(Washington, DC) Today, the Department of Consumer and Regulatory Affairs (DCRA) announced it will be 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.
“As this is a new requirement in the District, we want to give people a reasonable amount of time to get their licenses before enforcement begins,” said DCRA Director Ernest Chrappah. “Over the last several months we’ve worked with short-term rental hosts to gain feedback on our online license application process. Our goal is to make it as easy as possible for District residents looking to earn extra income by renting out their homes.”
Two license types are available to those wishing to conduct short-term rentals in the District:
- 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.
- 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.
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, full requirements for obtaining a Short-Term or Vacation Rental License, and a list of Frequently Asked Questions visit dcra.dc.gov/shorttermrentals.