Hello, I am seeking help understanding the Colorado security deposit act, specifically #7 which states: "Any provision, whether oral or writ...

Question

Hello, I am seeking help understanding the Colorado security deposit act, specifically #7 which states: "Any provision, whether oral or written, in or pertaining to a rental agreement whereby any provision of this section for the benefit of a tenant or members of his household is waived shall be deemed to be against public policy and shall be void."

What exactly does that mean? I understand it to say that I cannot waive my right to my security deposit refund...not verbally or by signing a lease that has it written in it. Is this correct or incorrect? I signed a lease and gave deposit money in early Feb to rent a place begining March 1st. After siging the lease the owner said it was required to carry insurance. When I got the quotes, I realized I could no longer afford the place and informed the owner of this. She said ok but I will not give you your money back. In the end she has the place rented to someone else as of the 1st of March (I drove by and took a picture of the obviously occupied home) She says that when I signed the lease I agreed to comply with the full lease and all of its terms or forefit the deposit. Isnt this in conflict with CRS 38-12-103? Thank you so much for any help, in advance!

Answer

That is not exactly what it means. That provision means that a landlord cannot have a contract term attempts to eliminate the specific requirements under the statute. For example, if the lease provided that the landlord had 120 days to account for the security deposit this would be invalid because the statute provides that the landlord can have no more than 60 days to account for the deposit.

As to your circumstance, the answer depends on the lease terms and other facts. The lease could certainly have a clause that provides if you terminate early that it could hold an amount of the deposit as liquidated damages. Since we cannot see your lease there is no way to know if your lease has this or related terms.

As a general matter, the landlord must mitigate damages from a lease breach. You signed the lease and are bound to the terms and are liable for damages for that breach. If, however, the landlord suffered no damages (and absent a valid contract term) then they cannot hold you responsible for damages (such as holding the deposit amount).

There are many steps you need to take to protect your rights and get in a position to sue in small claims. Depending on the facts, you can sue for three times the amount of the deposit.

There are many things to review and do and you should speak with an attorney.

This answer is for informational purposes only and is not legal advice regarding your question. This answer does not establish an attorney-client relationship.