So we have a unit available June 1st, it is very tough getting good tenants with the credit/background check and minimum screening requirements we have in place. So we did an open house and found a couple which pass all the requirements, and we really want to rent to. However, they want us to hold the home until July 1st. I am okay holding it but wanted to issue a "holding deposit" that would turn into part of security deposit at lease signing, but if for some reason they back out it could semi- recoup the cost of holding and not advertising.

I did look up Delawares landlord tenant code & from the way I'm understanding it is "unlawful" to collect such deposit.. Could someone please read & see if I'm correct? I know other landlords here do collect the deposit, but I like to be legal and do things correctly. Thanks so much for any insight!!!

§ 5310 "Assurance money" prohibited.

(a) In every transaction wherein an application is made by a prospective tenant to lease a dwelling unit, the prospective landlord or owner of the dwelling unit shall not ask for, nor receive, any "assurance money" or other payment which is not an application fee, security deposit, surety bond fee or premium, pet deposit or similar deposit reserving the dwelling unit for the prospective tenant for a time certain. The prospective landlord shall not charge the prospective tenant, as a fee for any credit or other type of investigation, any more than the specific cost of such investigation. For purposes of this section, "assurance money" shall mean any payment to the prospective landlord by a prospective tenant, except an application fee, a payment in the way of a security deposit, surety bond fee or premium, pet deposit or similar deposit reserving the dwelling unit for the prospective tenant for a time certain or the reimbursing of the specific sums expended by the landlord in credit or other investigations.

(b) Each landlord shall retain, for a period of 6 months, the records of each application made by any prospective tenant. Upon any complaint of a violation of this section, the Consumer Protection Unit of the Attorney General's office shall investigate the same, shall interview tenants of the landlord and shall, under appropriate search warrant, have the right to investigate all records of the landlord pertaining to applications made within the preceding 6 months. If such investigation reveals good cause for the Attorney General's office to believe there has been a violation of this section, the Attorney General's office may issue such cease and desist orders in accordance with Chapter 25 of Title 29 as are required to remedy the violation.

70 Del. Laws, c. 513, § 2; 77 Del. Laws, c. 282, § 15; 79 Del. Laws, c. 57, § 2.;

0 Votes