Starting January 1, 2026, Colorado landlords are operating under a meaningfully different set of security deposit rules. The ceiling is still up to two months' rent under CRS 38-12-102.5 — HB25-1249 didn't change that. What it did change: how wear and tear is defined, how fast deposits must come back, walk-through rights, and who has to prove deductions in a dispute.
1. The deposit ceiling is still two months' rent
Colorado still allows security deposits of up to two months' rent (CRS 38-12-102.5). That ceiling did not change under the enacted bill — an earlier draft that would have cut it to one month was stripped before passage. What did change is the return clock: by default, unused deposit and an itemized statement are due within 30 days after the tenancy ends (or up to 60 days if your lease says so). Get that timeline into your lease and your move-out checklist now.
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.
Colorado security deposit FAQ
How much can a Colorado landlord charge for a security deposit?
Up to two months' rent. That ceiling comes from CRS 38-12-102.5 and did not change under HB25-1249.
How long does a landlord have to return a security deposit in Colorado?
For tenancies ending on or after January 1, 2026, the deposit (or the balance after lawful deductions) is due within 30 days after the lease ends or the tenant surrenders the unit, whichever is later. The lease can set a longer period, but never more than 60 days.
What has to be included if part of the deposit is kept?
A written, itemized statement listing the exact reasons for each deduction, delivered together with any remaining balance. Deductions can't cover normal wear and tear or damage that existed before the tenancy began.
Can a tenant ask for a walk-through and see the photos and receipts?
Yes. Either side can request a move-out walk-through, in person or by live video, to note damage beyond normal wear and tear in writing. And if a tenant makes a written request within 14 days after receiving the deposit statement, the landlord must provide the relevant photos, inspection reports, receipts, invoices, or estimates.
Can the deposit statement and refund be sent by email?
The statement and documentation can go to the tenant's last-known mailing address or to any email address the landlord knows the tenant uses. The refund itself can be mailed, or sent by secure electronic transfer if the tenant agrees.