In order to operate a short-term or vacation rental in the District, the property must be owned by an individual, serve as a homeowner’s primary residence – with the owner being eligible to receive the Homestead Tax Deduction - and be properly licensed with DC’s Department of Buildings (DOB). The owner, or host, must attest to the habitability of the property and there must be an unobstructed egress from the rental property. The host is also responsible for providing working smoke and carbon-monoxide detectors, as well as portable fire extinguishers that are easily accessible in case of an emergency.
What is a Short-Term Rental?
A short-term rental (STR), more commonly known as an Airbnb or VRBO, allows a host to offer fee-based lodging at their primary residence while the host is present on the property (e.g. a bedroom within a home, an in-law suite, or a unit in an owner-occupied multi-unit building). 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.
What is a Vacation Rental?
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 (e.g. use of the entire home). Cumulatively, vacation rentals cannot exceed 90 nights in any calendar year, and each rental is limited to 30 or fewer continuous nights.
Things to Know and Steps to Apply for Your Short-Term Rental License
All DLCP systems, including the District of Columbia Short-Term Rental Licensure platform, require customers to have a single sign-on Access DC account to use its systems. If you already have an Access DC account, you can skip this step. If you do not, it is easy to sign up.
Visit the District of Columbia Short-Term Rental Licensing Platform to begin the licensing application process. You will be asked to provide basic contact information to register for the licensing platform.
After registering, you will be asked to link your license platform account with the address where you will be conducting short-term rentals.
Once your address has been verified, you will be asked to complete the full license application and pay the licensing fees. To assist you in being prepared to submit your license application, please have the following information available and ready to upload to the platform:
Clean Hands Certificate issued within the last 30 days in the property owner's name (request from the DC Office of Tax and Revenue)
Proof of liability insurance (a minimum of $250,000 in coverage)
Completed Short-Term/Vacation Rental Attestation Form if your property is in an association (HOA, condo, CoOp, etc.)
Credit/debit card to pay license fees
Requirements to apply:
Proof of liability insurance with a minimum of $250,000 in coverage must be provided – this may be obtained through a rental platform or an insurance company.
A Certificate of Clean Hands issued within the last 30 days in the property owner's name must be obtained from the Office of Tax and Revenue.
If the rental is a co-op/condo, or if the property is in a community where there is a homeowners’ association, the owner must attest that short-term and/or vacation rentals are allowed.
Hosts must provide a 24-hour accessible phone number to reach themselves, or their representatives, for emergencies.
The host must post the Short-Term Rental or Vacation Rental License conspicuously inside the property.
All applicable transient lodging taxes, which will be collected by booking services on behalf of hosts, must be paid.
Records of each booking Investment properties and must be maintained for a period of two years.
Investment properties and those owned by corporate entities are not eligible.
Short-Term Rentals and Vacation Rentals DO NOT require an inspection of the property by the DOB.
Additional Requirements
There must be an unobstructed egress from the rental property, working smoke and carbon monoxide detectors, and a portable fire extinguisher in the property.
Hosts must provide a 24-hour accessible phone number to reach themselves, or their representatives, for emergencies.
The host must post the Short-Term Rental or Vacation Rental License conspicuously inside the property.
All applicable transient lodging taxes, which will be collected by most booking services (e.g Airbnb or VRBO) on behalf of hosts, must be paid.
Records of each booking must be maintained for a period of two years.
Investment properties and those owned by corporate entities are not eligible.
Fees
The total cost for either license is $104.50 for a two-year license. This includes a $70.00 processing fee, a $25.00 endorsement fee, and a 10% platform fee.