Make Sure Your Deposit Refund Policy is Legal

Robinson & Henry Managing Partner and Real Estate and Landlord-Ttenant Attorney Don Eby spoke with ABC Denver 7 Reporter Jaclyn Allen about a questionable deposit practice by an apartment management company. Check out the full Denver 7 story here.

Deposit Dilemma

A Denver-area man paid a $250 deposit on an apartment he hoped to rent. The man soon learned he would not get the apartment. He found it troubling that it would take 60 days or so before he would get his deposit returned from the management company.

Reporter Jaclyn Allen asked R&H managing partner Don Eby about the issue. Don specializes in landlord-tenant law.

“In this case, I think the landlord’s a little confused,” Don said.

Because no lease was signed, the state statute giving landlords 60 days to return deposits would not apply in this case, Don said.

That means the hopeful renter has some legal recourse, but the question becomes, is it worth it? Here’s what Don had to say about that:

“The legal recourse is going to be slow,” Don said. “It’s going to require the tenant to go to the court, pay a filing fee, initiate the court action, have the landlord served, and is likely to take months, even though the tenant is obviously in the right.”

The Denver-based management company claims its deposit return policy is in line with state law.

Are You a Landlord in Need of Legal Guidance?

Colorado landlords must follow strict state laws. When you deviate from them, whether you realize it or not, you risk being sued by a tenant or former tenant.

Our Eviction & Landlord-Tenant Lawyers can help. Call 303-688-0944 to begin your initial case assessment.

Resources for Landlords

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