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  1. Home
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  3. Regulations
  4. ·
  5. Delaware
  6. ·
  7. Bethany Beach

Bethany Beach

Moderate
DelawareUpdated Mar 2, 2026
Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Bethany Beach requires all short-term rental owners to obtain an annual Rental Business License and pay a $200 fee. In addition to licensing, hosts must collect and remit a 7% Accommodations Tax to the town on a quarterly basis.

Restriction level

Severity 21
Classification
Moderate
21
Severity

Why this classification

  • Standard permit fee: $200
  • Tenants cannot host
  • Permit required
  • Reporting required
  • No night cap
  • No primary residence requirement

In plain English

What this means for you

To host an Airbnb in Bethany Beach, you must first apply for a Town Rental Business License, which costs $200 per year. You will need to complete a safety self-inspection of your property to ensure it has working smoke detectors and fire extinguishers. Every three months, you are required to report your rental income to the town and pay a 7% 'Accommodations Tax.' Note that even if Airbnb collects state taxes, you must still file these local town taxes yourself.

At a glance

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$200
Processing time2-4 weeks

7 things hosts often miss

Common compliance gaps
  1. 1You must file a tax return every quarter even if you had zero rental income for that period.
  2. 2The 7% Accommodations Tax is specific to the Town of Bethany Beach and is separate from any state requirements.
  3. 3Rental licenses expire annually on March 31st regardless of when you first applied.
  4. 4Trash collection rules are very strict in Bethany Beach; rentals must follow specific bulk trash and recycling schedules.
  5. 5The town requires an emergency contact who can respond to the property 24/7.
  6. 6Failure to renew your license by April 1st results in automatic late fees and potential fines.
  7. 7Properties near the beach have specific parking permit requirements that must be communicated to guests.

Regulation details

Sourced from official code
Eligibility7 rules
  • Bethany Beach allows STRs in the following property types: Single-family dwellings, Condominiums, Townhomes.
  • Bethany Beach does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
  • Bethany Beach, DE: You can have a co-host or property manager help manage your listing.
Requirements16 rules
  • Bethany Beach, DE: Hosts must report their rental activity quarterly to the city, even if platforms collect taxes.
  • Bethany Beach STR warning: The town requires an emergency contact who can respond to the property 24/7.
  • Bethany Beach STR warning: Trash collection rules are very strict in Bethany Beach; rentals must follow specific bulk trash and recycling schedules.
Application process11 rules
  • Step-by-step guide to get an STR permit in Bethany Beach: Step 1: Obtain Rental Business License Application - Download the annual Rental Business License form from the Town's website or collect it from Town Hall. Estimated time: 10 minutes. More info: https://www.townofbethanybeach.com/335/Rental-Information Step 2: Complete Safety Self-Inspection - Complete the safety checklist including smoke detectors, CO detectors, and fire extinguishers. Documents needed: Safety Self-Inspection Checklist. Estimated time: 1 hour. Step 3: Submit Application and Fee - Submit the completed application, insurance proof, and the $200 annual fee to the Licensing Department. Documents needed: Business License Application, Proof of Insurance. Estimated time: 2-4 weeks for processing. Cost: 200. Step 4: Register for Accommodations Tax - Ensure you are registered to file quarterly Accommodations Tax returns with the Finance Department. Estimated time: 15 minutes. More info: https://www.townofbethanybeach.com/229/Accommodations-Tax
Fees & costs1 rule
  • Bethany Beach charges a registration fee of $200 (annual).
Taxes3 rules
  • Bethany Beach charges a Accommodations Tax of 7%. This applies to stays under 30 days. Hosts are responsible for collecting and remitting this tax. Note: Hosts are personally responsible for filing quarterly accommodations tax returns even if platforms collect state-level taxes.
  • Bethany Beach: You must file a tax return every quarter even if you had zero rental income for that period.
Limits & restrictions4 rules
  • Bethany Beach limits stays to a maximum of 30 nights.
  • Bethany Beach, DE occupancy calculation: Occupancy is generally limited by the number of bedrooms and sewer capacity (Delaware State Code standards).. Count your bedrooms to determine your max guest limit.
Safety requirements1 rule
  • Bethany Beach requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Self-inspection safety checklist required with license application.
Penalties4 rules
  • Bethany Beach: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
  • Bethany Beach, DE: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
  • Bethany Beach: Failure to renew your license by April 1st results in automatic late fees and potential fines.
Exemptions3 rules
  • Bethany Beach, DE: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
  • Bethany Beach exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

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