SECURITY DEPOSIT DEMAND LETTER
STATE OF DELAWARE
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Delaware law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory penalties and damages.
I. DELAWARE LEGAL FRAMEWORK
A. Governing Law
Security deposits in Delaware are governed by the Delaware Landlord-Tenant Code, Del. Code Ann. tit. 25, Section 5514.
B. Security Deposit Limits
Under Del. Code Ann. tit. 25, Section 5514(a):
- Month-to-month tenancies: Maximum of one month's rent
- Leases of one year or longer: No statutory limit, but the deposit must be stated in the lease
C. Return Deadline
Pursuant to Del. Code Ann. tit. 25, Section 5514(g), a landlord must return the security deposit within twenty (20) days after:
1. Termination of the tenancy; AND
2. Receipt of the tenant's forwarding address
The landlord must either return the full deposit or provide a written itemization of any deductions.
D. Separate Account Requirement
Under Del. Code Ann. tit. 25, Section 5514(b), security deposits must be held in a federally insured account in a financial institution located in Delaware. The landlord must disclose:
- The location of the account (name and address of institution)
- Whether the account is interest-bearing or non-interest-bearing
E. Pet Deposits
Under Del. Code Ann. tit. 25, Section 5514(a)(3), landlords may collect an additional pet deposit not exceeding one month's rent, which is separate from the security deposit.
F. Permissible Deductions
Under Del. Code Ann. tit. 25, Section 5514(g), a landlord may retain from the security deposit amounts for:
- Unpaid rent
- Damage to the premises beyond normal wear and tear
- Breach of the rental agreement
- Unpaid utility charges that become a lien on the property
G. Itemization Requirements
The landlord must provide a written itemized list of all deductions, specifying the nature of the damage and the cost of repair, within the 20-day period.
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Type of Tenancy | [ ] Month-to-month [ ] 1-year lease [ ] Other |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated Delaware law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 20-day period required under Del. Code Ann. tit. 25, Section 5514(g).
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Excessive Security Deposit: You collected a security deposit exceeding the statutory limit in violation of Del. Code Ann. tit. 25, Section 5514(a).
[ ] Failure to Maintain Proper Account: You failed to hold the deposit in a federally insured account in a Delaware financial institution as required by Del. Code Ann. tit. 25, Section 5514(b).
[ ] Failure to Disclose Account Information: You failed to disclose the location of the account holding the security deposit.
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE]
IV. NORMAL WEAR AND TEAR
Delaware law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND PENALTIES
A. Return of Security Deposit
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Total Deposits Due | $[AMOUNT] |
B. Statutory Penalties - Double Damages
Under Del. Code Ann. tit. 25, Section 5514(g), if a landlord fails to comply with the security deposit requirements, the tenant may recover:
- Double the amount wrongfully withheld
Penalty Calculation:
- Amount Wrongfully Withheld: $[AMOUNT]
- Double Damages (2x): $[AMOUNT]
- Total: $[AMOUNT]
C. Forfeiture for Failure to Comply
Under Del. Code Ann. tit. 25, Section 5514(g), failure to return the deposit or provide an itemized statement within 20 days results in forfeiture of any right to withhold any portion of the deposit.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Statutory Penalty (2x) | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]
-
Statutory Penalties: Pay to our Client the statutory penalty for noncompliance: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in Delaware Justice of the Peace Court (for claims up to $25,000) for return of the deposit, double damages, and costs.
-
Seek Maximum Penalties: Request the court impose double damages pursuant to Del. Code Ann. tit. 25, Section 5514(g).
-
Report Violations: Report your conduct to:
- Delaware Attorney General - Consumer Protection Unit
- Delaware State Housing Authority
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[DELAWARE BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
DELAWARE SECURITY DEPOSIT QUICK REFERENCE
| Element | Delaware Requirement |
|---|---|
| Governing Statute | Del. Code Ann. tit. 25, Section 5514 |
| Deposit Limit | 1 month (month-to-month); no limit (1+ year leases) |
| Pet Deposit Limit | 1 month's rent (separate) |
| Return Deadline | 20 days |
| Itemization Required | Yes |
| Receipts Required | Not specified |
| Interest Required | No |
| Separate Account Required | Yes - federally insured, in Delaware |
| Penalty for Violation | 2x wrongfully withheld amount |
| Attorney's Fees | Not specified |
| Small Claims Limit | $25,000 (Justice of Peace Court) |
DELAWARE-SPECIFIC PRACTICE NOTES
[ ] 20-Day Strict Deadline: Delaware's 20-day deadline is strictly enforced. Missing the deadline results in forfeiture of the right to claim any deductions.
[ ] Account Location Requirement: The deposit must be held in a Delaware financial institution. Out-of-state accounts are not permitted.
[ ] Pet Deposit Separate: Delaware specifically allows a separate pet deposit of up to one month's rent in addition to the security deposit.
[ ] Month-to-Month Limit: The one-month limit only applies to month-to-month tenancies. Longer leases have no statutory cap.
[ ] Justice of Peace Court: Delaware's Justice of the Peace Courts handle civil claims up to $25,000, making it accessible for most security deposit disputes.
[ ] Wilmington-Specific: Wilmington may have additional local regulations. Check local ordinances.
[ ] Forwarding Address: The 20-day deadline runs from receipt of the forwarding address. Document when you provided it.
[ ] Double Damages Automatic: Delaware provides for double the wrongfully withheld amount without requiring proof of bad faith.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Delaware attorney before use.