Colorado landlords
Is Your Security Deposit Clause Still Legal?
The security deposit cap changed for 2026. LeaseCheck checks your deposit amount, return-deadline language, and itemization requirements against the current rules — and shows you exactly what to fix.
The deposit cap just changed — has your lease?
Security deposits are one of the most disputed parts of any tenancy, and Colorado's rules give a landlord very little room for vague language. The cap dropped to one month's rent for 2026, the return window and itemization requirements are specific, and the penalty for getting it wrong (willful or wrongful withholding) is real. LeaseCheck checks your deposit clause against the current statute and flags anything that could expose you to a dispute.
What LeaseCheck checks here
- ✓ Deposit amount vs. the one-month cap (eff. January 1, 2026)
- ✓ Return-deadline language
- ✓ Written, itemized-deduction requirement
- ✓ Normal wear-and-tear vs. damage distinction
- ✓ Carry-forward language for renewals
- ✓ Willful-withholding exposure (treble-damages risk)
Example findings
Deposit Amount Exceeds New Cap
High riskA deposit clause set above one month's rent is no longer enforceable at that level as of January 1, 2026, and collecting more than the cap creates real exposure.
Why it matters:
Does the deposit amount in this template exceed one month's current rent?
No Itemized-Statement Requirement
Medium riskA clause that lets the landlord deduct "as deemed appropriate" without requiring a written, itemized statement invites exactly the kind of dispute the statute is designed to prevent.
Why it matters:
Does the clause require a written, itemized statement of any deductions?
Not just a flag — a fix
Deposit Return Clause
Your original clause
Landlord shall return the deposit within 45 days, less any deductions Landlord deems appropriate.
Recommended replacement
Landlord shall return the deposit within the timeframe and itemization requirements of C.R.S. § 38-12-103, including a written statement of any deductions.
Deductions must be itemized in writing; "deems appropriate" language invites a wrongful-withholding claim, which can carry up to treble damages under § 38-12-103.
Frequently asked questions
What if my current deposits are already above one month? +
That is a question worth raising with a licensed attorney for your specific tenants and timing — LeaseCheck flags the template language, not individual tenant accounts. The attorney referral bridge exists for exactly this kind of situation.
Does this check my actual return process, or just the lease clause? +
It checks the clause language in your template. Whether your actual return practice matches that language is worth confirming separately.
Is a renewal deposit treated differently? +
The same cap and itemization rules apply. This check also looks at whether your renewal language correctly carries forward an existing deposit rather than treating it as new.