day you sign:
- The signed lease, every addendum, and every renewal.
- Receipts or bank records for the deposit and each rent payment.
- Dated photos and video of every room at move in and move out.
- Copies of every repair request and the landlord’s replies.
- Every notice you send or receive, with proof of delivery.
Keep copies somewhere other than your phone, such as an email to yourself, so they survive a lost device.
Before you sign your next lease
- Ask who owns and who manages the property, and get contact details in writing.
- Read the clauses on early termination, subletting, renewal, late fees, and notice before you sign.
- Confirm the deposit amount, where it will be held, and how it will be returned.
- Walk through the unit, note existing damage in writing, and keep a signed copy.
- Ask how much notice the landlord gives before a rent increase or a non renewal.
Help in Denver
Colorado Legal Services provides free civil legal help to eligible residents, including on evictions, rent increases, lockouts, security deposits, and unsafe conditions (Colorado Legal Services). The City and County of Denver pays for lawyers in eviction cases for households at or below 80 percent of area median income, runs a free eviction clinic, and lists Colorado Housing Connects, a free landlord and tenant counseling line, at 1.844.926.6632 (City and County of Denver, Eviction Help). Rent, income, and tenure figures for this guide are free to download from the Homzora Denver data library.
Frequently asked questions
How long does my Denver landlord have to return my deposit?
Thirty days after the lease ends or you surrender the unit, whichever is later, unless your lease sets a longer period of no more than 60 days (C.R.S. § 38-12-103).
Can my landlord charge me for painting after I lived there five years?
Only for substantial damage beyond normal wear and tear that cannot be repaired (C.R.S. § 38-12-103).
Is there a limit on deposits?
Yes. Two months’ rent, plus a refundable pet deposit of no more than $300 (C.R.S. § 38-12-102.5; C.R.S. § 38-12-106).
Do I have to warn my landlord before suing?
Yes. Give a written demand and notice of intent to sue at least 7 days before filing to preserve your claim for triple damages (C.R.S. § 38-12-103).
Sources
- Homzora Denver dataset, Table B25003
- Homzora Denver dataset, Table B25064
- Homzora Denver dataset, Table B25119
- C.R.S. § 38-12-102.5
- C.R.S. § 38-12-103
- C.R.S. § 38-12-106
- Colorado Division of Real Estate, HB25-1249 summary
- C.R.S. § 38-12-104
- City and County of Denver, Eviction Help
- City and County of Denver, Residential Rental Property License
- Colorado Legal Services
- Homzora Denver data library