Colorado Security Deposit Law

State of Colorado Security Deposit Law

ARTICLE 12

Tenants and Landlords

PART 1

SECURITY DEPOSITS - WRONGFUL WITHHOLDING

38-12-101.   Legislative declaration.
38-12-102.   Definitions.
38-12-103.   Return of security deposit.
38-12-104.   Return of security deposit - hazardous condition -
             gas appliance.
          
          
38-12-101.  Legislative declaration. The provisions of this part 1
shall be liberally construed to implement the intent of the general
assembly to insure the proper administration of security deposits
and protect the interests of tenants and landlords.
          
38-12-102.  Definitions. As used in this part 1, unless the context
otherwise requires:
               (1)  "Normal wear and tear" means that deterioration
which occurs, based upon the use for which the rental unit is
intended, without negligence, carelessness, accident, or abuse of
the premises or equipment or chattels by the tenant or members of
his household, or their invitees or guests.
               (2)  "Security deposit" means any advance or deposit
of money, regardless of its denomination, the primary function of
which is to secure the performance of a rental agreement for
residential premises or any part thereof.
          
38-12-102.  Definitions.
"Residential premise". A furnished condominium unit
containing complete sleeping and eating facilities and available
for short-term rentals is a "residential premise" subject to the
provisions of this act.
          
38-12-103.  Return of security deposit.
               (1) A landlord shall, within one month after the
termination of a lease or surrender and acceptance of the premises,
whichever occurs last, return to the tenant the full security
deposit deposited with the landlord by the tenant, unless the
lease agreement specifies a longer period of time, but not to
exceed sixty days.  No security deposit shall be retained to cover
normal wear and tear.  In the event that actual cause exists for
retaining any portion of the security deposit, the landlord shall
provide the tenant with a written statement listing the exact
reasons for the retention of any portion of the security deposit.
When the statement is delivered, it shall be accompanied by payment
of the difference between any sum deposited and the amount
retained.  The landlord is deemed to have complied with this
section by mailing said statement and any payment required to the
last known address of the tenant.  Nothing in this section shall
preclude the landlord from retaining the security deposit for
nonpayment of rent, abandonment of the premises, or nonpayment of
utility charges, repair work, or cleaning contracted for by the
tenant.
               (2)  The failure of a landlord to provide a written
statement within the required time specified in subsection (1) of
this section shall work a forfeiture of all his rights to withhold
any portion of the security deposit under this section.
               (3) (a)  The willful retention of a security deposit
in violation of this section shall render a landlord liable for
treble the amount of that portion of the security deposit
wrongfully withheld from the tenant, together with reasonable
attorneys' fees and court costs; except that the tenant has the
obligation to give notice to the landlord of his intention to file
legal proceedings a minimum of seven days prior to filing said
action.
                    (b)  In any court action brought by a tenant
under this section, the landlord shall bear the burden of proving
that his withholding of the security deposit or any portion of it
was not wrongful.
               (4)  Upon cessation of his interest in the dwelling
unit, whether by sale, assignment, death, appointment of a
receiver, or otherwise, the person in possession of the security
deposit, including but not limited to the landlord, his agent, or his executor, shall, within a reasonable time:
                    (a)  Transfer the funds, or any remainder after
lawful deductions under subsection (1) of this section, to the
landlord's successor in interest and notify the tenant by mail of
such transfer and of the transferee's name and address; or
                    (b)  Return the funds, or any remainder after
lawful deductions under subsection (1) of this section, to the
tenant.
               (5)  Upon compliance with subsection (4) of this
section, the person in possession of the security deposit shall be
relieved of further liability.
               (6)  Upon receipt of transferred funds under
subsection (4) (a) of this section, the transferee, in relation to
such funds, shall be deemed to have all of the rights and
obligations of a landlord holding the funds as a security deposit.
               (7)  Any provision, whether oral or written, in or
pertaining to a rental agreement whereby any provision of this
section for the benefit of a tenant or members of his household is
waived shall be deemed to be against public policy and shall be
void.
          
38-12-104.  Return of security deposit - hazardous condition - gas
appliance.
               (1)  Anytime service personnel from any organization
providing gas service to a residential building become aware of
any hazardous condition of a gas appliance, piping, or other gas
equipment, such personnel shall inform the customer of record at
the affected address in writing of the hazardous condition and take
any further action provided for by the policies of such personnel's
employer.  Such written notification shall state the potential
nature of the hazard as a fire hazard or a hazard to life, health,
property, or public welfare and shall explain the possible cause of
the hazard.
               (2)  If the resident  of the residential building is
a tenant, such tenant shall immediately inform the landlord of the
property or the landlord's agent in writing of the existence of the
hazard.
               (3)  The landlord shall then have seventy-two hours
excluding a Saturday, Sunday, or a legal holiday after the actual
receipt of the written notice of the hazardous condition to have
the hazardous condition repaired by a professional. "Professional"
for the purposes of this section means a person authorized by the
state of Colorado or by a county or municipal government through
license or certificate where such government authorization is
required.  Where no person with such government authorization is
available, and where there are no local requirements for government
authorization, a person who is otherwise qualified and who
possesses insurance with a minimum of one hundred thousand dollars
public liability and property damage coverage shall be deemed a
professional for purposes of this section. Proof of such repairs
shall be forwarded to the landlord or the landlord's agent.  Such
proof may also be used as an affirmative defense in any action to
recover the security deposit, as provided for in this section.
               (4)  If the landlord does not have the repairs made
within seventy-two hours excluding a Saturday, Sunday, or a legal
holiday, and the condition of the building remains hazardous, the
tenant may opt to vacate the premises.  After the tenant vacates
the premises, the lease or other rental agreement between the
landlord and tenant becomes null and void, all rights and future
obligations between the landlord and tenant pursuant to the lease
or other rental agreement terminate, and the tenant may demand the
immediate return of all or any portion of the security deposit held
by the landlord to which the tenant is entitled.  The landlord
shall have seventy-two hours following the tenant's vacation of the
premises to deliver to the tenant all of, or the appropriate
portion of, the security deposit plus any rent rebate owed to the
tenant for rent paid by the tenant for the period of time after the
tenant has vacated.  If the seventy-second hour falls on a
Saturday, Sunday, or legal holiday, the security deposit must be
delivered by noon on the next day that is not a Saturday, Sunday,
or legal holiday.  The tenant shall provide the landlord with a
correct forwarding address.  No security deposit shall be retained
to cover normal wear and tear.  In the event that actual cause
exists for retaining any portion of the security deposit, the
landlord shall provide the tenant with a written statement listing
the exact reasons for the retention of any portion of the security
deposit.  When the statement is delivered, it shall be accompanied
by payment of the difference between any sum deposited and the
amount retained.  The landlord is deemed to have complied with this
section by mailing said statement and any payments required by this
section to the forwarding address of the tenant.  Nothing in this
section shall preclude the landlord from withholding the security
deposit for nonpayment of rent or for nonpayment of utility
charges, repair work, or cleaning contracted for by the tenant.  If
the tenant does not receive the entire security deposit or a
portion of the security deposit together with a written statement
listing the exact reasons for the retention of any portion of the
security deposit within the time period provided for in this
section, the retention of the security deposit shall be deemed
willful and wrongful and, notwithstanding the provisions of
section 38-12-103 (3), shall entitle the tenant to twice the amount
of the security deposit and to reasonable attorney fees.