Real Estate
Thinking of renting your place short-term in D.C.?
Here are some key factors to consider
Summer is coming, and in D.C., many homeowners turn their attention to generating revenue from their primary D.C. residence while they are away for the summer. Due to the way some D.C. employers enable staff to work remotely and permit longer vacation schedules in the summer months, many owners can find extra income annually by considering short-term rentals. Here are a few key things you should know before getting started.
In 2021 the D.C. Department of Consumer and Regulatory Affairs announced it was “finally ready to start implementing and enforcing ” a law passed three years earlier for short-term rentals (AirBnB, VRBO, etc.). According to DCist, the agency started accepting license applications for short-term rentals on Jan. 10 last year and started enforcing the law’s provisions in April 2022.
According to Martin Austermuhle’s “D.C. to Start Restricting Airbnb and Other Short-Term Rentals” he wrote for DCist, “The law applies specifically to short-term rentals, those lasting less than 30 days at a time. Under the new law, any D.C. homeowner who wants to rent out a bedroom, basement, or entire home on Airbnb or any other platform has to get a short-term rental license from DCRA. (The two-year license costs $104.50.)”
Charlotte Perry, owner of LUXbnb, a property manager specializing in furnished short-term rentals in D.C. for more than 15 years, is a trusted partner to Columbia Property Management. She shared her expertise and guidance with me on short-term rentals. Her business, LUXbnb, punches above its weight in the D.C. area, bringing owners greater opportunity to realize the gains they hope to make. She brings deep insight into what you can expect if you were to go down this path with your property.
Companies like hers function like any other property manager might. LUXbnb collects the rents, “hotel” taxes, security deposits, departure cleaning, and any other applicable feeds on behalf of the owner. They manage turnover between guests including cleaning and any needed repairs. And at the end of each month, they release the rental income earned less the management fee and any repair costs or new purchases.
In the District, if the owner resides at the house during the rental, s/he can host short-term renters all year long with no consequence. However, if, like many of Charlotte’s clients, the owner is renting their property while they are gone during the summer or while on assignment for, say, the World Bank, those owners can only do so for a total of 90 days for the entire year. Owners like these will want to consider that under the new law, you cannot rent out your second home as an Airbnb/VRBO short term rental, and so knowing the regulations can save you a lot of headaches.
Registration Requirements
Did you know all short-term rental hosts in D.C. are required to obtain a Short-term Rental License?
According to the Office of Short-term Rental Licensing, “In order to operate a short-term or vacation rental in the District, the property must be owned by an individual, and serve as a homeowner’s primary residence – with the owner being eligible to receive the Homestead Tax Deduction. ”
To be eligible for such a license the home must be your primary residence and owner-occupied. You will need to provide DC’s Office of Short-term Rental Licensing (DLCP) the following:
Specify whether you currently have a Homestead Exemption on the property.
Proof of your liability insurance with a minimum of $250,000 in coverage. (See below for more details).
A Certificate of Clean Hands issued within the last 30 days in the property owners name must be obtained from the Office of Tax and Revenue.
The owner, or “host,” must attest to the habitability of the property.
If the rental is a co-op, condo, or if the property is in a community where there is a homeowners’ association, the owner must attest that the bylaws, house rules, or other governing documents of the homeowner/condo/ cooperative governing board or association allow short-term and/or vacation rentals, do not prohibit owners from operating short-term rentals and/or vacation rentals, or that they have received written permission from the association to operate a short-term and/or vacation rental at the address.
Once you have successfully registered with DLCP, you will be provided with a license. You will then upload this Short-term Rental License number into your property profile in both Airbnb and VRBO. Those sites will then provide bookings for “under-31-nights” on your property.
By working with an experienced rental property manager specializing in furnished temporary stays, you can ensure that you’re operating your short-term rental legally and safely. Better yet, you can avoid any penalties or fines that could result from non-compliance with District regulations.
Some factors you might want to consider on your journey to short-term rental success:
Cleaning Fee and Preparation Service
Perhaps you’ll want to have a cleaning service at-the-ready in case your renters have a slight disaster while they’re there. Or maybe you’ll want a service to clean prior to arrivals and directly after departures, so you can quickly turnaround the property for further rental.
Pets
Do you want pets in your home while you’re away? If so, you might want to add in an automatic post-stay pet cleaning fee to cover the expense of hair and other less pleasant odor removal.
Insurance/Accidental Damage
Charlotte’s company takes out a $3,000 accidental damage insurance policy on every stay in lieu of holding a damage deposit. The cost to the guest is $39 per rental. This insurance is a safe-guard for the guest, property owner and her company, of course. This insurance policy “allows for the equitable transfer of the risk of a loss, from one entity to another – in this case the insurance company. It is a simple way for all parties involved to mitigate risk, and most importantly, provides peace-of-mind.”
Liability Insurance
As you saw above, the District requires all owners to possess a liability insurance policy with a minimum of $250,000 in coverage to gain a license in the District. A variety of companies can help, according to the Motley Fool’s “The Ascent” newsletter, but some do this faster and better than others. And they even recommend ones that are best for Airbnb and VRBO rental owners. The Ascent’s best homeowners insurance for short-term rentals include the following:
Allstate Insurance: Best for possessing a large network of agents
Proper Insurance: Best for Airbnb and VRBO owners
Nationwide Insurance : Best for bundling policies
Farmers Insurance : Best for vacation rentals
Steadily Insurance: Best for getting coverage quickly
Safely Insurance: Best for fast claims processing
Should you have further questions or seek to explore the option of short or mid-term rentals, do not hesitate to contact Charlotte Perry directly at 202-341-8799 or [email protected].
Scott Bloom is senior property manager and owner of Columbia Property Management.
For more information and resources, visit ColumbiaPM.com.
Real Estate
Tips for buying a house in Rehoboth Beach
And why it’s a great fit for the LGBTQ community
If you’ve ever dreamed of owning a charming beach house where flip-flops are considered formalwear and sunsets are your daily entertainment, Rehoboth Beach, Del., might just be your dream come true. It’s not just a beautiful coastal town—it’s also a long celebrated safe haven and vibrant hub for the LGBTQ community. Let’s dive into why Rehoboth Beach is a fabulous choice and how to make a savvy beach house purchase.
Why Rehoboth Is a Vibe (especially for the LGBTQ community)
1. A Welcoming, Inclusive Community
Rehoboth Beach has been lovingly nicknamed the “Nation’s Summer Capital,” and it’s not just because of its proximity to D.C. For decades, Rehoboth has built a reputation as a warm, inclusive, and LGBTQ-friendly destination. From gay-owned businesses to LGBTQ events and nightlife, this is a town where you can truly be yourself.
2. Packed Social Calendar
Poodle Beach, the LGBTQ beach hangout just south of the boardwalk, is always buzzing in the summer. Events like Rehoboth Beach Bear Weekend, Women’s FEST, and CAMP Rehoboth’s myriad of social and wellness events bring people together all year round. That’s right—you’ll never be bored here unless you want to be.
3. Small Town Charm Meets Big City Culture
You get art galleries, drag brunches, live theater, eclectic cuisine, and adorable boutiques—basically everything your soul craves—without the chaos and crowds of major cities. It’s quaint but never boring. Think: Key West vibes with a Delaware zip code.
Tips for Buying Your Dream Beach House
1. Know Your Budget and Think Long Term. Beachfront and near-beach properties come at a premium. Expect to pay a bit more for proximity to the sand and ocean views.
2. Choose Your Neighborhood Wisely. Do you want to be walking distance from the action on the boardwalk? Or do you prefer something more secluded in areas like North Shores or Henlopen Acres?
3. Rental Potential. If you’re not living there full time, your beach house could work overtime as a vacation rental. Rehoboth Beach has a healthy short-term rental market, especially in peak summer. Often times LGBTQ travelers actively seek inclusive, affirming places to stay.
4. Weather the Weather. Like all coastal areas, Rehoboth comes with a side of salt air and occasional storms. Invest in a good home inspection, especially for older homes, and be prepared for the maintenance that comes with beachfront living (yes, that includes sand everywhere).
5. Work With a Local Real Estate Agent. Look for an agent who knows Rehoboth inside and out and understands the unique needs of LGBTQ buyers. This isn’t just a house — it’s your happy place. You want someone who sees that and says, “Let’s find your sanctuary.”
Buying a beach house in Rehoboth Beach isn’t just about real estate — it’s about finding a space that reflects your lifestyle, values, and need for both community and calm. Whether it becomes your full-time home, your weekend escape, or your Airbnb side hustle, Rehoboth welcomes you with open arms (and maybe a mimosa).
Want personalized tips on navigating the Rehoboth Beach real estate market? Let’s chat! I’ll bring the listings if you bring the sunscreen.
Justin Noble is a Realtor with The Burns & Noble Group with Sotheby’s International Realty, licensed in D.C., Maryland, and Delaware. Reach him at [email protected] or 202-234-3344.
Real Estate
Impact of federal gov’t RIF on D.C.’s rental market
A seismic economic change for local property owners
In a move that could redefine the federal government workforce and reshape the economic fabric of Washington, D.C., President Donald Trump has announced his intentions to significantly reduce federal government spending as well as the number of people the federal government employs.
Calling the federal bureaucracy “bloated” and “out of control,” Trump has repeatedly expressed his desire to cut thousands of federal jobs. While these cuts align with his long-standing push to “drain the swamp,” they come with potential and real collateral damage, especially for landlords in the D.C. area who have relied on government employees as some of their most reliable and long-term tenants.
The potential reduction of thousands of jobs in a city built around government work is not just a political shift—it’s a seismic economic change for the city government as well as for local property owners who have invested in the predictability of a near-constant demand for workers in the federal government agencies, government contractors and the economic ecosystem they sustain.
For landlords, government workers have represented ideal tenants: strong income, long-term leases, and responsible rental histories. Now, that foundation is being shaken in a battle by the Administration against a workforce which is the backbone of the Washington area’s overall economy, and especially its rental market.
With uncertainty looming, landlords are left in a difficult position. If widespread layoffs come to fruition, rental vacancies could spike, rental prices would drop, and previously secure investment properties might become financial liabilities. The sudden shift forces landlords to consider their next moves: how to support tenants facing job losses, how to adapt to a changing market, and how to ensure their own financial stability amid the uncertainty.
For D.C. landlords, this isn’t just about policy shifts or budget cuts, it’s about economic livelihood. The challenge ahead isn’t about just reacting to change, but proactively preparing for it, ensuring they can weather the storm of political maneuvering.
Potential Consequences for D.C. Landlords
- 1. Increased Risk of Non-Payment of Rent
- Job losses may lead to late or missed rent payments
- As affected tenants struggle financially, they may ask to break their lease to live elsewhere or even move out of the region
- Eviction lawsuits may rise, leading to a long and expensive process for landlords, all while not being able to rent their property to paying tenants.
- 2. Higher Vacancy Rates
- If many government employees leave the D.C. region in search of work elsewhere, the rental demand could decline significantly
- Rental properties may sit empty longer, requiring landlords to lower rents to attract new tenants and creating even more financial loss
3. More Competition from Other Landlords
- As many more units are vacant on the market, all competing for the same pool of potential tenants, older and smaller rentals, and those located further out from the core of the city will all struggle to find quality renters.
- Landlords will need to offer other ways to attract and retain tenants, such as incentives, which could quickly overwhelm the finances of smaller landlords who cannot keep up.
Proactive Strategies for Landlords
To mitigate risks and ensure future rental success, landlords should consider these defensive measures:
1. Strengthen Tenant Relationships and Communication
- Encourage tenants to communicate if they anticipate financial hardship due to job loss.
- Work out temporary payment plans or partial payments to prevent full non-payment or eviction.
- Provide guidance on rental assistance programs available in D.C.
2. Offer Flexible Lease Terms
- Consider shorter-term leases than a full 12-month term to accommodate the needs of tenants who may be uncertain about their long-term employment status.
- Offer lease renewals at the same rent amount to keep stable tenants and avoid turnover
3. Diversify Tenant Base
- If a large portion of tenants are government workers, a landlord may want to market to a broader audience or professionals in private industries.
- Advertise on platforms that cater to diverse tenant pools, including students and international workers.
4. Adjust Screening Criteria Thoughtfully
- While it’s important to ensure financial stability, consider creditworthiness, assets, and rental history rather than just employment status.
- Consider alternative income sources, like family members assisting, part-time work or freelance gigs.
5. Protect Cash Flow with Rent Guarantee Options
- Explore rental insurance policies or rent guarantee services to cover losses in case of non-payment.
- Consider co-signers or guarantors on leases for new tenants in vulnerable industries, just in case.
6. Adjust Rental Pricing to Stay Competitive
- Monitor the D.C. rental market and adjust pricing accordingly to attract new tenants.
- Consider offering move-in incentives as a way to stand out. Be creative! Sometimes things you can offer are different and may catch someone’s eye
Long-Term Planning for Rental Success
- Build reserves to cover expenses during potential vacancies or rent shortfalls.
- Invest in property upgrades to make rentals more attractive to a broader audience, such as young professionals or remote workers.
- Consider diversifying property holdings to include areas that are less reliant on government employment.
By taking proactive steps, landlords can safeguard their investments while supporting tenants through economic uncertainty, ultimately leading to a more stable and resilient rental business.
Scott Bloom is owner and senior property manager at Columbia Property Management. For more information, visit ColumbiaPM.com.
As the spring market hits its stride, we are beginning to see more inventory and an increase in days on the market in parts of the DMV. This may result in professional home inspections becoming routine parts of contract offers again. A thorough home inspection can help catch safety issues early and is an opportunity to learn about the operation and maintenance of items in your home.
Pay attention to flickering lights, frequently tripped breakers, and discolored outlets—these are signs of potential electrical hazards. Outdated wiring, overloaded outlets, and faulty appliances can lead to electrical fires.
Structural issues are often overlooked until it’s too late. Crumbling foundations, weak or damaged stairs, loose railings, and uneven flooring can cause trips and falls. Water damage from leaks or flooding can weaken the integrity of floors and walls, creating a risk of collapse.
Toxic chemicals can pose serious threats to health and safety, often without obvious warning signs. Understanding and addressing these risks is crucial for maintaining a safe living environment for you and your loved ones.
Household products such as cleaners, pesticides, air fresheners, and even cosmetics can emit volatile organic compounds (VOCs). These compounds, when inhaled regularly, can cause a range of health issues including headaches, respiratory problems, hormonal disruptions, and in some cases, even cancer. To minimize these risks, homeowners should opt for low-VOC or VOC-free products, ventilate regularly, and consider investing in an air purifier.
Formaldehyde is another common toxin found in pressed wood products, insulation, and certain paints. Long-term exposure can lead to chronic respiratory problems and has been linked to cancer.
Radon gas, another possible carcinogen, is prevalent in the DMV. Your home inspector can do a radon test or there are DIY kits available at many hardware stores. If levels are above EPA standards, a professional remediation firm can install a system that extracts the radon and vents it safely outdoors.
Carbon monoxide (CO), a colorless, odorless gas, is produced by gas stoves, heaters, and fireplaces. Exposure can lead to headaches, dizziness, nausea, and even death. Install CO detectors near bedrooms and ensure that all fuel-burning appliances are properly maintained and ventilated.
Additionally, older homes may still contain asbestos in insulation, floor tiles, or roofing materials. If disturbed, asbestos fibers can become airborne and are highly dangerous when inhaled, leading to serious diseases such as mesothelioma, so when renovating an older home, it’s critical to have materials tested for asbestos before beginning work.
Mold and mildew thrive in damp, poorly ventilated areas such as bathrooms, basements, and around leaky pipes. While some molds are harmless, others can cause allergic reactions or respiratory problems and aggravate conditions such as asthma. Black mold (Stachybotrys chartarum) is notorious for producing mycotoxins that may lead to severe health issues.
Signs of mold include musty odors, visible growth on walls or ceilings, and excessive humidity. Preventing mold growth requires controlling moisture levels—using dehumidifiers and vapor barriers, fixing leaks promptly, and ensuring adequate ventilation. Professional mold remediation may be necessary for severe infestations.
Though banned in residential paints in 1978, lead-based paint still exists in millions of older homes. Lead exposure is especially dangerous for children, causing developmental delays, learning difficulties, and behavioral issues. Adults are not immune – lead can lead to high blood pressure, kidney damage, and reproductive problems.
Even dust from deteriorating lead-based paint can be hazardous. The EPA recommends professional lead testing for any home built before 1978, especially if renovations are planned. Certified abatement professionals can safely remove or encapsulate lead paint.
Improper use of heating equipment, fireplaces, unattended candles, and cooking accidents are common sources of home fires. Smoke alarms and fire extinguishers are essential for early detection and response. Test smoke detectors monthly and change batteries at least once a year.
Homes that are safe for adults may not be safe for children or pets. Small objects, unsecured cabinets, toxic plants, and open staircases can pose significant risks. Childproofing measures such as outlet covers, safety gates, and cabinet locks, along with safe storage of chemicals and medications, are essential precautions.
The good news is that many of these risks can be mitigated with awareness and action. Here are a few simple steps to enhance home safety:
• Conduct a thorough safety audit using checklists available online.
• Ensure proper ventilation to reduce indoor air pollutants.
• Regularly check for leaks and signs of water damage.
• Keep cleaning and chemical products out of reach of children.
• Educate all household members about emergency procedures, including fire escapes and first aid.
Our homes should protect us, not pose threats to our well-being. By identifying and addressing these toxic and unsafe issues, we can transform our living spaces into truly safe havens.
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 via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.
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