38-12-103. Return of security deposit. (1) [Editor's note: This version of
subsection (1) is effective until January 1, 2026.] A landlord shall, within one month
after the termination of a lease or surrender and acceptance of the premises,
whichever occurs last, return to the tenant the full security deposit deposited with
the landlord by the tenant, unless the lease agreement specifies a longer period of
time, but not to exceed sixty days. A landlord shall not retain the security deposit to
cover normal wear and tear. If a tenant terminates the lease pursuant to section 38-12-402 (2)(a) and provides the documentation required pursuant to section 38-12-402 (2)(a.5), the tenant is not liable for damage to the dwelling unit caused by the
responsible party or during the course of an incident of unlawful sexual behavior,
stalking, domestic violence, or domestic abuse, and any amount of money that the
landlord retains from the security deposit must comply with section 38-12-402
(2)(b). In the event that actual cause exists for retaining any portion of the security
deposit, the landlord shall provide the tenant with a written statement listing the
exact reasons for the retention of any portion of the security deposit. When the
statement is delivered, it must be accompanied by payment of the difference
between any sum deposited and the amount retained. A landlord is deemed to have
complied with this section by mailing the statement and any payment required to
the last-known address of the tenant. This section does not preclude a landlord
from retaining the security deposit for nonpayment of rent, abandonment of the
premises, or nonpayment of utility charges, repair work, or cleaning contracted for
by the tenant.