Colorado has been an active legislature for landlord-tenant rules over the last few years, and the security deposit cap that took effect January 1, 2026 is the most recent change worth flagging if your process still assumes the older limit. Applying an outdated rule here is not a minor error — it is a deposit that is legally too large, and one a tenant can push back on.
Security deposits
Colorado now caps a security deposit at one month's rent. It must be returned within one month of move-out, extendable to 60 days if the lease specifies that, or as fast as 72 hours if the tenant left because the landlord failed to make a required repair. Deductions can only cover documented damage beyond normal wear and tear — not general cleaning that would have been needed regardless. Withholding a deposit improperly exposes a landlord to up to three times the wrongfully withheld amount, plus the tenant's legal fees, which is a strong incentive to document deductions properly the first time.
Rent increases
Colorado has no statewide cap on how much rent can increase, and state law affirmatively prohibits local rent control ordinances — so the amount is a market decision, not a legal one. The notice requirement is what matters: without a written lease, 60 days' notice is required before an increase takes effect. With a written lease, rent generally cannot change mid-term at all unless the lease itself allows it.
Termination notice periods by length of tenancy
Colorado scales the required notice to end a tenancy by how long the tenant has lived there: 1 day for stays under a week, 3 days for one week to one month, 7 days for one to six months, 28 days for six months to a year, and 91 days for year-to-year tenancies. Applying the wrong tier — using a 7-day notice on a tenant who has been there 14 months, for instance — is an easy mistake if this is not tracked against the actual move-in date.
Eviction for nonpayment
The standard notice for nonpayment of rent is 5 days for most rental properties, shortened to 3 days for employer-provided housing, and 10 days applies to remaining tenancy types. Lease violations follow the same "comply or vacate" notice periods; illegal activity on the property allows a shorter 3-day vacate notice. Colorado law prohibits self-help evictions entirely — no lockouts, no shutting off utilities, regardless of how far behind a tenant is.
Rent grace period in Colorado
Colorado does not let a landlord charge a late fee the day after rent is due. Under the state's late-fee law, adopted in 2021, a late fee can only be charged once rent is at least seven calendar days late, and it is capped at the greater of $50 or 5% of the past-due rent. The fee must be disclosed in the lease, and a landlord cannot evict for unpaid late fees alone.
Warranty of habitability (C.R.S. 38-12-503)
Colorado's warranty of habitability requires residential rentals to be fit to live in — working heat, plumbing, hot water and electricity, weatherproofing, freedom from pests and mould, and compliance with health and safety codes. Once a tenant gives notice of a condition that materially affects life, health or safety, the landlord must respond within 24 hours and start remedial work within 96 hours; for other habitability problems, within a reasonable time. Tenants have remedies, including in some cases replacing the item and deducting the cost, if the landlord does not act.
The practical point for managers is evidence: a dated record of when notice arrived, when you responded, and when work began. A maintenance request logged the moment it comes in creates that record automatically.
Late fees and application fees
A late fee can only apply once rent is more than 7 days overdue, and it is capped at the greater of $50 or 5% of the overdue amount. Application fees under Colorado's Rental Application Fairness Act must reflect actual processing cost, require a receipt, and any unused portion must be refunded within 20 days.
This is a fast-moving area of Colorado law, so treat specific dollar figures and effective dates here as a starting point to verify against current state code, not a substitute for checking it directly before relying on it in a specific case. What a system can reliably do is apply the right notice tier automatically once tenancy length is tracked — see tenant records for how lease start dates translate into the correct notice window without recalculating it by hand each time.
This article is general information, not legal advice. Landlord-tenant rules change and vary by jurisdiction; check the current statute or consult a local attorney before acting on it.
Common questions
What is the security deposit limit in Colorado?
One month's rent, as of January 1, 2026. It must be returned within one month of move-out (up to 60 days if the lease allows, or 72 hours if the tenant left due to an unrepaired habitability issue).
Is there a rent increase cap in Colorado?
No statewide cap exists, and Colorado law prohibits local rent control. Notice requirements apply instead — 60 days without a written lease, and generally no mid-term increases with one unless the lease allows it.
How much notice is required to evict for nonpayment of rent in Colorado?
Typically 5 days for most rental properties, 3 days for employer-provided housing, and 10 days for other tenancy types.
Is there a grace period for rent in Colorado?
For late fees, yes: a late fee can only be charged once rent is at least seven days late, and it is capped at the greater of $50 or 5% of the overdue rent.
How fast must a Colorado landlord fix a habitability problem?
For conditions that materially affect life, health or safety, the landlord must respond within 24 hours of notice and begin repairs within 96 hours. Check C.R.S. 38-12-503 for the current wording.
Run your properties on one system.
Bookings, owner statements, and maintenance connected, not stitched together.
Create your account