Legal Question in Landlord & Tenant Law in Colorado

Re: Tenant breaches lease wants security deposit

Morning:

You have problems. Under Colorado law, you are required to provide the tenant a written statement of the disposition of the security deposit no later than 60 days after the termination or earlier if in the lease. If you fail to provide this statement, your right to claim the security deposit, even if valid, is now gone. If the tenant writes, as provided under the statute, and requests the deposit and you refuse, they can sue you for 3 times the security deposit amount plus attorney fees.

Now, just because you may (highlight the may) no longer have the right to hold the security deposit does not mean that you cannot sue them for the damage amount. You may, unfortunately, have another problem because a clause that you have is not favored as it is a "liquidated damages" provision.

You need to provide the lease to an attorney and discuss this matter quickly or you may find yourself liable for 3 times the security deposit amount. Good luck.