Security deposit interest in Colorado
No — Colorado does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Colorado sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
30 days after the tenancy ends.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Colorado's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Colo. Rev. Stat. Sec. 38-12-101 to 38-12-104. Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Colorado law actually say?
Colorado does not require landlords to pay interest on residential security deposits. The statute contains no interest provision and imposes no escrow or separate account requirement, and there is no statutory cap on the deposit amount. Within one month after the lease ends or the tenant returns the property, the landlord must return the deposit or mail a written statement giving the exact reasons for retaining any part of it; a written lease may extend this to a maximum of 60 days.
The landlord need only send the refund or statement to the tenant's last known address, so tenants should provide a forwarding address on moving out. A landlord may not retain the deposit for normal wear and tear, meaning minor damage from ordinary intended use without negligence, carelessness, accident or abuse, but may retain it for unpaid rent, late fees, abandonment, utility bills, repairs, cleaning and other contractual fees such as attorney fees and court costs.
What if your landlord does not comply?
No interest obligation, so no interest penalty. If the landlord does not send the written statement within the deadline, the landlord forfeits the right to retain any part of the deposit. Wilful and wrongful retention makes the landlord liable for treble the amount wrongfully withheld, plus attorney fees and court costs. Before suing for treble damages the tenant must give the landlord at least seven days written notice of intent to sue. At trial the burden is on the landlord to prove the retention was not wrongful.