ColoradoHB25-12492025 Regular SessionHouseWALLET

Tenant Security Deposit Protections

Sponsored By: Jennifer Bacon (Democratic), Jessie Danielson (Democratic), Naquetta Ricks (Democratic), Tony Exum (Democratic)

Signed by Governor

Housing

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 5 benefits, 1 costs, 0 mixed.

Renters gain stronger deposit dispute remedies

Wrongful withholding includes missing required statements or records, failing to give exact reasons, late balance returns, and bad-faith retention. Bad faith includes keeping money without actual cause, knowingly excessive deductions, and unlawful, retaliatory, or discriminatory purposes. Tenants can seek three times the wrongfully withheld amount, reasonable attorney fees, and court costs. They must demand repayment and give at least seven days' notice of intent to sue. This remedy requires the landlord to fail to return the deposit or withheld portion within seven days after receiving that demand and notice. In court, keeping at least 125% of actual damages is presumed unreasonably excessive, though smaller amounts can also be excessive. The landlord must prove actual damages.

Renters can request move-out damage checks

Tenants can request a walkthrough before the lease ends or they surrender the home. Landlords must provide it at a mutually convenient time, after tenants have had a chance to remove furniture. The inspection can happen in person or through interactive telecommunications. It must identify in writing damage beyond normal wear that did not exist before the tenancy. After a walkthrough, landlords generally cannot deduct for damage that was not documented during it.

Renters face fewer allowed deposit deductions

Colorado landlords can keep reasonable amounts for unpaid rent, utilities, lawful lease-listed charges, and necessary repairs beyond normal wear. Repair charges cannot cover problems that existed before the tenancy. Normal wear includes deterioration, damage, or dirt from ordinary use, but excludes negligence, carelessness, accidents, or abuse by tenants, household members, or guests. Carpet replacement charges require substantial, irreparable damage beyond normal wear that did not preexist the tenancy. Carpet cannot qualify unless replaced with new carpet within 10 years before lease termination or surrender. Painting throughout the home requires substantial damage beyond normal wear to walls or ceilings throughout the unit that did not preexist the tenancy. Allowed carpet and painting charges are limited to the minimum needed for damaged areas. Rental agreements cannot weaken tenant protections or charge tenants for cleaning, repairs, or other work caused by normal wear or preexisting problems.

Renters get documented refunds on deadlines

Landlords must return deposits within 30 days after lease termination or surrender of the home, whichever happens later. A lease can extend this deadline to no more than 60 days. If landlords keep money, they must explain the exact reasons in writing and return the balance by that deadline. They must include relevant records they possess or control, such as photos, inspection reports, receipts, invoices, or estimates. Refunds can be mailed to the tenant's last-known address or sent by secure electronic transfer with the tenant's consent. The law applies to conduct beginning January 1, 2026; the records requirement covers lease terminations or surrenders from its effective date. A timely referendum petition delays the law until voters approve it at the November 2026 election and the governor declares the result.

Renters keep protections when deposits change hands

When a landlord's interest in a home ends, the deposit holder must transfer the deposit to the successor or return it. The deadline is 60 days, including after a sale, assignment, death, or appointment of a receiver. If a refund mailed to a tenant's last-known address comes back, the landlord must hold it for at least one year after receiving it. Once the tenant requests that money, the landlord must pay it within three business days.

Renters face limits on good-faith recoveries

A separate recovery limit applies when a landlord keeps too much deposit money in good faith and otherwise follows the law. If a civil court finds the landlord reasonably retained more than actual damages, liability is limited to the excess and court costs. Tenants do not receive three times the excess or attorney fees under this good-faith rule.

Sponsors & Cosponsors

Sponsors

  • Jennifer Bacon

    Democratic • House

  • Jessie Danielson

    Democratic • Senate

  • Naquetta Ricks

    Democratic • House

  • Tony Exum

    Democratic • Senate

Cosponsors

  • Jamie Jackson

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Javier Mabrey

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Lorena Garcia

    Democratic • House

  • Lesley Smith

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Regina English

    Democratic • House

  • Tammy Story

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Dafna Michaelson Jenet

    Democratic • Senate

  • Sen. F. Winter

    Affiliation unavailable

  • Iman Jodeh

    Democratic • Senate

  • Julie Gonzales

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Mike Weissman

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 183 • No: 115

House vote • 5/7/2025

Senate amendments: Repass

Yes: 34 • No: 31

House vote • 5/7/2025

Senate amendments: Concur

Yes: 43 • No: 22

Senate vote • 5/6/2025

Third reading: Bill

Yes: 19 • No: 16

Senate vote • 5/6/2025

Third reading: Amend (l.035)

Yes: 35 • No: 0

Senate vote • 5/1/2025

Refer House Bill 25-1249, as amended, to the Committee of the Whole.

Yes: 4 • No: 3

House vote • 4/28/2025

Third reading: Bill

Yes: 34 • No: 31

House vote • 3/27/2025

Refer House Bill 25-1249, as amended, to the Committee on Transportation, Housing & Local Government.

Yes: 6 • No: 7

House vote • 3/27/2025

Refer House Bill 25-1249, as amended, to the Committee of the Whole.

Yes: 8 • No: 5

Actions Timeline

  1. Governor Signed

    6/3/2025House
  2. Signed by the Speaker of the House

    5/15/2025House
  3. Signed by the President of the Senate

    5/15/2025Senate
  4. Sent to the Governor

    5/15/2025House
  5. House Considered Senate Amendments - Result was to Concur - Repass

    5/7/2025House
  6. Senate Third Reading Passed with Amendments - Floor

    5/6/2025Senate
  7. House Considered Senate Amendments - Result was to Laid Over Daily

    5/6/2025House
  8. Senate Third Reading Laid Over Daily - No Amendments

    5/5/2025Senate
  9. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/2/2025Senate
  10. Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole

    5/1/2025Senate
  11. Introduced In Senate - Assigned to Business, Labor, & Technology

    4/29/2025Senate
  12. House Third Reading Passed - No Amendments

    4/28/2025House
  13. House Third Reading Laid Over Daily - No Amendments

    4/21/2025House
  14. House Third Reading Laid Over to 04/21/2025 - No Amendments

    4/17/2025House
  15. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/16/2025House
  16. House Second Reading Laid Over to 04/06/2025 - No Amendments

    4/4/2025House
  17. House Second Reading Laid Over Daily - No Amendments

    4/1/2025House
  18. House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole

    3/27/2025House
  19. Introduced In House - Assigned to Business Affairs & Labor

    2/12/2025House

Bill Text

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