Consumer Affairs FAQ

5. Colorado law requires that the landlord send the security deposit or an itemized statement of the deductions and the balance of the deposit, if any, to the tenant within one month after the termination of the lease or after the tenant moves out of the premises, whichever occurs last. The time period may be extended up to 60 days if specified in the lease.

If the landlord fails to provide a written statement of deductions and the balance of the deposit within the specified time period, the landlord forfeits the right to withhold any portion of the security deposit. However, the landlord still has the right to pursue any unpaid rent, damage to the property or any bills owed by the tenant.

If a tenant does not receive the security deposit or an itemized list of deductions, or the tenant disagreed with the deductions made, the tenant must send a "seven-day demand letter" which should state that the tenant will sue the landlord for three times the amount of the deposit if the deposit is not returned within seven days of the receipt of the letter. The letter should be sent by certified mail. At the end of the seven days, the tenant may sue the landlord.