Delaware caps security deposits at one month's rent for leases of one year or more. After a tenancy ends, the landlord has 20 days to return the deposit with an itemized list of damages. A landlord who wrongfully withholds funds owes the tenant double the amount wrongfully withheld.
Under Del. Code tit. 25 § 5514(a)(2), "No landlord may require a security deposit in excess of 1 month's rent where the rental agreement is for 1 year or more." For month-to-month or undefined-term tenancies, a deposit over one month's rent is permitted only during the first year; after the tenancy reaches one year, § 5514(a)(3) requires the landlord to immediately credit back any amount over one month's rent. Within 20 days after the agreement terminates, § 5514(f) requires the landlord to give the tenant an itemized list of damages and estimated repair costs and tender the remaining balance. Federally assisted housing is excepted from the cap. Allowed deductions cover unpaid rent and damage beyond ordinary wear and tear.
Under Del. Code tit. 25 § 5514(g)(1), a landlord who fails to remit the deposit (or the balance after itemized damages) within 20 days of termination forfeits the disputed funds, and the tenant is entitled to double the amount wrongfully withheld. The 20-day itemization requirement is strict, and noncompliance bars the landlord from retaining any portion.
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