Delaware security deposit rules.
The Delaware rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Del. Code Ann. tit. 25, § 5514 · Not legal advice
How much can be charged
For leases of one year or more, capped at one month. Month-to-month leases have no statutory cap. Pet deposits up to one month additional.
When it has to come back
20 days from termination, with itemised deductions sent to the tenant’s last known address.
Interest
No interest is required on residential security deposits. The escrow account need not be interest-bearing.
Where the money has to sit
Deposits must be held in a federally insured escrow account at a Delaware bank or savings institution.
What catches operators out
- Furnished rentals are exempt from the 1× cap.
- Failing to hold the deposit in a qualifying escrow account, or to disclose its location within 20 days of a written request, forfeits the entire deposit to the tenant (doubled if not paid within 20 days after that). Missing the 20-day return deadline separately triggers double the amount wrongfully withheld.
What this looks like with Standby in Delaware.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Delaware law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Delaware. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.