Overview
Delaware's security deposit laws are governed by the Delaware Residential Landlord-Tenant Code (Del. Code tit. 25, § 5101 et seq.). The law sets clear limits on how much landlords can collect, how deposits must be held, and when they must be returned.
This guide covers everything landlords and tenants need to know about security deposits in Delaware.
Deposit Limits
Delaware law sets the following maximum security deposit amounts:
- Fixed-term leases: Maximum of 1 month's rent
- Month-to-month tenancies: Maximum of 1 month's rent (additional pet deposits may apply separately)
Landlords must deposit the security deposit in a federally insured interest-bearing account at a Delaware financial institution. The landlord must inform the tenant of the location of the account.
For tenancies lasting more than one year, landlords must pay tenants the interest earned on the deposit or credit it toward rent.
cite: Del. Code tit. 25, § 5514
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs for repairing tenant-caused damage
- Early termination costs: If the tenant breaks the lease early, costs related to re-renting
- Cleaning: Costs to restore the unit to its condition at the start of the tenancy, minus normal wear and tear
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls and floors
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint from sunlight exposure
Damage beyond normal wear and tear includes:
- Large holes in walls or doors
- Stained, burned, or torn carpet
- Broken windows or light fixtures
- Damage from pets not authorized in the lease
Return Timeline
Landlords must return the security deposit within 20 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (after any deductions)
- An itemized written list of all deductions and the corresponding amounts
If the landlord fails to provide the itemized list within 20 days, the landlord forfeits the right to make any deductions and must return the full deposit. If the landlord acts in bad faith, the tenant may be entitled to double the deposit amount in damages.
cite: Del. Code tit. 25, § 5514(g)
Pre-Move-Out Inspection
Delaware does not have a statutory requirement for a pre-move-out inspection. However, conducting a joint walkthrough is recommended to document the condition of the unit and reduce the potential for disputes over deductions.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Justice of the Peace Court (small claims jurisdiction up to $25,000)
- File a complaint with the Delaware Department of Justice Consumer Protection Unit
If the landlord fails to return the deposit within 20 days without providing an itemized statement, the tenant may recover the full deposit plus damages.