A Delaware rental application form helps a landlord choose a prospective tenant who is well suited to rent a particular property. The form requests personal and employment information plus consent for a credit check (sometimes called a consumer report). Applications often collect a non-refundable fee, commonly equal to the cost of getting the relevant screening reports.
Delaware Rental Application Laws
Delaware caps rental application fees at 10% of the monthly rent or $50 (whichever is greater). Landlords must provide an itemized receipt of costs to the applicant when collecting an application fee, and must maintain their own record of such costs for a minimum of two years. A victimized applicant can receive double the application fee amount in monetary damages if the landlord breaks the rental application law.
Quick Guide To Process a Delaware Rental Application
After receiving a Delaware rental application, most landlords use the following process to evaluate the potential tenant:
- Verify Credit – Order a credit report for the potential tenant; a score of 600-650 is a common minimum requirement. A credit report can be as simple as a “pass/fail” result or can have comprehensive details, including criminal history. (NOTE: a credit report requires the tenant’s written and signed consent, on the application or separately)
- Verify Income – Check the potential tenant’s employment status and pay scale. This can be done through recent pay stubs and/or contacting the potential tenant’s employer.
- Check Rental History – Contact previous landlord(s) to confirm a potential tenant has in the past been a good renter and neighbor.
- Check Eviction History – Verify the potential tenant has honestly disclosed the details of any past evictions. An eviction check usually covers a longer period (previous 7 years) than a rental history check (previous 3 years).
- Check Criminal History – Confirm the potential tenant’s reporting of any criminal history, especially including a check of criminal databases like sex offender registries.
- Provide a Response – Approve the application if it’s a good fit, or, if rejecting the application, draft an appropriate adverse action notice to limit liability.
Checking Eviction History in Delaware
Delaware eviction cases are matters of public record which anyone can access. While third-party services often automatically check eviction history as part of a screening report, this also can be checked manually, with the following process:
- Visit CourtConnect and select “Search by person name, business name or case type”
- Accept the disclaimer to access the Person/Case Type search page
- Enter the potential renter’s name (and previous jurisdiction, if known) to access civil court documents
Restrictions on Delaware Rental Application Questions
The sample rental application provided on this page complies with federal law restricting the information a landlord can request. In general, it’s illegal under the Federal Fair Housing Act to screen tenants by asking for information about the following, or using these as a basis for approving or denying an application:
- Race
- Color
- National origin (nationality)
- Religion
- Sex (including sexual orientation and gender identity)
- Familial status (i.e., having or not having children)
- Disability (whether physical or mental)
Delaware state law also protects some additional categories, such as age, marital status, and rental/public assistance status. There are narrow exemptions from the Fair Housing Act for things like senior housing or certain very-small scale landlords, but local regulations may still apply. Always consult an attorney before attempting to ignore state or federal requirements.
Rejecting an Application: Adverse Action Notice
When taking an action which may disadvantage a potential tenant, a landlord may have to provide an adverse action notice informing the tenant about the decision (sometimes called a “conditional approval,” if the application is approved subject to meeting additional conditions). Federal regulations require an adverse action notice whenever a landlord collects a credit report and takes one of the following actions:
- Rejecting the potential tenant’s application
- Adding a requirement for someone to co-sign the potential tenant’s lease
- Demanding a larger security deposit than before, as a condition for renting
- Asking for higher rent after receiving the report
Important Features of an Adverse Action Notice
An adverse action notice must contain the following details:
- Note that the landlord took adverse action based on information in a consumer credit report
- Details of the consumer reporting agency
- Note that the landlord decided the adverse action, not the agency
- Declaration of the applicant’s right to a copy of the consumer credit report
- Declaration of the application’s right to dispute the report within 60 calendar days
While not legally required, it also is expedient for a landlord to explain the reasons for the adverse action, since this establishes a written record of issues with the application.
For an example, see this tenant rejection letter template.
Fees in Delaware
Delaware has the following regulations on fees relating to a new rental:
- Rental Application Limit: 10% of the monthly rent or $50 (whichever is greater)
- Security Deposit Limit: One month’s rent, in most situations (but no cap for furnished units or lease terms under one year)
- Pet Fee Limit: One month’s rent
Local jurisdictions may impose stricter regulations than the statewide standard. Always check local laws.
Sources
- 1 25 Del. Code § 5514(d)
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Where a tenant is required to pay a fee to determine the tenant’s credit worthiness, such fee is an application fee. A landlord may charge an application fee, not to exceed the greater of either 10 percent of the monthly rent for the rental unit or $50, to determine a tenant’s credit worthiness. The landlord shall, upon receipt of any money paid as an application fee, furnish a receipt to the tenant for the full amount paid by the tenant, and shall maintain for a period of at least 2 years, complete records of all application fees charged and amounts received for each such fee. Where the landlord unlawfully demands more than the allowable application fee, the tenant shall be entitled to damages equal to double the amount charged as an application fee by the landlord.
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