Colorado Security Deposit Return Letter

This template provides a complete, jurisdiction-specific Colorado Security Deposit Return Letter suitable for use when a residential tenancy ends. It implements the requirements of C.R.S. § 38-12-103 (as amended by HB 25-1249 effective January 1, 2026) and related provisions.

Key Colorado rules (C.R.S. § 38-12-103, effective 2026):
- Landlord must return the security deposit (or provide written itemized statement of deductions plus any balance) within 30 days after termination of the lease or surrender of the premises.
- The lease may provide for a longer period, not to exceed 60 days, if the tenant agrees in writing.
- Deductions are limited to: (1) unpaid rent; (2) damage to the premises beyond normal wear and tear; and (3) other amounts expressly authorized by the lease that remain unpaid.
- Normal wear and tear may not be charged against the deposit (HB 25-1249 clarification).
- Landlord holds the deposit as a fiduciary custodian for the tenant.
- Wrongful withholding (including failure to meet the deadline or improper deductions) exposes the landlord to liability for three times the amount wrongfully withheld, plus attorney fees and costs.
- A retention of 125% or more of actual damages is presumed unreasonable.
- Tenant must generally give 7 days' notice before filing suit in some circumstances.

All user-supplied values use [[Token Name]] format. Numbered items appear on separate lines with blank lines between., -

Part I, Pre-Move-Out Inspection Offer (Recommended Best Practice)

Colorado law does not mandate a pre-move-out inspection, but offering one in writing creates a record, allows the tenant to remedy issues, and reduces disputes.

PRE-MOVE-OUT INSPECTION OFFER
STATE OF COLORADO
C.R.S. § 38-12-103

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Current or Last Known Address]]
[[City]], Colorado [[ZIP Code]]

FROM (Landlord / Property Manager): [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], Colorado [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Pre-Move-Out Inspection Offer, [[Rental Property Full Address]], [[City]], Colorado [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at the above property is scheduled to end on [[Lease End / Vacate Date]]. I am offering you the opportunity to participate in a voluntary walk-through inspection of the premises before you vacate.

The purpose is to identify any items you may wish to address so that deductions from your security deposit of $[[Security Deposit Amount]] can be avoided or minimized. The inspection is not required.

If you would like to schedule a pre-move-out inspection, please contact me no later than [[Inspection Request Deadline, e.g. 3 business days before vacate date]].

Whether or not you participate, a full written accounting and any refund will be provided within the statutory deadline after surrender of the premises and return of all keys.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date Signed]], -

Part II, Security Deposit Return Letter, Full Return (No Deductions)

SECURITY DEPOSIT RETURN LETTER, FULL RETURN
STATE OF COLORADO
C.R.S. § 38-12-103 (as amended by HB 25-1249)

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], Colorado [[ZIP Code]]

RE: Return of Security Deposit, [[Rental Property Full Address]], [[City]], Colorado [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at [[Rental Property Full Address]], [[City]], Colorado [[ZIP Code]] terminated on [[Lease Termination / Move-Out Date]]. You delivered possession and returned all keys and access devices on [[Key Return / Possession Surrender Date]]. You provided your forwarding address on [[Forwarding Address Date]].

After a final inspection, no deductions are being made from your security deposit.

Enclosed is check number [[Check Number]], dated [[Check Date]], payable to [[Tenant Full Name(s)]] in the amount of $[[Security Deposit Amount]], representing the full return of your security deposit.

This letter constitutes the landlord's complete accounting and return as required by C.R.S. § 38-12-103.

Thank you for your tenancy.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]], -

Part III, Security Deposit Return Letter with Itemized Deductions

SECURITY DEPOSIT RETURN LETTER, ITEMIZED STATEMENT OF DEDUCTIONS
STATE OF COLORADO
C.R.S. § 38-12-103

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], Colorado [[ZIP Code]]
Phone: [[Landlord Phone Number]]

RE: Security Deposit Accounting and Return, [[Rental Property Full Address]], [[City]], Colorado [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy terminated on [[Move-Out / Lease Termination Date]]. You surrendered possession and returned all keys on [[Key Return Date]]. Your forwarding address was received on [[Forwarding Address Receipt Date]].

Under C.R.S. § 38-12-103, I am required to return your security deposit or provide this written, itemized statement of deductions and any remaining balance within 30 days after termination of the lease or surrender of the premises (or up to 60 days if your lease so provides and you agreed in writing).

This letter and the enclosed accounting and payment (if any) fulfill that obligation. The 30-day period (or agreed 60-day period) began on [[Possession Surrender / Key Return Date]]. This accounting is being mailed on [[Mailing Date]], which is within the required window.

> Deadline Note: The return deadline is [[30 (or 60) Days After Key Return Date]]. Business days are not expressly defined for this statute; count calendar days unless your lease specifies otherwise. Mail sufficiently in advance to meet the deadline., -

Section A, Deposit Summary

Section B, Itemized Deductions and Legal Limits

Under C.R.S. § 38-12-103 (post-HB 25-1249), a landlord may withhold from a residential security deposit only:

1. Unpaid rent due through the date of termination or surrender.

2. Damage to the premises beyond normal wear and tear caused by the tenant, occupants, or guests.

3. Other amounts the tenant is obligated to pay under the lease that remain unpaid (e.g., unpaid utilities the tenant was required to pay directly or that were billed through landlord, or other lease-authorized charges).

Normal wear and tear is NOT deductible. This includes ordinary fading of paint, carpet wear from normal foot traffic, small nail holes from hanging pictures, minor scuffs, and furniture indentations. Withholding for normal wear and tear is improper and can trigger treble damages.

Deductions must be reasonable and supported by documentation. Retaining 125% or more of actual damages creates a presumption of unreasonableness.

Itemized Deductions:

1. [[Description, e.g., Unpaid rent for the period [[dates]]]], Amount: $[[Amount]]

2. [[Description, e.g., Repair of damage to drywall and paint in living room, hole and marks beyond normal wear from tenant-installed shelving]], Amount: $[[Amount]]

3. [[Description, e.g., Professional carpet cleaning required due to pet urine stains and odor in master bedroom (beyond normal wear)]], Amount: $[[Amount]]

4. [[Description, e.g., Unpaid water utility charges for [[months]] that were tenant's responsibility under lease]], Amount: $[[Amount]]

5. [[Add more numbered items as needed; each on its own line]]

TOTAL DEDUCTIONS: $[[Total Deductions Amount]], -

Section C, Supporting Documentation

The following documentation supports the deductions (copies enclosed):

1. [[Invoice / Receipt / Estimate, e.g., ABC Drywall & Paint, Invoice #1234 dated [[Date]] for $[[Amount]]]]

2. [[Invoice / Receipt, e.g., Pro Carpet Cleaners LLC, Invoice #567 dated [[Date]] for $[[Amount]]]]

3. [[Other, e.g., Utility bill from [[Provider]] showing tenant charges for [[period]]]]

4. [[Add rows as needed]]

> Best practice: Attach dated before-and-after photos, the signed move-in condition checklist, and written estimates or invoices for every charge over a nominal amount. Keep originals., -

Section D, Balance Calculation and Payment

IF balance is due to tenant:

Enclosed is check #[[Check Number]], dated [[Check Date]], payable to [[Tenant Full Name(s)]] in the amount of $[[Balance Returned]].

IF deductions exceed deposit (balance owed by tenant):

The deductions total $[[Total Deductions Amount]], which exceeds the deposit of $[[Total Deposit Held]]. The entire deposit has been applied. An additional balance of $[[Balance Owed by Tenant]] remains due.

Please remit payment by [[Due Date, e.g. 14 days from letter date]] to:

[[Landlord / Manager Name]]
[[Payment Address]]
[[City]], Colorado [[ZIP Code]]

Non-payment may result in collection action and reporting as permitted by law., -

Section E, Forwarding Address and Delivery Confirmation

Forwarding Address Used:

[[Tenant Full Name(s)]]
[[Forwarding Street Address]]
[[City]], [[State]] [[ZIP Code]]

If this address is incorrect, notify the landlord immediately in writing. If no forwarding address was provided, the accounting was mailed to the rental address with USPS forwarding requested. Retain proof of mailing (certified mail recommended)., -

Section F, Statutory Rights and Remedies Notice

Under C.R.S. § 38-12-103 (as amended), if a landlord wrongfully withholds any portion of a security deposit, the tenant may recover:

• The amount wrongfully withheld, plus
• Damages up to three times the amount wrongfully withheld, plus
• Reasonable attorney fees and court costs.

The landlord is presumed to have acted in bad faith or unreasonably in certain cases, including failure to meet the return deadline or retaining more than 125% of actual damages.

This letter is the landlord's complete itemized accounting. If you dispute any deduction, contact the landlord in writing within a reasonable time and retain copies of all communications., -

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]]

Enclosures:
- [ ] Check #[[Check Number]] for $[[Amount Enclosed or 0 if balance owed]]
- [ ] Itemized receipts / invoices / estimates (Section C)
- [ ] Move-in / move-out condition reports and photos (recommended)
- [ ] Copy of this letter, -

Part IV, Delivery Methods and Recordkeeping (Colorado)

Colorado does not prescribe a single delivery method, but the landlord must be able to prove timely compliance with the 30/60-day deadline.

Recommended methods (use one that creates objective proof):

1. Certified Mail, Return Receipt Requested (strongly recommended).
2. First-Class Mail with certificate of mailing + USPS tracking.
3. Hand delivery with signed receipt from tenant.
4. Other method authorized by the lease that creates a record.

Mail early enough to account for postal transit. Retain the certified mail receipt, green card, tracking, and copies of everything sent., -

Part V, Step-by-Step Completion Guide

1. Confirm exact move-out / surrender date and key return date in writing.
2. Calculate the 30-day (or lease-agreed 60-day) deadline.
3. Perform final inspection; document conditions with photos and checklist.
4. Prepare itemized list limited to permitted categories only.
5. Gather supporting invoices and photos.
6. Complete the appropriate Part (II or III).
7. Mail with check (if balance due tenant) using certified/traceable method before deadline.
8. Retain complete file: letter, proof of mailing, photos, invoices, lease, move-in checklist., -

Sources (as of June 2026)

• C.R.S. § 38-12-103 (Security deposits, return, deductions, remedies), as amended by HB 25-1249 (eff. Jan. 1, 2026).
• HB 25-1249 legislative history and summaries (treble damages, fiduciary status, 125% presumption, 30/60-day windows).
• Related: C.R.S. §§ 38-12-105 (other tenant protections); 13-40-104, 13-40-107 (eviction timelines referenced in VERIFICATION-STANDARD).

> ⚠️ Template example, not professional (legal/financial/medical) advice. Verify against the current statute, the specific lease, and local requirements before use. This is a sample only. All variable data appears as [[Token Name]]., -

End of Colorado Security Deposit Return Letter