HB 25-1249 — Tenant Security Deposit Protections
Status: Governor Signed (2025-06-03)
Introduced: February 12, 2025
Primary Sponsors: Tony Exum; Jennifer Bacon; Naquetta Ricks; Jessie Danielson
Cosponsors: J. Jackson, J. Joseph, C. Kipp, M. Lindsay, D. Michaelson Jenet, L. Smith, T. Story, I. Jodeh, L. Cutter, J. Gonzales, M. Froelich, M. Weissman, J. Mabrey, R. English, F. Winter, K. Wallace, K. Brown, L. García
Note: The official bill text was not included in your request. The summary below combines (A) the bill’s legislative status and sponsors and (B) a clear, labeled description of the bill’s likely purpose and the types of provisions typically included under the title “Tenant Security Deposit Protections.” For exact statutory language, effective date, and precise requirements, consult the enrolled bill on the Colorado General Assembly website or the Secretary of State.
Purpose / Intent
Based on the title, HB 25-1249 is intended to strengthen consumer protections for renters by regulating how landlords collect, hold, account for, and return security deposits. Typical objectives include limiting up-front costs for tenants, increasing transparency about deductions, accelerating return timelines, and creating enforcement mechanisms for noncompliance.
Typical Key Provisions (check bill text for exact language)
The bill likely includes one or more of the following protections commonly found in “security deposit” legislation:
- Deposit limits: Caps on the amount a landlord may charge as a security deposit (often expressed as a multiple of monthly rent, e.g., one to two months’ rent).
- Interest or escrow requirements: Requirement that deposits be held in segregated trust or interest-bearing accounts, with interest credited to tenants or reported annually.
- Itemized deductions: Mandate that landlords provide an itemized list of any deductions (repairs, cleaning) with receipts and supporting documentation.
- Return timeline: Shorter statutory deadlines for returning deposits after tenancy termination (commonly 14–30 days) with penalty provisions for late returns.
- Inspection and cure rights: Right for tenants to receive an initial move-out inspection notice and an opportunity to cure or dispute alleged damage before funds are withheld.
- Prohibited deductions: Limits on withholding for ordinary wear and tear; prohibition on charging for routine maintenance.
- Nonrefundable fees: Clarification about whether certain “fees” can be collected in lieu of deposits (many laws ban nonrefundable security deposits).
- Remedies and penalties: Civil remedies, statutory damages, and attorney’s fees for tenants when landlords fail to comply.
- Notice requirements: Required disclosures to tenants at move-in and move-out about deposit handling, accounts, and timelines.
Who Is Affected
- Tenants: Reduced upfront cost burden, greater transparency, faster return of funds, and stronger remedies.
- Landlords and property managers: New compliance obligations (accounting, recordkeeping, possible escrow or interest-bearing accounts), potential administrative and financial impacts.
- Courts and enforcement agencies: Possible increase in landlord–tenant disputes and need for clear adjudication standards.
Procedural / Timeline Highlights
- Introduced in House (Business Affairs & Labor): 2025-02-12
- Passed House (with amendments during floor/committee stages): April 2025
- Passed Senate (with amendments): May 2025
- Sent to Governor: 2025-05-15
- Governor Signed: 2025-06-03
Effective date: Not specified here — consult the enrolled bill for the statutory effective date (many bills specify a date or “90 days after adjournment,” etc.).
Recommended Next Steps
- Review the enrolled bill text on the Colorado General Assembly website for exact provisions, definitions, dollar limits (if any), effective date, and enforcement mechanisms.
- Landlords and property managers should assess current deposit policies and accounting practices for compliance.
- Tenants and tenant-advocacy groups should look for official guidance from the Department of Local Affairs or Consumer Protection on enforcement and remedies.
