What Can a Colorado Landlord Deduct From a Security Deposit?

What can a Colorado landlord keep from a security deposit?

Reasonable amounts for four things only: unpaid rent, unpaid utilities, other lawful charges listed in the lease, and necessary repairs for damage beyond normal wear and tear that did not exist before the tenancy. The words “only for” make the list closed, so a deduction that fits none of the four is not one the law allows:

Except as provided in subsection (3.5)(a)(IV) of this section, a landlord has actual cause to retain reasonable amounts from the security deposit only for: (I) Nonpayment of rent; (II) Nonpayment of utility charges; (III) Nonpayment of other lawful charges listed in the lease; or (IV) Necessary repair work for damage or defective conditions that exceed normal wear and tear and did not preexist the tenancy. C.R.S. § 38-12-103(1)(b); § 38-12-102(4)

Two things are never chargeable, however the lease is worded: normal wear and tear, which Colorado defines as deterioration, damage, or uncleanliness from ordinary use, and any damage or defective condition that existed before the tenant moved in. For where wear ends and damage begins, including the carpet and paint rules, see normal wear and tear vs. damage in Colorado.

Can a landlord deduct unpaid utility bills from the deposit?

Yes. Nonpayment of utility charges is its own reason on the list (§ 38-12-103(1)(b)(II)), separate from rent, so an unpaid utility bill the tenant owed you can come out of the deposit and go on the written statement like any other deduction.

Can a Colorado landlord charge for cleaning after move-out?

Not for ordinary dirt. The 2026 definition of normal wear and tear expressly includes uncleanliness from typical use, so the dust and grime of a normal tenancy cannot be charged. The one carve-out is uncleanliness that leaves the unit substantially less clean than it was when the lease began: that is not normal wear and tear (§ 38-12-102(4)).

What the law no longer does is name cleaning as a reason to keep money. The old statute listed “cleaning contracted for by the tenant”; HB25-1249 removed it. So a charge for a unit left substantially less clean has to fit one of the four reasons the law now lists. On our reading that is usually “other lawful charges listed in the lease”, which means the lease has to say so. The statute does not say which reason applies, and we have not researched case law on it. For where ordinary dirt ends, see the cleaning row in normal wear and tear vs. damage in Colorado.

Is a flat cleaning or carpet-cleaning fee in the lease still allowed?

On our reading, not if it is charged whatever condition the unit is left in. A lease clause that charges the tenant for cleaning, repairs, or other work due to normal wear and tear, or for a condition that predated the tenancy, is void as against public policy:

A provision, whether oral or written, in or pertaining to a rental agreement, which provision assigns a fee or charge to a tenant for repairs, cleaning, or other necessary work due to normal wear and tear or for any damage or defective condition that preexists the tenancy, is deemed to be against public policy and void. C.R.S. § 38-12-103(7)(a)-(b)

On our reading that reaches a flat fee charged whatever condition the unit is left in, such as a set carpet-cleaning fee taken at move-out from every tenant, at least where the unit was not left substantially less clean than at move-in, because a fee charged regardless of condition is a charge for normal wear and tear. The statute does not address flat fees by name, and we have not researched case law on them. A lease also cannot waive or modify any of these tenant protections (§ 38-12-103(7)(a)).

Does a landlord have to show receipts or invoices for deductions?

Only if the tenant asks in writing, but then everything relevant has to go. Two duties apply. First, if you keep anything, the written statement has to list the exact reasons, and a statement that does not is itself treated as wrongfully withholding the deposit (§ 38-12-103(1)(a), (2.5)(b)); on our reading a line as vague as “cleaning and damages” would not meet that test. Second, if the tenant asks in writing, you have to hand over the documentation behind the deductions:

For a termination of a lease or a surrender of the premises on or after January 1, 2026, if a landlord provides a tenant with a written statement pursuant to subsection (1) of this section within fourteen days after a written request by the tenant, the landlord shall provide documentation in the landlord’s possession or control, including photographs, inspection forms or reports, receipts, invoices, or estimates, that is relevant to the retention of the tenant’s security deposit or any portion of the security deposit. C.R.S. § 38-12-103(8)

Note the word relevant. The statute does not limit the duty to documents that support your deductions, and on our reading a move-in photo or an inspection form that shows no damage is relevant too. Once the tenant has asked, the statute says the documentation goes out along with the statement and the refund (§ 38-12-103(1)(a)), and failing to provide it on time is treated as wrongfully withholding the deposit (§ 38-12-103(2.5)(a)). The fourteen-day wording is tangled: read literally it attaches the fourteen days to the statement rather than the documents, so on our reading, and as the safe course, treat the documents as due within fourteen days of the tenant’s written request. Without a written request, the statute does not require you to send receipts or invoices at all.

What is the 125% rule in Colorado?

If you keep 125% or more of your actual damages, the amount is presumed to be unreasonable. It is a presumption, not a safe zone: the same subsection says a court or jury can find a smaller overcharge unreasonable as well.

An amount retained by a landlord is presumed to unreasonably exceed the amount of actual damages the landlord incurred if the amount retained is one hundred twenty-five percent or greater than the actual damages incurred. Nothing in this subsection (3.5)(b) prevents a court or jury from finding that a lesser amount retained by a landlord unreasonably exceeds the amount of actual damages the landlord incurred. C.R.S. § 38-12-103(3.5)(b)

Because the landlord has to prove its actual damages, the safe course is to keep only what you can document. In any court action a tenant brings under the section, the landlord carries the burden of proving the actual damages (§ 38-12-103(3.5)(c)).

What happens if a landlord keeps too much or skips a step?

You can lose the right to keep any of it. Any failure to comply with the section, not just a late statement, forfeits the right to keep any part of the deposit. The subsection names no bad-faith requirement, so on our reading none is needed, though the good-faith rule below limits what a careful landlord owes for keeping too much:

If a landlord fails to comply with the requirements of this section or otherwise wrongfully withholds a security deposit or any portion of a security deposit, the landlord forfeits the landlord’s rights to withhold any portion of the security deposit under this section. C.R.S. § 38-12-103(2)

On top of forfeiture, a wrongful withholding exposes you to three times the amount wrongfully withheld, plus reasonable attorney fees and court costs (§ 38-12-103(3)(a)). Two rules protect a careful landlord. The tenant has to demand the money back and give notice of intent to sue first, and returning the withheld amount within seven days after receiving that demand removes the claim for treble damages, attorney fees, and court costs:

A tenant may bring a court action for treble damages, reasonable attorney fees, and court costs only if the landlord fails to return the entire security deposit or any withheld portion to the tenant within seven days after receiving a demand and notice of the tenant’s intention to file legal proceedings as described in subsection (3)(a) of this section. C.R.S. § 38-12-103(3)(c)

And a landlord who acted in good faith and otherwise complied, but is found in court to have reasonably kept more than its actual damages, owes only the excess and court costs:

If a landlord retains a security deposit or any portion of it in good faith and otherwise complies with all requirements of this section but is found in a civil action to have reasonably retained an amount that exceeded the actual damages the landlord incurred, the landlord shall be liable to the tenant only for the excess amount retained and court costs. C.R.S. § 38-12-103(3.5)(d)

Own labor, unfinished repairs, and depreciation

Four questions come up constantly, and the statute leaves each of them open. Here is what it does say, and where it stops. We have not researched how Colorado courts have handled any of them.

Can a Colorado landlord charge for doing the repairs themselves?

The statute does not say. It allows keeping money for “necessary repair work” for damage beyond normal wear and tear (§ 38-12-103(1)(b)(IV)), and it never says who has to do the work or how a landlord’s own time is priced. Whatever you charge, the 125% presumption above and your burden to prove your actual damages still apply.

Can a landlord keep deposit money for a repair they never made?

The statute does not settle it. The documents a tenant can ask for include “estimates” (§ 38-12-103(8)), but nothing in the section says whether money can be kept on an estimate for work that is then never done.

Does Colorado require depreciation on deposit deductions?

The statute sets no depreciation or replacement-cost formula. Its only age rule is for carpet: carpet not replaced with new carpet within the ten years before the lease ended or the premises were surrendered cannot be deemed substantially and irreparably damaged (§ 38-12-103(11)(c)), which is covered in the carpet-age section of our wear-and-tear guide. Whether a charge has to be reduced for age in some other way, the statute does not say.

What counts as “substantially less clean”?

The statute does not define it. It measures the unit against how clean it was when the lease began (§ 38-12-102(4)), so the answer depends on the particular unit. In practice, move-in photos and a move-in checklist are how a landlord shows the difference.

Work out your Colorado deposit return

The free Colorado deposit tool works out your 30-day deadline, walks you through the four lawful reasons and the carpet and paint limits, and generates a statute-cited return letter with the exact reasons listed, all in your browser with nothing stored. For everything the 2026 rewrite changed, see Colorado security deposit law changes in 2026.

Colorado security deposit deductions: common questions

Is the list of Colorado security deposit deductions exclusive?

Yes. A landlord may keep only reasonable amounts, and only for four things: unpaid rent, unpaid utility charges, other lawful charges listed in the lease, and necessary repair work for damage or defective conditions that go beyond normal wear and tear and did not exist before the tenancy. The statute says "only for". (C.R.S. § 38-12-103(1)(b))

Can a Colorado landlord charge for normal wear and tear?

No. Repairs can be charged only for damage that goes beyond normal wear and tear, and a lease clause that assigns the tenant a charge for repairs or cleaning due to normal wear and tear is void. (C.R.S. § 38-12-103(1)(b), (7)(b))

Can a Colorado landlord deduct unpaid utilities from the security deposit?

Yes. Nonpayment of utility charges is one of the four reasons the statute allows. (C.R.S. § 38-12-103(1)(b)(II))

Can a landlord keep my deposit for damage that was there when I moved in?

No. The repair reason covers only damage or defective conditions that did not preexist the tenancy, and a lease clause charging for a preexisting condition is void. (C.R.S. § 38-12-103(1)(b)(IV), (7)(b))

Does a Colorado landlord have to send receipts with the itemized statement?

Only if the tenant asks in writing. The statement must always list the exact reasons for keeping any money. Once the tenant has asked in writing for the documents behind it, such as photos, inspection reports, receipts, invoices or estimates, the statute says they go out along with the statement, and on our reading they are due within 14 days of the request. Failing to provide them on time is treated as wrongfully withholding the deposit. (C.R.S. § 38-12-103(1)(a), (2.5)(a), (8))

Is 125% the most a Colorado landlord can keep?

No. Keeping 125% or more of the actual damages is presumed to be unreasonable, but the statute says a court or jury can find a smaller amount unreasonable too. It is a floor for the presumption, not a ceiling on what is safe. (C.R.S. § 38-12-103(3.5)(b))

Can a Colorado landlord keep deposit money for a repair they never made?

The statute does not settle it. The documents a tenant can request include "estimates", but nothing in the section says whether money can be kept on an estimate for work that is then never done, and we have not researched how courts treat it. (C.R.S. § 38-12-103(8))

Can a Colorado landlord charge for doing the repairs themselves?

The statute allows retention for "necessary repair work" and does not say who has to do it or how labor is priced. We have not researched how courts treat a landlord’s own labor, so we do not answer it. (C.R.S. § 38-12-103(1)(b)(IV))

Sources

• C.R.S. §§ 38-12-102(4), 38-12-103, as amended by HB25-1249 (2026)
• C.R.S. § 38-12-103(1)(b); § 38-12-102(4): the four reasons a landlord may keep money
• C.R.S. § 38-12-103(7)(a)-(b): lease terms that are void
• C.R.S. § 38-12-103(8): documentation on written request
• C.R.S. § 38-12-103(3.5)(b): the 125% presumption
• C.R.S. § 38-12-103(2): forfeiture
• C.R.S. § 38-12-103(3)(c): the seven-day demand
• C.R.S. § 38-12-103(3.5)(d): the good-faith safe harbor
• The Colorado security deposit tool and full cited rules

About this page

Every quoted passage above is read from the same statute-cited rules the Colorado tool runs on, and each is checked against the official 2026 Colorado Revised Statutes every week. Where a sentence gives our reading rather than the statute’s words, it says so. How we verify the law explains the process. This is general information that cites the statute, not legal advice, and Orygn LLC is not a law firm. For advice about your situation, talk to a licensed Colorado attorney.