Colorado Demand Letter Before Small Claims: 7-Day Notice and How to Write One

When a Demand Letter Is Legally Required

Most small claims disputes in Colorado do not require a demand letter before filing. A tenant seeking statutory treble damages for a wrongfully withheld security deposit is a major exception.

For conduct on or after January 1, 2026, under C.R.S. § 38-12-103, a tenant who wants to claim treble damages for a wrongfully withheld security deposit must notify the landlord of the demand for return and intent to file at least 7 days before filing suit. The tenant may bring the treble-damages action only if the landlord fails to return the deposit or the withheld amount within 7 days after receiving that notice.

File a treble-damages claim within 1 year of moving out; the 7-day demand does not replace that separate filing deadline.

The 7-day demand must state the exact amount withheld, notify the landlord of your intent to file if they do not return it, and give them 7 full calendar days from receipt to pay.

Why Send One Even When It Is Optional

For non-security-deposit claims — unpaid invoices, contractor disputes, property damage — a demand letter is optional but often effective. Community discussions from Colorado renters and homeowners consistently show that a formal written demand, especially one sent by certified mail, resolves many disputes without a court filing.

Sending a demand letter also strengthens your case at trial. It shows the judge you tried to resolve the dispute before turning to the court, and the defendant's failure to respond becomes evidence of their unwillingness to pay.

What to Include

A Colorado demand letter for small claims should contain:

• Your full name and address
• The defendant's full legal name — if they are a business, use the entity name from the Secretary of State database at coloradosos.gov, not just the trade name
• A clear statement of the amount owed and a brief factual explanation of why (dates, what was provided or withheld, any contract or agreement)
• A specific deadline to pay — 7 calendar days is the statutory minimum for security deposit demands; for other claims, 10 to 14 days is standard
• A statement that you will file in small claims court if the amount is not paid by the deadline
• The date and your signature

Keep it factual and professional. The letter may end up as Exhibit 1 at your hearing.

How to Send It

Certified mail with return receipt requested is the strongest method. The green card gives you proof that the recipient received the letter and on what date — critical for starting the 7-day clock in security deposit cases.

Keep a copy of the letter, the certified mail receipt, and the signed return receipt card. These form your proof of delivery at trial.

If the defendant refuses to sign for certified mail, consider also sending a copy by regular first-class mail on the same date. Some filers use both to make it harder for the defendant to claim they never received notice.

What Happens After the Deadline Passes

For a security-deposit treble-damages claim, you may file if the landlord does not return the deposit or the withheld amount within 7 days after receiving the notice. For other claims, if your demand deadline passes without payment, you can file using Form JDF 250. Your demand letter and proof of delivery become part of your exhibit packet.

For security deposit claims based on conduct on or after January 1, 2026, treble damages may be available if the landlord fails to return the deposit or the wrongfully withheld amount within 7 days after receiving the demand and notice of intent to file. The small claims principal limit is $7,500.

If the defendant does respond and offers partial payment or a payment plan, you can negotiate and potentially settle without filing. Any settlement should be documented in writing.

The demand letter is the first concrete step in the filing process. The Colorado small claims filing guide includes a demand letter template and tracks the timeline from demand through filing, service, and hearing.

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