How to Become a Landlord and Register a Rental in DC
If you want to invest in real estate in the nation’s capital, becoming a landlord and managing rental property continues to be a solid option. The percentage of households who rent in DC is 58%, while the percentage of renters is only 36% nationwide. This is attributed, in large part, to the high cost of buying property in DC (or even getting enough capital for the down payment). Add in the fact that many people plan to live in DC for a finite amount of time, and the option of renting becomes even more attractive.
In this post, we outline the steps necessary to become a landlord and register a rental property in DC, complete with links to required applications and forms. For the most updated information, please visit the DC Department of Buildings and refer to the RAD webpage.
First, complete the necessary steps with the DC Department of Consumer and Regulatory Affairs (DCRA), which is located at 1100 4th Street, SW, Washington, DC 20024.
1. You fill out a Certificate of Occupancy (C/O) application then receive the C/O from DCRA, which is required for housing accommodations with two or more rental units. If you want to rent out a single-family home, a C/O is not required.
2. You file a Clean Hands Certification and an FR-500 with the DC Office of Tax and Revenue (OTR).
3. You file a Basic Business License (BBL) application with the DCRA in-person, online, or by mail. (See the steps of the BBL process here). Then receive a bill for the BBL and Rental Unit Fees. Please note that prior to applying for a BBL, you must have already completed the prerequisite steps, such as corporate and tax registration with DC.
4. DCRA schedules a BBL Housing Inspection for single-family and 2-unit housing accommodations. (The DCRA does not require a Housing Inspection before issuing a BBL for housing accommodations with three or more rental units. Instead, the BBL is issued later - see Step 10b for more information.)
5. You make BBL and Rental Unit Fee payments with the Office of Finance and Treasury.
6a. For single-family and 2-unit housing accommodations, the DCRA issues the BBL, with a BBL number.
6b. For housing accommodations with three or more rental units, the DCRA issues your payment receipt.
Second, complete the necessary steps with the DC Department of Housing and Community Development - Rental Accommodations Division (RAD), which is located at 1800 Martin Luther King, Jr. Avenue SE, Washington, DC 20020.
7. You file a RAD Registration/Claim of Exemption Form with RAD.
8. RAD assigns a Landlord Registration Number or a RAD Exemption Number to your RAD Registration/Claim of Exemption Form.
9. RAD provides you with a copy of your RAD Registration/Claim of Exemption Form that includes a Landlord Registration Number or RAD Exemption Number for each housing accommodation.
10a. If your RAD Registration/Claim of Exemption Form is for a single-family or 2-unit housing accommodation, the registration process is complete. If your form is for a housing accommodation with three or more units, proceed to step 10b.
10b. If the RAD Registration/Claim of Exemption Form is issued to a housing accommodation with three or more rental units, the housing provider must return to the DCRA and present a copy of the RAD Registration/Claim of Exemption Form in order to receive the BBL. The DCRA is located at 1100 4th Street, SW, Washington, DC 20024.
For additional information on this topic contact Evelyn Miller, Partner, at 202-753-7400.
