Delaware compliance for property management companies

Research summary and findings: I performed targeted web searches and scraped authoritative Delaware statutes and administrative regulations to gather state-specific compliance information for property management companies operating in Delaware.

Steps taken:

Research summary and findings: I performed targeted web searches and scraped authoritative Delaware statutes and administrative regulations to gather state-specific compliance information for property management companies operating in Delaware.

Steps taken:

Performed broad web searches for "Delaware property management licensing", "Delaware landlord-tenant code", "Delaware escrow trust accounts", "Delaware real estate commission rules", and "Delaware business registration" to identify authoritative sources.

Scraped and extracted material from Delaware statutory and regulatory sources (Delaware Code and Delaware Administrative Code) and official state pages to confirm licensing, escrow, recordkeeping, continuing education, landlord-tenant obligations, security deposit rules, notice periods, penalties, and exemptions for property management activities.

Reviewed secondary authoritative summaries (Attorney General tenant summary, Legal Services of Delaware) for practical interpretations of statutory timelines (security deposit return, notice periods). Key, state-specific findings (summary)

- Licensing: Delaware regulates real estate services through 24 Del.C. Ch. 29 and the Delaware Real Estate Commission rules (Admin. Code Title 24, 2900). Property management activities that include leasing, negotiating leases, showing advertised properties, or executing leases generally require a licensed broker or salesperson. There is a statutory exemption for individuals performing limited property management duties (maintenance, clerical work, accepting rents payable to owner/broker, furnishing published info, receiving applications for submission) — but those exempted may not negotiate, draft, approve, or vary lease terms (see Admin. Code §9.0 and 9.1/9.2). - Escrow / Trust accounts and recordkeeping: Brokers are required to open and maintain escrow accounts in a bank with an office located in Delaware; escrow account names must match the brokerage name; brokers must keep complete records of all monies received/escrowed and retain those records for specified periods (e.g., at least 3 years per Admin. Code §6.3–6.4). Interest on escrowed funds belongs to the owners unless otherwise agreed. - Continuing education and license renewal: Licenses renew biennially (licenses expire April 30 of even-numbered years). Continuing education requirement is 21 hours per renewal period across prescribed modules (including agency/fair housing, professional standards, real estate documents, office management, legislative issues, practices of real estate, and electives) (Admin. Code §14.0). Failure to meet CE can result in monetary penalties. - Security deposits and application fees: Delaware law caps security deposits at one month’s rent for rental agreements of one year or longer (and for month-to-month tenancies that have lasted one year or more). Security deposits must be placed in an escrow account at a federally insured financial institution with an office that accepts deposits in Delaware; landlords must disclose the location of the account. If a landlord is not entitled to all or any portion of a security deposit, the landlord must remit appropriate amounts within 20 days of termination or expiration of the rental agreement and provide an itemized statement within 20 days; failure to comply can expose the landlord to statutory penalties (including double damages). Application fees are limited to the greater of 10% of the monthly rent or $50; unlawful overcharges entitle tenants to double damages. (25 Del. C. §5514) - Notice and eviction: For non-payment of rent, Delaware requires a written demand/notice providing not less than 5 days to pay before the landlord may file an action for summary possession (25 Del. C. §5502). Lease violations generally require a 7-day notice to cure; terminating month-to-month tenancies requires longer notice (common statutory and court guidance indicates 60 days for month-to-month termination). Courts require that the notice given to the tenant be attached to the summary possession complaint. - Landlord obligations and habitability, pests (bed bugs): Landlords (and by extension managing agents acting on their behalf) must maintain rental units in habitable condition, comply with building codes, and follow specific statutory procedures for bed bug inspections and remediation, including pre-rental inspections, notice to tenants, and record retention for bed bug complaints (Title 25 landlord-tenant provisions). - Enforcement and penalties: Failure to comply with escrow/security deposit rules, CE, licensure requirements, or statutory notice/eviction procedures can result in disciplinary action by the Real Estate Commission, consumer protection enforcement by the AG, forfeiture/double-damages for tenants, fines for CE noncompliance, and possible civil liability. - Business registration, taxes, employment obligations, insurance and bonding: Property management companies should register with Delaware business registration/One Stop and the Division of Revenue for taxes and employer withholding; maintain appropriate general liability and professional liability (E&O) insurance; and comply with state employment laws (wage, unemployment, workers' compensation) for staff. These administrative requirements are administered by the Division of Revenue and Delaware One Stop. (recommended: confirm current registration and tax obligations on the Division of Revenue / One Stop Business Registration pages). Next recommended actions (for preparing the blog/newsletter content): - Use the statutory and regulatory citations below as primary sources for the blog. Include clear guidance for property management companies: when licensing is required vs. when the exemption applies; how to handle escrow accounts and record retention; precise timing for security deposit returns and required itemized statements; notice periods and eviction steps; CE and renewal cycles; and practical compliance checklist items (banking, disclosures, leases, advertising, tenant screening, HUD/fair housing compliance, insurance). - Advise clients to consult the Delaware Real Estate Commission and an attorney for complex situations (especially multi-jurisdictional portfolios and eviction litigation). I am ready to generate the final blog post and newsletter content (including meta tags, slug, excerpt, and a compliance checklist) using these sources. Please confirm if you want: (A) a long-form comprehensive blog post (2,000+ words) + checklist and email newsletter, or (B) a shorter, actionable guide (800–1,200 words) + checklist.