What is the security deposit limit in Colorado?
Colorado caps security deposits at two months' rent: on and after August 7, 2023, a landlord may not require a tenant to submit a security deposit in an amount that exceeds the amount of two monthly rent payments (C.R.S. § 38-12-102.5). A separate rule limits what a landlord may KEEP rather than what they may collect. Since January 1, 2026, an amount retained by a landlord is presumed to unreasonably exceed the actual damages the landlord incurred if the amount retained is 125% or greater than those actual damages (C.R.S. § 38-12-103(3.5)(b)), and the landlord bears the burden of proving the actual damages. That 125% figure is a ceiling on withholding measured against documented damage — it is not a second cap on the size of the deposit itself.