Washington DC: DCRA License Requirements

[Eliza63]

Hello,

There seems to be broad consensus (per Airbnb guidance and local media reports) that a DCRA business license of some kind is required by DC law in order to operate a short-term rental in the District of Columbia (See article below).  Does anyone have insight into what the law actually says and where to find this information?  I have been unable to confirm if such a license is required outside of online message boards, Airbnb Help Center and the Urban Turf article below.  It seems to me that this is a grey area under current law.

https://dc.urbanturf.com/articles/blog/how_to_legally_list_on_airbnb_in_dc/12537

https://www.airbnb.com/help/article/863/washington--d-c

Thanks!

Josh 

[Amy236]

Hi Eliza,

Did you ever find the answer to your question?  We have an ABB with our vacation house, but I want to ABB our primary residence from time to time.  I am a little confused about the regs, too.

Amy

[Susan206]

Hi DC hosts,

DCRA has made the rules and is now requiring licenses. Here are some details from an email they sent:

DCRA to Begin Accepting License Applications for
Short-Term Rentals Effective January 10, 2022

After a Grace Period, Short-Term Rental Hosts
Must Have Licenses by April 10, 2022

The Department of Consumer and Regulatory Affairs (DCRA) will begin accepting applications for residents to license short-term rentals —for 30 or fewer continuous nights—in the District beginning January 10, 2022. To give short-term rental hosts enough time to get their required licenses, there will be a 90-day enforcement grace period.

The new requirements are in adherence to the Short-Term Rental Regulation Act of 2018, and corresponding regulations that were finalized earlier this month.

Whether you are simply seeking to share your space with others or want to earn extra income by renting out your home, or a part of it, having a Short-Term or Vacation Rental License may help you achieve your goals. 

Two license types available to those wishing to conduct short-term rentals in the District:

1. Short-Term Rental License: Allows a host to offer fee-based lodging at their primary residence while the host is present on the property (for example, a bedroom within a home). As long as the host is present, there is no limit on the number of stays allowed during a calendar year; however, each short-term rental stay is limited to 30 or fewer continuous nights.
2. Short-Term Rental: Vacation Rental License: A "Vacation Rental" is a type of short-term rental that allows a host to offer fee-based lodging at their primary residence without being present on the property (for example, a full home). Cumulatively, vacation rentals cannot exceed 90 nights in any calendar year, and each rental is limited to 30 or fewer continuous nights.

Short-term rentals are limited to a host’s primary residence, which the law defines as a property for which the owner is eligible for the Homestead Tax Deduction. Only natural persons are eligible for short-term rental licenses; business entities such as an LLC or corporation are not eligible.

 

[Susan206]

Here’s more. There’s an event for hosts to learn more. There are also several useful links in the email; unfortunately Airbnb’s algorithm required me to delete them in order to post these messages. Now my question: are you other DC hosts planning to get licenses? TIA for any replies !

Cost to License

The total cost for a two-year short-term rental license is $104.50, which includes a $70 processing fee, a $25 endorsement fee, and a 10% technology fee. The overall license cost is in line with or cheaper than other comparable jurisdictions locally and nationally. As an example, the cost of a two-year short-term rental license in San Francisco, California is $450.

Once the enforcement grace period ends on April 10, 2022, failure to comply with the District’s short-term rental requirements may result in fines of up to $250 for the first violation, escalating up to $1,000 for a third violation. Violations can be reported to the District of Columbia Short-Term Rental Hotline by calling 202-221-8550.

For further information and a list of Frequently Asked Questions visit Short-Term Rentals in the District

Informational Session

Wednesday, December 29 at 4:00 PM

Join us to learn more about the requirements of operating a short-term rental in the District of Columbia, the types of rental licenses, resources for renters and neighbors, and more. This informational session is open to the public. 

Event password:
shorttermrentals (74678838 from phones) 

Join from a mobile device: (I had to delete the numbers in order to post this, sigh - SB)
(Washington D.C.)
(US/Canada)

[Bright20]

Was the session recorded, if yes how can one access it. If it is not recorded are you aware of another upcoming session ?

Thanks 

[Karen1481]

Hi there-

I just went through the licensing requirements with DCRA, which requires people who rent their entire home (as opposed to a room in their home) to get a bed and breakfast license. In order to obtain a B&B license, you must register with the dc office of revenue, complete a basic business license form and obtain a certificate of occupancy from the zoning department. If you pull up the DCDRA website and enter the search for a B&B license, it will provide additional information. Unfortunately, you cannot complete all of the forms online so a trip to DCDRA is required. It took me the better part of a day to complete the requirements, which were confusing and required going to different divisions with DCDRA. 

The clerk told me that most people do not comply. Oh, and come October, new regulations may take effect which prohibit how many nights you can rent your home out on air bnb or other home sharing sites. Hope this helps!

[Michael3126]

Was the occupancy certification necessary? I though that the home occupation permit was sufficient. Also, come October will they change the definition of a bed and breakfast because in the law, it says the short term rental act doesn't apply to bed and breakfasts expressly.

Considering doing this myself and would love to know what you went through.

[Susan1392]

@Karen1481 Hello! I am desperately trying to figure out what needs to be done if I Airbnb a guest room in my own home while I am present in DC. Do I need to pass a home inspection? What exactly does getting a license require? Is there any page that spells this out? Thanks so much if you have any information!

[Irina184]

Hi Karen,

Thanks for sharing all that info! 

I'm in a similar position -  I rented successfully the entire place via Airbnb, however, it's not our primary residence, so the short-term license isn't an option. Can you please also specify, what licence you were not able to get online and had to perform a drip to DCAR? I know that I was able to get the CoF online. 

Can you still list your listing via Airbnb if it's registered as Bed and Breakfast? 

[Viviana360]

Hello, we're you able to get an answer to you question? I'm in a similar position. Any insight would help. 

[Andrew1274]

So we have been renting out our basement since January. Today a DCDRA investigator showed up at my house because of a complaint from a neighbor. This is part of our house and we live here full time. Is this Bed and Breakfast license actually required? It seems like a scare tactic not to mention now I don't trust my neighbors!

[Susan1392]

@Andrew1274 Hello, Andrew! Wow, that sounds crazy scary. Did you every find out more about what you need to do? I am desperately trying to figure out what needs to be done if I Airbnb a guest room in my own home while I am present in DC. Do I need to pass a home inspection? What exactly does getting a license require? Is there any page that spells this out? Thanks so much if you have any information!

[Karen1481]

Hi there-I operate an airbnb out of my home except that I rent the entire home out while I am not in DC. I obtained a bed and breakfast license from the city. I am not sure if you need to do that if you are just renting a room but I would call the DC DCRA and ask them. I had to obtain a business license from them as well as a bed and breakfast license and register with the Dept of Revenuse so that the City can collect city occupancy taxes. I would call them and ask whet you need to do to be in compliance. As an aside, I understand that the rules will be changing for airbnb in Washington DC. People will only be allowed to rent their homes for up to 90 days in a celndar year. The people at DCRA alerted me that there may be changes coming but they have not gone through rulemaking. Good Luck!

[Mark-And-Christina0]

Andrew - not sure if you're even on this platform anymore as this is an old thread, and the law has supposedly changed but we just had the same thing happen to us and were told that even though the law is "on the books" because it requires a short term housing license and the DCRA hasn't issued them yet we are still not in compliance. Curious how your situation resolved itself? 

[Zee7]

Thank you Karen1481, thats some good information.