Colorado lease application contains requirement for security deposit upfront

Asked December 30, 2019, 7:29 PM EST

Hello, I need to know whether it is legal to require a security deposit up front before the background check has been performed and completed and also, what is the provision in Colorado to have the security deposit returned in the event the prospective tenant is rejected by the rental management company. See application information in italics. Also, there is no provision in the application for the return of the deposit if the prospective tenant is rejected:
I/We understand that an application fee of $45 per individual applicant will be charged and is non-refundable. (Credit Report $25 and $20 processing fee for completing all required follow up, rental reference, phone calls and staff time to gather information of applicants to present qualifications and approval to management). Security deposit is equivalent to one month’s rent and is due with application. If the application is approved and the lease has been delivered for signature, the security deposit is forfeited if the applicant backs out and lease is not signed.

Larimer County Colorado

1 Response

Thank you for your question for eXtension. The topic area in which you've made a request is not yet fully staffed by eXtension experts and therefore we cannot provide you with a timely answer. Instead, if you live in the United States, please consider contacting the Cooperative Extension office closest to you. Simply go to, drop in your zip code and choose the office that is most convenient for you. We apologize that we can't help you right now, but please come back to eXtension to check in as we grow and add experts.