Colorado Security Deposit Return Deadline & Penalty Calculator
Thursday, November 12, 2026
Computed as 30 calendar days under C.R.S. §§ 38-12-101 – 38-12-104.
Colorado Small Claims Court cap: $7,500 — eligible for Small Claims Court filing.
Colorado Security Deposit Rules at a Glance (C.R.S. §§ 38-12-101 – 38-12-104)
1 month (30 calendar days) after termination of the lease or surrender and acceptance of the premises under C.R.S. § 38-12-103. The lease agreement may extend this return period up to a maximum of 60 calendar days.
| Deadline (No Deductions) | 30 calendar days |
|---|---|
| Deadline (With Itemized Deductions) | 30 calendar days |
| Maximum Deposit Cap | Strictly capped at 2 months' rent maximum under Colorado House Bill 23-1099 (effective August 2023 for all residential leases statewide). |
| Bad-Faith / Late Penalty | Under C.R.S. § 38-12-103(2), failure to return the deposit or provide the itemized list within the deadline forfeits all rights to withhold any part of the deposit. Under § 38-12-103(3), willful retention after a mandatory 7-day demand letter makes the landlord liable for treble (3x) the amount wrongfully withheld, plus reasonable attorney's fees. |
| Deposit Interest Rule | Not mandated under Colorado state law; however, municipal housing codes in Boulder strictly require landlords to pay annual interest on residential security deposits. |
| Small Claims Court Limit | $7,500 |
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Key Colorado Statutory Nuances & Documentation Rules
- Mandatory 7-Day Demand Letter Before Treble Damages (C.R.S. § 38-12-103(3)): Before filing a lawsuit for triple damages, the tenant must deliver a formal written 7-day demand notice warning the landlord that treble damages will be sought if the deposit is not returned within 7 days.
- 60-Day Lease Extension Allowed: Colorado allows landlords to insert a clause in the lease extending the 30-day return window up to 60 calendar days (cannot exceed 60 days).
- Statutory Cap of 2 Months' Rent: Effective August 2023, Colorado landlords cannot charge more than 2 months' rent for residential security deposits.
- Boulder Municipal Escrow & Interest: In the City of Boulder, landlords must place deposits in an insured bank and pay annual interest set by the City Manager.
Denver Apartment Move-Out Past 30 Days with 7-Day Demand
A tenant moves out of a Denver apartment on July 31, 2026 under a standard lease with no 60-day extension clause. Under C.R.S. § 38-12-103, the 30-day deadline expires on August 30, 2026 (rolling to Monday, August 31, 2026). If the landlord withholds $1,100 without delivering an itemized accounting by August 31, the landlord forfeits all deduction rights. The tenant sends the statutory 7-day demand letter; if the landlord fails to pay within 7 days, the tenant can sue in Colorado Small Claims Court (limit $7,500) for treble damages of $3,300 (3x $1,100) plus reasonable attorney's fees.
Colorado Security Deposit Return FAQs
How long does a Colorado landlord have to return a security deposit?
Under Colorado Revised Statutes (C.R.S.) § 38-12-103(1), the statutory default deadline is one month (30 calendar days) after termination of the lease or surrender of the premises, unless the lease specifies a longer period not to exceed 60 calendar days.
What is the 7-day demand notice requirement in Colorado?
Under C.R.S. § 38-12-103(3), a tenant must provide the landlord with a written notice at least 7 days before filing a lawsuit, stating their intention to file legal proceedings for treble damages. If the landlord fails to refund the deposit within those 7 days, treble damages may be awarded.
What is the penalty if a Colorado landlord wrongfully withholds a deposit?
Under C.R.S. § 38-12-103(3), willful retention of a security deposit after the statutory notice entitles the tenant to treble (3x) the amount of the deposit wrongfully withheld, plus reasonable attorney's fees and court costs.
What is the maximum security deposit allowed in Colorado?
Under Colorado law (HB 23-1099), landlords cannot demand or collect a security deposit that exceeds the amount of two months' rent.