security deposit used to pay rent

[Jane S.]

if the tenants agree in writing is it legal to apply their security deposit to unpaid rent? (colorado)

[Andy Thompson]

@Jane S. You could, but you shouldnt. If it's vacant and in good condition at the end of the lease term, then you dont need any special contract to refund their deposit. But if any of those conditions are not true, then you need to retain the funds for the same reason you collected them in the first place.

As well, if you apply deposit towards rent now, you are setting a precedent. If you do it today, what happens when another tenant comes and asks for the same thing? It starts to look preferential. And what happens if one tenants protected class (race religion or sex) isnt the same as for the first tenant? Now you've set yourself up to potentially (accidentally, expensively) break some laws in the future just by trying to be nice today

Business is business, run your system consistently and impartially.