Short term rental DC laws shape how homeowners and condo owners can use their properties. Washington D.C. has strict rules for renting out homes for days or weeks at a time. These rules affect not just the property owners but also the associations that govern many of the city’s communities.
Short Term Rental DC: Understanding HOAs and Condos
Homeowners associations and condominiums operate as private governing bodies. They manage the common areas, enforce community rules, and collect fees to keep things running. Living in these communities often means trading some personal freedom for the benefits of order, maintenance, and shared amenities.
Owners in these communities might see short-term renting as a way to generate extra income. A homeowner in an HOA can decide to list their property on Airbnb during a holiday season. A condo owner may want to rent out their unit for a few days while traveling.
But these arrangements don’t exist in a vacuum. Condos and HOAs usually have their own restrictions. Since governing documents form binding contracts, they carry real weight. Most associations will have the authority to regulate or even prohibit short-term rentals if their documents allow it.
What is the Short-Term Rental Regulation Act of 2018?
In 2018, the District of Columbia enacted the Short-Term Rental Regulation Act. This law created a legal framework for owners who want to offer rentals lasting less than 30 consecutive days.
Under the Act, a short-term rental means the use of a home or part of a home for fewer than 30 nights while the host is present. A vacation rental, on the other hand, means the same arrangement but with the host absent. The difference matters because vacation rentals face stricter rules and licensing requirements.
The Washington D.C. short term rental law applies to all properties in the District, including those within HOAs and condo associations. This means property owners must follow both city regulations and their association’s rules.
D.C. Short-Term Rental Requirements
According to the Short-Term Rental Regulation Act of 2018, there are certain requirements that landlords must fulfill. These include the following:
1. Short-Term or Vacation Rental License
Owners must apply for and obtain the proper license before renting out their property. A short-term license covers rentals where the host remains in the home. A vacation rental license applies when the host isn’t present.
2. Proof of Insurance
Property owners need to provide proof of liability insurance with at least $250,000 in coverage. This coverage can come through a rental platform or from a private insurance company.
3. Certificate of Clean Hands
Before a license is issued, the owner will need to secure a Certificate of Clean Hands. This certificate, issued within the last 30 days, confirms the owner doesn’t owe more than $100 to the District of Columbia in taxes or other debts.
4. HOA or Condo Requirement
Owners in HOAs, condos, or cooperatives must also confirm that community rules allow short-term rentals. The city requires an attestation that the governing documents either permit rentals or that the owner has written approval. If the association bans rentals, the city won’t authorize the license.
5. Other Requirements
The city sets several additional rules for anyone operating a short-term rental in District of Columbia. These include:
- Properties must have safe exits and working smoke and carbon monoxide detectors, along with a fire extinguisher.
- Hosts will need to provide a 24-hour phone number for emergencies.
- A copy of the license should be posted clearly inside the property.
- All transient lodging taxes must be paid. Rental platforms often collect and remit these taxes.
- Hosts must keep booking records for at least two years.
- Properties owned by corporations or investment entities aren’t eligible.
Can HOAs and Condos in D.C. Prohibit Short Term Rentals?
The short answer is yes. Associations can prohibit or regulate rentals, including short-term ones, in the District of Columbia.
Section 103(2) of the Short-Term Rental Regulation Act of 2018 makes it clear that the law doesn’t override association governing documents. In practice, this means an HOA or condo board will often have the power to impose stricter rules than the city. If the CC&Rs or bylaws ban short-term rentals, owners won’t be able to operate them even if they qualify under D.C. law.
City approval is only one step of the entire process. Owners also need to make sure their community allows rentals. Without association approval, a short term rental DC license may not be valid.
Common HOA and Condo Short-Term Rental Regulations
Short term rentals Washington D.C. are not only subject to city law but also to community rules. These rules can differ from one association to another, but they often cover the following:
1. Total Ban
Some associations completely prohibit short-term rentals. These boards usually argue that transient tenants disrupt community life and increase wear on common areas. Plus, residents see them as a security risk.
2. Rental Cap
Other communities allow rentals but limit how many homes or units can be rented out at once. The cap might be a set number or a percentage of total units. Residents should check their governing documents for guidance.
3. Rental Duration
Associations may allow long-term rentals while banning short-term ones. Communities tend to favor long-term tenants because they don’t pose the same risks as short-term stays. Short-term tenants might create noise, security risks, or parking problems.
4. Lease or Rental Agreement
Some communities require formal rental agreements. These contracts will make sure tenants are documented and the terms of their stay are clear.
5. Tenant Adherence to Rules
Tenants must follow the same rules as permanent residents. For example, if the HOA bans loud music after 10 p.m., short-term tenants also need to comply.
6. Compliance With Local Laws
Owners must comply with D.C. laws, including securing the proper license and paying lodging taxes. Associations often require proof that an owner has met the city’s legal requirements before approving a rental.
Legal Compliance
Board members in HOA and condo communities must understand the short term rental DC laws that apply to their associations. In doing so, they can enforce the rules in accordance with these laws and avoid potential liability.
TNWLC offers management services to community associations in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
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