Is Rental Arbitrage Legal in District of Columbia?
Only in your own home. The District licenses short-term rentals only in the owner's primary residence, for stays of up to 30 nights, with an unhosted cap of 90 nights a year. Both license types cost $99 for two years, and you apply online.
Can a renter do rental arbitrage here? Only your own home. Short-term rentals are licensed only in the host's own primary residence, so leasing a separate unit to rent out is not possible.
Requirements
- District short-term rental license (host present) or vacation rental license (host away)
- The property must be owned by an individual and be the owner's primary residence, shown by homestead deduction eligibility
- A Certificate of Clean Hands from the Office of Tax and Revenue
- Apply online at boss.dc.gov; there is no pre-license inspection and you self-certify housing code compliance
Restrictions
- Investment properties and corporate-owned units are not eligible
- The 90-night cap can be lifted for work outside DC or serious medical or family care that lasts more than 90 days, with an affidavit
Cities in District of Columbia
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.
Sources
Frequently Asked Questions
- Can I Rent Out a DC Apartment I Lease?
- The District's licenses are tied to the owner's primary residence, so a renter who isn't the owner can't hold one.
- What Is the Nightly Cap?
- Hosted stays have no annual cap. A vacation rental license, where the guest has the whole home, is capped at 90 nights a year.