Security Deposits in Colorado: What You Should Know

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In an ideal world, security deposits wouldn’t exist. Tenants would move into a rental –and look after it with the best of care. They would always pay the rent on time, and continually abide by the terms of the lease

Unfortunately, though, things don’t always work out this way. Things happen and mistakes are made. Sometimes, tenants end up vacating a property, leaving it in a state that requires renovations and repairs. Other times, they may fall behind on the rent –and leave owing thousands of dollars in bills and back rent.

Security deposits provide an ideal solution to the problem of tenant damage and owed rent. Think of them as an insurance policy for the home. The landlord collects the deposit at the time that the tenant moves in, and when they move out, the landlord applies the funds towards any outstanding rent, or damage that was caused by the tenant.

Security deposits, though, are not a simple cut and dry issue. Each state has different laws and requirements pertaining to the collection, use of, and sometimes even storage of security deposits, and landlords should take care to ensure that they’re operating in a way that’s in compliance with the both state and municipal law. Additionally, security deposits are often a hotly contended issue –tenants usually assume they will be getting all of their deposit back, while landlords will usually attempt to keep the deposit, and use it to fix up the rental. Property managers, unfortunately, often find themselves stuck in the middle –trying to ensure that the deposit is applied correctly, while at the same time helping to manage the expectations of both the landlord and the tenant. Little wonder that disputes about security deposits are one of the most common reasons that landlords and tenants end up in court.

Landlords and tenants would do well to know the law as it pertains to security deposits, and to have a clear understanding of their requirements when it comes to the use of the deposit. For landlords, this is vital for staying on the right side of the law, while for tenants, having a good knowledge of security deposits will help them to know their rights, and understand what they can do to ensure that they will get their deposit back.

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