Renting out your home in Delaware: Laws, tips, restrictions, and pitfalls to avoid in 2025

How to rent out your home in Delaware

Renting out your home in Delaware starts with reviewing your property's governing documents and local laws.

First, confirm whether your property is part of a homeowners or condominium association. If so, review the declaration, bylaws, and any rules and regulations. These documents often include limits on leasing frequency, lease duration, and tenant screening procedures. If the rules include specific rental restrictions, they may also require board approval or notice before renting your property.

Next, research applicable community association laws in Delaware, including landlord-tenant statutes and municipal requirements. Some areas may require rental licenses or safety inspections. If your property is in a city like Wilmington or Dover, you may need to register the home as a rental and comply with certain property maintenance codes.

If your community has a property manager, they may be a helpful resource in clarifying how rental restrictions apply, what steps homeowners need to follow, and which documents may need to be submitted to the board.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What are rental restrictions?

Rental restrictions are rules that limit how and when homeowners can lease their properties. These restrictions are commonly found in HOA or condominium documents and may cover lease length, number of rentals allowed, or who can occupy a unit.

The purpose of rental restrictions is typically to preserve property values, maintain residential character, and reduce the administrative burden on association boards.

Common types of rental restrictions in Delaware communities include:

• Minimum lease durations (often 6–12 months)
   
• Caps on the total percentage of units that may be rented at one time
   
• Rules requiring owner occupancy for a period before renting is allowed
   
• Requirements to submit lease agreements to the board
   
• Background checks or screening requirements for tenants

Before renting your property, always verify which restrictions apply and whether your planned lease complies with them.
 

Legal basics of renting your property in Delaware

Delaware law may not prohibit homeowners from renting their properties, but it generally allows HOAs and condominium associations to adopt rental restrictions through their governing documents.

The Delaware Uniform Common Interest Ownership Act (DUCIOA) provides the legal framework for many community associations in the state. Under this law, associations may have the authority to regulate leasing if the restrictions are clearly stated in the recorded declaration or adopted through a proper amendment process with required owner approvals. If a rental restriction was adopted without following these procedures, it may be unenforceable. However, courts generally uphold properly recorded restrictions that promote legitimate community interests.

For non-HOA properties, Delaware's Residential Landlord-Tenant Code (Title 25, Chapter 51) typically governs rental relationships. This code outlines notice periods, security deposit rules, eviction procedures, and tenant rights.

Consult a qualified attorney before renting your property if you're uncertain how rental restrictions or Delaware law apply to your situation.
 

Can an HOA stop you from renting out your home?

Yes, a Delaware HOA or condo association may have the authority to stop you from renting out your home if their governing documents include rental restrictions that prohibit or limit leasing.

Associations may prohibit short-term rentals, restrict how many units can be rented at once, or require owners to live in the unit for a certain period before leasing. If you ignore these rental restrictions, the association may take enforcement action such as fines, legal proceedings, or denying tenant access to amenities. However, the association must follow proper procedures and comply with applicable laws throughout this process.

If you're unsure whether your community's rental restrictions are applicable to your specific situation, consult a qualified legal professional or your community’s property management expert. Renting your property without understanding the rules can lead to costly disputes.
 

What to avoid when renting your property

In addition to complying with your community’s rental restrictions, there are a few other pitfalls to avoid when renting your property:

• Using outdated or generic lease templates that don’t comply with Delaware law
   
• Failing to notify your community association or submit required documents before renting your property
   
• Renting to someone who causes disturbances or breaks rules, which can lead to fines against you as the owner
   
• Not properly documenting the condition of the home before move-in or move-out
   
• Skipping tenant screening or ignoring warning signs during the application process

These issues can lead to legal disputes, damage to your unit, or strained relationships with your board or neighbors. Renting your property is a business decision and should be approached with the same diligence you would apply to any financial transaction.
 

How rental restrictions may affect resale and refinancing

Rental restrictions can affect your ability to sell or refinance your home in Delaware. Lenders often review community rules to determine if the property qualifies for conventional or FHA loans. If your community caps the percentage of rental units, or prohibits leasing altogether, it could limit the buyer pool or reduce the appraised value. Similarly, refinancing may be more difficult if your unit is considered an investment property or if the HOA has a high percentage of leased homes.

Before renting your property, consider how it may impact future transactions. Some associations may require buyers to honor existing leases, while others may prohibit transfers to investors.
 

When to contact your property management company

Contact your property management company whenever you’re considering renting out your property. They can confirm whether rental restrictions apply and walk you through any required steps, such as lease submission or tenant registration.

Whether you're already working with FirstService Residential or exploring management support for your community, our team can provide guidance on how rental restrictions are applied and help streamline related processes for your board. Contact FirstService Residential today to learn more about how we support boards, owners, and residents in Delaware.