OVERVIEW: Short-term rentals (STRs) are permitted in Dover, Delaware, but under extremely restrictive conditions. The City of Dover permits the limited rental of a primary residence for less than 30 days per stay, but the property owner must be a permanent resident of Dover and the property must be the owner's primary residence. Furthermore, the total annual operation is capped at 30 days per calendar year. Investment properties (non-owner-occupied) are prohibited from operating as an STR unless they qualify as a Bed and Breakfast Inn under a different zoning ordinance. This creates a highly regulated environment favoring only owner-operators. Investors not residing in Dover cannot legally operate a traditional STR in the city.

How to Start a Short-Term Rental Business in Dover

Given Dover's restrictive regulations, starting an STR here is a complex process viable only for owner-operators residing in Dover. Following these steps is crucial for legal compliance:

1. Verify Eligibility: Confirm you are a registered voter-eligible resident of Dover and that the property you intend to rent is your primary residence. This is a non-negotiable requirement per Ordinance 2020-05.
2. Confirm Zoning: Ensure your single-family dwelling is located in a zoning district where STRs are permitted "by right" (not requiring a variance or conditional use). Consult the Dover Planning & Inspections Department.
3. Prepare for Inspection: Understand that the City of Dover Code Enforcement Office will require an inspection to ensure the property complies with all applicable building, safety, and property maintenance codes before the initial license is granted.
4. Obtain the License: Apply for the Annual Short-Term Rental Use License through the Permit and Licensing Office. The license is valid for up to one year and must be renewed annually by January 31st. Failure to renew makes continued operation illegal.
5. Develop Compliance Systems: Establish clear systems for adhering to operational limits (30-day total annual cap), occupancy limits, parking requirements, and preventing nuisances/illegal activity.
6. Maintain Accurate Records: Be prepared to provide an annual report documenting occupancy and frequency of rentals by January 31st of the following year (for database/economic impact purposes, not enforcement/tax).
7. Register for Taxes: Register with the Delaware Division of Revenue to collect and remit the state lodging tax (4.5% as of Jan 1, 2025) and any applicable local/county lodging taxes.

Required Documents, Permits, Licenses, and Guidelines

1. Short-Term Rental Use License (STRU License):
   • Authority: City of Dover, Department of Planning & Inspections - Permit and Licensing Office.
   • Requirement: Mandatory for operation.
   • Validity: Up to one year, expiring January 31st annually.
   • Fee: Annual fee (see Fees section below).
   • Inspection: Required before initial issuance and potentially at renewal.
   • Display: License must be clearly displayed inside the dwelling.
   • Transfer: Not transferable, void upon property sale.
   • Contact: 302-736-7011, permitsandlicenses@dover.de.us
2. Initial & Periodic Safety/Code Compliance Inspection:
   • Authority: City of Dover Code Enforcement Office.
   • Requirement: Mandatory to determine compliance with property maintenance and all applicable codes. Required before first license issuance.
   • Compliance: All violations must be remedied before the license is granted.
   • Re-inspection: A fee applies for re-inspections (see Fees section below).
3. Proof of Dover Residency: Required to verify eligibility (owner must meet city voting residency eligibility criteria).
4. Proof of Primary Residence: Documentation may be requested to confirm the property is the owner's primary residence.
5. Good Neighbor Brochure: Must be provided inside the dwelling. Content requirements include owner contact info, behavior standards (parking, noise, trash, etc.), city provisions, and specified contact info. The city may update content requirements.
6. State Lodging Tax Registration: Register with the Delaware Division of Revenue to collect/remit the state lodging tax (4.5% in 2025).
7. Local/County Tax Registration (if applicable): Dover does not appear to impose a local lodging tax in the provided documents, but operators must be aware of any potential county (Kent County) taxes. Contact the Kent County Levy Court for confirmation.
8. Property Insurance: While not explicitly stated in the STR ordinance itself, owning property insurance is standard and may be prudent. The general rental dwelling ordinance (Ord. #2022-14) requires property insurance for all rental dwellings.
9. Business License (State): While not a specific "STR license" at the state level, operating any business may require a standard Delaware Business License from the Division of Revenue depending on the business entity structure.
10. Sign Permit (Optional): If desiring a sign identifying the STR, a separate sign permit is required. Signs are limited to one, unilluminated, max 1 sq ft, mounted on the dwelling.

Specific Regulations for Short-Term Rentals in Dover

Dover's regulations are codified in Ordinance 2020-05 and are extremely specific:

• Owner Eligibility & Primary Residence:
  • The property owner MUST be a resident of the City of Dover.
  • The property MUST be the owner's primary residence.
  • Non-owner-occupied properties are PROHIBITED. They cannot be used for STR unless classified as a Bed & Breakfast Inn.
• Annual Operating Limit:
  • STR operation is capped at 30 days per calendar year total. This is a hard limit regardless of stay length. Rentals of 30 days or more fall under traditional rental dwelling rules (requiring a different permit).
• Definitions & Applicability:
  • STRU Definition: Rental of all or part of a single-family dwelling unit for less than 30 days. 30 days or more = standard rental rules. Lodginghouses are excluded.
  • Applicability: Allowed in single-family dwellings where permitted by right under zoning, without variance/conditional use.
• Occupancy Limits:
  • Max Occupants: Number of guests 12+ cannot exceed twice the number of bedrooms. Maximum overall occupant limit is 12 (regardless of bedrooms).
  • Example: A 3-bedroom house can have a maximum of 6 guests (12+).
• Parking Requirements:
  • Limit: No more than one extra vehicle per bedroom is allowed, not exceeding 6 vehicles total.
  • Compliance: All parking must comply with city requirements (street maintenance, fire access, paved surfaces, trash collection, etc.). Violations are ticketed.
• Signage:
  • Limit: One sign per property.
  • Specifications: Mounted on dwelling, non-illuminated, maximum size 1 square foot.
  • Permit: A separate sign permit is required.
• Occupancy Standards:
  • Access: Guests must have access to a full bathroom.
  • Subletting: Guests are prohibited from subletting the property.
• Special Events:
  • Prohibition: Weddings, parties, corporate events, etc., are strictly prohibited on the STR property unless a specific City Special Event Permit is obtained for that date/activity.
• Owner Obligations:
  • Nuisance/Criminal Activity: Owner must NOT knowingly allow illegal/criminal activity or permit guests to create public nuisances (noise, odors, unsafe conditions, disorderly premises, excessive trash, etc.). Owners are responsible for guest behavior.
  • Good Neighbor Brochure: Must be provided inside the dwelling as per city requirements.
• Enforcement & Penalties:
  • License Fees/Fines: Specific fines apply for violations (unlicensed operation, non-compliance). (See Fees section).
  • License Suspension: A property cited three times as a nuisance or for illegal/criminal activity within any consecutive 12-month period will have its STR license suspended for the remainder of the license year or longer (up to permanent suspension).
  • Reporting: Owners must file an annual report by January 31st documenting occupancy and rental frequency.
  • Appeals: Enforcement procedures follow Chapter 22 (Buildings), Chapter 42 (Environment), and Chapter 70 (Offenses) of the Dover Code.

State-Level Regulations for Delaware

While Dover sets strict local rules, the State of Delaware imposes uniform tax obligations:

• Delaware State Lodging Tax:
  • Rate: 4.5% (Effective January 1, 2025).
  • Applicability: Applies to all short-term rental accommodations (rented for less than 120 days under state tax definitions).
  • Collection/Remittance: Hosts are responsible for collecting this tax from guests and remitting it to the Delaware Division of Revenue. Registration is required.
• County Lodging Taxes: Delaware counties may impose their own lodging taxes up to 3%. Verify with Kent County for potential applicability in Dover.
• Business Structure: If operating as a formal business entity (LLC, Corp, etc.), a standard Delaware Business License from the Division of Revenue is typically required for any business activity.

Contact Information for Local Dover Authorities

• City Clerk's Office (General Information/Ordinances):
  • Phone: 302-736-7008
  • Email: cityclerk@dover.de.us
  • Website: <www.cityofdover.com/ordinances-and-resolutions>
• Permit and Licensing Office (STRU License Applications):
  • Phone: 302-736-7011
  • Email: permitsandlicenses@dover.de.us
• Code Enforcement Office (Inspections/Compliance):
  • Phone: (Contact via Permit and Licensing Office, as they are within the same Dept.)
• Delaware Division of Revenue (State Tax Registration):
  • Website: https://revenue.delaware.gov/ (For lodging tax registration and guidance)

Source Pages & Links

• Dover Short-Term Rental Use Ordinance (Ord. 2020-05) & Public Notice: <www.cityofdover.gov/media/Public%20Notice%20-%20Adoption%20of%20Short%20Term%20Rental%20Use%20Ordinance.pdf>
• Dover Code of Ordinances - Chapter 22, Article X (Rental Dwellings & Short-Term Rental Use): <www.cityofdover.gov/media/Government/Ordinances-Resolutions-Tributes/2022/Ordinance-%20Rental%20Dwellings%20-%20INTRODUCTION.pdf>
• Dover Ordinances and Resolutions Page: <www.cityofdover.com/ordinances-and-resolutions>
• Delaware Short-Term Rental Regulations Overview (General State Info): <www.checkmaterentals.com/blog/delaware-short-term-rental-regulations> (Used for state lodging tax information).