Lewes Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental License

This permit type does not require primary residence.

Application Process

Owner submits a rental license application to the Planning and Building Department with attestations of ownership, required safety equipment, no outstanding City liens, no contractual restrictions (HOA/condo bylaws), and consent to inspection; the application, annual license fee, and prior-year Gross Receipts Rental Tax (GRRT) payment are due no later than February 1 each year; the license is issued after satisfactory review and is subject to a 48-hour-notice compliance inspection

Tax Obligations

Combined rate: 10% combined (4.5% state short-term rental lodging tax + 5.5% City of Lewes Gross Receipts Rental Tax) of gross rental income.

Collection: City GRRT (5.5%): the property owner is responsible for payment and may designate an agent (e.g., a real estate broker) to collect and remit it to the City. State short-term rental lodging tax (4.5%): collected and remitted by the accommodations intermediary (e.g., Airbnb, Vrbo) when a listing platform is used; an owner renting directly without an intermediary must obtain a Delaware accommodations intermediary license and collect/remit the tax themselves.

Filing: City GRRT: annual, due on or before February 1 for the prior calendar year's rent. State short-term rental lodging tax: monthly, due by the 15th of the month following collection.

Rental Limits

Lewes does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

2 persons per bedroom plus 2 additional persons; children age 12 and younger are excluded from the occupant count

Zoning & Restrictions

Permitted only where allowed under Chapter 197 Zoning, Attachment-1 Table of Permitted Uses and Structures, and only pursuant to a valid short-term rental license

Insurance & Safety

Insurance

Lewes does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Working smoke detectors in every bedroom, outside of all sleeping areas, and on all habitable floors
• Working carbon monoxide detectors in every dwelling unit with an attached garage or fuel appliances
• A properly maintained and charged fire extinguisher in each short-term rental unit
• GFCI receptacles within six feet of the outside edge of any sink

Penalties for Non-Compliance

License and operational violations follow a three-strike schedule: 1st violation = written warning, 2nd violation of the same offense = $250 fine, 3rd (or 6 total violations of any type) = $500 fine plus revocation/suspension of the short-term rental license for 12 months. Unpaid fines are doubled if not paid within 30 days of issuance. Each day a violation continues is a separate offense.

Platform Requirements

The rental identification number must be included in all advertising for the short-term rental, including electronic advertising on short-term rental websites

Compliance Checklist

Follow these steps to legally operate a short-term rental in Lewes:

1. Meet safety requirements. Working smoke detectors in every bedroom, outside of all sleeping areas, and on all habitable floors. Working carbon monoxide detectors in every dwelling unit with an attached garage or fuel appliances. A properly maintained and charged fire extinguisher in each short-term rental unit. GFCI receptacles within six feet of the outside edge of any sink.
2. Apply for Short-Term Rental License. Submit application + $200 fee.
3. Register for tax accounts. Set up lodging tax accounts with City of Lewes, Office of the City Manager (Gross Receipts Rental Tax); Delaware Division of Revenue (state short-term rental lodging tax).
4. Collect and remit taxes. 10% combined (4.5% state short-term rental lodging tax + 5.5% City of Lewes Gross Receipts Rental Tax) on all bookings.
5. Renew annually. $200 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Lewes?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Lewes requires a Short-Term Rental License.

How much does a short-term rental permit cost in Lewes?

A Short-Term Rental License in Lewes costs $200 per year.

Does Lewes require a short-term rental to be your primary residence?

No. Lewes allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Lewes?

Lewes does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Lewes?

Short-term rental stays in Lewes are subject to a combined 10% in lodging taxes. This combines 4.5% Delaware Short-Term Rental Lodging Tax + 5.5% City of Lewes Gross Receipts Rental Tax (GRRT) — short-term rental rate. The host is responsible for collecting and remitting them.