PropInspect

Delaware Security Deposit Law, in Plain English

Delaware's deposit statute has an unusual first rule: put the money in a disclosed escrow account at a bank with a Delaware office, or forfeit it to the tenant. From there it's a tight, familiar shape — a one-month cap on year-plus leases, a 20-day return with an itemized list, and double damages for wrongful withholding. Here's how 25 Del. C. § 5514 actually works, for both sides of the lease.

20 daysDeadline after expiration or termination to send an itemized damage list with repair estimates and remit the balance
1 month's rentThe cap for leases of one year or more; furnished units are exempt, and pet deposits are capped at one month separately
1 escrow accountAt a federally insured bank with a Delaware office, disclosed to the tenant — or the deposit is forfeited
1 yearThe tenant's window to claim a deposit in writing after leaving without a forwarding address
2xDamages for the amount wrongfully withheld

One month's rent on year-plus leases — with exceptions for furnished units and pets

For a rental agreement of one year or more, a Delaware landlord may not require a security deposit exceeding one month's rent. A month-to-month tenancy starts uncapped — but once it has lasted one year, the landlord must immediately credit back anything above one month's rent. Furnished rental units are exempt from the cap entirely. A pet deposit may not exceed one month's rent regardless of lease length, and may not be charged for an assistance animal under fair-housing law.

In escrow, in Delaware, disclosed — or the landlord forfeits the deposit

Every security deposit must be placed in an escrow bank account at a federally insured banking institution with an office that accepts deposits in Delaware, and the landlord must disclose the location of the account to the tenant — the Delaware courts' guidance puts that disclosure within 20 days of receiving the deposit.

The consequence is written into the section: failure to use a compliant account or to disclose it constitutes forfeiture of the security deposit by the landlord to the tenant. No damage claim survives it. "Where is my deposit held?" is the most valuable question a Delaware tenant can ask in writing.

No interest is owed.

Delaware makes the escrow disclosure the landlord's first duty. The move-in record is the second.

PropInspect walks you room by room — photos, 60-second video clips, and tagged notes attached to each room. Share the finished report as a link the other party can view without an account, or download it as a PDF to attach to the itemized damage list. Works in the browser, works offline, no app to install. First inspections free, then $0.99 each. No subscription.

PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with Delaware law or a particular result in a deposit dispute.

Iniciar una inspección

After the lease ends: 20 days to itemize with estimates and remit

Within 20 days after the rental agreement expires or terminates, the landlord must provide an itemized list of damages to the premises with the estimated costs of repair, and remit the difference between the deposit and the listed amounts. The list and payment go to the forwarding address the tenant provides — the statute makes providing one the tenant's duty.

The permitted uses are three: actual damages beyond normal wear and tear; rental arrearages including late charges; and reasonable renovation and reletting expenses caused by the tenant's early termination. Faded paint and carpet worn by ordinary living aren't damage.

A tenant who leaves no forwarding address relieves the landlord of the notice obligation — but the landlord remains liable for the unused portion, and the tenant must claim it in writing within one year of the lease ending.

When it goes wrong: double the withheld amount — or, for escrow failures, the whole deposit

Failure to remit the deposit, or the balance after the list of damages, within 20 days — or failure to provide the list at all — entitles the tenant to double the amount wrongfully withheld. And separately, a landlord who never escrowed or disclosed the deposit has forfeited it outright, before any damage question is reached.

Deposit disputes go to the Justice of the Peace Court, which hears civil claims up to $25,000 and lists "return of security deposit" as a standard debt action. The winning file: the lease, the escrow disclosure or proof there was none, the forwarding-address notice, the 20-day list with its estimates or proof none arrived, and dated room-by-room photos from both ends of the tenancy.

Preguntas frecuentes

How long does a landlord have to return a security deposit in Delaware?

20 days after the rental agreement expires or terminates. Within that window the landlord must provide an itemized list of damages with estimated repair costs and remit the balance to the forwarding address you provided. Give the address in writing on move-out day; without one, the landlord's notice duty is relieved, though the landlord still owes the unused deposit and you must claim it in writing within a year.

How much can a landlord charge for a security deposit in Delaware?

For a lease of one year or more, no more than one month's rent. A month-to-month tenancy is uncapped at first, but once it has lasted a year the landlord must credit back anything above one month. Furnished units are exempt from the cap. A pet deposit may not exceed one month's rent regardless of lease length.

Where does my deposit have to be kept in Delaware?

In an escrow bank account at a federally insured institution with an office in Delaware, and the landlord must tell you where it's held. A landlord who fails to use a proper escrow account or to disclose it forfeits the deposit to you — one of the sharpest custody rules in the country.

What can a landlord deduct from a deposit in Delaware?

Actual damage beyond normal wear and tear, rent arrearages including late charges, and reasonable renovation and reletting expenses caused by your ending the lease early — each on the itemized list with estimated repair costs. Ordinary aging of paint and carpet isn't deductible.

What happens if the landlord misses the 20 days or skips the itemized list?

You're entitled to double the amount wrongfully withheld. And a landlord who never put the deposit in a compliant escrow account, or never disclosed it, has forfeited the deposit to you outright.

Do I get interest on my deposit in Delaware?

No. Delaware requires an escrow account and disclosure, but no interest is paid to the tenant.

Does Delaware require a move-in inspection or photos?

No. The Code has no checklist, walkthrough, or photo requirement. That leaves 'normal wear and tear' to the evidence — and given the double-damages penalty, both sides benefit from a dated room-by-room record at move-in.

Where do deposit disputes go in Delaware?

The Justice of the Peace Court, which hears civil claims up to $25,000 and lists 'return of security deposit' as a standard debt action — informal and inexpensive. Bring the lease, the escrow disclosure or proof none was given, your forwarding-address notice, the 20-day list or proof none arrived, and dated move-in and move-out photos.

Landlord or tenant, the rule is the same: the record wins arguments you'd rather not have.

Document the move-in today so the move-out is boring. Photos, video, and notes for every room, offline-capable, shareable as a link or PDF. Free to start — no account, no app, no credit card.