Can I delay returning a security deposit due to an ongoing investigation?

Full question:

This is about rental property and security deposite refunds.On Dec 12,2009, there was a large fire. The Fire Marshal said he could not determine the cause...it may have been electrical. My insurance co Allstate has a 'Cause' task team investigateing. My 30 days will be up in days to send her refund back or can I wait past the leagal 30 day due to the ongoing investigation and do I have to give a refund? I live in Ohio and my rental unit is in DE.

• Category: Landlord Tenant
• Subcategory: Security Deposit
• Date: 04/07/2025
• State: Ohio

Answer:

In Delaware, when a tenant vacates a rental unit, they must provide a forwarding address in writing and return the keys to the landlord. The landlord is then required to either return the security deposit or provide a detailed list of damages and repair costs within thirty days. If the landlord fails to do this, they lose the right to withhold any part of the security deposit. The tenant can sue to recover the deposit, and if the landlord wrongfully withholds it, they may be liable for double the amount.

In cases where the rental unit is damaged or destroyed by fire, Delaware law states that if the damage significantly impairs the tenant's enjoyment of the unit and the fire was not the tenant's fault, the tenant has specific rights. They can either:

1. Immediately vacate the premises and notify the landlord in writing within one week, which will terminate the rental agreement as of the vacating date.
2. If they choose to remain, they can vacate the unusable parts of the premises, and their rent liability will be reduced based on the diminished rental value.

If the rental agreement is terminated, the landlord must return any security deposits, pet deposits, and prepaid rent, except for amounts they are entitled to keep as per the law. The accounting for rent will be based on the date of the fire or casualty (Del. Code Ann. tit. 25, § 5309).