California and Colorado Changed Security Deposit Law in 2025-2026: What Tenants Need to Know

California AB 2801, landlords must now photograph damage (April 2025)

California Assembly Bill 2801, effective April 1, 2025, fundamentally changed what landlords in California must do before they can withhold any portion of a security deposit.

Under AB 2801, landlords are now required to take date-stamped photographs at three specific points in the tenancy:

1. At move-in (for tenancies beginning July 1, 2025 or later): photos of the unit's condition before or at the start of the tenancy. 2. Immediately after the tenant moves out but before any repairs or cleaning. 3. After any repairs or cleaning have been completed.

When the landlord sends you the itemized deduction statement (which California requires within 21 days of move-out), they must include the move-in, move-out, and post-repair photos alongside the written statement of charges.

The critical consequence: failure to provide this photographic documentation in good faith can forfeit the landlord's right to keep any part of the deposit. If your California landlord sends you a deduction statement without the required photos, you have a strong basis to demand the full deposit back and, if necessary, pursue it in small claims court.

California AB 414, effective January 1, 2026, added another requirement: landlords must return the deposit (or the balance after deductions) via a single check payable to all adult tenants listed on the lease, unless there's a written agreement otherwise. A landlord who cuts a check to only one tenant when multiple adults were on the lease is violating this rule.

Colorado HB 25-1249, stricter documentation statewide (January 2026)

Colorado House Bill 25-1249, effective January 1, 2026, significantly tightened the rules for how landlords handle deposits across the state.

The key changes include: clearer written documentation requirements for any deductions, stricter timelines for returning the deposit or providing the itemized statement, and enhanced tenant remedies when landlords fail to comply.

In Colorado, the standard return deadline was already 30 days (or 60 days if agreed in writing). The new law makes non-compliance more consequential, landlords who wrongfully withhold deposits can be liable for treble (triple) the wrongfully withheld amount plus attorney's fees. This was already possible under prior law for "bad faith" withholding, but the new rules make it easier to establish bad faith through documentation failures.

If you're a Colorado tenant who has moved out, the sequence is: send your forwarding address in writing (this starts the clock), wait 30 days, and if you don't receive the deposit or an itemized statement, send a demand letter via certified mail citing C.R.S. § 38-12-103.

New York, 14-day return window for stabilized tenants (November 2025)

Effective November 15, 2025, changes to Section 7-107 of New York's General Obligations Law tightened protections for rent-stabilized tenants. Landlords of covered units must now return the full security deposit within 14 days after move-out, keeping only legally permissible amounts for unpaid rent, utilities, damages beyond normal wear and tear, and moving/storage costs.

Failure to comply within the 14-day window can result in the landlord forfeiting the right to retain any portion of the deposit, plus liability for treble damages in some cases.

For New York City tenants in market-rate units, the standard rules under General Obligations Law § 7-108 still apply: 14 days for most apartments (the 2019 Housing Stability and Tenant Protection Act shortened the deadline from 45 to 14 days for all residential tenancies).

How to use these new rules to get your deposit back

Regardless of which state you're in, the starting point is the same: send a written demand letter via certified mail. This accomplishes several things: it establishes the date your request was made (which starts any applicable penalty clock), it creates a paper trail that's admissible in small claims court, and it demonstrates you followed the correct procedure if you later need to escalate.

In your demand letter, cite the specific statute for your state: California Civil Code § 1950.5 (and AB 2801 / AB 414 for photo and check requirements), C.R.S. § 38-12-103 for Colorado, or New York General Obligations Law § 7-108 for New York.

If the landlord withheld the deposit without the required documentation (photos in California, itemized statement in any state), state that failure explicitly in your letter. A landlord who receives a well-cited demand letter citing their documentation failures often returns the deposit rather than litigate a small claims case they're likely to lose.

If the demand letter doesn't work, small claims court is the right venue for deposits under $10,000 (the limit varies by state: $12,500 in California, $7,500 in Colorado, $10,000 in New York). Bring your certified mail receipt, your lease, the landlord's itemized statement (or absence of one), and your move-out photos if you took any.