Colorado security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
Landlords are not required to keep funds in a dedicated security deposit bank account in Colorado. But it’s recommended that you keep the tenant's security deposit in Colorado in a separate savings account to avoid commingling of funds.
{{ state }} security deposit
limits
The maximum security deposit in Colorado is one month’s rent, which is at par with the national average security deposit.
{{ state }} security deposit interest
State law security deposit doesn’t require you to keep funds in an interest-bearing account; thus, you’re not legally liable to pay interest on the security deposit in Colorado. If you hold funds in a high-yield savings account, you can choose to pay the tenant the security deposit interest rate or keep it for yourself.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month's rent
No official guidelines
Not legally required to keep funds in a separate security deposit escrow account. But it’s recommended to keep these funds separate from personal funds.
Overdue rent payments, lease violations, unpaid fees or charges, repairs, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Colorado?
Colorado's security deposit limit is one month’s rent, and you can collect first and last month's rent from the deposit.
Is interest required on tenant security deposits in Colorado?
There are no official guidelines to pay interest on a Colorado security deposit interest on landlord-tenant security deposit bank account in Colorado.
How should I issue a security deposit receipt to tenants in Colorado?
While Colorado law generally does not require a security deposit receipt, it is always best practice for landlords to issue a receipt for clear record-keeping. Include the tenant's name, the property address, the date and amount received, the method of payment, and clearly state that the funds are for the security deposit.
How many days to return a security deposit in Colorado?
You must refund the tenant’s security deposit in Colorado within 30 days or mail the tenant a written statement of the exact reasons why you are keeping part or all of the deposit. If you fail to send a written statement to the tenant within the time limit, you give up the right to keep any of the deposit.
What can a landlord deduct from a security deposit in Colorado?
A landlord’s rights to a security deposit allow you to use the deposit to cover any unpaid rent or utilities, costs for repairing specific property damage to the house, rental, apartment, or condo, and cleaning costs. If you withhold the security deposit without providing the tenant an itemized deduction list within 30 days (or charge for damage considered as normal wear and tear), the tenant may sue you for double damages.
Can a security deposit be used for unpaid rent in Colorado?
Yes. Funds from a security deposit escrow account in Colorado is generally intended to cover financial risks, and if a tenant leaves owing unpaid rent, the landlord has the right to use the funds to cover that balance.
Can landlords keep a security deposit for breaking a lease in Colorado?
Yes, a landlord can usually deduct losses from the landlord's security deposit in Colorado if the tenant is breaking the lease by moving out before the agreed date or violating any of the lease’s terms.
