Delaware Room Rental Agreement
In recent years, more and more folks are jumping into “house hacking” by renting out a room in their own home to offset their mortgage expenses and make a little extra cash. Like renting out an entire unit, room rentals must follow the state’s landlord-tenant laws. To keep everything above board, you should use a lease agreement to outline the responsibilities for you and your tenant.
In this guide, we’ll review everything you need to know about a room rental agreement Delaware landlords should be aware of, including the types of leases, local laws, and how to end one when it’s time to move on.
Delaware Room Rental Laws
While there are federal laws that regulate renting property from a top-level perspective, each state passes its own unique landlord-tenant laws.
Delaware landlord-tenant laws regulate important details like security deposits, rent grace periods, and lease termination. In the following sections, we’ll review Delaware laws you should understand before you jump into renting out a room in your home.
Types of Room Rental Agreements
There isn’t just one room rental agreement Delaware landlords must use; there are a few options to consider.
- Verbal agreements: While verbal contracts are sometimes used for room rentals, we don’t recommend them because it is easy to get into a “he-said, she-said” conflict. We recommend creating a lease, which you and your tenant will sign, to minimize the risk of miscommunication and problems during the rental term.
- Fixed-term leases: A fixed-term lease has a set end date and can’t be terminated before that date except in a few allowable circumstances. While a fixed-term Delaware room rental agreement is less flexible, it does provide stability and can ensure consistent income over a longer term.
- Month-to-month leases: Probably the most common room rental agreement Delaware landlords could consider is a month-to-month lease. A month-to-month lease automatically renews at the end of each month. It creates a tenancy-at-will offering both the landlord and tenant a flexible arrangement with the option to terminate the lease by providing proper notice.
The right Delaware room rental agreement type for you largely depends on your unique situation. If stability and long-term income are important, consider a fixed-term lease. If you want to try renting out for a while to see if it’s right for you, consider a month-to-month lease agreement.
Delaware Lease Agreement
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Delaware Landlord-Tenant Law
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Required Landlord Disclosures (5)
When signing a new room rental agreement, Delaware landlords must disclose certain information to the tenant under Delaware landlord-tenant law. These are:
1. Lead-based paint: Landlords must tell tenants about the presence or knowledge of any lead-based paint or lead-based paint hazards on all properties built before 1978, per federal law.
2. Landlord identification: Delaware landlords must provide contact information for the property owner or landlord, including name and address (§ 5105(a)).
3. Landlord-tenant code: At move-in, state law requires Delaware landlords to provide a copy of the state’s Landlord-Tenant laws (§ 5118).
4. Bed bugs: Delaware landlords must check the property for bed bugs. If they find them, they must provide a written statement and information to prevent them (§ 5317).
5. Legal representation: If the tenant’s income stays below 200% of the federal poverty guidelines, they could have access to legal representation if they’re faced with eviction (§ 5602).
Security Deposits
Maximum security deposit: In Delaware, for a lease of 12 months or longer, the maximum security deposit a landlord can charge is equivalent to 1 month’s rent. However, landlords can set any amount for the security deposit for month-to-month rental agreements. Typically, if a tenant stays for more than 12 months, landlords will often credit back any amount that exceeds 1 month’s rent (§ 5514(a)).
Security deposit receipt: Delaware landlords must provide tenants with a security deposit receipt showing the location of the funds. The funds cannot co-mingle with the landlord’s personal funds (§ 5514(b)).
Deduction tracking: If the landlord intends to deduct funds from the security deposit for excessive cleaning costs or to repair damage beyond normal wear and tear, they must provide an itemized list of the deductions no later than 20 days after the end of the lease (§ 5514(f)).
Security deposit return: Security deposits should be returned within 20 days of the tenant moving out (§ 5514(f)).
Pet deposits: Delaware landlords are allowed to charge a pet deposit. When combined with the regular security deposit, it cannot exceed 1 month’s rent.
Rent Payment Regulations
Late rent fees: Delaware landlords can charge a late fee of up to 5% of the monthly rent total (§ 5501(d)).
Right to withhold rent: Delaware tenants can withhold rent in a couple of instances. If a landlord refuses to maintain the unit to a sanitary or habitable condition after 30 days of being notified, the tenant may repair and deduct up to $400 or half of 1 month’s rent, whichever is less. If the landlord refuses to provide hot water, heat, water, or electricity after more than 48 hours, the tenant may be able to terminate the lease or withhold up to ⅔ of the rent during the period. If the landlord refuses to remedy the issue, the tenant could find substitute housing and charge the landlord up to ½ of that rent (§ 5307), (§ 5308).
Grace period: Tenants have 5 days after rent is due before it’s considered late (§ 5501(d)).
Pet rent: Delaware landlords can charge pet rent if the amount is reasonable. However, landlords can never charge a pet deposit or pet rent for service or emotional support animals (ESAs).
Rent Payment Increase Rules
Rent payment increase frequency: No rule limits the number of times landlords can raise rent in Delaware. However, they must provide 60 days’ notice to the tenant outlining the increase. Landlords with fixed-term leases cannot adjust rent until the lease period ends.
Rent payment increase maximum: Delaware law doesn’t limit rent increase maximums.
Rent control/stabilization: Delaware has no statewide rent control laws.
Room Rental Agreement Breaches
Failure to pay: Once rent is late, Delaware landlords can issue a 5-day Notice to Pay or Quit (§ 5502).
Lease violations: Delaware landlords can issue a 7-day Notice to Cure or Quit if the tenant commits a lease violation. (§ 5513).
Lease abandonment: If a tenant abandons their lease early and without just cause, they may be responsible for paying the remaining rent for the duration of the lease. Additionally, they could be liable for repair costs and any difference between the fair rental rate and the rent stated in the original lease (§ 5507(d)).
Self-help evictions: Landlords should never attempt self-help evictions by removing a tenant on their own. Always follow your state’s local laws regarding tenant evictions.
Ending a Room Rental Agreement
To end a room rental agreement, Delaware landlords should follow the same procedure as ending a lease agreement for a standalone unit. Delaware law treats them the same.
Month-to-month: To end a month-to-month Delaware room rental agreement, the tenant or the landlord must provide at least 60 days’ written notice. (§ 5106(d)).
Fixed-term: A fixed-term lease ends only when the term listed on the lease expires.
Room abandonment: Abandoning a room functions like abandoning a lease in a standalone unit. The tenant is responsible for the rent payments remaining on the lease and potentially other penalties.
Tenant’s right to terminate: There are a few instances in which a tenant can end a lease early and without penalty. These include entering into active military duty, landlord harassment, becoming the victim of domestic or sexual violence, or tenant death.
Landlord Room Access Laws
Immediate access: If there’s an emergency, Delaware landlords can enter the room immediately and without advance notice (§ 5509(b)).
Landlord harassment: If a landlord repeatedly enters the tenant’s room without proper notice, they could be found liable for landlord harassment. The tenant could then cancel the lease without penalty (§ 5509(b)).
Advance notice: Delaware landlords must give tenants at least 48 hours’ notice before entering the room, unless the tenant has specifically requested a repair (§ 5509(b)).
Agreement Renewal/Termination
Required renewals: Delaware landlords are not required to renew a tenant’s lease.
Required notice: If a landlord intends not to renew a fixed-term lease, the landlord should provide at least 60 days’ notice. (§ 5106(d)).
Month-to-month considerations: Month-to-month leases require at least 60 days’ notice to terminate (§ 5106(d)).
Room Rental Agreement Delaware FAQs
What to include in a Delaware room rental agreement?
A Delaware room rental agreement effectively functions the same as any lease for a standalone unit, meaning the lease should follow all applicable landlord-tenant law and include information regarding rent payments, security deposits, and everything else found in a normal Delaware lease agreement.
How do I legally rent out a room?
First, check to see if you need permits to rent a room in your local area and obtain the necessary license, ensuring that the room fits basic habitability requirements. Create a lease that will protect you and your tenant during the rental period and follow all necessary Delaware landlord-tenant laws along the way.
How to make a Delaware room rental agreement?
The best way to make a Delaware room rental agreement is to sign up for a Pro or Premium TurboTenant account. With it, you can easily create an unlimited number of lease agreements.
