Colorado law regulates security deposits. A security deposit (which may also be called a damage deposit) is any advance or deposit of money that is used to secure the lease.
Security Deposit Retention
The deposit may be retained by the landlord for the following:
- Any unpaid rent or utility bills owed by the tenant
- Payment for damages to the premises beyond normal wear and tear
- Any cleanings outlined in the lease
- Any other breach of the lease causing financial damage to the landlord’s property
Normal Wear & Tear
Normal wear and tear is defined by Colorado statute to mean “that deterioration which occurs based upon the use for which the rental unit is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattel by the tenant or members of his/her household or their invitee guests.”