What Is the Maximum Security Deposit in Delaware?
Delaware limits a security deposit to one month’s rent on agreements of a year or more, with different rules for month-to-month tenancies, shorter leases and furnished units. Here is how the statute reads.
What is the maximum security deposit in Delaware?
A landlord may require a security deposit, but “no landlord may require a security deposit in excess of 1 month’s rent where the rental agreement is for 1 year or more” (25 Del. C. 5514(a)(2)). On $1,500 rent the ceiling is $1,500. The Delaware security deposit limit calculator does the comparison for your rent.
What about month-to-month tenancies?
For primary residential tenancies of undefined terms or month to month where the tenancy has lasted one year or more, the landlord may not require more than one month’s rent, with an exception for federally assisted housing regulations, and after the first year the landlord must immediately return, as a credit to the tenant, any amount above one month’s rent, including an amount which together with a surety bond exceeds it (5514(a)(3)). For the first year of a month-to-month tenancy the statute sets no cap.
What about shorter leases?
The cap in subsection (a)(2) applies to rental agreements of one year or more. For a fixed term shorter than a year the statute sets no deposit limit, although the lease terms, the deposit’s purposes and the escrow rules still apply. Read the lease for any limit it sets itself.
Do the limits apply to furnished units?
No. The security deposit limits do not apply to furnished rental units (5514(a)(4)). A landlord of a furnished unit can still use the deposit only for the three purposes in the statute and must return it within 20 days.
Can the deposit increase later?
If the rental agreement so specifies, the landlord may increase the deposit commensurate with the rent. If the increase will exceed 10 percent of the monthly rent, payment of the increased deposit is prorated over the term of the agreement, or over 4 months for a month-to-month tenancy (5514(j)).
What happens after the tenancy?
The landlord has 20 days to send an itemized list of damages and pay the balance, or owes double the amount wrongfully withheld (5514(e)-(g)). Use the Delaware security deposit return deadline calculator for the date.
Worked examples of the Delaware limit
| Monthly rent | Agreement | Asked | Result |
|---|---|---|---|
| $1,500 | Lease of a year | $1,500 deposit | Within the limit |
| $1,500 | Lease of a year | $2,500 deposit | $1,000 over the limit |
| $1,500 | Month-to-month for a year | $2,000 deposit | $500 to be credited back |
| $1,500 | Furnished unit | $3,000 deposit | No statutory cap |
These are illustrations of the rule, not statements about any lease.
A checklist for landlords
Treat one month’s rent as the ceiling on agreements of a year or more; credit back any excess when a month-to-month tenancy reaches a year; keep the pet deposit within one month’s rent; hold every deposit in escrow; and calendar the 20-day return date with the return deadline calculator.
Why the statute differs by agreement type
The one-month cap is written for rental agreements of a year or more and for month-to-month tenancies that reach a year. Delaware sets no cap for a shorter fixed term or the first year of a month-to-month tenancy, and none for furnished units, so a tenant should read the lease to see what the landlord asks for and how it is described. Whatever the amount, the deposit must be escrowed and returned within 20 days.
Federally assisted housing
The month-to-month provision carves out federally assisted housing regulations, and the Courts note that where federal law or guidelines for subsidized units conflict with the Code on notice, the federal rules control. If you live in subsidized housing, check your lease and program rules first.
Frequently asked questions
How much can a Delaware landlord charge for a security deposit?
One month’s rent on a rental agreement of a year or more, and on a month-to-month tenancy that has lasted a year.
Is there a cap on a deposit for a six-month lease?
The statute’s cap applies to agreements of a year or more; it sets none for shorter fixed terms.
Can a landlord of a furnished unit charge more?
Yes. The limits do not apply to furnished units.
Is the pet deposit counted in the limit?
No. A pet deposit is separate and limited to one month’s rent.
What if a month-to-month tenancy reaches a year?
The landlord must immediately credit the tenant any amount above one month’s rent.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Delaware statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Delaware attorney.