Colorado Bankruptcy Law Group, LLC – Chapter 7 and Chapter 13 Personal Bankruptcy Attorneys

I often get questions about what rights tenants have, especially when it comes to their security deposits.  Generally speaking, the landlord must return the security deposit.  However, you are going to frequently find your security deposit a bit, or a lot, lighter than when you paid it.  Under Colorado law, a landlord must return 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.

A landlord cannot keep any of the security deposit to cover normal wear and tear.  If the landlord has any reason to keep any portion of the security deposit, the landlord he 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 include payment of the difference between any sum deposited and the amount retained.

The landlord will have complied with Colorado law by mailing the statement and any payment required to the last known address of the tenant. The landlord may also retain the security deposit for nonpayment of rent, abandonment of the premises, or nonpayment of utility charges, repair work, or cleaning contracted for by the tenant.

What happens if the landlord doesn’t comply with the law?  He could be liable for three times the amount of that portion of the security deposit that he wrongfully withheld from the tenant, together with reasonable attorneys’ fees and court costs. In order to win such a claim, however, 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 said action.

More can be found at Colorado Revised Statute §38-12-103.

Peter Mullison is a bankruptcy attorney at Colorado Bankruptcy Law Group, LLC.  If you are considering Chapter 7 or Chapter 13 personal bankruptcy, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule a bankruptcy consultation at a time that is convenient for you.

Colorado Bankruptcy Law Group, LLC is a personal bankruptcy firm serving clients in the greater Denver area.

photo: http://www.flickr.com/photos/arcticpuppy/ / CC BY 2.0

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