Security-Deposit Demand Letter (Colorado): Template and How to Use It

Your lease ended, you left a forwarding address, and the deadline for your deposit came and went — no check, no itemized list, nothing. The instinct is to jump straight to small claims court. But in Colorado, there’s usually a step you have to take first: a written demand to the landlord. Skip it, and you may forfeit the strongest remedy the law gives you.

This guide covers what that demand letter is, why it carries so much weight, and gives you a copy-paste template you can adapt in a few minutes.

Why the demand letter matters

A demand letter is a short, written notice telling the landlord the deposit is overdue and asking for it back by a specific date. It sounds like a formality. It isn’t. In Colorado, it does three things at once.

It carries a legal step you can’t skip. Before a tenant sues for a wrongfully withheld deposit, Colorado law requires giving the landlord at least seven days’ notice of your intent to file legal proceedings (C.R.S. § 38-12-103). The statute calls for notice of intent to sue rather than a specific “demand” form — but a written demand letter is the natural way to deliver that notice, and it doubles as your record. Skip the notice step and a court may bar the enhanced damages below. (The exact timing and procedure are worth confirming for your situation.)

It unlocks a serious remedy. If the landlord willfully keeps a deposit they weren’t entitled to and still doesn’t return it after a proper demand, Colorado law allows a tenant to seek up to three times the wrongfully withheld amount — treble damages — plus attorney fees. That “three times” figure is what gives a demand letter its teeth. A landlord who was ignoring you may reconsider once the letter puts that number in front of them.

It creates a record. A dated letter, sent in a way you can prove, establishes exactly when you demanded the deposit and what you asked for. If the dispute ever reaches a courtroom, that record is the backbone of your case.

And often, the letter simply works. Many landlords who let a deadline slide will pay once they receive a clear, firm written demand — because the alternative is now spelled out for them.

What to include

Keep it short and factual. A good demand letter names:

• The date you’re sending it.
• Your name and the rental’s address, plus the landlord’s or property manager’s name and contact.
• The deposit amount you paid.
• Your move-out date and the date you vacated / returned the keys.
• The forwarding address you provided (and when), since that’s usually where the deposit and any itemization must be sent.
• What went wrong — the deadline passed with no refund, or no proper itemized statement of deductions.
• A clear deadline for the landlord to return the deposit.
• A note that you may pursue available remedies, including treble damages and attorney fees, if it isn’t returned.

A fill-in template you can copy

Adapt the bracketed parts to your situation. Delete anything that doesn’t apply.

Date: [Month Day, Year]

To: [Landlord / Property Manager name] [Landlord address or email]

From: [Your name] [Your current forwarding address] [Your phone / email]

Dear [Landlord name],

I am writing to demand the return of my security deposit for the rental at [rental address], which I rented until [move-out date]. I paid a security deposit of [$ amount] at the start of my tenancy.

I vacated the unit and returned possession on [date], and I provided my forwarding address on [date it was provided]. As of today, [today’s date], I have not received my deposit or a proper written itemized statement of any deductions, and the deadline for returning it has passed.

I am requesting that you return the full deposit of [$ amount] — or the balance you believe is owed, along with a written itemization of any deductions — no later than [specific date, e.g., seven days from this letter].

If the deposit is not returned by that date, please treat this letter as my notice of intent to file legal proceedings under Colorado law (C.R.S. § 38-12-103), through which I may seek up to three times the wrongfully withheld amount plus attorney fees.

Please send the deposit to the forwarding address above. I am keeping a copy of this letter for my records.

Sincerely, [Your name]

That’s it. It’s polite, it’s dated, it states the amount and the deadline, and it makes clear you understand your remedies — without threatening anything you aren’t entitled to.

How to send it

The letter only protects you if you can prove you sent it. So:

• Use a method that creates a record. Certified mail with a return receipt gives you proof of delivery. Sending it by email as well is a smart backup — it timestamps itself and reaches the landlord fast. When in doubt, send it more than one way.
• Keep a copy of everything — the letter, the certified-mail receipt, and any reply (or the silence).
• Write down the date you sent it. That date is what starts the clock on the demand period, so it matters.

What happens next

If the landlord returns the deposit after your letter, you’re done — the demand did its job. If the short waiting period passes and they still haven’t paid, you’ve now cleared the prerequisite and preserved your right to seek the enhanced damages. For a walk-through of the options from there, see what to do when a landlord didn’t return your deposit.

If you’re not sure the deadline has actually passed, it’s worth confirming the timeline first — see how long a landlord has to return your deposit in Colorado.

The bottom line

The demand letter is the step that turns a frustrating silence into a case with leverage. It delivers the 7-day notice of intent to sue that Colorado requires before you can pursue treble damages and attorney fees, and it frequently prompts payment on its own. Send it in writing, send it in a way you can prove, and keep your copy.

If you’d like to understand your deposit terms before a dispute ever starts, a plain-English Lease Risk Report highlights the deposit language in your lease and flags the clauses worth a closer look.

LeaseCheck is an educational lease-risk screening tool. It is not a law firm and does not provide legal advice. Colorado rental laws change; confirm specifics for your situation.