Free Colorado Application Denial Letter Template

Last reviewed September 2026

Written by LawLease Editorial

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Colorado Application Denial Letter

This Application Denial Letter is built with Colorado as the governing state. These are the Colorado landlord-tenant rules that most often bear on it, with the statute for each.

Colorado rules at a glance

Colorado rules for an Application Denial Letter
Security deposit limit	2 months’ rent; a separate pet deposit is capped at $300C.R.S. §§38-12-102.5, 38-12-106
Deposit return	30 days, or up to 60 days if the lease says so; noncompliance forfeits the right to withholdC.R.S. §38-12-103
Pet deposits & pet rent	A pet deposit can’t exceed $300 and must be refundable; monthly pet rent is capped at the greater of $35 or 1.5% of the monthly rent (§38-12-106). Assistance animals aren’t pets and can’t be charged either.

Security deposits in Colorado

Since August 7, 2023, a Colorado landlord can’t require a security deposit of more than two monthly rent payments (§38-12-102.5). Colorado also regulates the return tightly — and the penalties for getting it wrong are among the harshest in the country. HB25-1249, effective January 1, 2026, added new documentation and wear-and-tear rules on top.

Return deadline — The deposit, or a written statement listing the exact reasons for keeping any part of it together with the balance, is due within 30 days after the lease ends or the premises are surrendered, whichever is later. The lease may extend this to no more than 60 days (§38-12-103(1), as amended by HB25-1249).
Forfeiture — Missing the deadline, otherwise failing to follow the statute, or wrongfully withholding forfeits the landlord’s right to withhold any portion of the deposit — even for real damage (§38-12-103(2)).
Treble damages — Wrongfully withholding a deposit makes the landlord liable for three times the amount wrongfully withheld plus attorney fees and court costs, and the landlord bears the burden of proving the withholding wasn’t wrongful. The tenant must first give at least 7 days’ written notice of the demand and intent to sue (§38-12-103(3)). Since 2026, keeping 125% or more of the landlord’s actual damages is presumed to be bad faith (§38-12-103(3.5)).
Wear and tear (2026) — Deductions can’t be taken for normal wear and tear or for conditions that existed before the tenancy, and a lease clause charging the tenant for such work is void. Within 14 days after a tenant’s written request, the landlord must share the photos, inspection reports, receipts, invoices or estimates supporting any deduction (§38-12-103(7)(b), (8), added by HB25-1249).
Pet deposits & pet rent — A pet deposit can’t exceed $300 and must be refundable; monthly pet rent is capped at the greater of $35 or 1.5% of the monthly rent (§38-12-106). Assistance animals aren’t pets and can’t be charged either.

Colorado Application Denial Letter FAQs

How much can a landlord charge for a security deposit in Colorado?

No more than two monthly rent payments (C.R.S. §38-12-102.5, in force since August 7, 2023). A separate pet deposit is capped at $300 and must be refundable, and pet rent can’t exceed the greater of $35 or 1.5% of monthly rent (C.R.S. §38-12-106).

How long does a landlord have to return a security deposit in Colorado?

Thirty days after the lease ends or the unit is surrendered, whichever is later — or up to 60 days if the lease specifies a longer period (the deadline changed from one month on January 1, 2026). Missing the deadline forfeits the right to keep any of it, and wrongful withholding can cost three times the amount withheld (§38-12-103).

Application Denial Letter in other states

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