Colorado Rental Laws: Just Cause Evictions and Deposit Rules

Colorado rental laws now give tenants some of the strongest protections in the country: landlords need a specific legal cause to evict, security deposits are capped at two months’ rent, habitability repairs run on tight 24- and 72-hour clocks, and late fees cannot exceed the greater of $50 or five percent of past-due rent. The rules live mainly in Title 38, Article 12 of the Colorado Revised Statutes, with eviction procedure in Title 13, Article 40. Penalties for getting them wrong are significant on both sides.

Just Cause Is Now Required for Every Residential Eviction

As of 2024, a Colorado landlord cannot end a residential tenancy simply because the lease term ran out. HB24-1098 created C.R.S. § 38-12-1303 and requires every eviction to fall into either a fault-based or a no-fault category.¹ A tenant facing removal without a listed reason can raise the statute as a defense in court.

Fault-Based Grounds

Fault-based grounds cover tenant conduct: nonpayment of rent, material lease violations, and nuisance behavior that disturbs other tenants or neighbors.¹ For nonpayment, the landlord must serve a written demand giving the tenant 10 days to pay or vacate. Material lease violations and nuisance conduct also require 10 days’ written notice with a chance to cure before the landlord can file.²

No-Fault Grounds

A no-fault eviction requires at least 90 days’ written notice before the tenant has to leave.³ The recognized reasons are:

Demolition, conversion to nonresidential use, or conversion to a short-term rental.
Substantial repairs or renovations that require the unit to be vacant.
Owner or family member move-in, with actual occupancy required within three months after the tenant leaves.
Withdrawal from the rental market to sell the property.
Tenant’s refusal to sign a new lease with reasonable terms.
A pattern of repeated late rent payments.

A landlord who issues a nonrenewal notice without one of these grounds is exposed in court, and timing a nonrenewal right after a habitability complaint carries additional retaliation risk discussed below.

Security Deposit Limits, Deadlines, and Penalties

C.R.S. § 38-12-102.5 caps a residential security deposit at two months’ rent. The limit took effect in 2023 and applies regardless of any lease language to the contrary.

After the tenancy ends, the landlord has one month to return the deposit unless the lease allows a longer period, up to a maximum of 60 days.⁴ Any amount withheld for damage beyond normal wear and tear must come with a written, itemized statement showing the specific reason and dollar figure for each deduction.

Two separate penalty tracks apply when a landlord gets this wrong. Under § 38-12-103, a landlord who willfully withholds deposit money can be ordered to pay three times the wrongfully withheld amount plus the tenant’s attorney fees and court costs; the tenant must give seven days’ written warning before suing under this provision.⁴ Under § 38-12-104, if the tenant receives neither the deposit nor the required written statement within the return window, the landlord owes twice the full deposit plus reasonable attorney fees.⁵ Tenants should leave a forwarding address so the refund has somewhere to go.

Habitability Standards and Repair Timelines

Every residential lease in Colorado carries an implied warranty of habitability that cannot be waived.⁶ A unit is uninhabitable if it lacks working heat, running water, protection from the elements, functioning exterior door locks, or if mold threatens occupant health. The warranty applies at move-in and throughout the tenancy.

The repair clock starts when the tenant sends written notice describing the condition. Two deadlines then apply. Conditions that materially threaten life, health, or safety require the landlord to begin repairs within 24 hours. Other habitability violations get 72 hours.⁶

What a Tenant Can Do If Repairs Don’t Happen

Under C.R.S. § 38-12-507, a tenant whose landlord misses the deadline can terminate the lease by giving 10 to 60 days’ written notice stating the problem, the intent to vacate, and the move-out date, with no early termination penalty.⁷ A tenant can also hire a licensed professional to fix the problem and deduct the cost from rent after giving the landlord at least 10 days’ written notice (or 48 hours if the condition threatens life, health, or safety).

If the same habitability problem returns within six months of being fixed, the tenant can terminate with just 10 days’ notice and no penalty.⁷

Late Fees

C.R.S. § 38-12-105 blocks any late fee until rent is at least seven calendar days overdue. After the grace period, the fee cannot exceed $50 or five percent of the past-due rent, whichever is greater.⁸ On $1,200 rent, that’s a $60 maximum. On $800 rent, the $50 floor controls. The statute also prohibits treating a late fee as rent, which matters because it means a landlord cannot build an eviction case around unpaid late fees. Any lease provision setting a higher fee is unenforceable.

Notice Periods for Ending a Tenancy

When either side wants to end a tenancy at the end of its term rather than for cause, the required notice depends on tenancy length:⁹

Less than one week: 1 day.
One week to less than one month, or an at-will tenancy: 3 days.
One month to less than six months (month-to-month): 21 days.
Six months to less than one year: 28 days.
One year or longer: 91 days.

Keep in mind that for a landlord, meeting the notice period is not enough on its own. The just cause rule still requires a listed fault or no-fault ground.

Retaliation Is Expensive

C.R.S. § 38-12-509 bars landlords from retaliating against tenants who file habitability complaints, join a tenants’ organization, or use any remedy under the warranty of habitability statutes.¹⁰ Retaliation covers rent increases, service reductions, lease nonrenewal, eviction threats, harassment, and new fees imposed in response to a tenant exercising rights.

A tenant who proves retaliation can recover the greater of three months’ rent or three times their actual damages, plus attorney fees and costs, and can terminate the lease.¹⁰

Protected Classes Under Colorado Fair Housing Law

Colorado’s anti-discrimination statute reaches further than federal law. Under C.R.S. § 24-34-502, landlords cannot refuse to rent, apply different terms, or take adverse action based on race, color, creed, religion, sex, sexual orientation, gender identity, gender expression, marital status, familial status, national origin, ancestry, disability, source of income, or veteran or military status.¹¹ Source of income is the provision that makes it illegal to refuse a housing voucher outright.

Required Disclosures for Older Buildings

If the rental was built before 1978, federal law requires the landlord to give the tenant the EPA pamphlet “Protect Your Family From Lead In Your Home,” disclose any known lead paint in the unit and common areas, share any test results, and include a lead warning statement in the lease.¹² Narrow exemptions apply to zero-bedroom units with no young child in residence, short-term rentals of 100 days or fewer without a renewal option, and certain senior and disability housing. Signed disclosures must be kept for at least three years from the lease start date.

Early Lease Termination for Military Service

The federal Servicemembers Civil Relief Act lets active-duty service members, National Guard members on federal active-duty orders, activated reservists, and Coast Guard members break a residential lease without penalty in two situations: the lease was signed before the member entered active duty and the service will last at least 90 days, or the member received PCS or deployment orders of 90 days or more after signing.¹³

The member delivers written notice and a copy of the orders to the landlord. For monthly rent, termination takes effect 30 days after the next rent payment is due following delivery.¹³ Signing a separate SCRA waiver can give up this right, so service members should read any such document carefully before signing.

1
Colorado General Assembly. HB24-1098 Cause Required for Eviction of Residential Tenant
2
Justia. Colorado Code 13-40-104
3
Justia. Colorado Code 38-12-1303 – Cause for Eviction Required – No-Fault Evictions
4
Justia. Colorado Code 38-12-103 – Return of Security Deposit
5
FindLaw. Colorado Code 38-12-104 – Return of Security Deposit – Hazardous Condition – Gas Appliance
6
Justia. Colorado Code 38-12-503 – Warranty of Habitability – Notice – Landlord Obligations
7
FindLaw. Colorado Code 38-12-507 – Remedies
8
Justia. Colorado Code 38-12-105 – Late Fees Charged to Tenants and Mobile Home Owners
9
Colorado Judicial Branch. JDF 99 B – Notice to Terminate Tenancy
10
Justia. Colorado Code 38-12-509
11
Colorado Civil Rights Division. Discrimination
12
US EPA. Real Estate Disclosures about Potential Lead Hazards
13
Office of the Law Revision Counsel. 50 USC 3955 – Termination of Residential or Motor Vehicle Leases