If your landlord is sitting on your deposit, Colorado law gives you a hard deadline and a real penalty — and a properly cited demand letter is how you invoke both. Here is exactly what C.R.S. § 38-12-103 requires.
Colorado's deposit rules at a glance
| Return deadline | Within one month after termination or surrender, whichever is later — lease may extend to a maximum of 60 days (§ 38-12-103(1)) |
| The penalty | Missed written statement = forfeiture of all rights to withhold (§ 38-12-103(2)); bad-faith retention = treble damages + attorney fees after a required 7-day pre-suit notice (§ 38-12-103(3)) |
One month, and the statement is everything
Under C.R.S. § 38-12-103(1), your landlord has one month (up to 60 days only if your lease says so) to return your full deposit or deliver a written statement listing the exact reasons for every dollar retained. Normal wear and tear can never be retained. And § 38-12-103(2) is absolute: a landlord who misses the written-statement deadline forfeits all rights to withhold any portion of the deposit.
The 7-day notice that unlocks treble damages
Before suing for treble damages, § 38-12-103(3)(a) requires you to give the landlord written notice of your intent to file legal proceedings at least seven days before filing. Colorado courts explain the logic plainly: it gives the landlord one last week to pay. If they deliberately fail to return your deposit during that window, the retention is willful — and willful retention means liability for three times the amount wrongfully withheld, plus attorney fees and court costs. This page's letter is that notice.
The burden of proof is on the landlord
In any court action under this section, § 38-12-103(3)(b) puts the burden on the landlord to prove the withholding was not wrongful. You don't have to prove the carpet wasn't damaged — they have to prove it was. Combined with the forfeiture rule, most missed-deadline cases are effectively over before they start.
New rules as of January 1, 2026
House Bill 25-1249 tightened the statute further: landlords now need actual cause to retain reasonable amounts, and the law spells out detailed circumstances in which retention is deemed bad faith. The treble-damages framework and 7-day notice survived intact. One timing note: the treble-damages remedy is penal, so courts apply a one-year limitations period — send your notice promptly.
What a strong Colorado demand letter looks like
It states the deposit amount, the move-out date, the statutory deadline that passed, and the penalty exposure in dollars — citing C.R.S. § 38-12-103 by name. Here's how the opening of a strong one reads:
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This guide is general information about Colorado law, not legal advice. Statutes are paraphrased; verify current law for your situation. For significant or contested claims, consult a licensed Colorado attorney.
Already hearing from a collection agency?
Landlords hand move-out balances to a small set of specialist collectors. If the letter is from National Credit Systems, Hunter Warfield, IQ Data International, or Source RM, we have a company-specific response guide for each — and the demand letter on this page still applies, because a landlord who missed the statutory deadline may owe you money regardless of who is calling. Any other collector: see the collection agency index and your state’s rules in the debt statute of limitations guide.