Colorado lease application contains requirement for security deposit upfront
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
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