Renting Out Your Property in Delaware: A Guide for Landlords
Renting out property in Delaware requires understanding specific state laws that govern landlord-tenant relationships, security deposits, and eviction procedures. Delaware landlords must comply with the Delaware Residential Landlord-Tenant Code, which establishes rights and responsibilities for both parties throughout the rental process.
Delaware law limits security deposits to one month's rent for leases of one year or more and requires landlords to return deposits within 20 days of lease termination. Failure to comply with Delaware's landlord-tenant laws can result in financial penalties and legal complications.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Delaware Landlord-Tenant Code (Title 25, Chapter 51-59)
This is Delaware's primary law governing residential landlord-tenant relationships. It covers essential aspects of renting property including security deposits, lease requirements, landlord access rights, maintenance responsibilities, and eviction procedures. As a landlord in Delaware, you must comply with these regulations to legally rent your property.
Delaware Security Deposit Law (Title 25, Chapter 55)
This law limits security deposits to no more than one month's rent for leases of one year or more. It also requires landlords to return deposits within 20 days after termination of the rental agreement, with an itemized list of any deductions. Understanding these requirements helps avoid common legal disputes with tenants.
Delaware Fair Housing Act
This law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. As a landlord, you must ensure your tenant screening process and rental policies comply with these anti-discrimination provisions to avoid potential legal liability.
Delaware Summary Possession (Eviction) Laws (Title 25, Chapter 57)
These laws outline the legal process for evicting tenants in Delaware. They specify required notices, filing procedures, and grounds for eviction. Understanding these procedures is crucial as improper evictions can result in legal penalties and liability for landlords.
Delaware Residential Landlord Code of Conduct (Title 25, Chapter 53)
This section outlines landlord obligations regarding property maintenance, repairs, and habitability standards. It requires landlords to maintain essential services and comply with building and housing codes. Failure to meet these standards can result in tenant remedies including rent withholding or lease termination.
Delaware Lead-Based Paint Hazard Control Act
For properties built before 1978, this law requires landlords to disclose known lead-based paint hazards to tenants before lease signing. You must provide an EPA-approved information pamphlet and include specific warning language in leases to comply with both state and federal lead disclosure requirements.
Regional Variances
Northern Delaware
Wilmington has additional rental property registration requirements beyond state law. Landlords must register rental properties with the city and pay an annual fee. Properties must also pass a city inspection before being rented. Wilmington enforces stricter lead paint disclosure requirements than other parts of the state.
Newark requires rental permits for all residential rental properties. Landlords must renew these permits annually and properties are subject to regular inspections. The city also has specific noise ordinances that landlords are encouraged to include in lease agreements, particularly in areas near the University of Delaware.
Southern Delaware
As a popular vacation destination, Rehoboth Beach has specific regulations for short-term rentals. Property owners must obtain a rental license, collect and remit a rental tax of 3% in addition to the state's 8% accommodation tax, and adhere to occupancy limits. There are also noise restrictions and parking regulations specific to rental properties.
Lewes requires rental licenses for both long-term and short-term rentals. The city has enacted ordinances specifically addressing vacation rentals, including requirements for local property management contacts, parking restrictions, and trash collection schedules. Historic district properties may have additional restrictions on modifications.
Central Delaware
Dover requires rental permits and inspections for all rental units. The city has enacted a Crime-Free Housing ordinance that allows for penalties against landlords whose properties generate excessive police calls. Dover also has specific requirements for smoke detectors and carbon monoxide detectors that may exceed state standards.
Kent County has fewer rental-specific regulations than incorporated cities, but does enforce building codes and health standards for rental properties. Landlords in unincorporated areas should be aware that well water testing may be required for properties not connected to municipal water systems.
Suggested Compliance Checklist
Research Delaware Landlord-Tenant Laws
0 days after startingFamiliarize yourself with Delaware's Landlord-Tenant Code (Title 25, Chapter 51-59 of Delaware Code). Pay special attention to security deposit limits (maximum of one month's rent for one-year leases), notice requirements for entry (48 hours), and eviction procedures. The Delaware State Housing Authority website and Delaware Legal Help Link are good resources.
Obtain a Rental Property Business License
7 days after startingDelaware requires landlords to obtain a business license from the Delaware Division of Revenue. Additionally, check with your local municipality as some cities like Wilmington, Newark, and Dover have their own rental licensing requirements. Fees and renewal periods vary by location.
Prepare a Rental Application Form
14 days after startingCreate an application form to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure compliance with Fair Housing laws by avoiding questions about protected characteristics (race, religion, disability, etc.).
Draft a Residential Lease Agreement
21 days after startingCreate a comprehensive lease agreement that complies with Delaware law. Include terms regarding rent amount and due date, lease duration, security deposit terms, maintenance responsibilities, pet policies, and grounds for termination. Delaware requires specific language regarding security deposits and tenant rights.
Create a Move-In/Move-Out Inspection Checklist
21 days after startingDevelop a detailed checklist to document the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas. Take date-stamped photos to supplement the checklist. This documentation is crucial for security deposit disputes.
Prepare a Lead-Based Paint Disclosure Form
21 days after startingFederal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and provide tenants with the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Even if you believe there is no lead paint, you must still provide this disclosure for pre-1978 buildings.
Draft Landlord's Rules and Regulations
28 days after startingCreate a document outlining specific rules for the property beyond what's in the lease. This may include quiet hours, common area usage, trash disposal procedures, parking regulations, and maintenance expectations. Ensure rules are reasonable and don't violate tenant rights under Delaware law.
Create a Security Deposit Receipt
28 days after startingDelaware law requires landlords to provide a receipt for security deposits. The receipt should include the amount, date received, and a statement explaining where the deposit will be held. In Delaware, security deposits must be placed in a separate escrow account at a federally insured bank with an office in the state.
Prepare a Notice of Entry Form
28 days after startingCreate a form to notify tenants when you need to enter the property. Delaware requires 48 hours' notice before entering a rental unit except in emergencies. The form should include the date, time, and purpose of entry.
Register with Local Authorities if Required
35 days after startingSome Delaware municipalities require rental properties to be registered and inspected. Check with your local government to determine if registration is required in your area. This may involve fees and periodic property inspections.
Set Up Property Insurance
42 days after startingObtain landlord insurance (also called rental property insurance) to protect your investment. This differs from homeowner's insurance and typically covers property damage, liability, and lost rental income. Consider requiring tenants to obtain renter's insurance as well.
Establish a System for Rent Collection
42 days after startingDecide how you'll collect rent (check, direct deposit, online payment service) and document this in your lease. Delaware does not have specific laws governing rent payment methods, but having a clear system reduces confusion and late payments.
Create a Maintenance Request Process
49 days after startingEstablish a clear procedure for tenants to report maintenance issues. Delaware landlords must keep rental properties in a safe and habitable condition. Document your maintenance process and response timeframes, especially for emergency repairs.
Schedule Required Property Inspections
56 days after startingArrange for any inspections required by your municipality or insurance company. Some Delaware localities require periodic safety inspections of rental properties. Keep records of all inspections and any required remediation.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Research Delaware Landlord-Tenant Laws | Familiarize yourself with Delaware's Landlord-Tenant Code (Title 25, Chapter 51-59 of Delaware Code). Pay special attention to security deposit limits (maximum of one month's rent for one-year leases), notice requirements for entry (48 hours), and eviction procedures. The Delaware State Housing Authority website and Delaware Legal Help Link are good resources. | - | 0 |
| Obtain a Rental Property Business License | Delaware requires landlords to obtain a business license from the Delaware Division of Revenue. Additionally, check with your local municipality as some cities like Wilmington, Newark, and Dover have their own rental licensing requirements. Fees and renewal periods vary by location. | - | 7 |
| Prepare a Rental Application Form | Create an application form to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure compliance with Fair Housing laws by avoiding questions about protected characteristics (race, religion, disability, etc.). | Rental Application Form | 14 |
| Draft a Residential Lease Agreement | Create a comprehensive lease agreement that complies with Delaware law. Include terms regarding rent amount and due date, lease duration, security deposit terms, maintenance responsibilities, pet policies, and grounds for termination. Delaware requires specific language regarding security deposits and tenant rights. | Residential Lease Agreement | 21 |
| Create a Move-In/Move-Out Inspection Checklist | Develop a detailed checklist to document the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas. Take date-stamped photos to supplement the checklist. This documentation is crucial for security deposit disputes. | Move-In/Move-Out Inspection Checklist | 21 |
| Prepare a Lead-Based Paint Disclosure Form | Federal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and provide tenants with the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Even if you believe there is no lead paint, you must still provide this disclosure for pre-1978 buildings. | Lead-Based Paint Disclosure Form | 21 |
| Draft Landlord's Rules and Regulations | Create a document outlining specific rules for the property beyond what's in the lease. This may include quiet hours, common area usage, trash disposal procedures, parking regulations, and maintenance expectations. Ensure rules are reasonable and don't violate tenant rights under Delaware law. | Landlord's Rules and Regulations | 28 |
| Create a Security Deposit Receipt | Delaware law requires landlords to provide a receipt for security deposits. The receipt should include the amount, date received, and a statement explaining where the deposit will be held. In Delaware, security deposits must be placed in a separate escrow account at a federally insured bank with an office in the state. | Security Deposit Receipt | 28 |
| Prepare a Notice of Entry Form | Create a form to notify tenants when you need to enter the property. Delaware requires 48 hours' notice before entering a rental unit except in emergencies. The form should include the date, time, and purpose of entry. | Notice of Entry Form | 28 |
| Register with Local Authorities if Required | Some Delaware municipalities require rental properties to be registered and inspected. Check with your local government to determine if registration is required in your area. This may involve fees and periodic property inspections. | - | 35 |
| Set Up Property Insurance | Obtain landlord insurance (also called rental property insurance) to protect your investment. This differs from homeowner's insurance and typically covers property damage, liability, and lost rental income. Consider requiring tenants to obtain renter's insurance as well. | - | 42 |
| Establish a System for Rent Collection | Decide how you'll collect rent (check, direct deposit, online payment service) and document this in your lease. Delaware does not have specific laws governing rent payment methods, but having a clear system reduces confusion and late payments. | - | 42 |
| Create a Maintenance Request Process | Establish a clear procedure for tenants to report maintenance issues. Delaware landlords must keep rental properties in a safe and habitable condition. Document your maintenance process and response timeframes, especially for emergency repairs. | - | 49 |
| Schedule Required Property Inspections | Arrange for any inspections required by your municipality or insurance company. Some Delaware localities require periodic safety inspections of rental properties. Keep records of all inspections and any required remediation. | - | 56 |
Frequently Asked Questions
In Delaware, a valid lease agreement should be in writing for terms longer than one year (per the Statute of Frauds). The lease should include: names of all parties, property address, lease term, rent amount and due date, security deposit details, maintenance responsibilities, and signatures of all parties. While oral leases for less than one year may be legally binding, written agreements are strongly recommended for all rental arrangements to avoid disputes.
Delaware law limits security deposits to no more than one month's rent for leases of one year or more. For furnished rental units, you may charge up to one and a half month's rent. The security deposit must be returned within 20 days after the tenant moves out, along with an itemized list of any deductions. Security deposits must be held in a separate escrow account at a federally insured banking institution with an office in Delaware.
Delaware landlords must maintain rental properties in compliance with housing codes affecting health and safety. This includes providing working plumbing, electrical systems, heating, and maintaining structural elements. You must make all repairs necessary to keep the premises in a habitable condition. If you fail to make essential repairs after proper notice, tenants may have legal remedies including repair and deduct, rent withholding, or lease termination depending on the circumstances.
In Delaware, landlords must provide at least 48 hours' notice before entering a rental unit for non-emergency matters such as repairs, inspections, or showing the property to prospective tenants. The notice should specify the purpose of entry and a reasonable time frame. For emergencies that threaten health or safety, you may enter without notice. Respecting these notice requirements is important to avoid claims of illegal entry or harassment.
For month-to-month tenancies in Delaware, you must provide at least 60 days' written notice before implementing a rent increase. For fixed-term leases, rent cannot be increased during the lease term unless the lease specifically allows for it. When a fixed-term lease expires, you can increase the rent for a renewal term with proper notice. There are no state-wide rent control laws in Delaware, though you cannot increase rent in a discriminatory manner or as retaliation.
Delaware requires specific legal procedures for eviction. You must first serve a written notice appropriate to the situation (5-day notice for non-payment of rent, 7-day notice for lease violations). If the tenant doesn't comply, you must file a complaint with the Justice of the Peace Court. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal. Only after obtaining a court order and writ of possession, which is executed by a constable, can a tenant be legally removed.
Delaware state law doesn't require statewide rental property registration, but some local municipalities do have registration requirements. For example, Wilmington, Dover, and Newark have local rental registration or licensing programs. Check with your specific city or county government to determine if registration is required in your area. Failure to register when required can result in fines or inability to legally collect rent in some jurisdictions.
In Delaware, landlords must provide several disclosures to tenants: 1) Lead-based paint disclosure for properties built before 1978 (federal requirement), 2) Information about the tenant's right to request a list of all existing damages before moving in, 3) The name and address of the property owner or authorized agent for legal notices, and 4) Information about where the security deposit is being held. Some municipalities may have additional disclosure requirements.
Yes, Delaware landlords can prohibit pets in rental properties, with the exception of service animals and emotional support animals, which are protected under fair housing laws. If you do allow pets, you can charge additional pet deposits or pet rent, though the total security deposit (including pet deposit) cannot exceed statutory limits. Be sure to clearly outline pet policies in your lease agreement, including any restrictions on type, size, or number of pets allowed.
Delaware's Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, disability, age, marital status, sexual orientation, gender identity, or source of income. This means you cannot refuse to rent to someone, charge different rates, or set different terms based on these protected characteristics. You must also provide reasonable accommodations for tenants with disabilities. Violations can result in significant penalties, including fines and damages.