What Is the Maximum Security Deposit in Colorado?
Colorado caps a security deposit at two monthly rent payments and defines it by function, not by label. Here is how the statute reads and where the separate pet limits fit.
What is the maximum security deposit in Colorado?
On and after August 7, 2023, “a landlord shall not require a tenant to submit a security deposit in an amount that exceeds the amount of two monthly rent payments under the rental agreement” (C.R.S. 38-12-102.5). On $1,800 rent the ceiling is $3,600. The Colorado security deposit limit calculator does the comparison for your rent.
What counts as a security deposit?
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 (C.R.S. 38-12-102(6)). The test is function, not the label: a payment called a cleaning deposit or a damage deposit is still a security deposit, while rent paid in advance for a month the tenant will occupy functions as rent.
Is there a separate limit for pets?
Yes. A landlord may not demand or receive an additional security deposit of more than $300 as a condition of permitting a pet, and it must be refundable; and it may not charge extra pet rent above $35 a month or 1.5% of the monthly rent, whichever is greater (38-12-106). See Colorado pet deposits and pet rent. The statute does not say whether the pet deposit also counts toward the two-month cap.
Can a lease change the limit?
A provision in or pertaining to a rental agreement that waives or modifies a tenant-protecting provision of the security deposit part of the statutes is against public policy and void (38-12-103(7)). A lease cannot raise the cap.
What happens after the tenancy?
The landlord must return the deposit or send a written statement within 30 days after the lease ends or the tenant surrenders the premises, or up to 60 if the lease says so, and wrongful retention can cost three times the amount wrongfully withheld (103(1), (3)). Use the Colorado security deposit return deadline calculator for the date.
Does the limit apply to every rental?
The deposit part applies to residential security deposits; other parts of Title 38 set separate rules for mobile home parks. If you rent a mobile home space or a home subject to a different regime, ask a licensed Colorado attorney which rules apply.
Where the limit sits in the statutes
The cap is a single sentence in C.R.S. 38-12-102.5, and the rules for the pet deposit, the application fee and the return of the deposit are in separate sections, so check each payment against the section that governs it rather than against the two-month figure alone.
Worked examples of the Colorado limit
| Monthly rent | Asked | Result |
|---|---|---|
| $1,500 | $3,000 deposit | Within the limit |
| $1,500 | $3,600 deposit | $600 over the limit |
| $2,200 | $4,400 deposit | Within the limit |
These are illustrations of the rule, not statements about any lease.
What a tenant can do about an excessive deposit
Add every payment held as security and compare the total with two monthly rent payments. If it is higher, ask the landlord in writing to explain, keep the lease and receipts, and talk to a licensed Colorado attorney. At the end of the tenancy the landlord bears the burden of proving that its withholding was not wrongful (103(3)(b)).
A checklist for landlords
Treat two monthly rent payments as the ceiling for the security deposit; keep a pet deposit within $300 and refundable; do not put a lease clause that waives the deposit protections; and calendar the 30-day return date with the return deadline calculator.
Frequently asked questions
How much can a Colorado landlord charge for a security deposit?
No more than two monthly rent payments, on and after August 7, 2023.
Does the limit include a pet deposit?
The statute caps a pet deposit separately at $300 and does not say whether it counts toward the two-month cap.
Can the landlord call it a nonrefundable fee?
A pet deposit must be refundable, and a payment whose primary function is to secure performance of the lease is a security deposit however it is named.
Can a lease waive the limit?
No. A provision waiving or modifying the deposit protections is void.
Where is the limit written?
In C.R.S. 38-12-102.5.
Official sources
- C.R.S. 38-12-102.5: security deposits, maximum amount
- C.R.S. 38-12-102: definitions
- C.R.S. 38-12-106: pet security deposit and pet rent
- C.R.S. 38-12-103: return of security deposit
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Colorado statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Colorado attorney.