A Delaware month-to-month lease agreement is a residential rental agreement designed to renew each month indefinitely until either the landlord or the tenant provides notice to end it. Under this type of rental agreement, tenants are tenants at will, meaning the tenancy continues every month unless legally terminated.
Even though this type of rental agreement is more flexible, it is still a binding contract that must comply with Delaware landlord-tenant law. Below, we’ll break down everything landlords need to know about creating a month-to-month lease agreement in The First State.
Disclosures (5)
When signing a Delaware month-to-month lease agreement, landlords must disclose specific information to their tenants.
1. Lead-based paint: Federal law requires landlords to give tenants any known information about lead-based paint and its hazards in homes built before 1978. Landlords must also provide a copy of the EPA’s lead safety pamphlet.
2. Owner disclosure: Landlords must include the name and contact information of the property owner or the person responsible for managing the rental (Del. Code tit. 25, § 5105(a)).
3. Landlord-Tenant code: Delaware landlords must give their tenants a summary of the state’s Landlord-Tenant Code when signing a lease (Del. Code tit. 25, § 5118).
4. Bed bugs: Before a tenant moves in, landlords must inspect the unit for bedbugs and provide a written statement that includes their findings and tips to help prevent infestations (Del. Code tit. 25, § 5317).
5. Legal representation: If a landlord has to evict a tenant, Delaware law entitles them to legal representation if their income stays below 200% of the federal poverty guidelines. Keep in mind that this applies only if the landlord owns at least four units and the tenant does not have an attorney (Del. Code tit. 25, § 5602).
Optional Disclosures and Addenda
Although Delaware law does not require landlords to include the following disclosures and addenda, providing their tenants with this information helps protect both parties and prevent future disputes.
Asbestos: Discloses any known asbestos in the unit, as well as suggestions to limit risks.
Late/returned check fees: Outlines fees associated with late or returned rent checks. Delaware allows landlords to charge up to 5% of the overdue amount as a late fee. Returned check fees are limited to $40 for the first offense, but this increases to $250 if another check bounces within 12 months (Del. Code tit. 6, § 1301A).
Medical marijuana use: Details the policy for using medical marijuana in the rental.
Mold disclosure: Discloses any known or suspected mold issues in the unit and provides information on remediation.
Move-in checklist: Chronicles the condition of the rental at move-in, including any existing issues or damages.
Non-refundable fees: Discloses any one-time, non-refundable fees associated with the Delaware month-to-month lease agreement.
Shared utilities: If any units share a utility meter, landlords must disclose how they divide utility charges among the units.
Smoking: Details the unit’s smoking policy and identifies any designated smoking areas, if applicable.
Additional Delaware Month-to-Month Lease Laws
Other laws pertain to their Delaware month-to-month lease agreement, overseeing everything from security deposits to termination notices.
Notice to Terminate a Month-to-Month Agreement
To terminate their Delaware month-to-month lease agreement, landlords must follow specific notice guidelines.
Required notice for tenant: Tenants must give at least 60 days’ written notice before terminating a Delaware month-to-month lease agreement (Del. Code tit. 25, § 5106, § 5107).
Required notice for the landlord: Landlords must also give at least 60 days’ written notice to terminate a month-to-month lease (Del. Code tit. 25, § 5106, § 5107).
Laws Governing Rent Increases
Delaware does not have statewide rent control laws, which means there is no limit on how much landlords can increase rent. However, landlords must give their tenants at least 60 days’ written notice before any rent increase takes effect. The tenant then has 15 days to object; otherwise, the rent increase takes effect on the noted date (Del Code tit. 25, § 5107).
Lease Violations and Eviction
When a lease violation occurs, there are specific steps landlords should take to help get the tenancy back on track.
Missed rent payment: If a tenant misses a rent payment after the required grace period, landlords can issue a 5-day Notice to Pay or Quit before initiating the eviction process (Del. Code tit. 25, § § 5501(d), 5502(a)).
Lease violation: For other lease violations, landlords may issue a 7-day Notice to Cure or Quit, allowing their tenant time to fix the issue. For more serious violations, however, landlords may fix the violation themselves, send their tenant a bill as needed, and terminate the lease agreement (Del. Code tit. 25, § 5513).
Lease abandonment: If a Delaware tenant abandons their lease early, they are usually responsible for the remainder of the lease term, any damages, and costs associated with finding a new tenant (Del. Code tit. 25, § 5507(d)).
Self-help evictions: Self-help evictions, or attempting to force out a tenant by changing the locks or turning off utilities, are illegal and should never be attempted (Del. Code tit. 25, § 5313).
Rent Payment Laws
Delaware has specific laws governing the collection and payment of rent.
Rent control/stabilization: Rent control and stabilization do not exist in Delaware.
Late rent fees: In Delaware, landlords may charge a late rent fee up to 5% of the monthly rent (Del. Code tit. 25, § 5501(d)).
Grace period: Delaware requires landlords to give their tenant a 5-day grace period before charging a late fee (Del. Code tit. 25, § 5501(d)).
Tenant’s right to withhold rent: Delaware tenants are not allowed to withhold rent, even if the unit needs repair (Del. Code tit. 25, § 5505(a)).
Pet rent laws: Landlords may charge pet rent or collect a pet deposit as long as the amount is reasonable and their lease template clearly lists the fee.
Security Deposits
Delaware allows landlords to charge tenants a security deposit, which landlords hold and use, if necessary, to cover unpaid rent or excessive damages.
Maximum amount: For a month-to-month lease, Delaware does not limit the amount landlords can charge as a security deposit. However, the difference between the security deposit and 1 month’s rent is credited back to the tenant once they have lived in the unit for 12 months (Del. Code tit. 25, § 5514(a)).
Deposit receipt: Landlords must give their tenant a receipt for their security deposit payment that shows where landlords hold their funds in escrow (Del. Code tit. 25, § 5514(b)).
Interest payments: Landlords do not have to pay their tenant interest on their security deposit payment.
Security deposit return: In Delaware, landlords have 20 days to return their tenant’s security deposit, minus any deductions (Del. Code tit. 25, § 5514(f)).
Deductions: If landlords deduct funds from the deposit to cover excessive damages or unpaid rent, they must give their tenant an itemized statement within 20 days (Del. Code tit. 25, § 5514(f)).
Property Access Laws
Delaware law protects tenants’ rights to quiet enjoyment of their homes. Here’s what landlords need to know about entering an occupied rental unit.
Advance notice: For routine maintenance and repairs, landlords must give their tenants at least 48 hours’ written notice; however, this timeline can change if their tenant requests the repairs. Additionally, landlords may only enter the property between 8 a.m. and 9 p.m. (Del. Code tit. 25, § 5509(b)).
Immediate access: Landlords may enter the property without notice to their tenant in an emergency (Del. Code tit. 25, § 5509(b)).
Harassment: If landlords do not follow the above guidelines, it is considered harassment and tenants can often terminate their lease early (Del. Code tit. 25, § 5509(b)).
