Delaware security deposit rules
Delaware limits security deposits to 1 month's rent for leases of 1 year or more, and for month-to-month or undefined-term tenancies once they have lasted 1 year (excess must then be credited back); no statutory cap for shorter fixed terms or furnished units. The deposit must be returned 20 days after expiration or termination of the rental agreement (itemized list of damages and refund of the balance). No interest is owed on the deposit under state law.
What the law requires
1 month's rent for leases of 1 year or more, and for month-to-month or undefined-term tenancies once they have lasted 1 year (excess must then be credited back); no statutory cap for shorter fixed terms or furnished units. Returned 20 days after expiration or termination of the rental agreement (itemized list of damages and refund of the balance). Deposit must be held in a designated escrow account at a federally insured institution with a Delaware office; no interest is required. Failure to return or itemize within 20 days entitles the tenant to double the amount wrongfully withheld. No 2024-2026 amendments to § 5514 found (history line ends at 79 Del. Laws c. 57). Separately, SS1 for SB 116 (85 Del. Laws c. 436, signed Aug 18, 2026, effective Sept 1, 2026) amended § 5502(a) to lengthen the nonpayment demand period from 5 to 7 days and created a right of redemption (paying all rent due before filing bars a possession action); the delcode.delaware.gov text read already shows 7 days.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 20-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Pets: A separate pet deposit is allowed but may not exceed 1 month's rent regardless of lease length; none may be charged for a certified support animal (§ 5514(i)).
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing Del. Code tit. 25, § 5514(a), (e)-(g), (i). Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Delaware rules
- Late fees: A late charge may not exceed 5% of the monthly rent and may not be imposed within 5 days of the agreed due date. If the landlord does not maintain an office or other permanent place in the county where rent may be paid, the due date is extended by 3 more days. Late charges are treated as additional rent. Late fee calculator.
- Notice to end a tenancy: 60 days' written notice by either party; the 60-day period begins on the first day of the month following actual notice (§ 5106(d), as amended by 83 Del. Laws c. 203). For fixed-term leases, 60 days' notice before expiration (§ 5106(c)). Notice calculator.
- All rules on one page: Delaware landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Delaware?
1 month's rent for leases of 1 year or more, and for month-to-month or undefined-term tenancies once they have lasted 1 year (excess must then be credited back); no statutory cap for shorter fixed terms or furnished units. Deposit must be held in a designated escrow account at a federally insured institution with a Delaware office; no interest is required. Failure to return or itemize within 20 days entitles the tenant to double the amount wrongfully withheld. No 2024-2026 amendments to § 5514 found (history line ends at 79 Del. Laws c. 57). Separately, SS1 for SB 116 (85 Del. Laws c. 436, signed Aug 18, 2026, effective Sept 1, 2026) amended § 5502(a) to lengthen the nonpayment demand period from 5 to 7 days and created a right of redemption (paying all rent due before filing bars a possession action); the delcode.delaware.gov text read already shows 7 days.
How long does a landlord have to return a security deposit in Delaware?
20 days after expiration or termination of the rental agreement (itemized list of damages and refund of the balance). The statute is Del. Code tit. 25, § 5514(a), (e)-(g), (i).
Does a Delaware landlord have to pay interest on the security deposit?
No. Delaware law does not require interest on residential security deposits.
Are pet deposits limited in Delaware?
A separate pet deposit is allowed but may not exceed 1 month's rent regardless of lease length; none may be charged for a certified support animal (§ 5514(i)).