Frequently Asked Questions
If you have any more questions that aren’t addressed below, feel free to get in touch. We look forward to working together.
A license to rent is required in the DC to rent single or multi-family properties. Washington DC landlords need to apply for a basic business license (BBL) per rental unit.
– Obtaining the Basic Business License (BBL)
– Registering residential rental properties with the Rental Accommodations Division (RAD)
– Registering residential rental properties with the DC Office of Tax & Revenue (OTR)
– Coordinating the required Dept of Buildings (DOB) licensing inspection
– Obtaining the Certificate of Occupancy for multi-unit properties
– Pre-Licensing Inspection
– BBL Renewal Services
You can purchase a 2-year or a 4-year license.
The goal for the inspection is to ensure that rental units comply to code. Please see above for a detailed list regarding what an inspector typically looks for.
You will be required to correct the failed items and have the property re-inspected. There is a re-inspection fee of $90.00.
A condo is a single-family home. You are only licensing the unit that you own.
You must install a CO detector(s) if there is gas in the property and it must be fixed to the wall or ceiling so that an occupant cannot easily remove it.
No. You only need to do the inspection one time…for now!
No. You only need to have a COO if you have a multiunit property. Single family homes do not require a COO.
– One Family Rental – $198.00
– Two Family Rental – $283.80
– 3 Units: $453.20
– 4 Units: $508.20
– 5 Units: $563.20
– 6 Units: $663.30
– 7 Units: $718.30
– 8 Units: $773.30
– 9 Units: $828.30
– 10 Units: $883.30
If you are found to be renting a property without a valid business license, the Department of Buildings (DOB) considers you to be non-compliant and can issue you a Notice of Infraction. Note: The first offense is considered a Class 1 infraction and carries a $2,000 penalty. If you continue to incur infractions, be aware that each subsequent infraction will be double the amount of the previous one, going up to $16,000 per infraction. Additionally, when you are not licensed or your license isn’t valid (expired), you can be penalized in court. For example, if you are a non-compliant landlord, a judge can find you at fault because you were collecting rent illegally. The judge can then reverse all rent back to the tenant, sometimes at 3x the amount paid. Another possible scenario: Your tenant(s) would not have to pay their rent, and you would not be able to evict them.
If you have recently purchased a property that has tenants, D.C. will allow you 60 days to become a licensed landlord. In most cases DC believes in voluntary compliance, meaning that they do not penalize you if you are coming into compliance.
No. Because each rental property has its own unique property tax identification number, each one is required to have a separate license. For example, if you own 3 condominium units, each with its own tax identification number, you are required to obtain 3 one-family rental licenses. (Don’t confuse this example with a townhouse that has a basement apartment; that property as a whole will have just one tax identification number, and because it is 2 units will require a two-family rental license.)
No. DOB will not accept a report by a private home inspector. You are required to submit to and pass an inspection by a DC Government inspector. Note: the DC Government does not charge to conduct an initial inspection, but it will charge a fee if the property fails and requires a re-inspection. Additionally, the code for a rental property is vastly different than the code for an owner-occupied property.
In D.C., renting property and collecting income, no matter how little or how much, is considered a business activity. Accordingly, you must obtain a Business Tax Registration. The Business Tax Registration will require you, whether you are a D.C. resident or not, to file a tax return with the DC Office of Tax and Revenue, on an annual basis, to report your rental income. Once your tax return is processed, you’ll have to pay the associated tax, known as the Unincorporated Business Franchise Tax, if the applicant is not a corporation. Otherwise, a corporation will have to pay a Corporate Franchise Tax. As of 2021, the Corporate and Unincorporated Franchise Tax rates are 8.25%. Additionally, there is $250 minimum tax if your gross receipts are $1 million or less.
As long as you will be renting to 5 or less unrelated people, you can obtain a One-Family Rental license. But if you want to rent to more than 5 people, you will need a Rooming House license.