HB 92 Summary

• Adds definition of "surety bond fee or premium" as the amount a tenant pays to a surety company to enroll in a surety bond program instead of posting a security deposit.

• Allows tenants to purchase an optional surety bond as an alternative to or in combination with a security deposit, subject to landlord acceptance, with combined amounts not exceeding one month's rent.

• Requires sureties to provide written disclosure to tenants that surety bond payments are nonrefundable (except if landlord refuses the bond or lease is not executed), that the bond protects the landlord not the tenant, and that tenants remain liable for damages, unpaid rent, and renovation costs.

• Establishes that surety bonds may reimburse landlords for damages exceeding normal wear and tear, unpaid rent and late charges, and reasonable renovation and rerenting expenses (capped at one month's rent for early termination).

• Requires landlords to provide itemized damage lists within 20 days of lease termination, and mandates surety bonds be issued only by Delaware Department of Insurance-licensed carriers.