What are the security deposit rules in Delaware?
Delaware caps security deposits at one month's rent only for leases of a year or more — and for month-to-month tenancies once they pass the one-year mark — while shorter fixed-term leases, the first year of a month-to-month tenancy, and furnished units have no cap at all.
Cited to 25 Del. C. § 5514 (a)-(j) and 6 more Delaware statutes · Verified July 11, 2026
The landlord has 20 days from the end of the tenancy to return the deposit or send an itemized damage list with estimated repair costs and pay the difference; missing that deadline is a legal admission that no damages are owed and exposes the landlord to double the amount wrongfully withheld. The deposit must be held in a designated escrow account at a federally insured bank with a Delaware office, and hiding the account's location after a written request — or skipping the escrow account — forfeits the whole deposit. Tenants must give a forwarding address in writing by move-out to preserve the double-damages remedy, and then have 10 days to object in writing to any deductions. Pet deposits are allowed but separately capped at one month's rent (never for certified support animals), nonrefundable move-in fees are banned, application fees are capped at the greater of 10% of a month's rent or $50, and since June 24, 2026 a lease that conditions deposit return on handing back the keys must spell out a clear key-surrender procedure.
Delaware security deposits at a glance
| Maximum deposit | 1 month's rent — The cap reaches only rental agreements of 1 year or more and month-to-month or undefined-term tenancies that have run a year. A shorter fixed term is uncapped for that term, and furnished units are exempt from the deposit limits entirely. The two covered situations are (1) rental agreements for 1 year or more (25 Del. C. § 5514(a)(2)), and (2) month-to-month or undefined-term primary residential tenancies once the tenancy has lasted 1 year — at the 1-year mark the landlord must immediately credit back any amount (including any surety bond) over 1 month's rent (§ 5514(a)(3), federally-assisted housing excepted). A month-to-month tenancy has no cap during its first year, and furnished rental units are exempt under § 5514(a)(4). A pet deposit is separate from the security deposit (§ 5141(33)) and is capped on its own at 1 month's rent regardless of lease length (§ 5514(i)(2)). |
|---|---|
| Return deadline | 20 days |
| Deadline conditions | The clock runs from the expiration or termination of the rental agreement. The same deadline covers both jobs, remitting the deposit (§ 5514(e)) and providing the itemized damage list with estimated repair costs and tendering the difference (§ 5514(f)). Communications go to the tenant's address in the rental agreement or to a forwarding address the tenant provided in writing at or before termination (§ 5514(h)). The tenant then has 10 days from receipt of a tendered payment to object in writing; silence is agreement to the landlord's damage figures. Since June 24, 2026, a lease that conditions deposit return on surrender of keys must give a clear surrender procedure and may not require surrender before the end of the term (85 Del. Laws c. 295). |
| Itemization required | Yes |
| Itemization rules | Within 20 days after termination or expiration the landlord must provide an itemized list of damages and the estimated cost of repair for each item, and must tender payment of the difference between the deposit and those costs (§ 5514(f)). Failure to provide the list within 20 days is a statutory acknowledgment that no payment for damages is due. Deposits may be applied only to actual damage beyond normal wear and tear (defined at § 5141(23)), rental arrears including late charges and rent due for premature termination or abandonment, and reasonable renovation/re-renting expenses caused by premature termination (capped at 1 month's rent when termination was the tenant's statutory § 5314 early-termination right) (§ 5514(c)). |
| Separate account required | Yes |
| Interest owed to tenant | No |
| Account & interest rules | The Landlord-Tenant Code requires no interest on security deposits anywhere in § 5514 or in chapters 53 and 55. The escrow rules are strict in other respects, so the money still cannot be treated as the landlord's own. The deposit must sit in a federally-insured banking institution with a Delaware office that accepts deposits, in an account designated as a security-deposits account, not used in the landlord's business, with the location disclosed to the tenant, and the tenant's claim to the money primes any creditor of the landlord, including a bankruptcy trustee, even if the money was commingled (§ 5514(b)). |
| Pet deposits | Pet deposits are expressly authorized and separately capped at 1 month's rent regardless of the duration of the rental agreement (§ 5514(i)(2)). Animal damage must be deducted from the pet deposit first, then from the security deposit if insufficient. Pet deposits carry the same escrow, 20-day return, itemization, penalty, and forwarding-address rules as security deposits (§ 5514(i)(1)). No pet deposit may be required for a duly certified and trained support animal of a disabled resident (§ 5514(i)(3)). Because § 5141(33) excludes pet deposits from the 'security deposit' definition, a 1-year lease with a pet can lawfully carry up to 2 months' total deposits. |
| Non-refundable fees allowed | No |
| Penalty for violation | A landlord who misses the 20-day remittance and itemization deadline owes the tenant double the amount wrongfully withheld (§ 5514(g)(1)). Separate account penalties: failing to disclose the account location within 20 days of a tenant's written request, or failing to keep the deposit in a qualifying federally-insured in-state account, forfeits the entire deposit to the tenant — and failing to return the forfeited deposit within 20 days doubles it (§ 5514(g)(2)). Demanding more than the allowed application fee entitles the tenant to double the amount charged (§ 5514(d)). |
| Tenant forwarding-address duty | Yes — the tenant must provide a forwarding address in writing at or before termination of the rental agreement (§ 5514(h)). Failure relieves the landlord of the notice duty and of double-damages liability, but the landlord remains liable for the unused portion of the deposit if the tenant makes a written claim within 1 year of termination or expiration. |
Cite this page: "Landlord Atlas, Delaware Security Deposit Laws (verified July 11, 2026), landlordatlas.com/laws/security-deposits/delaware/" — free to cite and quote with a link (how these records are verified). Every figure above is cited to the Delaware statute in the citations section below.
Generate a Delaware security-deposit return letter — free, no signup, built on the same verified Delaware rules as this page.
Notes and caveats
- The cap trap: 'one month' is not a flat rule — Most charts say Delaware caps deposits at one month's rent, flat — wrong. § 5514(a)(2) caps only agreements of a year or more; § 5514(a)(3) caps undefined-term/month-to-month tenancies only after the tenancy has lasted a year (any excess, counting a surety bond, must then be immediately credited back). A 6-month lease or the first year of a month-to-month tenancy is uncapped, and furnished units are exempt from the limits entirely (§ 5514(a)(4)).
- Pet deposits stack on top — A pet deposit is excluded from the 'security deposit' definition (§ 5141(33)) and carries its own one-month cap regardless of lease term (§ 5514(i)(2)) — so a one-year lease plus a pet can mean up to two months' rent in deposits total.
- What a landlord may lawfully collect at move-in — Nonrefundable fees are banned as a condition of occupancy under § 5311 (which excepts optional service fees for actual services like pool or tennis), and § 5310 prohibits 'assurance money.' The lawful move-in charges are rent, the security deposit, a pet deposit, the capped application fee, a unit-reservation deposit, and an optional § 5514A surety-bond premium.
- Mid-tenancy deposit increases are constrained — A deposit may be increased only if the rental agreement so provides, and only commensurate with the rent; an increase exceeding 10% of the monthly rent must be prorated over the term — over 4 months for a month-to-month tenancy (§ 5514(j)).
- New law: key-surrender rules since June 24, 2026 — 85 Del. Laws c. 295 (HB 217, signed and effective June 24, 2026) adds key-surrender rules: a lease that conditions deposit return on handing back the keys must spell out a clear procedure, keys cannot be required before the end of the term, and the act sets weekend/holiday and multi-tenant possession-return timing plus a default self-help return with written notice.
- Key-surrender rules are codified at § 5125, not the act's § 5123 — The enrolled act numbered the new key-surrender section § 5123, which collided with the existing § 5123 ('Tenant employee'). The Code Revisors resolved the collision by codifying it as 25 Del. C. § 5125 ('Surrender of rental unit keys') — the Delaware Code Online carries it there as of August 12, 2026. Older references to the act's own § 5123 numbering describe the same provision.
- Dead bill: SB 186 changed nothing — SB 186 (deposit-communication evidence and electronic delivery) died in Senate committee at the June 30, 2026 sine die — § 5514(h)'s paper mechanics still govern.
- Two official renderings, one text — The Delaware Code Online HTML and the official Title 25 PDF carry every deposit figure on this page in identical terms.
Common questions: Delaware security deposits
Each answer is the verified value from the table above, restated as a direct answer. Free to quote with a link to this page.
- How much can a landlord charge for a security deposit in Delaware?
- 1 month's rent — The cap reaches only rental agreements of 1 year or more and month-to-month or undefined-term tenancies that have run a year. A shorter fixed term is uncapped for that term, and furnished units are exempt from the deposit limits entirely.
- How long does a landlord have to return a security deposit in Delaware?
- 20 days. The clock runs from the expiration or termination of the rental agreement. The same deadline covers both jobs, remitting the deposit (§ 5514(e)) and providing the itemized damage list with estimated repair costs and tendering the difference (§ 5514(f)).
- What happens if a landlord does not return the deposit on time in Delaware?
- A landlord who misses the 20-day remittance and itemization deadline owes the tenant double the amount wrongfully withheld (§ 5514(g)(1)).
- Do landlords have to pay interest on security deposits in Delaware?
- No — Delaware does not require interest on the security deposit to be paid to the tenant. The Landlord-Tenant Code requires no interest on security deposits anywhere in § 5514 or in chapters 53 and 55. The escrow rules are strict in other respects, so the money still cannot be treated as the landlord's own.
- Can a landlord charge a non-refundable fee in Delaware?
- No — non-refundable fees are not allowed in Delaware.
Statute citations
- 25 Del. C. § 5514 (a)-(j) (verified 2026) Official source
- 25 Del. C. § 5514A (verified 2026) Official source
- 25 Del. C. § 5141 (23), (27), (33) (verified 2026) Official source
- 25 Del. C. § 5311 (verified 2026) Official source
- 25 Del. C. § 5310 (a) (verified 2026) Official source
- 25 Del. C. § 5125 (surrender of rental unit keys — c. 295 as codified) (a)-(d) (verified 2026) Official source
- 85 Del. Laws c. 295 (HB 217 w/ HA 1, 153rd GA, signed 2026-06-24 — surrender of rental unit keys) (verified 2026) Official source
How this record was verified: Direct read of statute text on the official Delaware Code site (delcode.delaware.gov), each section these answers rest on read twice through independent official paths: the delcode HTML chapter pages (25 Del. C. ch. 51 subchapters I-II, ch. 53, ch. 55) and the official Title 25 PDF served from the same host, with every decisive figure matching verbatim (1-month deposit cap and its 1-year-lease / month-to-month-after-1-year scope; 20-day return and itemized-list deadline with 10-day tenant objection window; double damages and account-forfeiture penalties; 1-month pet deposit cap; application-fee cap at the greater of 10% or $50; 5% late-charge cap with the 5-day no-imposition window and 3-day extension for no in-county payment office; 48-hour entry notice and the 8:00 a.m.-9:00 p.m. window; 60-day renewal-with-modifications notice with the 45-day tenant rejection right; 60-day month-to-month termination notice with the first-of-following-month start). Sections read in full: 5101, 5102, 5106, 5107, 5108, 5116, 5123, 5124, 5141, 5310, 5311, 5501, 5502, 5509, 5510, 5514, 5514A, 5515, plus complete section listings of ch. 51 subch. I, ch. 53, and ch. 55 as sweep basis for verified negatives (no deposit-interest requirement, no other late-fee or entry provision, no rent-increase tiers or frequency limits, no rent-control preemption statute in Title 25). The Delaware Attorney General's official Summary of the Residential Landlord-Tenant Code corroborates the 60-day rent-increase-notice reading of section 5107 for month-to-month tenancies. 2025-2026 session sweep: the complete 153rd General Assembly docket (all 1,961 pieces of legislation) was retrieved from the official legis.delaware.gov AllLegislation API and title-filtered; one on-topic enactment incorporated (HB 217, 85 Del. Laws c. 295, key-surrender rules, signed 2026-06-24), two passed bills awaiting the Governor flagged (SB 235, SB 292), and three on-topic bills confirmed dead at the 2026-06-30 sine die adjournment (SB 186 deposit e-communications, HB 229 summary-possession service window, HB 467 renters insurance). HB 455 (152nd GA statewide rent cap) confirmed dead in committee in 2024. Wilmington's 2025 rent-stabilization ordinance confirmed failed 6-5 in City Council on 2025-06-05.