Colorado Security Deposit Rules for Renters: Caps and Deadlines
Colorado limits how much a landlord can collect as a security deposit and when it must be returned. Knowing these rules helps you check your deposit statement after you move out.
Colorado security deposit rules limit how much a landlord can collect from you at the start of a lease. [1] A security deposit is money held to secure the rental agreement for a residential property. [2] Colorado caps the deposit at one month's rent in most cases. [1] For example, if your rent is $1,000 a month, the deposit can be no more than $1,000. [1] The rules were updated by HB25-1249, which took effect January 1, 2026. [3] For a closer look, read Average Rent in Fort Collins, CO: What the Numbers Mean.
This article walks through the deposit cap, what a landlord may deduct, and the deadlines for getting your money back. Each part explains what the law says and what it means for your lease, so you know what to expect before you sign or move out.
How much can a landlord charge for a deposit?
Colorado caps a security deposit at one month's rent. [1] A landlord cannot require more than that, even if you agree to pay it. [1] For the next step, see Income Needed to Rent in Fort Collins: A Worked Example.
The one-month limit
The cap is the most a landlord can collect for the deposit at move-in, so it sets the limit on your upfront cash. The landlord can collect up to $1,000 as a deposit, and anything above that is over the legal limit. [1]
The rule also covers application pressure. Asking for a larger deposit to approve your application is not allowed. [1]
The unfurnished exception
The one exception is an unfurnished rental. In that case, the landlord can collect up to 1.5 times the monthly rent. [1]
On a $1,000 unfurnished unit, that works out to up to $1,500 at move-in. That is $500 more than the standard cap for a furnished home at the same rent. [1]
Check the amount in your lease
The deposit amount should appear in your lease, so find that figure before you sign. Compare it with the monthly rent and whether the home is furnished. If the deposit is more than one month's rent on a furnished unit, or more than 1.5 times the rent on an unfurnished one, it is above the Colorado limit.
If the number is higher than the cap, raise it with the landlord before you sign, while the lease can still change.
When must your deposit be returned?
Your landlord must return your security deposit within 30 days after your lease ends or after you return the property. [2] That 30-day window is the default, and a written lease can lengthen it, but only up to 60 days. [2]
Counting the 30 days
The clock starts when the tenancy ends, which is usually the day you return the property. Suppose your lease ends on June 30. Thirty days later is July 30, and that is the day the landlord's deadline falls. [2]
Keep proof of the move-out date, such as a dated text message, an email, or a signed key receipt. If the deadline passes without a refund, that date is what you will point to when you follow up.
When your lease can change the deadline
A written lease may extend the return period, but not beyond 60 days. [2] The revised statute puts it the same way: the lease can set a different period, and that period cannot exceed 60 days. [3]
The return clause replaces the 30-day default, so it controls your deadline. A lease that says nothing about timing leaves the 30-day rule in place. [3] For example, a lease that sets 60 days moves the same June 30 move-out to August 29, the latest date the lease can allow. [2]
If the landlord keeps part of the deposit
The landlord still has to act within the same window. Either the full deposit comes back, or you receive a written statement of the exact reasons for any amount kept. [2]
A statement that lists exact reasons lets you compare each deduction against your own records. A vague note that says only "cleaning" or "damage" gives you little to answer. Keep that statement with your lease and move-out photos, because those papers are what you will use if you dispute the amount.
What can a landlord deduct from the deposit?
Your landlord can keep part of your deposit for three kinds of problems: unpaid rent, unpaid utilities, and damage beyond normal wear and tear. Anything outside those three reasons is not a valid deduction. [4]
Reasons a landlord can keep money
Unpaid rent and unpaid utilities are the most common deductions. The Colorado statute allows a landlord to keep the deposit for nonpayment of rent and nonpayment of utility charges. [2] If you did not pay all of the utilities, the landlord can keep the amount you owe. [4]
Damage is the second category. If you damaged the rental unit beyond normal wear and tear, the landlord can keep money to repair it. [4] A hole punched in a wall or a cracked window is damage. Faded paint from years of living in the unit is wear.
Moving out early is also a permitted reason to deduct. [4] For example, if you leave in the fourth month of a twelve-month lease, the landlord may deduct for that.
What a landlord cannot deduct
Normal wear and tear is off limits. A landlord cannot keep the security deposit to cover normal wear and tear. [2] Worn carpet or scuffed paint from everyday use falls into this group, so the landlord cannot take it from your deposit.
Damage that was already there before you moved in is also off limits. Landlords may not keep money for any damage or defective condition that preexisted the tenancy. [3] For example, a stain that was already on the carpet when you moved in cannot be charged to you. [3]
If a deduction covers wear or old damage, you can push back on it. Your lease, move-in records, and move-out photos show what the unit looked like at each point.
What if your landlord does not return the deposit?
If your landlord has not returned your deposit, or has not sent a written list of reasons for keeping part of it, start with a seven-day demand letter. Your letter should cite the 30-day return rule, state the date you moved out, and name the amount you are owed. You can write a seven-day demand letter, and, if the landlord does not send you the full amount of the security deposit within the seven days, you can sue them in court. [4]
How to send the letter
The law requires that the seven-day demand letter be sent by first class mail. [4] Send a copy by certified mail, return receipt requested, too. [4] The green return receipt shows your landlord received the letter and when, so keep it with your copy of the letter.
Why the letter matters
A landlord who misses the deadline or does not list the reasons for withholding loses the right to keep any part of the deposit. [4] You can then sue for three times the amount wrongfully withheld. [4] For example, if $1,000 was kept without a valid reason, a court could award up to $3,000 under that rule.
Gather your proof first
Keep your move-out photos, your lease, and proof of rent and utility payments. Photos show the unit's condition when you left, so you can compare them with any damage the landlord lists. The lease shows the deposit amount and return terms, and payment records answer any claim that you owed rent or utilities.
Where to get help
Colorado Legal Services publishes a page titled "Legal Help for Security Deposit Issues in Colorado." [4] Colorado Law Help also covers security deposits and points to Colorado Revised Statutes § 38-12-103 for landlord liability when a deposit is not returned. [2] Read both before you send your letter, so your demand cites the right rules.
What to do next with your lease
Confirm the deposit amount in your lease before you pay it. Colorado law caps the security deposit at one month's rent [1]. If the unit is unfurnished, the landlord can collect up to 1.5x the monthly rent [1]. On $1,000 rent, that means up to $1,000 for a furnished unit and up to $1,500 for an unfurnished one [1].
Next, find the return date in your lease and put it on your calendar, so you know when the money should come back. If you want the default timeline, landlords must return the deposit within 30 days after the tenancy ends and you have vacated the unit [1]. The one thing to remember is that the deposit has a cap, and the return clock starts when you move out.