Colorado security deposit rules.
The Colorado rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Colo. Rev. Stat. §§ 38-12-102.5 to -104 · Not legal advice
How much can be charged
Capped at two months’ rent since August 7, 2023 (C.R.S. 38-12-102.5). From January 1, 2027 the cap does not apply where the landlord bought the home from the tenant and both signed a post-closing occupancy agreement (SB26-054).
When it has to come back
Default is one month after termination or surrender, whichever is later; a lease may extend this to 60 days. If a tenant leaves because a hazardous gas condition was not fixed within 72 hours, the deposit is due back within 72 hours. From January 1, 2026 (HB25-1249) landlords must hand over all retention documentation within 14 days of a request and cannot retain for normal wear and tear or pre-existing conditions.
Interest
No statewide interest requirement.
Where the money has to sit
No segregation requirement.
What catches operators out
- Wilful retention triggers treble damages plus attorney’s fees, after seven days’ written notice before suit.
- HB25-1249 (effective January 1, 2026): retaining 125% or more of actual damages is presumed unreasonable, carpet and paint deductions are limited, and documentation is due within 14 days of a request.
- A “mobile home” lease has its own statutory framework with different timelines.
What this looks like with Standby in Colorado.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Colorado law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Colorado. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.