“DCRA will begin accepting license applications for short-term rentals beginning January 10, 2022”

From DCRA:

“The Department of Consumer and Regulatory Affairs (DCRA) has announced that it will be accepting applications for short-term rental permits from residents – for 30 continuous nights or less – in the District beginning January 10, 2022. To give enough time for short-term rental hosts to obtain the required licenses, there will be a 90-day application grace period.

The new requirements are in line with the Short-Term Rentals Regulation Act 2018 and related regulations which 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 permits before enforcement begins,” DCRA Director Ernest Chrappah said. “Over the past few months, we have been working with short-term rental hosts to get feedback on our online license application process. Our goal is to make it as easy as possible for District residents seeking to earn extra income by renting out their home.”

Two types of licenses are available for those wishing to make short-term rentals in the District:

Short-Term Rental License: Allows a host to offer paid accommodations in their primary residence while the host is present on the property (for example, a room in a house). As long as the host is present, there is no limit to the number of stays allowed in a calendar year; however, each short-term rental stay is limited to 30 consecutive nights or less.
Short-Term Rental: Vacation Rental License: A “vacation rental” is a type of short-term rental that allows a host to offer paid accommodations in their primary residence without being present on the property (e.g., a complete house). . Cumulatively, vacation rentals may not exceed 90 nights in any calendar year, and each rental is limited to 30 continuous nights or less.

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, $25 approval fee, and 10% technology fee. The overall license cost is in line 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.

After 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, up to $1,000 for a third offence. Violations may be reported to the District of Columbia Short-Term Rental Hotline by calling 202-221-8550.

For more information, complete requirements for obtaining a short-term or vacation rental license, and a list of frequently asked questions, visit dcra.dc.gov/shorttermrentals.

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