Legal Question in Real Estate Law in Colorado

Security deposit

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

Email [email protected]

My web site http://effectnet.com/la/

LawGuru User

Dear LawGuru User:

There can be serious consequences for wrongfully withholding all or part of a security deposit in Colorado. Within a statutory time period which is thirty days (unless the lease specifies a longer time but not longer than sixty days) after termination of a tenancy, a landlord must provide a statement to the tenant itemizing all damages, including unpaid rent, being withheld from the deposit. Noncompliance results in waiver by the landlord of the right to keep any portion of the deposit to cover damages and, if the deposit is not returned thereafter within 7 days of notice by the tenant, the tenant can sue for treble damages (three times the amount wrongfully withheld) plus attorney fees.

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Sincerely,

Louise Aron

Attorney at Law

My web site http://effectnet.com/la/

Re: Do I have to return the renter's deposit

Normally a lease will provide that a security deposit is paid by the tenant and held by the landlord as security for damages the landlord may incur as a result of potential breaches of the tenant's obligations which may occur during the term of the lease. It is permissible for a lease to provide for fees and charges, in addition to the rent, which the tenant is obligated to pay. Examples of the latter include late payment charges, rubber check fees, and the like. A lease may also provide for reasonable administrative fees connected with early termination of the lease, damages to the leased premises in excess of normal wear and tear, etc. Thus, upon lease termination, a landlord may retain that portion of the tenant's security deposit to recover fees and charges described above, in addition to damages incurred as a result of the tenant's breach of the lease arising from the early termination thereof. However, a landlord is obligated to mitigate the damages arising from a tenant's breach of the lease. In the case of an early termination of the lease, this means the landlord must attempt to re-rent the premises as promptly as reasonably possible. Your inquiry would indicate you were able to accomplish this with little or no loss of rent. Thus, your damages due to loss of rent appear to be negligible. Therefore, as landlord, you cannot retain any portion of the security deposit in excess of the damages you actually incurred which resulted from the tenant's early termination. Your damages, however, will include the expenses you reasonably incurred in the process of securing the substitute tenant; expenses such as advertising, cleaning charges necessary to restore the premises to the condition as existed when the breaching tenant took possession of the premises, ordinary wear and tear excepted, should be reimbursible from the security deposit.

Generally in Colorado, a landlord has 30 days [unless the lease provides for a longer period but not to exceed 60 days], from the date of lease termination to return that portion of the security deposit which is not retained to off-set the landlord's damages and to provide a written itemized explanation of the amount retained. If the landlord fails to timely provide the written statement, the landlord is deemed to have waived the right to withhold any damages from the security deposit, and if the full amount of the security deposit is not returned within 7 days after receipt of the tenant's demand therefor, the landlord is liable for treble damages, ie, 3 times the amount of the security deposit which was wrongfully retained, plus attorney fees.