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Security Deposit Not Returned for Storage Unit Rentals

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gmn

New member
This issue applies to the State of Colorado


I have not been refunded security deposits after tenancy of rented storage units.

In Short:

I rented 2 storage units from one facilities. I provided proper notice of intent to terminate my rentals in accordance with my rental agreement. I received acknowledgment of my intent to terminate and termination date Dec 31st 2021.

The storage units were completely cleared, cleaned and left unlocked before end of lease. I informed facilities that I had cleared and vacated the units and requested a reply to confirm the units were returned in acceptable order. It appears that I was in compliance with all move-out and lease termination requirements.

My rental payments were always up-to-date with automatic credit card payments conducted by the facilities.

I provided current contact information with request that my security deposits be returned.

After some time I followed-up with messages informing facilities that the security deposit had not been returned, but to date there has neither been a return of the security deposit, nor a message to inform of why I would not be eligible for return of any portion of the security deposit. I expected my deposit returned no later than March 1st 2022.

It seems at this point I can only expect to recover my security deposit through a court judgement or threat of lawsuit.

I reference Colorado State Statutes Property Real and Personal.

C.R.S. 38-12-103 (1) (2022) : This statute indicates that the landlord must return security deposit or landlord shall provide the tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit within 60 days.

C.R.S. 38-12-103 (3)(a) (2022): This statute indicates the landlord is liable for treble the amount of the security deposit wrongfully withheld, together with reasonable attorney fees and court costs.


MY QUESTIONS:

1. Do the Colorado State Statutes above apply for storage unit rentals? It seems they are intended for Colorado’s Security Deposit Law in general, but I would like to be sure.


2. Should I make reference to the statutes in my letter to be sent to the facilities in demand that the deposit be refunded?


3. Should I include in the demand letter wording of the statute that states the landlord is liable for 3 times the amount of unreturned security deposit?


4. Should I state that I intend to seek damages for 3 times the amount of the security deposit through court proceedings should the full amount of security deposit not be provided within 14 days?


5. Are there standards for how the demand letter should be written, and contents?


6. What detail should I attach to the demand letter?


Any opinion or suggestions are much appreciated. Thanks!
 


Zigner

Senior Member, Non-Attorney
After some time I followed-up with messages informing facilities that the security deposit had not been returned, but to date there has neither been a return of the security deposit, nor a message to inform of why I would not be eligible for return of any portion of the security deposit. I expected my deposit returned no later than March 1st 2022.
Have you followed up by way of written, traceable communication? In other words, did you send a letter, return receipt requested?




MY QUESTIONS:

1. Do the Colorado State Statutes above apply for storage unit rentals? It seems they are intended for Colorado’s Security Deposit Law in general, but I would like to be sure.
No


2. Should I make reference to the statutes in my letter to be sent to the facilities in demand that the deposit be refunded?


3. Should I include in the demand letter wording of the statute that states the landlord is liable for 3 times the amount of unreturned security deposit?


4. Should I state that I intend to seek damages for 3 times the amount of the security deposit through court proceedings should the full amount of security deposit not be provided within 14 days?
(see #1)



Before we go any further, let me ask you this: Have you gone to the storage unit in person to ask abou this?
 

gmn

New member
Thanks for the reply. There seems to be more behind the issue than a simple accounting or tracking issue with management. It seems there has been a pattern of intentional retention of security deposits at this facility. Also, there was a duplicate automatic rent payment deduction from my credit card that I discovered. That incident resulted in a dispute which ruffled the managers' feathers.

I have spoke with the manager in person. On a follow-up visit where I brought my account statements for her review I was asked to stop harassing herself and employees. I was asked to leave the property.

I sent several certified letters for which I received delivery confirmation that included reference to my payment history.
 

doucar

Junior Member
It appears your recourse at this moment is to sue in small claims court for the amount of the deposit. Sending another letter is a waste of time. Find out the name of the entity that owns the storage facility and then contact the Colorado Secretary of State's office who the agent for service of process for the corporation is that owns the storage facility and go from there. Be sure you name the correct entity when you sue.
 

adjusterjack

Senior Member
1. Do the Colorado State Statutes above apply for storage unit rentals? It seems they are intended for Colorado’s Security Deposit Law in general, but I would like to be sure.
No. Residential rentals and mobile home parks. That's specified in the first few sections.

There is a storage facility statute but it appears to be for the protection of the facility owner.

Colorado Self-Service Storage Facility Liens Laws - 2021 Colorado Revised Statutes Title 38, Article 21.5 - Self-Service Storage Facility Liens :: 2021 Colorado Revised Statutes :: US Codes and Statutes :: US Law :: Justia

2. Should I make reference to the statutes in my letter to be sent to the facilities in demand that the deposit be refunded?
Obviously not, considering the answer to question 1. A reference to your contractual provisions would be appropriate but you seem to be past the letter writing stage.

3. Should I include in the demand letter wording of the statute that states the landlord is liable for 3 times the amount of unreturned security deposit?
4. Should I state that I intend to seek damages for 3 times the amount of the security deposit through court proceedings should the full amount of security deposit not be provided within 14 days?
5. Are there standards for how the demand letter should be written, and contents?
6. What detail should I attach to the demand letter?
I agree with doucar. You are way past the letter writing. It's time for a lawsuit.
 

Eekamouse

Senior Member
I have never heard of a storage facility requiring a security deposit. Is this some weird Colorado thing?
 

quincy

Senior Member
I have never heard of a storage facility requiring a security deposit. Is this some weird Colorado thing?
I think it generally more common for storage unit facilities to charge administrative fees rather than security deposits. Administrative fees would not be refundable.

As an off-topic aside: In Michigan, it was discovered that several otherwise-homeless people were renting climate-controlled storage units as residences. The costs to rent were minimal, especially compared to motel rooms or apartment rentals, and the storage facilities tend to have accessible restrooms. Not an ideal way to live, of course, but I guess you do what you have to do.
 

Taxing Matters

Overtaxed Member
I have never heard of a storage facility requiring a security deposit. Is this some weird Colorado thing?
No, it's not. Storage facilities in other states do that too. While it may not be extremely common to do in some places, there are still some companies who want that extra assurance that they'll have recourse to some money if a unit owner leaves the storage unit damaged or otherwise unfit to rent to someone else.

As an off-topic aside: In Michigan, it was discovered that several otherwise-homeless people were renting climate-controlled storage units as residences.
That's happened here from time to time too. Those homeless folks get quickly booted from the storage units as they do not meet the applicable local ordinances and zoning rules for residential use and storage facilities don't want to have the extra liability (and increased insurance) that having people living there would cost.
 

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