How to Hold and Return a Security Deposit in Delaware

In Delaware, your security deposit cannot exceed the amount of the first months' rent if the unit is unfurnished. If the unit is furnished, there is no limit to the amount of security deposit you can charge.

Storing the Deposit

You must place the security deposit in an escrow bank account in a federally-insured bank with a location in the state. You must use the account only to store the security deposit; the money must be kept separate from your other money. You must tell your subtenant where the security deposit is being kept.

Returning the Deposit

You can keep the security deposit to cover any damages to the unit that exceed normal wear and tear or unpaid rent, including late fees. If you are not withholding any of the security deposit, you must return it in full within 20 days of the end of the sublease term. If you do plan to withhold some or all of it, you must provide the subtenant with an itemized list of damages and cost estimates for the repairs. If you don't provide the subtenant with this list, it's legally equivalent to you telling the subtenant that they can have the entire deposit back, so be sure to follow these instructions exactly. If you don't return any or all of the security deposit amount owed within 20 days, your subtenant is entitled to double the amount.