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Mortgage déjà vu

Your home is not an ATM, it’s a long-term investment

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The Big Short, gay news, Washington Blade, mortgage loans

The movie ‘The Big Short’ has given us insight into the role of the financial institutions in the housing crash.

Remember back in the early to mid-2000s when interest rates were low, financing was creative and mortgage loans were given out like candy by some unscrupulous lenders?

Properties were appreciating so quickly that homeowners were often encouraged to refinance and use the rising equity in their homes for debt consolidation, home improvements, college tuition and vacations.

Back then, borrowing money was easy. A person could state his income and verify his assets (SIVA loan), state both her income and her assets (SISA loan), or obtain a no income, no asset loan (NINA) just by having a stellar credit rating and paying a higher interest rate.

And remember those adjustable rate mortgages known as “Option ARMs,” where the borrower could choose each month to make a fully amortized payment, an interest-only payment, or an even lower payment based on an initial “teaser” rate? The initial rate was so low that the principal and interest you didn’t pay on a monthly basis would be added to the loan amount and when it came time to pay off the loan, you owed more than you did when you initially got it.

The assumption in the lending community was that rapid appreciation would overtake the additional debt and result in a profit on sale despite your having added to your initial loan amount. Nice work if you can get it and, like a Ponzi scheme, it worked for a while.

A Home Equity Line of Credit (HELOC) was also a popular option. You didn’t need to refinance; just get a new appraisal substantiating a higher value and have an instant line of credit of up to 100 percent of the newly appraised value. Easy peasy.

Then the economy took a downward turn and the money that had flowed so freely dried up.  Many homeowners simply put their heads in the sand, refusing to believe that third notice from the mortgage company containing the dreaded word, “foreclosure.”

Years later, I would tell my clients who had to bring additional funds to closing to be able to sell their homes that they did not lose their equity but simply spent it in advance. One could only hope to rob Peter to pay Paul for so long until Peter demanded payment as well.

But sometimes Peter agreed to accept less than owed and the concept of the short sale re-integrated itself into the housing market. It grew so exponentially that our tax laws were changed to eliminate penalties for debt forgiven by financial institutions.

The movie “The Big Short” has given us insight into the role of the financial institutions in the housing crash, but consumers were not entirely blameless. Some most certainly must share responsibility for their own fate by not seeking to understand their loan documents and by being mesmerized by the shiny object before them – a home they knew they could not really afford.

There are still areas of the country where people have not crawled out of the mortgage abyss so imagine my surprise the other day when I heard a television commercial for a lender that used the tag line: “Your home is your bank.”

To quote Yogi Berra, it was “like déjà vu all over again.”

Let me be clear: When I bought my first house, the interest rate was 11.75 percent. I also remember earlier conversations around the dinner table where my parents discussed rates as high as 18-21 percent, so I’m all for creative mortgage loan programs that make homeownership more affordable.

The problem with the home-as-bank theory, however, is that it presupposes that the borrower a) has equity in the home, b) has the income to handle higher payments, and c) understands any terms, conditions and limitations of the loan product.

With interest rates beginning to rise since the election, the promise of a 2.99 percent rate with “no closing costs” may seem enticing but remember, folks, there’s no such thing as that proverbial free lunch. The interest rate will have conditions and those closing costs are hidden in there somewhere, either in the amount of the loan or incorporated into the interest rate.

So, when deciding on a suitable type of mortgage for your purchase or refinance, remember that your home is not an ATM. Think of it instead as your personal sanctuary and a potential long-term investment in your future. Your financial solvency may depend on it.

Valerie M. Blake can be reached at 202-246-8602 or [email protected]. Each Keller Williams Realty office is independently owned and operated. Equal Housing Opportunity.

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Real Estate

The rise of accidental landlords

How changing market conditions are impacting property management

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In a buyer’s market, many sellers are looking to rent their homes rather than reduce the sales price. (Photo by zimmytws/Bigstock)

Why are there more “accidental landlords” renting out their properties in the Washington, D.C., metro area? 

The answer, according to The New York Times and other sources, is the current state of the real estate market. A growing number of accidental landlords are emerging as homeowners rethink their options in a challenging sales market. Rather than accept lower offers than they feel their properties deserve, many are choosing to rent instead of sell. 

This shift reflects both financial caution and changing market dynamics, where holding onto an asset and generating rental income can seem more appealing than locking in a perceived loss.

A Market in Transition

The D.C. housing market remains fundamentally strong, but it has clearly shifted from the frenzied seller’s market of prior years. Inventory has increased significantly, and according to Redfin, active home listings in the Washington, D.C., metro area have increased significantly, with reports indicating a rise of roughly 33% to 50% year-over-year in late 2025 and early 2026. 

This surge in inventory, coupled with falling demand, has shifted the market in favor of buyers, with roughly 22% more homes for sale than interested buyers. At the same time, homes are taking longer to sell. Buyers are still active, but they’re more selective, more price-sensitive, and less likely to engage in bidding wars.

This combination of rising inventory and longer selling timelines has created a key tension: sellers are no longer guaranteed the price they want. What’s a homeowner to do? Rent.

Why Homeowners Are Choosing to Rent

Rather than reduce their asking price, many homeowners are choosing to hold onto their properties and rent them out. National data confirms this shift. According to a report from Zillow, the share of rental listings made up of homes that failed to sell has climbed to near-record levels, with these accidental landlords accounting for a growing portion of rental supply. The number of these homeowners nationwide is at a three-year high.

The underlying psychology is simple: most sellers are not under immediate pressure to sell. And instead of accepting what they perceive as a discounted price, they opt to generate rental income and wait for more favorable market conditions.

For many homeowners, renting offers a way to “pause” the sales process without exiting the market entirely.

The Ripple Effect on the Rental Market

This influx of accidental landlords is reshaping the rental landscape. And this could be you!

  1. This trend is increasing rental supply. When unsold homes are converted into rentals, they add inventory to a market that has already seen new apartment deliveries and multifamily expansion. This is one reason rent growth has cooled in recent months, with national increases slowing to modest levels. 
  1. Additionally, it is changing the type of available rental housing. Accidental landlords are more likely to offer single-family homes, townhouses, or condos; properties that differ from traditional apartment stock. Zillow notes that single-family homes make up the largest share of these rentals now.

For renters in D.C., this means more choices, particularly in neighborhoods where rental inventory was previously limited.

Operational Challenges for Accidental Landlords

While renting may seem like a straightforward fallback strategy, many accidental landlords quickly discover that property management is a complex, operationally intensive business. Some of the most common challenges include:

  • Tenant screening and leasing compliance. D.C. has robust tenant protections and rent control regulations, particularly for older multifamily buildings. One wrong step can create legal complications home owners are not prepared for.
  • Maintenance and repairs. Deferred maintenance can quickly erode profitability and tenant satisfaction. And tenants do have the power to cut into your monthly profit when certain livability standards are not met.
  • Cash flow management. Not all rental income covers mortgage payments, especially for owners with higher interest rates. 
  • Regulatory compliance. Licensing, inspections, and rent stabilization rules can create administrative burdens.

In short, many homeowners underestimate the complexity involved in the transition from owner-occupant to landlord. What begins as a temporary strategy can evolve into a long-term operational commitment.

Property Management Firms Are Stepping In

As a result, property management companies across the D.C. metro area are seeing increased demand, particularly from first-time landlords. These owners often lack the infrastructure, systems, and expertise required to manage a rental property effectively. Professional management firms provide an array of solutions including marketing and leasing services, tenant screening and placement, rent collection and financial reporting, maintenance coordination, and compliance with D.C.’s evolving regulatory environment. For accidental landlords, outsourcing these functions can turn a reactive decision into a more structured investment strategy.

Green Renting: A Strategic Advantage in D.C.’s Rental Market

One often overlooked opportunity for accidental landlords—especially in Washington, D.C.—is the growing demand for “green renting.”

Energy efficiency is no longer just a lifestyle preference. For many renters, particularly in a high-cost city like D.C., it is a financial decision. Utility costs in the District can be significant, especially during peak summer and winter months. Properties that offer lower monthly energy expenses immediately stand out in a competitive rental market.

Installing solar panels, where feasible, can meaningfully reduce or even offset tenant electricity costs. For renters comparing similar properties, the difference between a standard utility bill and a reduced or stabilized energy cost can be a deciding factor. This is particularly true in D.C., where tenants are often highly-informed, environmentally-conscious, and sensitive to total monthly living expenses, not just base rent.

For landlords, the benefits extend beyond tenant appeal. Solar installations can help reduce vacancy, support longer lease terms, and create a premium perception that differentiates a property from competing listings. In some cases, landlords may also benefit from local incentives, tax credits, or increased property value tied to energy improvements.

In a market where many accidental landlords are competing on similar housing stock—single-family homes, condos, and townhouses—energy efficiency can become a key differentiator. It is not just about sustainability; it is about positioning a property to perform better financially.

A Local Market With Unique Dynamics

Washington, D.C., is a housing market shaped by federal employment, policy changes, and macroeconomic uncertainty. Recent developments, including fluctuations in the federal workforce and return-to-office mandates, have influenced both housing supply and demand. In some cases, these shifts have contributed to increased listings and more cautious buyer behavior. At the same time, D.C.’s high cost of entry continues to support rental demand. This dual dynamic creates ideal conditions for the rise of accidental landlords. Are you ready for this seismic shift? 


Scott Bloom is owner and Senior Property Manager of Columbia Property Management.

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Real Estate

How to navigate shifting tenant expectations

Remote work driving many changes

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D.C., is one of the top 10 U.S. cities where remote work is most popular. (Photo by dolgachov/Bigstock)

Are you prepared to meet the changing expectations of tenants? Tenant priorities are continuously shifting. As professional property managers, my team has witnessed firsthand the evolving demands of tenants over the last few years. 

Frankly, today’s D.C. residents have high standards. Many have shifted to remote work, and they are placing a growing emphasis on sustainability. And these expectations are poised to evolve even further, with factors like affordability, technology integration, and community-driven amenities taking center stage.

Understanding these changes and adapting your rental to meet the growing demands of tenants and their evolving preferences will not only help you attract high-quality residents but also settle into long-term success in a competitive market. Let’s look at key tenant trends for 2026  in Washington, D.C. by providing practical strategies that help owners and investors navigate this shifting landscape, ensuring your property remains desirable and profitable in an increasingly growing rental market. 

According to Buildium’s 2025 Industry Report, tenant retention is rising, and that’s due to a number of factors. It’s expensive to move, so if residents are enjoying a peaceful and pleasant rental experience and they appreciate where they live, it’s unlikely they will spend more money to live somewhere else. 

The “2026 State of the Property Management Industry Report” also noted the rise of “Resident Benefit Packages,” which has contributed to retaining good residents. When landlords and property managers offer benefits such as protection against late payment fees, online conveniences, credit monitoring, air filter drop shipments, preventative maintenance services, and even concierge amenities, they increase tenant satisfaction and retention.

By investing in resident benefits, you can increase the likelihood of keeping your tenants satisfied. They’re more likely to renew their lease agreements and contribute to the care and upkeep of their home.

Provide smart home tech  

According to data gathered by Nasdaq, Washington, D.C., is one of the top 10 U.S. cities where remote work is most popular, with more than one-third of the population working from home at least part of the time. Even with the federal government calling many people back into the office over the last year, remote work continues to be normalized. Tenants are working and studying from home, and they need their home to support that lifestyle shift.

They’re looking for technology, and that factor provides you the opportunity for you to attract remote workers as residents. While smart home technology was once a fairly niche amenity, it’s now becoming the standard. It’s an expectation of most tenants in Washington, D.C., that at the very least they’ll be able to:

  • Connect to fast Wi-Fi at their home
  • Enjoy online rental payment platforms that are secure and convenient.
  • Make routine maintenance requests through resident portals

It was also recommended considering installing keyless entry systems, offering upgraded security such as video doorbells, investing in smart thermostats, and making it as easy as possible for tenants to integrate their own digital platforms and apps into their home life, whether that’s Alexa or Siri or their own personal AI-driven digital assistant. 

Community-Driven Amenities in Washington, D.C., Rentals

Are you renting out units in a multi-family building or an apartment? Washington, D.C., tenants are focused on community and social connection, and so the demand for community-driven amenities is on the rise. 

In 2026, renters are looking beyond traditional features like gyms or pools, seeking spaces that allow for interaction, well-being, and a sense of belonging. Co-working spaces, communal kitchens, and rooftop gardens are now more popular in buildings that are working to attract tenants who prioritize shared experiences. A recent report from Ronco Construction reports that these are the emerging trends in multi-family housing amenities:

  • Rooftop decks
  • Outdoor lounges
  • Community gardens
  • Fitness studios
  • Dog parks and pet spas
  • Co-working space

Know your tenant pool

If you rent out single-family homes, you’re dealing with tenants who prefer privacy and space. In those multi-family buildings and condo communities, however, tenants are likely looking for opportunities to connect with their neighbors and make friends. We have seen tenants drawn to properties that offer event programming, such as fitness classes, happy hours, or cultural gatherings, helping create a sense of community in a neighborhood atmosphere. 

As an owner, investing in these types of amenities can increase tenant satisfaction, encourage long-term leases, and set your property apart in a competitive market where residents crave more than just a place to live, but also a place to connect.

‘Green Renting’ in D.C. 

Tenants want to save money on energy and utilities. Most of them would also rather do whatever they can to be more conscious of their effect on the planet. The city of Washington, D.C., actively encourages this. According to Building Innovation Hub, Washington, D.C., wants to cut greenhouse gas emissions in half by 2032. More efficient building standards and energy incentives are making that possible. 

Rental property owners can meet tenant expectations around sustainable living and environmental-friendly features by providing LED lighting, energy-efficient appliances, low-flow plumbing fixtures, and modern programs for managing waste and recycling. 

Every tenant in Washington, D.C., is different of course, but there are common expectations that come with residents when they’re looking for a new home. Those highlighted here are even more important to tenants in 2026. 

Find out how to make your Washington, D.C., rental property more competitive on the market. Engage a professional property manager for the advice you need.


Scott Bloom is owner and senior property manager of Columbia Property Management. 

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Real Estate

Surviving spring cleaning

Create a space that feels comfortable, welcoming, and easy to maintain

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It’s that time of year: spring cleaning!

Whether or not you are getting ready to sell your home, spring is finally upon us — you know, the time of year when you can open the windows to a warm breeze and commit to decluttering and thoroughly cleaning your home.

While decluttering, you will be faced with the challenge of what to keep and what to discard. Mysterious items may appear: the missing charger, the set of keys that open nothing, or, with any luck, that one important document you know you put “in a safe place.” The journey often turns into an archaeological dig through the layers of your daily life. Along the way, you will likely encounter objects that have been misplaced or are no longer needed, and you’ll wonder why you kept them in the first place.

The kitchen junk drawer, for example, is a universal catch-all that defies categorization. You might open it looking for a rubber band and instead discover a lone screw of unknown origin, a tube of hardened Super Glue, and at least four pens that no longer work.

Closets offer another layer of surprises, where you can find things that don’t seem to belong at all: cash in a coat pocket, a single glove, a book you meant to read, or a box filled with cables for devices you no longer own.

It’s guaranteed that if you only have one of a pair of something, its mate will appear shortly after you have thrown away the one you had. And, if you were intentionally searching for an item, it will turn up in the last place you look, simply because once you found it, you stopped looking.

Linen closets and bathroom cabinets can also harbor oddities. Now is the time to discard half-used or duplicate products you don’t remember buying, travel-sized toiletries from trips long past, or expired medications.

Under furniture is where things get truly mysterious. Reaching beneath a couch or bed in search of a dropped item often yields a collection of the unexpected: assorted coins, dust-covered pet toys, a missing sock, and perhaps something that makes you pause, like a long-lost piece of jewelry or an object you were convinced had disappeared forever.

Organizing garages and basements takes the experience to another level, where consolidating tools or seasonal decorations stored there can quickly turn into an encounter with objects that defy explanation. Why is there a box of tiles from a renovation that happened a decade ago? Do you really need the instruction manuals for appliances you no longer own? What could possibly be in the box that hasn’t been opened since you moved in?

Even searches within a home office – looking through files, drawers of old electronics, or stacks of paperwork—can yield similarly strange results. I recently found several flash drives with client files from 2014, a cache of notebooks containing names and phone numbers of prospects who left the area 15 years ago, and Turbo Tax installation CDs from as far back as 1997. 

If decluttering hasn’t defeated you, then thoroughly cleaning your house may not be as overwhelming as you might think. Breaking it into manageable steps makes the process far simpler and even satisfying. A consistent method is the key to success.

Before you reach for cleaning supplies, take one last walk through each room and gather items that belong elsewhere for return to their proper place. Put away clothing and take out trash. This step instantly makes your home look better and clears the way for more effective cleaning. Working from top to bottom, dust ceiling fans, light fixtures, shelves, and blinds first so that any debris falls to the floor for addressing later. Use a microfiber cloth or handheld Swiffer to trap dust rather than spreading it around. Don’t forget overlooked areas like the tops of door frames, windowsills, and baseboards.

Move on to surfaces. Wipe down countertops and furniture with appropriate cleaners. Squeegee windows to let the sun shine in. Pay special attention to kitchen appliances. Stovetops, microwaves, and refrigerator handles tend to collect grime quickly, as do the tops of upper cabinets. In bathrooms, disinfect sinks, toilets, tubs, and showers. 

Lastly, vacuum carpets, rugs, draperies, and upholstered surfaces thoroughly, including along edges and under furniture where dust accumulates. For hard floors, sweep first, then mop using a cleaner suitable for the surface type. This final step pulls the whole cleaning effort together and leaves your home feeling and smelling fresh.

Ultimately, cleaning your house doesn’t have to be a daunting chore. With a clear plan and a little consistency, you can create a space that feels comfortable, welcoming, and easy to maintain – at least until this time next year.


Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her at [email protected] or follow her on Facebook at TheRealst8ofAffairs.

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