Delaware security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
{{ state }} security deposit account
Tenant’s security deposit Delaware rules state to keep the funds in an escrow account with a federally insured banking institution. Always use a state-based security deposit bank account in Delaware.
{{ state }} security deposit
limits
The maximum security deposit Delaware landlords can charge is one month's rent for agreements of one year or more. It is also the average security deposit across many other states.
{{ state }} security deposit interest
The security deposit interest rate is not applicable in Delaware. State law security deposit rules don’t require paying interest on security deposits Delaware tenants have paid.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Keep every deposit organized and accounted for with secure transfers to [State] security deposit accounts.
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month's rent
No
Must be put in a security deposit escrow account with a federally insured banking institution with an office that accepts deposits within the State. The tenant must be informed of the name and location of the security deposit bank account in Delaware.
Unpaid rent or utilities, repairs, lease violations, and cleaning costs
20 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Delaware?
The Delaware security deposit limit is one month's rent if the rental agreement is for one year or more. You may also charge first and last month's rent plus the security deposit, as Delaware law does not limit prepaid rent.
Is interest required on tenant security deposits in Delaware?
As per law in Delaware, security deposit interest is not required. But, always keep the funds in a separate, federally insured landlord tenant security deposit bank account in Delaware.
How should I issue a security deposit receipt to tenants in Delaware?
You must tell the tenant, within 20 days of getting the security deposit, the name and address of the bank where it's held by writing a receipt telling the amount, date, and reason for the payment.
How many days to return the security deposit in Delaware?
Per tenant security deposit Delaware rules, the landlord has no more than 20 days to return the entire deposit amount or give the tenant a written, itemized list of deductions and the pending amount.
What can a landlord deduct from a security deposit in Delaware?
As per landlord rights, security deposit can be used to deduct damage to their rental property (house rental, apartment, condo) beyond normal wear and tear, such as floor damage. Landlords can also use the deposit to cover unpaid rent or utility fees.
Manage security deposit deductions with care, as you could be sued for twice the amount (double damages) if they are used for everyday wear and tear.
Can a security deposit be used for unpaid rent in Delaware?
Yes, you can keep funds from the security deposit escrow account in Delaware to cover unpaid rent.
Can a landlord keep a security deposit for breaking a lease in Delaware?
Yes, the landlord security deposit Delaware funds can be used to cover loss from breaking lease early, if allowed by the lease agreement. The landlord must, however, try to find a new tenant quickly.
