Landlords, Tenants & Security Deposits
By Douglas A. Turner, Esq. • May 18th, 2007 • Category: Colorado Real EstateWith more and more people buying residential real estate for investment purposes, many novice landlords learn the hard way that keeping a security deposit can result in big trouble. Landlords must comply with Colorado’s Wrongful Withholding of Security Deposits Act (the “Act”). Read on and save yourself (or collect!) treble damages and attorneys fees.
Colorado’s Wrongful Withholding of Security Deposits Act
Colorado has a specific law regarding when and how a landlord may retain a security deposit. That law is § 38-12-103, C.R.S. Within one month after the termination of a lease or surrender and acceptance of the premises, whichever occurs last, a landlord must 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.
The security deposit cannot 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 must 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 must be accompanied by payment of the difference between any sum deposited and the amount retained.
Consequences to Wrongful Withholding of Security Deposit in Colorado
Failure to obey this law has serious consequences for the landlord. The failure of a landlord to provide a written statement within the required time works a forfeiture of all his rights to withhold any portion of the security deposit under this section.
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 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.
In simple English, if a landlord does not provide the required written statement within the required time period, the landlord must return the entire security deposit. Once the tenant gives notice that the deposit has been wrongfully withheld the landlord has seven days to return the entire security deposit. If the landlord does not return the entire security deposit, the landlord is liable for 3 times the security deposit plus attorneys fees and costs. It is a harsh law with no exceptions.
Sometimes a tenant’s damage to the rental property is substantial. It can take more than 30 days just to get all the repair estimates from contractors. In that situation, there is still no exception to the 30-day rule. A landlord must account to the tenant, in writing, within the required time period, without exception.
Some landlords believe that once the tenant gives notice that the security deposit has been wrongfully withheld, the landlord can still provide the required written accounting so long as the accounting is given within seven days. This is incorrect. Once the 30-day period runs and a written accounting has not been provided, the landlord is required to return the entire security deposit.
So what is a landlord to do if he fails to give the required notice and the tenant sends the seven-day demand letter requesting the return of the deposit? The answer is simple. The landlord must return the entire deposit. However, the landlord can still file suit to recover any damages. All the landlord loses is the right to keep the deposit. The burden is now on the landlord to file suit in either small claims court or County court.
Douglas A. Turner, Esq..
This column is not legal advice nor does it create an attorney-client relationship with the reader. Due to limited space, complex legal concepts and rules may be stated in terms of general concepts.
Based on 2007 Colorado and Federal law. Consult legal counsel before acting on any information contained in this column.
Contact Us | © Douglas A. Turner, P.C.
Our landlord hasn’t complied to the 30 day security deposit. We have sent him a certified letter about 2 weeks or so which was returned back to us. We have complied by all the rules for CO State Law. He’s currently stationed at Tyndall AFB, FL. He hasn’t been responding at all about the deposit that is over due & due to us. There was no time frame stated in our lease agreement about when the refund is awarded to us. We’re just about a whits end with him. However, I did email him June 30th which he responed too by saying he was coming up to the Springs but didn’t give a date. We moved out of the house May 18, 08 & are currently living in MT. Our deposit is $1000.00 & we sure could use the money since we’re having a house built in MT. Could you please give us some advice as to how to deal with this situation. He avoiding us like the pleage! We’ve threatened him with leagal action & still no response. Emailed the landlord on July 8, 08 & haven’t heard word since & stated in the email that it will be 60 days on the 18th & if we haven’t received our deposit on or by that date will be taking action. Any suggestions?
Thanks
Molly
Our landlord put in our lease that they will $200 of our deposit for carpet cleaning. Upon doing research this seems to fall under normal wear and tear to me. The carpets in their apartments are from 1980. I am finding it hard to believe that they are allowed to charge us for cleaning these old carpets when they should just replace them. I am wondering if it is illegal for them to retain any part of our deposit for carpet cleaning unless there was substainail damage? I appreciate your help and direction in this matter.
Molly,
If you landlord is stationed at Tynall AFB you can attenpt to get your deposit from by calling the base in Panama City FL, You can call and get information from the base locator about what unit he is in and then call and speak with his First Sergeant or Commander. Your landlord can get into a lot of trouble for financial irresonsibility and I would imagine the call to the First Sergeant will accomplish getting your money without hefty legal fees. I am rrecently retired AF and can assure you this is way to get his attention.
Sincerely,
Nan Borton, USAF rRtired
Is a general security deposit refundable in Colorado ? This is over a pet deposit…It states that the rents,fees and other charges are considerer a general sucurity deposit. I paid $300.00 deposit and a fee each month for the cat(s) there was not damages done by the cat(s),Does it have to state that it is non refundable in the contract to make it non refundable? I am just wondering,Brenda
Brenda:
To answer your question requires reading the entire lease and a consultation with you. We provide this service for a flat fee of $200. Please contact our office if you would like to proceed.
Regards,
Douglas Turner
Doug ~
re: Wrongful Withholding of Security Deposit
Does notification via email, as that has been the only form of correspondence by either party to date constitute official notification of intent to file? Is a certified letter required? Thanks.
I have kind of unique situation. We moved in to a home in the Denver area on December 1, 2010. We signed an 18 month lease at $2000/month. Sadly, we had to move April 10, 2011. Before we moved however, we found a new tenant that moved in on 4/30/11. We paid to advertise the house, showed the house and paid to screen them for the landlord. We paid the month of April and the new tenant starting paying rent 4/30/11. We also leased it to the new tenant for $2200/month instead of $2000/month. Long story short the landlord is in a better position now than he was when we rented for him and he didn’t go a day without collecting rent. We also left the house in great shape and no damages were brought to our attention.
When we moved in we paid a $2000 security deposit and $2000 for the last months rent (which we didn’t use). It’s now June 28th and he hasn’t refunded any of it. Becuase we broke our lease early and found a replacement tenant are we entitled to our deposit and last month rent? We’ve been out of the house for 2.5 months and he hasn’t mailed a letter stating he was keeping our deposit.
Will
Will:
It would be inappropriate for me to address your question in an open forum. Feel free to give us a call and we can discuss the issue or refer you to another lawyer.
Regards,
Douglas Turner
I rented an apartment in Idaho for Springs on a 4 month lease. The lease states that the apartment shall be use for 1 or 2 people. I told them that I would be getting a roomate. About a month into the term my landlord mentioned that they wanted the roomate on the lease and gave me paperwork to give to him. We returned that paperwork. Towards the end of the term I contacted the landlord to make sure that we were square and he informed me that the paperwork was only the rental application. I asked what I needed to do to make sure my deposit was returned (if we could fill out the lease then or what I could possibly do so that it would not be a problem.) He told me it was no longer a problem and just to make sure the place was clean. He is now withholding the deposit because I had a roomate there.
There is more to the story- he had an issue with another tenant who was an employee of mine- and also told me during the same conversation that the best thing I could do to get my deposit back was to garnish the wages of this individual.
The lease specifies 1 or 2 people, I never recieved anything in writing stating that my roomate had to be on the lease- and they never gave us a lease to sign. Basically he lied to me when he said we were square. Do I have a leg to stand on legally?
Ivan:
We would have to review the lease in order to properly advise you. Please give us a call or submit your issue by email and we can discuss the matter, further, and in private.
Douglas Turner, Esq.
I have a question regarding the return of my security deposit. I live in Pueblo CO. When I moved in to the house, I paid $575.00 security deposit. I surendered the premises to my landlord on 9/27/2011. I contacted my former landlord on 10/27/11 regardin the return of my deposit. He stated that there would be some charges because there was a problem with the dishwasher and some plumming. On 12/06/11, 70 days after surendering the premesis, I sent the required certified letter demanding the return of the full deposit within 7 days or I would persue legal action and request Trebel damages. On 12/7/11, the landlord responded by sending me a check for $275.00 and a letter listing detailed charges. My questions, do I still have grounds to sue in small claims court for the full amount or Trebel damages because I have waited for more than the required 60 day time limit?
Marv:
Thank you for your inquiry. However, we cannot answer specific questions in an open forum nor can we do so without reading the rental/lease agreement. I suggest finding a local lawyer in Pueblo to answer specific questions.
Regards,
Douglas Turner
We signed a lease in Denver and paid first month’s rent, last month’s rent and security deposit. The landlord informed us that he will be moving back into the house at the end of our lease (6/1) so we have not paid May’s rent yet because we assumed it would be covered by the “last month’s rent” we paid upfront. We understand that the security deposit will continue to be held. The landlord is insisting that the “last month’s rent” is actually part of the security deposit and will be refunded to us and we owe rent for May. It does not state this in our lease. The lease does say “in the event that damages exceed the amount of the initial security deposit, the last month’s rent may be used to cover these damages”. What do we do now?
Katie:
Thank you for your question. Unfortunately, we cannot answer a question like this in an open forum; and we also need to review the lease and speak with you.
We offer an initial consultation for a flat fee of $200 and include up to, 2 hours of attorney time. If you wish to proceed, please contact our office and set an appointment for an initial consulation.
Douglas