Illustrative Example
This story is based on typical security deposit disputes in Denver. It illustrates common scenarios and outcomes under CRS §38-12-103. It is not a real client case.
Modeled Outcome
The recovery shown here is an illustrative modeled scenario. In Colorado, the actual remedy can depend on facts like notice, intent, coverage rules, or local law.
The Situation
This is an illustrative example based on typical security deposit disputes in Denver. A renter moved out after a two-year tenancy and received a deduction of $800 for full carpet replacement. The carpet had been installed six years before the tenant moved in, giving it a six-year head start on its typical 10-year useful life. Colorado's CRS §38-12-103 prohibits charging tenants for normal wear and tear, and depreciation principles limit replacement charges to the remaining useful life.
What Happened
Research carpet depreciation and document condition
The tenant found the lease rider noting carpet installation date (six years before move-in) and photographed the carpet at move-out showing normal wear patterns - no stains, no burns, no pet damage. With a 10-year carpet lifespan, 80% of the useful life had been consumed before the tenant ever moved in.
Calculate maximum legitimate charge
Using the remaining-life formula: carpet cost $1,000, useful life 10 years, 2 years remaining at tenancy end. Maximum chargeable amount: $1,000 x (2/10) = $200 for normal depreciation scenarios, with the actual charge depending on the extent of damage beyond normal wear. The landlord's $800 claim assumed zero depreciation, which violates Colorado law.
Send dispute letter with depreciation calculation
The tenant sent a certified letter citing CRS §38-12-103, attaching the depreciation worksheet and move-out photos, and proposing a maximum legitimate charge of $267 (accounting for the two remaining years of useful life on an $800 replacement cost). The letter demanded return of $533 (the improperly withheld portion) within 14 days.
Landlord disputes the calculation
The landlord responded claiming the carpet was 'destroyed' and attached a replacement invoice for $800. The invoice confirmed the carpet had been fully replaced but did not address the depreciation argument. The tenant requested documentation of the carpet's installation date - which the landlord provided, inadvertently confirming the six-year age.
Mediated settlement at $890 recovered
Rather than litigate, the parties agreed to a settlement: the tenant would pay $210 (approximately 1.5 years of remaining useful life on a $1,100 deposit scenario), and the landlord would return $890. The settlement was formalized in writing and funds were received within five business days.
The Outcome
By calculating the carpet's remaining useful life and applying Colorado's wear-and-tear prohibition, the tenant reduced an $800 carpet charge to $210 and recovered $890 of their $1,100 deposit. The landlord's own documentation - the replacement invoice confirming the carpet's age - provided the strongest evidence for the depreciation argument.
Key Lesson
Always get the carpet installation date in writing before signing a lease - it is the single most powerful data point in a carpet depreciation dispute.
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