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Short-Term Rental Regulations
in Rehoboth Beach, DE

Last verified: March 2026 · Report an update

Zoning & Conditions

Rentals are restricted to appropriately zoned residential units and require a Residential Rental License. Overnight occupancy is limited to two persons per bedroom plus two additional persons (children ≤6 excluded). Hosts must provide a 24/7 local contact, post the license and contact info in the unit, and perform an annual life-safety self-inspection.

How to Obtain a Permit

1) Complete the City Residential Rental License application and provide proof of ownership, owner ID, and evidence of tax payment. 2) Designate a local 24/7 contact and schedule a property inspection with the Building & Licensing department or submit the annual self-inspection checklist. 3) Pay the annual fee and submit the application to receive the license, which must be displayed in the unit and renewed annually.

Regulatory Updates — Rehoboth Beach

Proposed and recent legislation

PassedSeptember 2022

Rehoboth Beach Rental Dwelling Permit Program

City requires annual rental dwelling permit for all STRs; safety inspection, certificate of occupancy compliance, and smoke/CO detector requirements mandatory.

PassedJune 2024

Sussex County Lodging Tax Compliance Update

County updated lodging tax collection requirements; all STR operators must collect and remit 8% Sussex County lodging tax. Third-party platform data used for compliance verification.

ProposedOctober 2025

Delaware STR Transparency Legislation

State bill requiring online platforms to share host data with municipalities; expected to strengthen Rehoboth Beach's ability to identify unregistered STR operators.

Official Resources

Official Rehoboth Beach STR regulation source

Local Resources & Advocacy

Rehoboth Beach-Dewey Beach Chamber of CommerceLocal

Local chamber representing beach business owners including vacation rental operators as key contributors to Rehoboth's summer resort economy.

Delaware Tourism AllianceStatewide

Statewide tourism advocacy group supporting vacation rental operators as contributors to Delaware's coastal tourism industry.

Vacation Rental Management AssociationNational

National trade association offering education, advocacy, and resources for professional vacation rental managers.

Frequently Asked Questions

Are short-term rentals allowed in Rehoboth Beach, DE?
Rentals are restricted to appropriately zoned residential units and require a Residential Rental License. Overnight occupancy is limited to two persons per bedroom plus two additional persons (children ≤6 excluded). Hosts must provide a 24/7 local contact, post the license and contact info in the unit, and perform an annual life-safety self-inspection.
Is a permit required to operate a short-term rental in Rehoboth Beach?
Yes, a permit is required to operate a short-term rental in Rehoboth Beach. 1) Complete the City Residential Rental License application and provide proof of ownership, owner ID, and evidence of tax payment. 2) Designate a local 24/7 contact and schedule a property inspection with the Building & Licensing department or submit the annual self-inspection checklist. 3) Pay the annual fee and submit the application to receive the license, which must be displayed in the unit and renewed annually.
How do I get a short-term rental permit in Rehoboth Beach?
1) Complete the City Residential Rental License application and provide proof of ownership, owner ID, and evidence of tax payment. 2) Designate a local 24/7 contact and schedule a property inspection with the Building & Licensing department or submit the annual self-inspection checklist. 3) Pay the annual fee and submit the application to receive the license, which must be displayed in the unit and renewed annually.
What does Rehoboth Beach require for STR operation?
An annual City of Rehoboth Beach rental dwelling permit with safety inspection (smoke/CO detectors, fire extinguisher, certificate of occupancy compliance). Sussex County lodging tax registration (8%) is also required. Permit must be posted on the property.
Does Delaware have state preemption for STRs?
No. Delaware has no statewide STR preemption law. Rehoboth Beach and neighboring communities (Dewey Beach, Bethany Beach, etc.) each set their own requirements independently.
When is peak season in Rehoboth Beach?
Peak rental season is Memorial Day through Labor Day (late May to early September). Most vacation rental permitting and enforcement activity centers on the summer season; STR revenue is heavily concentrated in these three months.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction