Real Estate
How federal layoffs, shutdown threaten D.C.-area landlords
When paychecks disappear, the shock doesn’t stop at the Beltway
When federal paychecks disappear, the shock doesn’t stop at the Beltway. It lands on the doorsteps of the region’s property owners, those who rent out their rowhouses in Petworth, condos in Crystal City, and homes stretching into Montgomery and Prince George’s counties. Landlords depend on steady rent from tenants employed by the very institutions that are now downsized or worse, shuttered.
This fall, Washington’s economic identity is being tested once again. Thousands of federal workers who accepted “deferred resignation” packages will soon lose their income altogether. And with a long government shutdown looming, even those still on the payroll face delayed paychecks. For landlords, that combination of uncertainty and sudden income loss threatens to unsettle a rental market already balancing on the edge.
A Test of Resilience
Rosie Allen-Herring, president of United Way of the National Capital Area, recently told The Washington Post, “This region stands to take a hard hit from those who are no longer employed but can’t find new employment and now find themselves in need. It’s a full-circle moment to be a donor and now find yourself in need, but it is very real for this area.” 1 That reversal captures the broader moment: The D.C. economy built on federal paychecks and charitable giving now faces a stress test of compassion and cash flow alike.
For landlords, adaptability will determine who weathers the storm. Those who are able to keep the rent coming in, retain their tenants or find replacement tenants without the same economic hardships are going to be able to get to the other side with manageable financial disruptions. Those who plan, communicate, and stay financially flexible will keep their properties occupied and their reputations intact.
A Region Built on Federal Pay
Roughly one in ten jobs in the Washington metropolitan area is tied directly to the federal government, according to the Bureau of Labor Statistics. That number climbs sharply when you include contractors, nonprofits, and think tanks dependent on federal funding.
This concentration means that when the federal government sneezes, D.C.’s housing market catches a cold. The Brookings Institution recently reported that since January, the region’s unemployment rate has climbed eight times faster than the national average, and local job growth has flattened. 1 More anecdotal, I’ve spoken with property owners this year who are looking to rent out the property they own in DC because they have to move to another region for work.
As The Post observed, “The region has shed federal jobs at a higher rate, and both the number of homes for sale and the share of residents with low credit scores have grown more quickly here than the rest of the country.” 1
For landlords, that’s a flashing warning light. When a certain category of tenants with solid compensation lose reliable government salaries and face dim re-employment prospects, rent becomes harder to collect and rent levels can decline year on year.
The Human Side of a Policy Shock
The people behind these statistics are often long-tenured civil servants. The Post profiled former State Department employee Brian Naranjo, who said he had “unsuccessfully thrown his résumé at more than 50 positions since resigning in May.” “It’s terrible,” Naranjo told the paper. “You have far more people going for those very specialized jobs than would normally be out there.” 1
Another displaced worker, Jennifer Malenab, a 42-year-old former Department of Homeland Security employee, described canceling daycare and family vacations while she scours job boards. “This is not where you want to be at 42, with a family,” she said. 1
When households like these lose steady pay, not only do they pull back on spending, but if they are renters landlords may see a lag in rent receipts, requests for partial payments, or in some cases, a premature notice to vacate. Some tenants will relocate out of the region altogether — a prospect already visible in rising “for sale” listings and increased moving-truck activity in Northern Virginia and suburban Maryland.
What Happens When the Rent Doesn’t Arrive
When rent payments are disrupted, even temporarily, the financial effects can be immediate. Many small landlords depend on rent to cover their mortgages, property taxes, insurance premiums, and routine maintenance. Even a temporary interruption in income can deplete reserves, delay repairs, and strain their ability to meet loan obligations.
Larger multifamily owners are not immune. If multiple tenants in a building lose income at once, cash flow can fall sharply. During the brief 2019 government shutdown, some D.C. landlords offered short-term payment plans to furloughed workers with the expectation of eventual back pay. However, under current conditions, where many positions are being permanently eliminated and paychecks may not be restored, landlords face much greater uncertainty and cannot assume repayment will be guaranteed.
In the District of Columbia, the Rental Housing Commission has advised landlords to continue operating strictly within established legal procedures and to avoid informal or selective payment arrangements that could be interpreted as discriminatory under the D.C. Human Rights Act. Courts in Virginia and Maryland allow temporary continuances when tenants provide documentation of a federal furlough or income disruption, but it is the court, not the landlord, that determines eligibility for relief.
How Landlords Should Proceed
- Continue filing nonpayment cases through normal legal channels rather than delaying action.
- Allow the courts to apply any continuance or relief provisions if a tenant qualifies due to federal employment status or income interruption.
- Avoid making selective accommodations based on a tenant’s job type or federal employment status, as this may violate equal-treatment and source-of-income protections.
Landlords with a single tenant or a consistent written policy of offering payment plans to all tenants experiencing verified income disruption should not be at risk of discriminatory treatment.
Vacancy, Concessions, and Shifting Demand
Beyond nonpayment of rent, landlords face a challenge from a different direction: weak demand. As fewer jobs are being created and unemployed or under-employed tenants move out of DC, the supply of available rental units will rise, forcing landlords to compete more aggressively on price and amenities.
Market data already point that direction. The volume of rental listings across the District of Columbia jumped roughly 14 percent year-over-year in September, according to the realtor Multiple Listing Service (MLS) trends, as reported by the Washington Business Journal. Landlords are offering free parking, one-month concessions, or flexible leases to retain quality tenants.
Neighborhoods once buffered by federal stability like Silver Spring, Falls Church, and Alexandria may now see higher tenant turnover. As one Arlington property manager put it, “We used to say federal employees were the safest tenants in America. Now we’re rewriting that rule.”
A Shrinking Workforce, a Softer Market
In addition to the layoffs, the region is contending with a broader identity crisis. “Yesim Sayin, executive director of the D.C. Policy Center, put it bluntly: ‘Beyond federal employment, we relied on tourism. But foreign tourists aren’t coming. And we relied a whole lot on universities bringing talent who would then stay here and be part of our talent pool. And that is kind of gone, too. So what are we now? We just don’t know.’” 1
This uncertainty may impact property values and investor sentiment. When employers relocate, renters follow. If enough mid-career professionals leave, demand for rentals will first soften and then we’ll begin to see a lowering of the average rents a landlord can command for their rental. We have already seen this in the current rental market. Rents that seems reasonable a few years ago, are now being discounted by hundreds of dollars. Landlords who are searching for new renters after several years of having tenants are finding that they need to bring rent levels below where they used to be to secure tenants commitments.
Strategies for Landlords: Staying Solvent and Supportive
In times like these, survival depends on both prudence and empathy.
1. Communicate early. Encourage tenants to disclose financial hardship before missing payments. Written payment plans, properly documented, can forestall eviction while preserving goodwill.
2. Review legal protections. Understand D.C., Maryland, and Virginia rules regarding furlough continuances or income-source discrimination. Seek legal counsel before altering lease terms mid-cycle.
3. Build reserves and credit access. Line up a home-equity or business line of credit to bridge shortfalls. Cash on hand always is helpful to have as a buffer for the impact of income disruption.
4. Monitor policy developments. State and local governments are supporting people who are affected by the lay-offs. Landlords can benefit indirectly through their renters who are utilizing these programs to assist them in paying their monthly expenses.
5. Contact your Congressional representatives to demand the reopening of the federal government. And in D.C., you do benefit from representation, even though they cannot vote. They can influence decisions that matter.
Scott Bloom is owner and senior property manager of Columbia Property Management.
One of the biggest headaches of the new home process is the actual moving part. By the time someone is buying a home, most people are beyond the “I just need a pickup truck, a pizza and a case of beer for my friends.”
If that is still someone’s preferred way to move, that’s great. However, many people find they need a much more robust plan. It can also trigger a lot of feelings about items one owns, what to do with them, do they have too much, should I keep this memento that I never use? Etc.
Moving is a chance for a person to “clean house” literally, figuratively, spiritually and energetically. A person can figure out which items they want to keep, and which need to go. As someone who recently moved across the country, I can speak to this experience. It’s also time for what people call “the fresh start effect.” This phenomenon, according to psychologists, can happen in little moments (like the start of a new work week) and bigger moments (such as moving from one home to the next).
The fresh start effect offers these benefits often mentioned by psychologists:
- Mental Accounting: Dates act as chapter breaks, letting you put past failures into a previous period.
- Psychological Distance: You separate your flawed past self from your aspirational future self (“That was the old me”).
- Optimism Boost: New beginnings clear mental clutter and increase your sense of agency and control
Does this mean that “the new you” will be the perfect version you envisioned? Probably not. We are humans. But it might mean you get a chance to “leave some of the old you behind” within the walls you used to live in, and now have a chance to have a new layout, a new décor, a new color pattern, new wallpaper, donate old furniture and books or magazines, throw out clothes you no longer use or fit in, and enjoy the opportunity to literally use the, “Does this spark joy?” method that was made so popular by Marie Kondo in her Netflix series.
So, for all its hassle and headache, moving is a chance to shake off the “old you” and try on the new you, to incorporate the items you would like to keep and use more of, and shed the items, habits, and ways of thinking that you feel no longer serve you.
I can speak to the experiences that several of my clients had when they moved from a previous residence to a newer one. It usually coincided with a change in relationship status, a change in employment, a change in family size, but sometimes it just seemed to correlate to a new attitude and perspective that the client was really hoping for.
I have literally had clients come to me after the fact, in tears, that they were so happy they made the decision to move out of a situation that no longer served them, and move into one that felt like a much better fit.
Change can be annoying and overwhelming at times, but usually most people come out the other side, not wanting to return to the way they were before.
Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].
Real Estate
With gas prices soaring again, a staycation is a good plan
Home can be your personal retreat and your own private resort
When airfare costs more than your monthly utility bill and a weekend road trip requires a second mortgage just to fill the gas tank, many homeowners are discovering an unexpected luxury: the staycation.
A staycation isn’t settling for less—it’s reaping the benefits of one of the biggest investments you can make: your home. Much more than a place to sleep, it’s your personal retreat, your gathering place and, with a little preparation, your very own private resort.
Whether you own a single-family home, a townhouse, or a condo, creating a memorable staycation starts with appreciating what made you fall in love with your property in the first place.
Start with a home refresh. Think about checking into a beautiful vacation rental. It’s spotless, organized, and inviting. You can recreate that same feeling by spending a day preparing your home before your staycation officially begins.
Clear away clutter, deep clean the bathrooms and kitchen, wash the windows, and put fresh linens on every bed – even if you’re not expecting guests. Fluff the pillows, light a favorite candle, and place fresh flowers on the table. These small touches instantly make your home feel more luxurious.
If your budget allows, hiring a professional cleaning service can be one of the best staycation perquisites you make. After all, vacation should begin the moment you wake up and not after you’ve spent the day scrubbing floors.
Treat your staycation like a real trip. Set away messages on your phone and out of office notices on your email. Skip unnecessary chores for a few days. Giving yourself permission to relax may be the most valuable part of the entire experience.
One of the greatest advantages homeowners have over travelers is private outdoor living space. Whether it’s a spacious backyard, a screened porch, a rooftop terrace, or a cozy condo balcony, these areas can become the centerpiece of your staycation.
Stringing lights and adding comfortable seating, colorful planters, and outdoor rugs can completely transform the atmosphere without spending thousands of dollars. Add a portable fire pit, a tabletop fountain, or a hammock, and suddenly your backyard starts competing with many resorts.
Host an evening cookout, organize a game night, invite neighbors over for dessert, or gather around the fire pit for conversation after sunset. These simple moments often become the memories we treasure most.
Inside, transform your family room into a home theater complete with popcorn and comfortable blankets. Turn your breakfast room into a morning coffee café. Designate a quiet reading corner where phones are prohibited. Create a spa-like bathroom with plush towels, candles, bath salts, and relaxing music.
One of the highlights of traveling is experiencing new food. Instead of dining out every night, create themed dinners inspired by your favorite destinations. Prepare homemade Italian pasta one evening, Caribbean grilled seafood another, or a backyard Texas barbecue over the weekend. For a touch of whimsy, dress the part.
Pair each meal with music and libations from the region and enjoy dinner outdoors whenever possible. Suddenly, your dining room becomes part of the vacation experience instead of just another place to eat.
Families with children can turn a staycation into an adventure by seeing their home through a child’s eyes. Set up a backyard camping experience with a tent, flashlights, and s’mores around the fire pit. Transform the living room into an indoor campground complete with sleeping bags and a movie under a blanket “fort.” Organize a backyard Olympics with relay races, water balloon tosses, scavenger hunts, or miniature golf using household items.
Encourage children to plan a family picnic in the backyard or on the patio, choose a theme for a movie marathon, or help prepare meals inspired by countries they’d like to visit someday. The goal is to create experiences your children will remember long after summer is over.
Enjoy the amenities you already pay for. Condominium communities and many planned neighborhoods offer amenities that residents often overlook.
Swimming pools, fitness centers, tennis and pickleball courts, walking trails, clubhouses, grilling stations, and community gardens are designed to enhance your lifestyle. During your staycation, make a point of exploring everything your community offers. You may discover you’ve been living beside your own private resort all along.
Real estate professionals often talk about resale value, appreciation, and return on investment. While those things certainly matter, there’s another return that’s harder to measure: the enjoyment you get from living in your home every day.
You don’t need a boarding pass to recharge. You don’t need a hotel reservation to make memories. Sometimes the perfect getaway is the one you already own.
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.
Real Estate
When buying a home, it’s decisions, decisions, decisions
Keeping notes on the process makes for an informed purchase
When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at.
But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.
Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.
One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other.
One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.
One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.
The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.
Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].
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