Published 2026-09-27 · 8 min read

Delaware Security Deposit Law 2026: Limits, Deadlines & Deductions

Delaware caps security deposits at one month's rent for leases of a year or more, demands return within just 20 days, requires a federally insured deposit account, and punishes violations with double the amount wrongfully withheld — all under 25 Del. C. § 5514. Tenants must object to deductions in writing within 10 days. Every section below is from § 5514 of the Delaware Residential Landlord-Tenant Code.

The short version: For one-year-plus leases, charge at most one month's rent. Hold it in a separate account at a federally insured Delaware bank and disclose the location on written request. Within 20 days of lease end, return the deposit or send an itemized damage list with the balance. Late or sloppy returns cost you double — and failing to disclose the account location forfeits the entire deposit to the tenant.

The statute table

Limits: how much can you charge?

One month's rent where the rental agreement is for one year or more. For month-to-month or undefined-term tenancies, you may initially collect more — but after one year you must immediately return the excess as a credit to the tenant. Furnished units have no cap. On top of the base deposit, you may charge a pet deposit of up to one month's rent (§ 5514(i)) — but never for a certified trained service animal. If the lease allows, you can also raise the deposit commensurate with a rent increase, prorating any increase over 10% of monthly rent across the lease term.

Check your cap with the Security Deposit Max Checker.

The 20-day deadline, precisely

Within 20 days after termination or expiration of the rental agreement, either remit the full deposit or provide the tenant with an itemized list of damages with the estimated cost of repair for each, plus payment of the difference. Miss the itemized list and the statute treats it as your acknowledgment that no payment for damages is due — you lose the deductions, not just the timeline. The tenant then has 10 days from receipt to object in writing to the amount withheld; silence counts as agreement. Before vacating, the tenant must give you a forwarding address in writing — if they don't, you're relieved of the notice obligation and the double-damages liability for failing to give it, but you must hold the unused portion in the account for one year while they can still claim it.

Find your exact date with the Security Deposit Deadline Finder.

When the clock actually starts

Delaware's 20-day clock runs from termination or expiration of the rental agreement — not from the day you finish cleaning, get a repair quote, or find a new tenant. Two practical consequences follow. First, a lease that ends on paper while a holdover or a delayed key return drags on still needs a documented termination date in the file; that date, not your move-out walk-through, is what a court will count from. Second, the tenant's side of the exchange matters just as much: before vacating, the tenant is expected to supply a forwarding address in writing, and the tenant then gets 10 days from receipt of your itemized list to object in writing. Log three dates the day they happen — termination, the forwarding address arriving, and delivery of your list — because the objection window and any double-damages claim are both measured from paperwork, not from memory.

A worked example

Say a one-year lease terminates on Monday, March 2, 2026, on a unit renting for $1,500 a month with a $1,500 deposit — the one-month maximum for a lease of that length. Counting 20 calendar days from March 2 puts the return deadline on Sunday, March 22, 2026; because that lands on a weekend, deliver days early rather than arguing about the last day. Suppose the tenant left $400 of unpaid amounts and $350 of documented damage beyond normal wear and tear — $750 of legitimate deductions. Handled on time, you send the itemized list pairing each charge with its repair cost, plus the $750 balance, by the deadline, and the tenant has 10 days from receipt to object in writing. Work backwards from March 22: inspect and photograph in the first few days, price every deduction from records by the end of the first week, and have the list and payment ready well before the window closes.

Deductions and the itemized list

Deduct for damage beyond normal wear and tear, unpaid rent, late fees, termination fees, and reasonable early-termination expenses. Pet-caused damage comes out of the pet deposit first; you may dip into it for non-pet damage only if the regular deposit is insufficient. The itemized list must pair each damage with its repair cost — estimates are acceptable at this stage.

Build the letter with the Security Deposit Deduction Letter Generator.

Move-out compliance checklist

1. Fix the termination date on day one. Record when the agreement terminated or expired — the 20-day return clock runs from that date, not from cleaning or re-letting.

2. Confirm the account file. Verify the deposit sat the whole tenancy in its designated account at a federally insured bank with a Delaware office, and note whether the tenant ever requested the location in writing.

3. Inspect and photograph within the first few days. Walk the unit promptly and photograph every room before cleaning or repairs begin, so chargeable damage is separated from the condition documented at move-in.

4. Price deductions from records, not guesses. Tie each amount to unpaid rent or fees, or to documented damage beyond normal wear and tear, using invoices, receipts, or a dated repair log; draw pet damage from the pet deposit first.

5. Itemize every dollar in writing. Pair each damage with its estimated repair cost alongside the balance being returned — skipping the list is treated as acknowledging that no damage payment is due.

6. Deliver well before day 20. Send the list and the balance inside the 20-day window, and keep proof of delivery; the tenant's 10-day written-objection window runs from receipt.

7. Keep the file after you deliver. Retain the lease, account records, photos, itemized list, and delivery proof together — the double-damages and forfeiture rules make a sloppy file far more expensive than the deductions it was meant to protect.

Interest and where the money sits

No interest is required, but the account rules are strict: the money must sit in a designated security deposit account at a federally insured bank with a Delaware office that accepts deposits, and you may not use it in operating your business. Disclose the account's location within 20 days of the tenant's written request — fail to disclose, or fail to use a qualifying bank, and you forfeit the entire deposit to the tenant. If you then don't return it within 20 days of forfeiture, the tenant gets double.

The penalty, spelled out

Fail to remit the deposit or the itemized balance within 20 days and the tenant recovers double the amount wrongfully withheld. The forfeiture rule above is the sleeper penalty: an undisclosed or improperly held account hands the tenant the whole deposit, doubled if you don't pay up within 20 days of forfeiture. Delaware also bans nonrefundable move-in fees and lets tenants substitute a surety bond for part or all of the deposit (§ 5514A).

Run the worked example through that penalty: if you wrongfully held back the full $750 balance in the example above, the double-damages rule puts $1,500 in play on that amount alone. The forfeiture scenario is worse: on a $1,500 deposit held in the wrong kind of account, or with its location never disclosed on written request, the entire $1,500 can be forfeited to the tenant — and failing to hand it over within 20 days of forfeiture doubles that exposure. Set against the modest deductions most landlords are protecting, the calendar and the account paperwork are worth several times the money at stake in the deductions themselves.

FAQ

Is there really no cap on furnished units?

Correct. § 5514(a)(4) exempts furnished rental units from the deposit limits entirely.

Can I charge a pet deposit on top of the one-month cap?

Yes — up to one additional month's rent for pets. Deduct pet damage from the pet deposit first.

What if the tenant doesn't give a forwarding address?

You're relieved of the duty to send the damage notice and of double-damages liability for that failure — but you must hold the unused deposit in the account for one year, during which the tenant may claim it.

Does the tenant have to respond to my itemized list?

They have 10 days from receipt to object in writing. No objection means they accept your accounting.

Does the deposit earn interest?

No. Delaware requires a proper federally insured account but no interest payments.

Can I charge a nonrefundable move-in fee?

No — except for optional fees for actual services rendered (like a pool fee), nonrefundable fees as a condition of occupancy are barred.

When exactly does the 20-day clock start?

At termination or expiration of the rental agreement. Your cleaning schedule, repair quotes, and re-letting timeline do not move it — document the termination date in the deposit file the day it happens, and deliver the itemized list and balance within 20 days of that date.

How do I document the account and disclosure duties?

Keep the deposit in a designated security-deposit account at a federally insured bank with a Delaware office that accepts deposits, never use it in operating the business, and record the bank and account location in the file from day one. If the tenant asks for the location in writing, disclose it within 20 days of the request and keep proof you did — a missed disclosure can forfeit the entire deposit.

Read the statute yourself

Everything on this page traces back to 25 Del. C. § 5514. If a deadline, deduction, or account question is ever disputed, the primary sources — not a summary — are what control:

• Delaware Code, Title 25, Chapter 55 (Delaware Code Online) — the official Delaware Code page containing § 5514, covering the cap, the escrow and disclosure duties, the 20-day return rule, and the penalties.
• 25 Del. C. § 5514 — Security deposit (Cornell Law Institute) — a readable full-text version of the same section for cross-checking the official code.

Never miss Delaware's 20-day clock: skip the itemized list and the statute treats it as your acknowledgment that no damages are due — plus double damages and a forfeiture rule that can hand the tenant the whole deposit over a bank-account technicality. The Security Deposit Disposition & Deadline Tracker keeps your deposit register, deduction ledger, and deadline calendar in one formula-driven tracker ($14.95, one-time purchase).

More security deposit guides

• Security deposit laws by state
• Connecticut security deposit law
• Florida security deposit law
• Colorado security deposit law
• Georgia security deposit law

Last verified: October 14, 2026. This is general information, not legal advice. Verify with a licensed Delaware attorney before acting.