Statewide cap established by SB23-184, subject to statutory exceptions.
The lease may specify a longer period, but not more than 60 days.
The 2026 act expressly bars retention for normal wear and damage or defective conditions that preexisted the tenancy.
If reasonable and practicable, the parties conduct an inspection under the 2026 process.
Permitted categories of retention
- Nonpayment of rent or abandonment.
- Nonpayment of utility charges, repair work, or cleaning contracted for by the tenant.
- Nonpayment of other lawful charges listed in the lease.
- Necessary repair work for damage or defective conditions that exceed normal wear and tear and did not preexist the tenancy.
The statement must be specific
When actual cause exists to retain any portion of the deposit, Colorado requires a written statement listing the exact reasons for the retention and return of the difference between the deposit and the amount retained, together with any documentation required by the statute.
2026 protections apply to current conduct
HB25-1249 states that its changes take effect January 1, 2026 and apply to conduct occurring on or after the applicable effective date.
Official sources
Official enacted-bill page summarizing Colorado’s 2026 security-deposit changes, inspections, documentation, carpet, paint and wrongful-withholding rules.
Colorado General AssemblyHB25-1249 Enrolled Act ↗Primary enrolled act amending C.R.S. §§ 38-12-102 and 38-12-103, effective January 1, 2026.
Colorado General AssemblySB23-184 — Protections for Residential Tenants ↗Official enacted-bill page for the statewide two-month security-deposit maximum.
Colorado General Assembly — Office of Legislative Legal ServicesColorado Law Summary: Renters’ Rights ↗Official legislative legal-services overview of renter protections, including deposit limits and remedies.