The short-term rental landscape in Washington, D.C., has undergone significant transformation in recent years, driven by the dual market shocks of a pandemic and changing regulations. In addition, consumer preferences have been evolving. 

At the forefront of this shift is Charlotte Perry, owner of LUXbnb, who has been in this business for 14 years. Her experience and adaptability have helped her not only to survive, but also to thrive in the furnished rental market. I sat down with Charlotte to discuss her insights on mid-term rentals, the impact of recent regulations, and her strategies for success.

Scott: Charlotte, thank you for joining me in this discussion. You’ve been in the short-term rental business for over a decade. How have you seen the landscape change in recent years, particularly with the implementation of new regulations?

Charlotte Perry:  Yes, the market has definitely evolved, especially with the pandemic and restrictions on short-term rentals. I used to have greater than 80% of my revenue coming from Airbnb and VRBO, but in recent years, both platforms now account for roughly 25% of my rental revenue.

The shift has been dramatic, especially with the rise of mid-term rentals.

Scott: How did the pandemic impact your business?

Charlotte: The pandemic was tough, I lost 35% of my managed portfolio. All were one-bedroom units in multi-unit buildings. Travel came to a halt, and the few people moving around at that time were not willing to share common areas like lobbies and stairways. But the return of U.S. Foreign Service personnel from our embassies to Washington helped stabilize occupancy. The pandemic also forced me to reevaluate all aspects of the business and become lean and efficient. Despite losing those accounts, my revenue declined marginally in 2020 and then in 2021 and 2022 actually surpassed pre-pandemic results. 

Scott: That’s quite a recovery. The short-term rental regulations that went into effect in 2022 must have added another layer of complexity. How have you navigated those changes? 

Charlotte: The regulations that were passed in October 2018 and enforced in January 2022 were a significant market shock. The new rules require short-term rental properties to be licensed and only owner-occupied primary residences qualify. This reduced my short-term rental inventory by 75%. More critically, it also reduced the total available short-term rental inventory in D.C. across VRBO and Airbnb, the two main booking platforms. I focused right away on growing my mid-term and long-term rentals in response. The rapid shift in how people travel, along with remote work trends fueled by the pandemic, helped me in ramping up quickly.

Scott: Speaking of mid-term rentals, how do you define that market, and why do you think it’s growing?

Charlotte: Mid-term rentals are stays between one and 12 months, and they’ve grown in popularity due to the flexibility that remote work offers. People can now work from anywhere, and many are choosing to spend a few months in different cities to try out new lifestyles. This demand has been further fueled by a parallel trend in vacations. I see retirees coming to D.C. for a month rather than a week.  

Demand for multi-month rentals also comes from the fact that we are the nation’s capital so we have many different renters cycling through: federal government personnel, politicians, students on government internships, government contractors, our foreign service and military. In addition to our federal government, D.C. has a strong network of museums, medical centers, universities, NGOs, and international organizations, all of which bring in staff for several months at a time.

Scott: It sounds like adapting to this trend has been key to your success. What have you done to meet the needs of mid-term renters?

Charlotte: My main shifts have been focusing on the needs of longer stays, i.e, a separate workspace, a more complete kitchen set-up, clothing storage, improving appeal, and listening and responding to changing customer needs. Location will always be important, however the set-up and appeal of the property are equally important. I want my guests to feel comfortable and at home the moment they arrive.

Scott: How do you approach pricing, given the changes in demand and market conditions?

Charlotte: I use sophisticated software to analyze market demand and adjust the rental rates. After 14 years in business, I know the cyclical demands for rentals in  D.C.. I raise prices for last-minute bookings or high-demand periods like holidays and events. At other times, I may start with lower prices to build up occupancy, then gradually increase the rates as the property gains more visibility. It’s about being flexible and responding to the market.

Scott: What about the new regulations—how have they impacted your business?

Charlotte: The new regulations did significantly impact my inventory, as I mentioned earlier. But the mid-term rental demand has been strong. In fact, business has been growing steadily since 2020. People warned me that my business would collapse, but it’s been quite the opposite. I’ve adapted, and LUXbnb is thriving.

Scott: What other opportunities have you found in the current market?

Charlotte: I work with Realtors, because a temporary turn-key rental is often needed in the buying and selling process. When relocating to D.C. buyers appreciate a soft landing in a turn-key rental. It gives them time to explore neighborhoods and schools and look for the perfect home. Likewise, sellers too appreciate the flexibility of a turn-key temporary rental while they decide their next move. Another major opportunity has been the demand from homeowners who are renovating and need to vacate during construction.

Scott: You’ve also diversified your marketing platforms. Can you speak to that for our readers?

Charlotte: Yes, the first thing I did was make changes to my own website to ensure visitors knew LUXbnb handled furnished rentals for any length of stay, from 3 nights to 3 years. Additionally, while Airbnb and VRBO are important, I’ve found success using platforms for mid- and long-term rentals along with niche platforms like Furnished Finders and Sabbatical Homes. Depending on the property and its location, I’ll choose the platforms that best match my and my owners’ goals for the property, and the renters we are looking for. This has allowed me to reach a wider pool of potential renters and not rely on any one platform.

Scott: Compliance with local regulations is critical in this market. How do you manage that aspect?

Charlotte: Compliance is key, and I always make sure my properties are fully licensed with the various licenses that D.C. issues (short-term rental, vacation rental, single-family rental). Sometimes a property needs all three. Additionally, for all rental durations under 91 nights, we collect the 15.95% sales and use tax, and remit that monthly to the Office of Tax and Revenue. It’s an essential part of doing business here, and staying compliant keeps everything running smoothly.

Scott: You’ve also explored opportunities outside of  D.C. How has that experience been?

Charlotte: Yes, we have the infrastructure in place to expand in two directions. The first is Maryland, Virginia, and Delaware vacation homes. I am seeing good consistent demand with our pilot, so we plan to ramp this up. 

Scott: It sounds like you’ve built a resilient and adaptable business. Do you have any final thoughts on the future of the short-term and mid-term rental markets?

Charlotte: The rental landscape is always changing, but we know the mid-term rental market will continue to grow. We are riding the wave of market changes driven by societal shifts in how people work and travel. The demand for flexible, high-quality housing is only increasing. For now, I’m focused on providing the best possible experience for my renters and staying ahead of the market trends.

Scott: Charlotte, thank you so much for sharing your insights. Your expertise and adaptability have clearly positioned LUXbnb as a leader in this space. 

Charlotte: Thank you, Scott, it’s been a pleasure partnering with Columbia Property Management. I’m excited about the opportunities ahead for both of our businesses, furnished rentals at LUXbnb and unfurnished property management through CPM.

As Charlotte’s experience with LUXbnb shows, the mid-term rental market in Washington, D.C., offers incredible opportunities for landlords who can navigate the new regulatory landscape. With the right strategies and partnerships, there’s plenty of room for success in this growing segment.

For more information about short to mid-term rentals, LUXbnb and Charlotte Perry, please visit luxbnb.com.

Scott Bloom is owner and senior property manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.

If you’re thinking about planting roots in the DC Metro, then the winter months are a time when you can get a good deal during a slower time in the market. D.C. isn’t just for politicians and monuments; it’s a city brimming with diverse neighborhoods, chic eateries, and more rainbow flags than you can shake a stiletto at. But before you slip into those house-hunting boots, let’s make sure you’re well equipped for the real estate game in our nation’s capital.

1. Credit Check. Before you even start ogling those gorgeous row houses in Capitol Hill or swooning over condos in Logan Circle, make sure your credit score is ready. Lenders love to see a credit score that’s as high as my hair. If it’s looking a little low, then pay down those cards and keep your balances low.

2. Budget Realness. We all love a little splurge now and then (those D.C. brunches aren’t cheap), but buying a home is no time for financial fantasy. Work out your budget and know what you can afford monthly. Factor in those hidden costs like HOA fees and property taxes. Stay within your budget so you can keep rocking those designer threads without a sweat.

3. Location, Location, Location! D.C. is all about neighborhoods with character. Are you more of a Dupont Circle fan or perhaps Petworth? Maybe you fancy the historic vibes of Georgetown or the up-and-coming cool of Navy Yard. Each neighborhood has its own vibe and price tag, so do your homework and figure out where you fit in. Pro tip: Visit at different times of day to really feel the neighborhood’s pulse.

4. Find a Real Estate Agent. Find yourself a real estate agent who not only knows the market but also gets you — someone who can dish out honest advice and help you avoid any missteps. The right agent will be your guide, confidante, and maybe even your future brunch buddy. Remember, you’re in this together, so choose someone who’s as excited about finding your dream home as you are.

5. Mortgage Pre-Approval – The Golden Ticket. Nothing says “I’m serious” like a pre-approval letter from your lender. It’s the ultimate accessory to your house-hunting outfit, giving sellers that warm, fuzzy feeling that you’re not just window shopping. Plus, it helps you know exactly how much home you can afford, so you’re not falling head over heels for something out of reach.

6. House Hunting: The Fun Part! Time to put on your walking shoes and start touring. Don’t be afraid to ask questions, take notes, and envision yourself hosting fabulous dinner parties in these spaces. But be prepared to act fast. D.C.’s real estate market moves quicker than a “RuPaul’s Drag Race” elimination round, so if you find “the one,” don’t hesitate to make an offer.

7. Inspection, Baby. Once you’ve got an offer accepted, it’s time for the home inspection. Think of it as the all-important makeover montage. You want to uncover any issues before they become your problems. Trust your inspector and get those deets — everything from the roof to the basement needs a thorough once-over.

8. Closing Day – You’ve made it. The grand finale! You’ve done the work, and now it’s time to close the deal. Gather your paperwork, bring your ID, and maybe wear something that screams “I’m a homeowner!” After the signatures and happy tears, the keys are yours. Pop the Champagne and toast to your new fabulous life in D.C.

Final Thought: Love is Love, and Home is Home. Remember, your home should be a place where you feel comfortable, safe, and fabulous. Whether you’re single, partnered, or part of a chosen family, the D.C. Metro offers a vibrant, inclusive community that’s ready to welcome you with open arms. So go out there and claim your slice of this iconic city — you’ve got this.

Justin Noble is a Realtor with Sotheby’s International Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin provides white glove service at every price point. Reach him at 202-503-4243, BurnsandNoble.com or [email protected].

Although I’ve often written contracts and settled home sale transactions on holiday eves, I am winding up my business for 2024 a little bit early – this week, in fact. 

I have planned a well-deserved vacation after the first of the new year, but upon my return, I will be reading articles by real estate pundits, following interest rate fluctuations, keeping my ear to the ground, and anticipating what a change in administration will portend for the DMV real estate market.

So, I leave you with a column in verse, apropos for the season, with apologies to settlement attorneys and closing agents. 

’Twas the night before closing, in an office downtown.

Two agents were stirring and running around:

Linda, the buyers’ rep, bold and astute,

And the sellers’ rep, Robert, in his sharp, tailored suit.

The buyers were giddy, their excitement quite clear,

Would they be in their house by the start of next year?

The sellers, meanwhile, had been packing all day,

Now exhausted and glad to be moving away.

Linda looked down at the phone in her hand,

And questioned how much more of this she could stand.

The pings came like sleighbells; her battery spent.

She wondered aloud where that missing file went.

Robert sat back and surveyed his domain,

Feeling smug that his work had not been in vain. 

Meanwhile, poor Linda was losing her cool,

Dealing with buyers who broke every rule.

“Do NOT buy a couch! Don’t apply for a loan!

“If this deal falls apart, you will be on your own!”

“Don’t open a credit card! Don’t lease a car,”

“Or you’ll have to continue to live where you are.”

At the house, an inspector popped in for a peek,

And pronounced that the HVAC would die in a week.

The buyers erupted: “We need 20 grand!”

And Linda just sighed with her head in her hand.

“Relax,” she said calmly, “We’ll get it repaired,”

As she tried to remember – had this been declared?

She then texted Robert, restating the plea,

And the response that came back: “LOL. Not from me.”

As midnight drew closer, more chaos ensued:

An appraisal adjustment! A snowstorm was due!

The lender went silent, their system was fried,

A typo was found, and the printer had died. 

Then out in the street, there arose such a clatter,

Both agents dashed out to see what was the matter.

A self-driving Tesla crashed into a pole,

But they couldn’t see anyone there to console.

And then, on the sidewalk, a figure appeared,

In a blazer and boots, with his clipboard and beard.

His alpaca haircut, his teeth all aglow, 

It had to be Slick Nick, the settlement pro.

He carried a satchel, with papers galore,

And his eyes had a twinkle as he neared the front door.

His stride was assertive, his voice was imposing.

“I get it. I’m early. I’m here for the closing.”

Nick adjusted his glasses, and gave things a glance,

 “I’ve seen awful deals, but this one? Slim chance.”

“Enough of the drama, the last-minute stalls,

Let’s settle this now—no more late-night calls!”

He summoned the lender in a threatening voice,

“Explain yourself now–there is no other choice;”

The lender, chagrined, muttered “technical glitch,”

And the funds transfer quickly was expertly fixed.

But Nick wasn’t finished; he said with a glare:

“You buyers and sellers – sit down in a chair!”

“Just sign all the papers while I make a call.

“Now wrap it up! Wrap it up! Wrap it up all!”

The signing all happened with relative ease,

Then came pictures and handshakes, and transfer of keys.

The agents high-fived and sat back in their chairs,

Reflecting with pride on the day’s closed affairs.

The buyers were thrilled, their joy had no bounds.

“Can we now post on Insta? Announce to the town?”

The sellers smiled too, with a huge check in hand,

To build a new house on a large plot of land.

Linda just nodded, her patience worn thin,

While wondering which closing was next to begin.

And Robert remarked on the goal they’d achieved,

Grateful the process had gone as conceived.

Then Nicky stood tall, his work finally done,

And he grumbled, “Good grief, this one wasn’t much fun.”

He climbed back in his Tesla, his phone in his grip,

And he turned to the agents with one final quip:

“Let’s hear it for teamwork,” he said with a sneer,

“I’m off to join friends for a shot and a beer.”

Happy Holidays! Wishing you good health, good times, and happy closings in 2025.

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 DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.