Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Colorado, residential landlords can require tenants to pay a security deposit as a safeguard against damages or unpaid rent. Colorado law does not specify a maximum amount for security deposits, leaving this to the discretion of the landlord and tenant to agree upon. However, after the termination of the lease, Colorado law requires landlords to return the security deposit within one month, unless the lease agreement specifies a longer period, which cannot exceed 60 days. Landlords may use the security deposit for cleaning, repairs, or unpaid rent, but they must provide a written statement itemizing the deductions taken from the security deposit. If a landlord fails to return the security deposit or provide a written statement within the required time frame, the tenant may be entitled to recover up to three times the amount wrongfully withheld, plus attorney fees and court costs.