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Is Delaware a Landlord-friendly State? (No)

  • May 6, 2023
  • James Beeson
  • Category: Delaware Housing Market

If you’re a landlord or a tenant in Delaware, you’re likely familiar with the state’s Residential Landlord-Tenant Code, which sets out the legal framework for rental properties in Delaware.

But how does this framework impact the rights and responsibilities of landlords and tenants in the state? Is Delaware a landlord-friendly state or not? A straightforward answer to this question is NO.

Delaware is not a landlord-friendly state. It is mainly because of the various policies and regulations in place in Delaware that make it less favorable for landlords, as well as the tenant protections that contribute to this reputation.

Let’s take a look at some of the landlord-tenant laws in Delaware that make it a less landlord-friendly state.

Basics Of Landlord-Tenant Laws in Delaware State

Basics Of Landlord-Tenant Laws in Delaware State

The state of Delaware has a set of laws and regulations that govern the relationship between landlords and tenants. The primary set of laws is known as the Delaware Residential Landlord-Tenant Code, which covers various aspects of the landlord-tenant relationship, including security deposits, lease agreements, and eviction procedures. Here are some of the critical provisions of the code:

  1. Security deposits: Delaware law limits the amount a landlord can charge for a security deposit to the equivalent of one month’s rent. The landlord must return the security deposit within 20 days when the tenancy ends. (see Del. Rev. Stat. Ann. tit. 25 § 5514).
  2. Lease agreements: Delaware law requires landlords to provide tenants with a written lease agreement outlining the tenancy terms and conditions. The lease agreement must include information such as the rent amount, payment due date, and length of the lease term. It must also disclose any non-refundable fees or deposits (see 70 Del. Laws, c. 513, § 1).
  3. Eviction procedures: Delaware law requires landlords to follow specific procedures when evicting tenants. The landlord must provide the tenant with written notice of the eviction, including the reason for the eviction and the date by which the tenant must vacate the property. The tenant has the right to contest the eviction in court (see Del. Rev. Stat. Ann. tit. 25 §§ 5513 and 5514).

In addition to the Residential Landlord-Tenant Code, landlords and tenants in Delaware must also comply with other state and federal laws and regulations. These include:

  1. Fair housing laws: Delaware law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability. Landlords must comply with these laws when advertising and leasing their properties. For more information, refer Fair Housing Information Center.
  2. Building codes: Landlords in Delaware must comply with state and local building codes and ordinances to ensure that their properties are safe and habitable for tenants. It includes maintaining the property’s structural integrity, ensuring adequate heating and ventilation, and providing proper sanitation facilities.

Is Delaware A Landlord-Friendly State – Top Factors

Is Delaware A Landlord-Friendly State - Top Factors

Specific policies or regulations in Delaware that may be less favorable towards landlords include:

1.    Security Deposit Limits

Security deposits are one of the most important aspects of renting a property for landlords. They act as a safety net for landlords in case tenants cause damage to the property or fail to pay rent. However, in Delaware, there are limits on how much landlords can charge for security deposits.

Under Delaware law, landlords can only charge the equivalent of one month’s rent as a security deposit. It can be problematic for landlords with high-value properties or tenants with a higher risk of causing damage to the property (see 70 Del. Laws, c. 513, § 1).

2.    Eviction Procedures

Another area where Delaware’s laws may be less favorable towards landlords is eviction procedures.

In Delaware, landlords must follow a strict process to evict tenants who fail to pay rent or violate their lease agreements.

This process can be time-consuming and expensive for landlords. Additionally, if a landlord fails to follow the proper procedures, they may be subject to legal action by the tenant. It can be a significant deterrent for landlords considering evicting a tenant (see Del. Rev. Stat. Ann. tit. 25 §§ 5513 and 5514).

3.    Other Regulations

In addition to the specific policies mentioned above, other regulations in Delaware may make it less favorable for landlords.

For example, Delaware law requires landlords to provide tenants with a “habitable” living space, including heating, plumbing, and other essential systems. If a landlord fails to provide a habitable living space, the tenant may have the right to terminate the lease agreement.

Additionally, Delaware law provides tenants with the right to sue landlords for damages caused by violations of their rights under the law, such as the right to a habitable living space or the right to privacy. These regulations can create additional challenges and risks for landlords in Delaware (see Del. Rev. Stat. Ann. tit. 25 §§ 5307 and 5308).

How Do These Landlord-Tenant Laws Negatively Impact Landlords in Delaware?

How Do These Landlord-Tenant Laws Negatively Impact Landlords in Delaware?

The policies and regulations discussed above can have significant impacts on landlords in Delaware:

1.    Landlords Have to Find an Alternative to Security Deposit

The limit on security deposits means landlords may have to rely on other means to ensure they are protected against damage to the property or non-payment of rent. It can increase landlords’ financial risk and make it more difficult for them to obtain tenants.

2.    Landlords Face Time-Consuming & Expensive Eviction Procedures

The eviction procedures in Delaware can be lengthy and expensive for landlords. The requirement to provide tenants with notice and an opportunity to cure their default before eviction proceedings can begin can delay the eviction process, causing landlords to lose out on rent payments and potentially delaying the re-rental of the property.

3.    Landlords Have to Fulfill Costly Inspection Requirements

The requirement for landlords to provide tenants with an inspection report before move-in can be time-consuming and costly. It may also limit the ability of landlords to quickly re-rent the property if the report uncovers issues that must be addressed.

4.    Landlords May Face Liabilities

The Delaware Residential Landlord-Tenant Code mandates that landlords provide tenants with safe and habitable housing conditions, including adequate heat, hot water, and functioning plumbing and electrical systems. Failure to provide habitable conditions can result in a tenant being able to withhold rent or even terminate the lease agreement.

Landlords may be held liable for injuries or damages caused by their failure to maintain habitable housing conditions, which can result in costly lawsuits and damage to their reputation.

Factors That Make Delaware a More Tenant-Friendly State

Specific policies or regulations in Delaware that may be more favorable towards tenants include:

Tenant Rights and Protections

  1. Right to withhold rent: In Delaware, tenants have the right to withhold rent if their landlord fails to make necessary repairs or maintain a safe and habitable living environment. If the landlord does not address the issue within a reasonable amount of time, the tenant may be able to take legal action (see 70 Del. Laws, c. 513, § 2).
  2. Right to quiet enjoyment: Tenants have the right to peaceful and quiet enjoyment of their rental property without interference from their landlord. It means that landlords cannot enter the rental property without permission or provide insufficient notice, harass the tenant, or take other actions that interfere with the tenant’s right to privacy.
  3. Protection against retaliation: Delaware law prohibits landlords from retaliating against tenants who exercise their legal rights, such as reporting code violations or joining a tenant’s organization (see Del. Rev. Stat. Ann. tit. 25 §§ 5106, 5107, 5501(b), and 5501(d)).
  4. Protection from discrimination: Tenants are protected against discrimination based on their religion, race, national origin, sex, disability, age, or familial status under fair housing laws (see Del. Rev. Stat. Ann. tit. 25 §§ 5106, 5107, 5501(b), and 5501(d)).

Security Deposit Limits

  1. Security deposit limit: Delaware law limits the amount that a landlord can charge for a security deposit to the equivalent of one month’s rent. It helps protect tenants from excessive security deposit charges and ensures that landlords do not charge unreasonable fees (see 70 Del. Laws, c. 513, § 1).
  2. Return of security deposit: Landlords in Delaware must return a tenant’s security deposit within 20 days of the termination of the lease or the tenant’s move-out date, whichever is later, or face penalties (see 70 Del. Laws, c. 513, § 1).

Eviction Procedures

  1. Eviction notice requirement: Before a landlord can begin the eviction process, they must provide the tenant with a written notice that explains the reason for the eviction and the amount of time the tenant has to remedy the situation or vacate the property (see Del. Rev. Stat. Ann. tit. 25 §§ 5513 and 5514).
  2. Right to dispute eviction: Tenants have the right to dispute an eviction in court and to be provided with a fair hearing. It helps protect tenants from unjust evictions and ensures that they have an opportunity to present their side of the story (see Del. Rev. Stat. Ann. tit. 25 §§ 5513 and 5514).
  3. Protection from self-help evictions: Delaware law prohibits landlords from using self-help methods, such as changing the locks or turning off utilities, to evict a tenant. It ensures that tenants are not unfairly removed from their rental property without due process (see Del. Rev. Stat. Ann. tit. 25 §§ 5513 and 5514).

How Do These Landlord-Tenant Laws Positively Impact Landlords in Delaware?

The tenant-friendly policies and regulations in Delaware can positively impact tenants in the state. Here are some examples:

1.    Tenants are Not Required to Large Security Deposits

Delaware has strict limits on how much landlords can charge for security deposits. It means tenants are not required to pay large sums of money upfront, which can be helpful for tenants who may need more funds readily available.

2.      Significant Number of Days for Lease Renewal and Termination

In Delaware, tenants have certain rights regarding lease renewals and terminations. Landlords must provide at least 60 days’ notice before terminating a lease without cause, giving tenants enough time to find a new place to live.

3.    Fair Housing Laws for Tenants

Delaware has laws in place to protect tenants from discrimination. Landlords cannot discriminate against tenants based on race, color, national origin, religion, sex, familial status, or disability.

4.    High Habitability Standards for Tenants

Delaware requires landlords to maintain safe and habitable living conditions for tenants. Landlords must ensure that the rental unit meets specific health and safety standards.

5.    Protection for Tenants Against Retaliation

Delaware has laws in place to protect tenants from retaliatory actions by landlords. It means landlords cannot evict or take other adverse actions against tenants who file complaints about the rental unit or exercise their rights under the law.

The Bottom Line

Based on the evidence presented, it can be concluded that Delaware is not a landlord-friendly state. The state’s landlord-tenant laws, policies, and regulations tend to favor tenants and provide them with various rights and protections while limiting the rights and actions of landlords. It is reflected in policies such as strict security deposit limits, tenant-friendly eviction procedures, and the requirement for landlords to provide habitable housing.

For landlords in Delaware, it is essential to be aware of these policies and regulations and to ensure that they comply to avoid legal issues or penalties. Landlords may also seek legal advice or consult with local organizations to better understand their rights and responsibilities.

For tenants in Delaware, these policies and regulations offer essential protections and rights. Tenants should be aware of their rights under the law and should not hesitate to seek legal assistance or report any violations or issues with their landlord.

While Delaware may not be the most landlord-friendly state, its policies and regulations are designed to protect the interests of landlords and tenants and ensure fair and equitable treatment for all parties involved in a landlord-tenant relationship.

FAQs

What is the Delaware Residential Landlord-Tenant Code?

The Delaware Residential Landlord-Tenant Code is the primary set of laws governing the relationship between landlords and tenants in the state.

What is the eviction process like in Delaware?

The eviction process in Delaware can be time-consuming and costly for landlords, and tenants have several opportunities to contest an eviction.

Are there any specific tenant rights or protections in Delaware?

Yes, Delaware law provides tenants with various rights and protections, including the right to withhold rent for necessary repairs and protections against landlord retaliation.

Can landlords evict tenants for any reason in Delaware?

No, landlords in Delaware can only evict tenants for specific reasons, such as failure to pay rent or violating the terms of the lease agreement.

Can landlords raise the rent as much as they want in Delaware?

No, Delaware law limits the amount that landlords can raise the rent during a lease term and requires them to notify tenants of any rent increases.