Whether you’re a first-time landlord or a seasoned pro, you’ll need to adjust your monthly rates at some point. After all, your income needs to keep up with rising costs and competing properties. If you’re raising rent in this corner of the Northeast, start by reading up on Delaware rent increase laws.
Even though Delaware isn’t a rent-controlled state, local guidelines require landlords to follow specific protocols. Here’s what you need to know to keep your rent payment process compliant and worry-free. Let’s discuss state and federal laws, notice requirements, anti-retaliation tips, and the benefits of using a free rent increase letter template from TurboTenant.
Is there a rent increase limit in Delaware?
You don’t have to stress over rent increase caps in the First State. Here’s a quick overview of Delaware rent increase laws:
Statewide caps: In Delaware, there are no laws that limit how much you can increase rent. As a result, many landlords use the market rate as a guide. By considering your property’s size and features, as well as current demand, the market rate calculates the right price for your rental.
Local rent control ordinances: Delaware doesn’t have any rent stabilization laws, but it also doesn’t prohibit local governments from enforcing their own regulations. However, no county or city currently enforces rent control ordinances.
Exceptions: Similarly, state law doesn’t exempt any property types from federal or subsidized housing programs.
Rent Increase Notice Periods
The amount of notice you must provide all depends on the type of lease agreement you have. Here’s what Delaware rent increase laws require:
Fixed-Term Lease
Landlords can’t adjust their prices in the middle of a tenancy unless their lease specifically permits it. Instead, rental owners raise their monthly rate when they propose a lease renewal. Delaware law requires you to provide 60 days’ written notice before the current agreement ends (Del. Code tit. 25, § 5107).
Month-to-Month Lease
The same law applies to a month-to-month agreement. You must give 60 days’ notice in writing to increase rent for tenancy-at-will leases (Del. Code tit. 25, § 5107).
Room Rental Agreements
If you’re using a room rental agreement, follow the legal notice requirements based on your lease type. As a rule of thumb, always give your tenants at least 60 days’ notice — even if you’re using a verbal agreement (Del. Code tit. 25, § 5101–5107).
How to Deliver a Rent Increase Notice in Delaware
Landlords must use the state’s notice delivery protocols, including:
- Personal delivery.
- Leave the notice at the property with someone of suitable age.
- Post the notice at the rental unit.
- Mail the notice via first-class or Certified Mail (Del. Code tit. 25, § 5113).
Keep in Mind: To make digital notices sent through landlord software legally binding, outline the process in your lease agreement and have tenants agree in writing.
In Delaware, the notice period starts as soon as you drop it off or send it out — even when you mail it.
Understanding Illegal Rent Increase and Retaliation
Delaware doesn’t have rent increase caps, but it does protect tenants from discrimination and retaliation. State law strictly prohibits landlords from raising a tenant’s rent in retaliation within 90 days of the following:
- The tenant complained to the landlord or local authority about a housing code violation.
- A state or local authority files a notice of complaint for a housing code violation.
- The tenant organizes or serves as an officer of a tenant’s organization.
- The tenant pursues legal rights or remedies related to their tenancy (Del. Code tit. 25, § 5516).
Don’t forget about the Fair Housing Act (FHA). You can’t offer unequal rental terms or discriminate against tenants based on federally-protected characteristics, such as:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability (Fair Housing Act)
And remember, raising your tenant’s rent in the middle of a fixed-term tenancy without a lease clause permitting it breaches your agreement.
How to Write a Delaware-Compliant Rent Increase Letter
Make sure your rent increase letter includes the following information:
- Full property address (including unit number, if applicable)
- Tenant names
- Exact dollar amount of the increase
- New total rent amount
- Effective date (considering Delaware rent increase laws)
- Instructions for tenants to accept or move out
Follow in the footsteps of top landlords and use a template to stay compliant and professional. Try TurboTenant’s free, standardized PDF. Download our Delaware rent increase letter template to save time and skip the complicated paperwork.
Managing the Rent Increase Process with Tenants
After you send your rent increase letter to tenants, you must wait for their response. Here’s what to expect based on their decision:
- Accept: When tenants agree to continue renting your property and stay in the unit, prepare your updated lease. Begin charging the new rate on the effective date, and that’s it! You don’t have to offer a grace period after increasing rent.
- Reject: If a tenant refuses to pay the price you propose, they must move out of the unit when their lease ends. Start preparing to re-rent the property and fill the vacancy as quickly as possible.
- Negotiate: Tenants often push back on rent increases. If they’re responsible, you may want to consider negotiating. Try to find a middle ground that works for everyone. Perhaps you can delay the price increase by a few months or offer a longer lease term.
Refer to this guide when it’s time to raise your prices. Remember, adjusting your rates is a normal part of landlording — just be sure to follow Delaware rent increase laws.
Delaware Rent Increase FAQs
How much can I raise rent in Delaware?
Because Delaware doesn’t cap rent increases, landlords can set any reasonable rent increase. However, you must give proper notice in writing (Del. Code tit. 25, § 5107).
Is there a maximum late fee in Delaware?
State law limits late fees at 5% of the monthly rent amount (Del. Code tit. 25, § 5501(d)).
Can I increase rent if the tenant is on a verbal agreement?
Yes, but you must notify tenants. Delaware law requires landlords to provide 60 days’ written notice (Del. Code tit. 25, § 5107).