deposit-interest

Security Deposit Interest in Colorado: No State Requirement (2026)

Colorado C.R.S. sec. 38-12-103 requires return of the full deposit within one month (lease may extend to 60 days) with a written itemized stateme… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

No — Colorado law does not require landlords to pay interest on security deposits. Colorado C.R.S. sec. 38-12-103 requires return of the full deposit within one month (lease may extend to 60 days) with a written itemized statement for any withholding, and contains no interest requirement; only mobile-home-park deposits (sec. 38-12-207) have separate trust-account rules. The rule comes from C.R.S. sec. 38-12-103 (Return of security deposit); see sec. 38-12-207 for mobile home parks. State statute (official text) · 2026-10-28

Calculator pre-loaded with this state:

State pre-filled: Colorado — rule applied per C.R.S. sec. 38-12-103 (Return of security deposit); see sec. 38-12-207 for mobile home parks. Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

What Colorado law does — and does not — require

Colorado has no statewide statute requiring interest on security deposits. Colorado C.R.S. sec. 38-12-103 requires return of the full deposit within one month (lease may extend to 60 days) with a written itemized statement for any withholding, and contains no interest requirement; only mobile-home-park deposits (sec. 38-12-207) have separate trust-account rules.

The statute that governs deposits in Colorado, C.R.S. sec. 38-12-103 (Return of security deposit); see sec. 38-12-207 for mobile home parks, covers how and when the deposit itself must be returned — it simply does not mandate interest on top.

How interest must be paid

Not applicable; no interest requirement. Not applicable; refund due within one month after lease termination or surrender and acceptance, whichever is later (lease may extend the period but not beyond sixty days); itemized statement accompanies any partial retention.

Who the law applies to

Residential leases statewide (secs. 38-12-101 to 38-12-103); no statutory deposit cap; 2025 amendments bar withholding for normal wear and tear; willful violation forfeits withholding rights and can trigger treble damages (sec. 38-12-103(3)-(4)).

Cities in Colorado that require interest

No city-level deposit-interest requirement found for Denver, Colorado Springs or Aurora; no rent-control-with-interest regime exists in Colorado (state law preempts local rent control, C.R.S. sec. 38-12-301 as amended 2021 per secondary guides).

States that do require deposit interest

Colorado has no statewide requirement. If you are moving or own rentals across state lines, these states do — each rate is the statutory value verified on the state page:

State	Statutory rate
Massachusetts	5% per annum, or the lesser amount of interest actually received from
Ohio	5% per annum
Maryland	greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases
Minnesota	1% per annum
New York	Interest actually accrued/paid on the deposit in the interest-bearing

The statute behind it

| Field | Value | | --- | --- | --- | | Citation | C.R.S. sec. 38-12-103 (Return of security deposit); see sec. 38-12-207 for mobile home parks | | Official text | colorado.public.law | | Last verified | 2026-10-28 |

Cross-checked against: CSU Student Legal Services - Security Deposit Disputes (explains sec. 38-12-103 rights; no interest mentioned), PayRent - Colorado Landlord-Tenant Laws (no interest required; mobile home park sec. 38-12-207 separate regime).

Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.

FAQ

Does Colorado require landlords to pay interest on security deposits?

No. Colorado law does not mandate interest; whatever the lease says governs. No city-level deposit-interest requirement found for Denver, Colorado Springs or Aurora; no rent-control-with-interest regime exists in Colorado (state law preempts local rent control, C.R.S. sec. 38-12-301 as amended 2021 per secondary guides).

How is deposit interest calculated in Colorado?

The only 'interest' references in sec. 38-12-103 concern the landlord's 'interest in the dwelling unit' (cessation/successor-in-interest), not monetary interest. The calculator at the top of this page reflects Colorado's rules where a numeric value exists.

When do I get the interest?

Not applicable; refund due within one month after lease termination or surrender and acceptance, whichever is later (lease may extend the period but not beyond sixty days); itemized statement accompanies any partial retention.

Can my lease require the landlord to pay interest anyway?

Yes — a lease can always give you more than state law requires, never less. If your Colorado lease promises interest, that promise is enforceable as a contract even though no statute mandates it.

Independent second source · 2026-10-28