Is it necessary to have a written lease or rental agreement in Delaware?

Both oral and written leases and rental agreements are allowed, however, if the rental period is for longer than 1 year the agreement must be in writing. If no rental period is specified in the agreement, it is deemed to be month to month.

What about a signed move-in move-out inspection report?

A written signed inspection report is not required, however, it is recommended to protect both parties’ interests and help to avoid disputes. At move-in the tenant should make a list of everything that is broken, stained, defective or damaged, sign the list and ask the landlord to sign it as well. If the landlord does not cooperate, the tenant should take pictures and get an impartial witness to view the premises as well. Both tenant and landlord should have a copy of the list. On move-out, both parties should inspect the premises and fill in another copy of the list, and negotiate (if possible) or make note of any disputed items.

Can the landlord charge a deposit?

The landlord can charge a security deposit of not more than 1 month’s rent if the rental agreement is for 1 year or longer. If the rental agreement is not for a defined term or is month-to-month, the landlord may charge more than 1 month’s rent, however, once the tenant has lived in the premises for 1 year or longer, the excess deposit must be returned to the tenant. There is no limit on the amount that can be charged for a furnished rental unit. The security deposit must be held in a security deposit account and cannot be used in the operation of the landlord’s business.

The landlord can also charge a pet deposit for tenants who have pets. The pet deposit cannot exceed 1 month’s rent, regardless of the length of the rental period.

A landlord can also charge an application fee, used by the landlord to determine the tenant’s creditworthiness. The application fee cannot exceed either 10% of the monthly rent or $50, whichever is greater.

Prior to vacating the property, the tenant must provide a forwarding address, in writing. Within 20 days of the termination or expiry of the rental agreement, the landlord must provide the tenant with an itemized list of any damages to the premises and the cost of repair, and must return any money remaining from the security deposit.

When is the landlord allowed to increase the rent?

The landlord must give the tenant a minimum of 60 days written notice prior to the end of the term of the rental agreement. Unless the tenant informs the landlord in writing within 15 days of receipt of the notice that the tenant rejects the rent increase, the increase will take effect. If the tenant rejects the increase, the lease will be terminated at the end of the term.

Can the landlord levy additional charges for late rent?

Yes, the landlord is at liberty to charge a late fee, but it must not exceed 5% of the monthly rent. Late charges cannot be imposed until 5 days after the date the rent is due.

How can a lease be terminated?

Either party must give the other party a minimum of 60 days written notice of intent to terminate an existing rental agreement. If the agreement is for more than a month-to-month period, the notice must be given at least 60 days prior to the expiry date of the agreement. If the agreement is month-to-month, the 60 day notice will be effective 60 days from the first day of the month following the day that the notice is given. The notice must indicate that the rental agreement will terminate upon its expiry date.

A tenant may terminate a rental agreement before its expiry date by giving the landlord 30 days written notice in the following circumstances:

(a) if the tenant is required by his or her current employer to move a distance of more than 30 miles;
(b) if a serious illness of the tenant or a member of the tenant’s immediate family who lives with the tenant requires the tenant to move on a permanent basis;
(c) if the tenant is accepted for admission into a senior citizens’ facility or a group facility or retirement home;
(d) if the tenant is accepted for admission into a subsidized rental unit;
(e) if the tenant, after the execution of the rental agreement, enters US military service on active duty; or
(f) if the tenant dies, in which case the surviving spouse or the personal representative of the tenant’s estate may terminate the agreement.

Can a tenant assign a lease or sublet the premises?

Under the terms of the rental agreement, a landlord may prohibit or restrict the subleasing or assignment of the rental agreement. If the landlord allows subleasing or assignment, then the landlord’s consent to the subleasing or assignment cannot be unreasonably withheld.

When is the landlord permitted to enter the premises?

The tenant must provide the landlord with reasonable access to the premises in order to make an inspection, or to make repairs or improvements, or to show the premises to prospective tenants, purchasers or mortgagees. The landlord is not allowed to abuse this right of access. The landlord must give the tenant 48 hours notice of intent to enter the unit for any purpose other than to make repairs requested by the tenant or in the case of an emergency.

On what grounds can a landlord evict a tenant?

The most common grounds for eviction is nonpayment of rent. If, after receiving proper notice from the landlord, the tenant remains in default, the landlord can bring an action in Justice of the Peace Court for summary possession. A landlord can also commence an eviction action if the tenant fails to properly care for the rental unit or breaks any rule or provision which is material to the rental agreement, or for holding over after the end of a rental agreement, wrongfully deducting money from the rent, ouster (when the rightful tenant has been wrongfully ousted from the unit by another occupant), or conviction of certain crimes.

If the violation by the tenant causes or threatens to cause irreparable harm, or if the tenant is convicted of a class A misdemeanor or a felony during the term of the tenancy which caused or threatened to cause irreparable harm, the landlord may without further notice either correct the violation, or immediately terminate the rental agreement and bring an action for summary possession.

Single room rental agreements for rooms in the landlord’s residence may be terminated immediately upon written notice to the tenant for a breach of the agreement or the rules governing the use of the rental unit. The landlord can then bring an action for summary possession.

A landlord cannot retaliate against a tenant by evicting a tenant, attempting to force a tenant to leave, increasing the rent, or decreasing services to which the tenant is entitled within 90 days after the tenant has (i) complained to the landlord or a government authority concerning the condition of the property; (ii) joined or organized a tenants’ association; or (iii) pursued any legal right or remedy the tenant has with respect to the tenancy.

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.