Real Estate Accounting in Wilmington
Delaware requires tenant deposits to sit in an escrow account at a bank with an office accepting deposits inside the state, which is a real constraint in a jurisdiction where a great many property-owning entities are formed but not resident.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Delaware rules that apply here
- Deposit return deadline
- 20 calendar days
- Statute
- 25 Del. C. 5514
Why Delaware Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Wilmington
Experts in AppFolio Bookkeeping
Delaware is the entity formation capital of the country, so a large share of owners holding Delaware property, and an even larger share holding entities registered there, bank elsewhere. Section 5514 requires the security deposit placed in an escrow account at a federally insured banking institution with an office that accepts deposits within the State. Being a Delaware LLC is not the same as banking in Delaware, and the requirement attaches to the account rather than to the entity.
Assigned, Responsive Team
The cap varies with the agreement. For most leases of a year or longer the limit is one month's rent, with higher amounts permitted for furnished rentals or agreements running less than a year. So lease term and furnishing status both feed the permitted maximum, and a portfolio letting on mixed terms cannot use a single figure.
Accurate Monthly Bookkeeping
Twenty days is a short window for an itemised list of damages with estimated repair costs plus tender of the difference. Combined with an escrow requirement that may mean opening an account specifically for Delaware holdings, the operational setup has to be right before the first move-out rather than discovered at it.
Deposit Compliance for Wilmington Portfolios
25 Del. C. 5514
Delaware 25-5514 requires an itemised list of damages with the ESTIMATED costs of repair for each, plus tender of the difference, within 20 days of termination or expiration. The itemisation is built on estimates rather than completed invoices by design, which is what makes a 20-day window workable and which puts the weight on how the estimate was produced.
The deposit must be placed in an escrow account at a federally insured banking institution with an office that ACCEPTS DEPOSITS WITHIN DELAWARE. That catches a lot of owners: Delaware is the entity formation capital of the country, and being a Delaware LLC is not the same as banking in Delaware. The requirement attaches to the account, not the entity. The cap also varies: one month's rent for most agreements of a year or longer, with higher amounts permitted for furnished rentals and sub-year agreements.
All Delaware requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 20 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Wilmington Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Wilmington Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Wilmington operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Frequently Asked Questions
We are a Delaware LLC. Does that satisfy the escrow rule?
No. The requirement attaches to the ACCOUNT, not the entity: the escrow must be at a federally insured institution with an office accepting deposits within Delaware. Being formed there is not the same as banking there.
How much deposit can we take?
For most leases of a year or longer, one month's rent. Higher amounts are permitted for furnished rentals or agreements running less than a year, so term and furnishing both feed the maximum.
What has to happen within 20 days?
An itemised list of damages with estimated repair costs for each, and tender of the difference between the deposit and those costs.
More in Delaware
Other Delaware markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Wilmington
Schedule a call and we will review your AppFolio setup, your Delaware deposit handling, and what it takes to close clean every month.