State law guide · Checked November 14, 2026

Colorado landlord rules: late fees, deposits and rent increases

Colorado limits late fees, deposit size and the deposit return deadline. Its deposit return rules changed on January 1, 2026. Here is what Title 38, article 12 of the Colorado Revised Statutes says, with the section for each rule.

Late fees in Colorado

Limit

The greater of $50 or 5% of the past-due rent payment. C.R.S. § 38-12-105(1)(b)

Grace period

Seven calendar days. No late fee can be charged unless a rent payment is late by at least seven calendar days. C.R.S. § 38-12-105(1)(a)

Other conditions

One late fee per late payment, disclosed in the rental agreement. The landlord must give the tenant written notice of the fee within 180 days after the rent was due. No interest on a late fee. The fee can't be taken out of a later rent payment, and no eviction can be based on unpaid late fees. No late fee on any part of the rent a subsidy provider is responsible for. A lease term that goes against this section is void. C.R.S. § 38-12-105(1)(c), (d), (f) to (j), (2)

Security deposits in Colorado

Maximum deposit

Two months' rent. C.R.S. § 38-12-102.5

Return deadline

30 days after the lease ends or the tenant surrenders the premises. This applies from January 1, 2026. The lease can set a longer period, but not more than 60 days. C.R.S. § 38-12-103(1)(a)

Itemized deductions

Required, in writing, listing the exact reasons, within the same deadline. Missing the deadline means the landlord loses the right to withhold any of the deposit. From January 1, 2026, the landlord must provide supporting documents within 14 days after the tenant asks for them in writing. C.R.S. § 38-12-103(1), (2), (8)

Interest

The statute doesn't require it. C.R.S. §§ 38-12-101 to 38-12-106

How it's held

No special account or bond in the statute. C.R.S. §§ 38-12-101 to 38-12-106

Penalty

Three times the amount wrongfully withheld, plus reasonable attorney's fees and court costs. The tenant must give written notice of intent to sue 7 days before filing. From January 1, 2026, the penalty applies to wrongful retention, and keeping an amount of 125% or more of actual damages is presumed to be in bad faith. C.R.S. § 38-12-103(3), (3.5)

Rent increases in Colorado

Notice to raise rent

At least 60 days' written notice when there is no written rental agreement. With a written agreement, the statute sets no notice period, so check your lease for its own notice term. A landlord can't raise rent more than one time in any 12-month period. C.R.S. §§ 38-12-701(2)(a), 38-12-702(1)

Statewide cap

None in the statute. A landlord can't raise rent in a discriminatory, retaliatory, or unconscionable manner. C.R.S. § 38-12-1307

City rent control

Not allowed. No county or municipality may enact an ordinance or resolution that would control rent on private residential property. Voluntary agreements and voluntary deed restrictions are excepted. C.R.S. § 38-12-301(1), (2)

This page covers Colorado state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones. The official site has no per-section links for these statutes, so each citation links to the Colorado Revised Statutes Title 38 PDF. Search it for the section number.

Questions landlords ask

Free templates you can use in Colorado

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

• Rent increase letter kit: increase notice, renewal offer, pricing worksheet and delivery log.
• Late rent notice kit: friendly reminder, past-due notice, payment plan and delivery log.
• Security deposit return kit: itemized return letter, wear-and-tear guide and move-out checklist.
• Move-in kit: inspection checklist and deposit receipt, signed by the tenant.
• Rent ledger: running tenant balances and printable statements.

This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Colorado Revised Statutes, Title 38 (2024 edition, PDF)) or talk to a local attorney before you act.