DELAWARE SECURITY DEPOSIT RETURN LETTER

Date: [[Letter Date]]

To:

[[Tenant Full Legal Name(s)]]

[[Tenant Forwarding Address Line 1]]

[[Tenant Forwarding Address Line 2]]

[[Tenant Forwarding City State ZIP]]

From:

[[Landlord or Property Manager Full Legal Name]]

[[Landlord or Management Company Name]]

[[Landlord Mailing Address]]

[[Landlord Phone and Email]]

Re: Security Deposit Return and Itemized Statement

Property Address: [[Property Full Address Including Unit]]

Lease Termination / Move-Out Date: [[Lease Termination or Vacate Date]]

Original Security Deposit Amount: [[Original Security Deposit Amount]]

Dear [[Tenant Full Legal Name(s)]]:

This letter constitutes the written notice and accounting required under Delaware law regarding the return of your security deposit for the above-referenced property.

Under the Delaware Residential Landlord-Tenant Code, 25 Del. C. § 5514, a landlord must return the security deposit or the balance after permitted deductions within twenty (20) days after termination or expiration of the rental agreement and the tenant vacating the premises. The landlord must also provide an itemized written statement of any damages claimed and the estimated cost of repairs for each item.

1. Summary of Security Deposit Accounting

Original Security Deposit Received: [[Original Security Deposit Amount]]

Less Permitted Deductions (detailed below): [[Total Deductions Amount]]

Amount to be Returned to Tenant: [[Refund Amount]]

Method of Payment: [[Refund Method e.g. Check Number XXXX mailed to forwarding address / Electronic transfer to account ending in XXXX]]

Date Payment Issued or Mailed: [[Refund Issue or Mail Date]]

If the full deposit or balance is not remitted within the statutory 20-day period together with the required itemization, and you provided a written forwarding address at or before termination, you may be entitled to double the amount wrongfully withheld pursuant to 25 Del. C. § 5514(g).

2. Itemized Statement of Deductions

The following deductions are claimed for damages beyond ordinary wear and tear, unpaid rent, or cleaning necessary to restore the premises to the move-in condition (ordinary wear and tear excepted). Each item includes a description, estimated or actual cost, and supporting documentation reference.

1. Description of Item: [[Deduction Item 1 Description e.g. Carpet replacement in living room due to pet urine damage beyond cleaning]]

Estimated / Actual Cost: [[Deduction Item 1 Amount]]

Supporting Documentation: [[Receipt Invoice or Estimate Reference Number or Attached Exhibit A]]

2. Description of Item: [[Deduction Item 2 Description]]

Estimated / Actual Cost: [[Deduction Item 2 Amount]]

Supporting Documentation: [[Receipt or Estimate Reference]]

3. Description of Item: [[Deduction Item 3 Description]]

Estimated / Actual Cost: [[Deduction Item 3 Amount]]

Supporting Documentation: [[Receipt or Estimate Reference]]

4. Description of Item: [[Deduction Item 4 Description]]

Estimated / Actual Cost: [[Deduction Item 4 Amount]]

Supporting Documentation: [[Receipt or Estimate Reference]]

5. Description of Item: [[Deduction Item 5 Description]]

Estimated / Actual Cost: [[Deduction Item 5 Amount]]

Supporting Documentation: [[Receipt or Estimate Reference]]

Total Deductions: [[Total Deductions Amount]]

Note on Documentation: For any deduction exceeding one hundred twenty-five dollars ($125), copies of receipts, invoices, or written estimates are attached or available upon request as required by applicable guidance interpreting 25 Del. C. § 5514.

3. Ordinary Wear and Tear vs. Damages

Delaware law permits deductions only for:

• Unpaid rent or other amounts owed under the lease
• Damage to the premises beyond ordinary wear and tear
• Cleaning required to return the unit to the condition documented at move-in (ordinary wear and tear excepted)

Ordinary wear and tear includes minor scuffs, faded paint, carpet wear from normal foot traffic, and aging of appliances through ordinary use. The following were reviewed and determined to constitute ordinary wear and tear and are therefore not deducted:

• [[List of Ordinary Wear Items Reviewed and Not Charged e.g. light scuff marks on baseboards, minor carpet wear in hallway, normal appliance age]]

4. Pre-Move-Out Inspection

Landlord offered Tenant the opportunity to request a pre-move-out inspection to identify items that could be remedied prior to vacating.

• Tenant requested inspection: [[Yes / No]]
• Date of pre-move-out inspection (if any): [[Pre-Move-Out Inspection Date]]
• Items noted by Tenant that were addressed prior to move-out: [[List of Items Addressed or None]]

5. Forwarding Address and Payment

Payment of the balance due is being sent to the forwarding address you provided in writing. If your address has changed since you provided the forwarding address, please notify Landlord immediately in writing to ensure proper delivery.

If payment is by check, the check is enclosed with this letter or mailed separately via first-class mail within the statutory period.

6. Failure to Provide Itemization or Timely Return, Tenant Rights

Failure by Landlord to provide the itemized statement and tender the deposit or balance within twenty (20) days of termination or vacation may result in:

• Forfeiture of the right to withhold any portion of the deposit
• Liability for double the amount wrongfully withheld (if forwarding address was timely supplied)
• Potential liability for court costs and reasonable attorneys' fees in an action to recover the deposit

If you believe the accounting or deductions are incorrect, you should respond in writing within a reasonable time, providing any contrary evidence or documentation. Disputes may be pursued in the appropriate Delaware court (Justice of the Peace Court for smaller amounts or Court of Common Pleas).

7. Security Deposit Location Disclosure (if requested)

Upon your prior written request, Landlord disclosed or hereby discloses that the security deposit was held at:

[[Name and Address of Federally Insured Financial Institution Holding the Deposit]]

Account type: [[Escrow / Trust / Security Deposit Account]]

If you did not previously receive this disclosure, you may request it in writing and Landlord must respond within twenty (20) days. Failure to disclose the location upon timely request may result in forfeiture of the deposit.

8. No Interest Requirement

Under current Delaware law, landlords are not required to pay interest on residential security deposits unless otherwise agreed in writing.

9. Enclosures

The following documents are enclosed with this letter:

• Itemized statement (this letter)
• Copies of receipts, invoices, or estimates for deductions over $125 (Exhibit A)
• Move-in / move-out condition comparison photos or report (Exhibit B, if applicable)
• Copy of original security deposit receipt or ledger entry (if requested)
• [[Additional Enclosures]]

10. Contact for Questions

If you have questions regarding this accounting or the condition of the Premises, please contact:

[[Contact Person Name]]

[[Contact Phone]]

[[Contact Email]]

[[Mailing Address for Disputes]]

All disputes or requests for additional documentation should be submitted in writing to the address above.

11. Legal Disclaimer

This letter and accounting are provided in good faith to comply with 25 Del. C. § 5514. This document is a template used for the specific facts of your tenancy. It does not constitute legal advice. Both landlords and tenants are encouraged to consult the full text of the Delaware Residential Landlord-Tenant Code and to seek advice from a licensed Delaware attorney or tenant counseling service (such as Legal Services Corporation of Delaware) for their specific situation.

Landlord or Authorized Agent Signature

___________________________________________ Date: [[Letter Signature Date]]

Printed Name: [[Landlord or Agent Printed Name and Title]], -

Tenant Acknowledgment of Receipt (optional)

I acknowledge receipt of this Security Deposit Return Letter and itemized statement.

Tenant Signature: _______________________________ Date: ___________

Printed Name: [[Tenant Full Legal Name]], -

*Delaware Security Deposit Return Letter template. Required under 25 Del. C. § 5514. Landlord must return deposit or balance with itemized written statement of damages and costs within 20 days of termination or tenant vacating. Failure to do so within 20 days (when forwarding address provided) entitles tenant to double the amount wrongfully withheld. Itemized deductions permitted only for unpaid rent, damage beyond ordinary wear and tear, and cleaning to move-in condition. No statutory requirement to pay interest on deposits. This is a sample template, not legal advice. Verify compliance with current Delaware statutes (Title 25, Chapter 55) and consult qualified counsel. References current as of 2026-06.*

Primary Legal Sources:

• Delaware Code Title 25, Chapter 55, § 5514 (Security deposit): https://delcode.delaware.gov/title25/c055/index.html
• 25 Del. C. § 5514(a), (g) (caps, holding requirements, 20-day return, itemization, double damages, location disclosure forfeiture)
• Delaware Courts Landlord/Tenant resources (courts.delaware.gov)
• Legal Services Corporation of Delaware guidance on security deposit return requests

All figures and deadlines verified against the official Delaware Code Online. Local rules or federal housing program requirements may impose additional obligations.