CHAPTER 13 - § 13.3 • SECURITY DEPOSITS

• Jurisdiction: Colorado

§ 13.3 • SECURITY DEPOSITS

§ 13.3.1—Definition

A security deposit is any advance or deposit of money, the primary function of which is to secure the performance of a rental agreement.

§ 13.3.2—Residential Security Deposits

Security deposits for residential premises are governed by C.R.S. §§ 38-12-101 through -105.

A residential landlord may retain the security deposit for nonpayment of rent, abandonment of the premises, nonpayment of utility charges, or repair work. A residential landlord may not retain the security deposit to cover normal wear and tear to the premises. The landlord also may not charge a tenant for normal cleaning unless expressly included in the lease. Normal wear and tear is defined as that deterioration that occurs based upon the use for which the rental unit is intended. C.R.S. § 38-12-102(4). Normal wear and tear does not include damage caused by the tenant's negligence, carelessness, accident, or abuse of the premises.

The burden is on the residential landlord to return the security deposit or justify the right to retain the security deposit. When a tenant terminates the lease or surrenders the premises, the landlord must, within one month or up to a maximum of 60 days, if specified in the lease, either return the full amount of the security deposit or give the tenant a written list of the damages caused by the tenant and the costs to repair. If the deposit is larger than the amount of damages listed, the landlord must return the difference with the notice. The landlord shall be deemed to have complied with the statute governing return of the security deposit by mailing said statement and any payment required to the last known address of the tenant. C.R.S. § 38-12-103(1). Failure of the landlord to make an accounting to the tenant as described above shall work as a forfeiture of all...