Navigating Security Deposits in Colorado
In the world of renting, security deposits are a nearly universal feature of all agreements. A security deposit is an amount of money charged at the beginning of the rental period for the purpose of covering costs related to damage and upkeep of the property following the end of the tenant’s lease. Colorado provides specific rules for how security deposits should be handled by landlords.
C.R.S. § 38-12-103 provides numerous rules for how these deposits should be handled.
- Within one month of either the termination of a lease or the surrender of a rented property, a landlord should either return the security deposit in full or provide the tenant with a written statement detailing the exact reasons for the retention of any part of the security deposit.
- Failure of the landlord to provide a statement detailing the reasons why the deposit was withheld will result in the landlord forfeiting the deposit.
- Normal wear and tear is not a valid reason for a landlord to retain a security deposit.
To prevent any misunderstandings or misapplication of the deposit, the landlord should have a tenant review the property for defects prior to their move-in date.
This process will help to record existing defects with the property so that they are not improperly attributed to the tenant.
If the tenant fails to record such defects, then the tenant may end up having their deposit retained for damage to the property which they did not cause.
For these reasons, it is in the best interest of both the landlord and tenant to fully document and record any preexisting damage upon the move-in date.
Secure your financial future today with our comprehensive guide on managing security deposits. Leverage our expertise as a leading Colorado HOA Lawyer at Baker Law Group.
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