Short Term Rental in the District of Columbia

Earlier this month, the District of Columbia finalized regulations and requirements of the Short Term Rental Regulation Act of 2018. On January 10, 2022, the District began accepting applications from residents requesting a license for short-term rentals. While the District will give a 90-day enforcement grace period, April 10, 2022, the process is likely to not be swift and owners should act sooner than later to be in compliance.

Short-term rentals are limited to a host’s primary residence which is defined as property for which the owner is eligible for the Homestead Tax Deduction. First, the owner must choose the type of license to apply for and each short-term rental is limited to 30 or fewer days. If the host is present in the residence during the fee-based lodging, then there is no limit on the number of stays allowed during a calendar year. However, if the host is not present in the residence during the fee-based lodging, then the short-term rental is limited to 90 nights in any calendar year.    

After the enforcement grace period ends, failure to comply with the regulations may result in fines escalating up to $1,000. The District also created a hotline to report violations. If you are a property owner and want to ensure compliance with the District’s new short term rental regulations, contact the lawyers at the Johnson Law Group for a free consultation.