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Free Delaware Mutual Lease
Termination Agreement Template

Last reviewed September 2026

Written by LawLease Editorial

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Delaware Mutual Lease Termination Agreement

This Mutual Lease Termination Agreement is built with Delaware as the governing state. These are the Delaware landlord-tenant rules that most often bear on it, with the statute for each.

Delaware rules at a glance

Delaware rules for a Mutual Lease Termination Agreement
Month-to-month termination60 days, counted from the 1st of the month after notice25 Del. C. §5106(d)
Tenant early terminationA tenant may end the lease on 30 days’ written notice — counted from the first day of the following month — for a job relocation of more than 30 miles, a serious illness of the tenant, or the death or serious illness of a household family member, that requires a permanent move, acceptance into senior or subsidized housing, military active duty, or as a victim of domestic abuse, sexual offense or stalking; a surviving spouse or the estate may do the same on the tenant’s death (§5314).
Security deposit limit1 month’s rent for leases of 1 year or more, and for month-to-month once it passes 1 year (caps don’t apply to furnished units)25 Del. C. §5514(a)
Deposit return20 days, with an itemized list of damages; double the amount wrongfully withheld25 Del. C. §5514(e)–(g)
Pet depositA separate pet deposit is allowed but can’t exceed one month’s rent, whatever the lease length; animal damage is charged against it first. No pet deposit may be charged for a certified, trained support animal (§5514(i)).
Escrow accountEvery deposit must be held in an escrow account at a federally insured bank with an office in Delaware that accepts deposits (§5514(b)).

Security deposits in Delaware

Delaware’s deposit cap turns on the length of the lease. For a rental agreement of one year or more, the security deposit can’t exceed one month’s rent. A month-to-month tenancy has no cap in its first year, but once it passes one year the landlord must return any amount above one month’s rent. These caps don’t apply to furnished rental units (§5514(a)).

  • Pet deposit — A separate pet deposit is allowed but can’t exceed one month’s rent, whatever the lease length; animal damage is charged against it first. No pet deposit may be charged for a certified, trained support animal (§5514(i)).
  • Escrow account — Every deposit must be held in an escrow account at a federally insured bank with an office in Delaware that accepts deposits (§5514(b)).
  • Allowed deductions — Damage beyond normal wear and tear that ordinary cleaning and painting won’t fix, unpaid rent and late charges, and reasonable renovating and re-renting costs if the tenant leaves early (capped at one month’s rent when the tenant ends the lease early under §5314) (§5514(c)).
  • 20-day return — Within 20 days after the lease ends the landlord must send an itemized list of damages with estimated repair costs and pay back the difference (§5514(e)–(f)).
  • Penalty — Failing to return the deposit or the balance within 20 days entitles the tenant to double the amount wrongfully withheld (§5514(g)(1)).

Ending a Delaware tenancy

Either party may end a month-to-month tenancy with at least 60 days’ written notice — and the 60 days start on the first day of the month after notice is actually received, not the day it’s given. Notice delivered on the 2nd of a month therefore runs almost 90 days (§5106(d)). A lease of a year or more converts to month-to-month if the landlord doesn’t give 60 days’ notice and the tenant doesn’t give 45 days’ notice before it ends (§5108). An oral lease can’t run longer than one year (§5106(a)).

Key Delaware notice periods
Month-to-month termination (either party)60 days from the 1st of the next month§5106(d)
Rent increase / change of terms60 days before expiration§5107
Nonpayment of rent7 days (5 days before Sept. 1, 2026)§5502
Breach of lease — cure period7 days§5513
Tenant early termination (qualifying reasons)30 days from the 1st of the next month§5314
  • Nonpayment — Once the 5-day late-fee window has passed, the landlord may demand the rent in writing, giving the tenant at least 7 days to pay before filing an eviction case (§5502(a), as amended effective September 1, 2026). A tenant who pays all rent due before the case is filed can’t be sued for possession on that basis, and paying all rent due after filing stops the case (§5502(c)–(d)). A new right of redemption lets a tenant pay all past-due amounts set by the court, plus court-awarded costs and fees, any time before the eviction order is executed — unless the tenant already had 2 nonpayment judgments of possession in the prior 18 months (§5716A).
  • Lease violations — For a breach of a rule or covenant, the landlord must give written notice and at least 7 days to fix it before terminating (§5513).
  • Tenant early termination — A tenant may end the lease on 30 days’ written notice — counted from the first day of the following month — for a job relocation of more than 30 miles, a serious illness of the tenant, or the death or serious illness of a household family member, that requires a permanent move, acceptance into senior or subsidized housing, military active duty, or as a victim of domestic abuse, sexual offense or stalking; a surviving spouse or the estate may do the same on the tenant’s death (§5314).

Tenant protections you can’t waive

  • No waiver clauses — A lease can’t make the tenant waive rights or remedies under the Landlord-Tenant Code or exculpate the landlord from liability. A landlord who tries to enforce a provision it knows is prohibited can owe the tenant three months’ rent plus court costs (§5301).
  • No lockouts — Removing or excluding a tenant without a court order entitles the tenant to treble damages or three times the per-diem rent for the time locked out (§5313).
  • No retaliation — A landlord can’t evict, raise rent or cut services because a tenant complained about code violations or joined a tenant organization; action within 90 days of such a complaint is presumed retaliatory (§5516).
  • Fee and deposit caps — The 5% late-fee cap, the application-fee cap and the one-month deposit cap for leases of a year or more apply regardless of what the lease says (§§5501(d), 5514).

Delaware Mutual Lease Termination Agreement FAQs

How much can a landlord charge for a security deposit in Delaware?

For an unfurnished unit on a lease of one year or more, no more than one month’s rent. A month-to-month tenancy isn’t capped in its first year, but after a year the landlord must return anything above one month’s rent. A separate pet deposit of up to one month’s rent is also allowed (25 Del. C. §5514).

How long does a landlord have to return a security deposit in Delaware?

20 days after the lease ends — one of the shortest windows in the country. The landlord must send an itemized list of damages with estimated repair costs and pay the balance; missing the deadline entitles the tenant to double the amount wrongfully withheld (§5514(f)–(g)).

How much notice is needed to end a month-to-month lease in Delaware?

At least 60 days’ written notice from either party, and the 60 days begin on the first day of the month after the notice is received. In practice, notice given early in a month can mean close to 90 days (§5106(d)).

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