Delaware Landlord & Investor Guide
Delaware offers no sales tax, steady mid-Atlantic demand, and the country's most famous LLC framework (though rentals are taxed where the property sits).
Income outlook
Wilmington and the Dover area provide moderate demand; coastal Sussex County adds vacation-rental potential.
Landlord-tenant law at a glance
| Security deposit cap | 1 month's rent for leases of one year or more (no cap on shorter terms). |
|---|---|
| Deposit return | Within 20 days of move-out. |
| Rent control | No statewide rent control. |
⚠️ General orientation only — not legal advice. Laws change and vary by city and county. Verify the current statute or consult an attorney before acting. Last reviewed 2026-06-04.
Eviction process
Delaware's landlord-tenant code is moderate; the Justice of the Peace courts handle evictions.
Registering an LLC in Delaware
Filing agency
Delaware Division of CorporationsApprox. filing fee
~$110 (Certificate of Formation)
Good to know
Flat $300 annual franchise tax. Note: a rental is taxed where it's located, not where the LLC is formed.
Strategies that fit Delaware
Underwriting tip
Forming a Delaware LLC doesn't avoid taxes on a property located elsewhere — keep the entity where the property is.
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