Starting January 1, 2026, Colorado landlords are operating under a meaningfully different set of security deposit rules. HB25-1249 didn't just tweak the numbers — it rewrote what counts as "normal wear and tear," shifted the burden of proof onto landlords, and added real financial teeth for landlords who get it wrong.
1. The deposit cap dropped to one month's rent
Previously, Colorado landlords could ask for up to two months' rent as a security deposit. Under HB25-1249, one month's rent is now the ceiling, full stop — regardless of what your lease template still says.
2. "Normal wear and tear" now explicitly includes ordinary uncleanliness
The new statutory definition covers deterioration, damage, or uncleanliness that occurs through reasonable, typical use — not just physical wear. It stops short of covering a unit left substantially less clean than its move-in condition, so a genuinely trashed unit is still fair game. But routine end-of-tenancy grime — the kind every rental accumulates — no longer supports a deduction.
3. You now carry the burden of proof
If a tenant disputes a deduction in court, it's the landlord's job to prove the actual dollar amount of the damage — not the tenant's job to disprove it. Photos, invoices, and dated records aren't optional anymore; they're what stands between you and a judgment against you.
4. Overcharging is now "bad faith" — with a bright line
Retain 125% or more of your actual, provable damages, and the law presumes bad faith. That opens the door to penalties beyond simply having to return the money, so guessing high "just in case" is now a real liability, not a safe default.
5. Tenants can request a walkthrough inspection
Tenants now have a right to request a move-out walkthrough, and landlords generally can't charge for damage that wasn't documented at that inspection. Skipping the walkthrough, or doing it without the tenant present when they've asked for one, weakens your position if a dispute follows.