Short-term rentals (STRs), locally referred to as "vacation rentals," are legal in the Town of Bethany Beach, Delaware, but they are subject to regulations requiring hosts to obtain a rental license and comply with specific zoning laws. Property owners must pay an annual licensing fee of $100 and remit a rental tax of 7% on gross rental income. STRs thrive primarily in residential properties, especially beaches homes and condominiums, catering mainly to vacationing tourists exploring the coastal area. The real estate market sees significant activity during the summer months, driven by family vacations and weekend getaways, although there are also opportunities for off-season rentals targeting longer stays. The regulatory oversight is managed by the Town of Bethany Beach’s local government, which ensures compliance with housing standards and local laws. For further details, please visit the official government website: https://www.townofbethanybeach.com/281/Licenses-Rental-Tax.