Under Colorado law, when it comes to deducting for repairs from a security deposit, landlords must navigate carefully to ensure compliance with the law. Specifically, if you, as a landlord, have undertaken repairs yourself following a tenant's move-out, charging for your time can be a nuanced issue and you must tread carefully or you could find yourself with significant legal issues for wrongfully withholding the security deposit.
According to the Colorado Revised Statutes (C.R.S.) 38-12-103, landlords are obligated to return the security deposit within a specified period post-lease termination unless valid deductions are made for damages beyond normal wear and tear. The law requires landlords to provide a detailed written statement of any deductions from the security deposit, including for repairs.
Charging for Your Time: The first place to gain clarity on the issue is the lease agreement. Ideally, the lease states whether you, as the landlord, can charge for repairs you make, and the hourly rate. If the lease agreement does not predefine a fee or hourly rate for your labor, the court might be hesitant to grant such a deduction.
Providing Proof Without Receipts: Since you've completed the repairs yourself and used materials you already owned, traditional receipts for materials might not be available. In this scenario, documenting the repair process is vital. This can include:
Before and after photos of the damaged and repaired areas to demonstrate the necessity and quality of the repair.
A detailed log of the time spent on the repairs, including dates and hours worked.
An explanation or itemization of the labor rate you're charging, ensuring it aligns with what would be considered reasonable for the type of work performed in your area.
Researching local rates for similar repair work can help justify your claimed rate.
Legal Precedents and Guidance: While specific Colorado statutes or case law directly addressing a landlord's self-repair without receipts are limited, analogous cases and general principles of property damage recovery provide some guidance. Landlords can recover for the loss of use and damages to their property, as evidenced by cases where testimony and documentation (such as repair logs or third-party validations) supported claims for repair costs and labor. Unfortunately, I can provide only so much information over a Q&A, since this is for general information only and we have not reviewed your lease and other documentation. I suggest you speak with a licensed Colorado attorney as soon as possible. Feel free to contact us to see if we can help.