Can I keep security deposit if my tenant breaks lease?

[Mike Girenko]

Hi all,

In Colorado, can I keep security deposit if my tenant breaks lease? My lease states that there is a lease termination fee and tenant also has to pay rent till new tenant moves in. But my current tenant will not pay the termination fee and will not pay rent (simply because tenant does not have money), so wanted to know if I can keep security deposit to cover these.

Thank you!

[Travis Sperr]

@Mike Girenko without seeing the lease and understanding I am not a licensed property manager - just a guy with a few self managed rentals. You can keep the deposit for unpaid rent, just like repairs, etc. You will need to document why you are keeping it in a letter that needs to be delivered to them within 30 days, unless the lease states otherwise, but not more than 60 per state law. I would either send certified mail or heavily document for the proof you sent it.

Just as a side - I wouldn't use a lease that says they are responsible until someone else moves in, just a lease break fee of 1 or 2 months and move on from them.