Tell me about being a landlord in dc

[Anonymous]

Anonymous wrote:I will echo the previous comments about DC landlord/ tenant laws- they are incredibly biased in favor of the tenant. We have rented out our condo in Logan Circle, largely problem free, for the past 8 years, initially managing it ourselves and in later years using a management company.

The problem arose when we decided the market was right to sell it last year. We, naively, thought that with adequate notice, we could ask the tenants to leave (timing coincided with the end of their lease, which it turns out does not matter), get it on the market, and be done with it. Oh how wrong we were. Unless you are asking the tenant to vacate so that you can move in yourself, the tenant essentially owns the property until they choose to leave. If they don't pay or damage the property, that is a different story.

You definitely need to get yourself a BBL and an exemption from rent control, which requires some paperwork and a city inspection. It has been nice having someone else cover the mortgage these past few years, but the process of trying to sell the property has been, to say the least, difficult. Just be prepared to be a landlord for life, whether you want to be or not.

TOPA Act. Analysis not exactly correct. You need to serve tenant in Spanish and English (absurd even when they don't speak Spanish) and they have 90 days to show that they have the means to buy your property--must show adequate financials, etc. It is called 'the right of first refusal'. We bought a FSBO rowhouse with a guy that didn't want to leave and he was out in tim--world bank foreigner who thought he could squat. We followed the rules and he was out in 60 days. We have had many tenants taht expressed desire to buy our current property. We get many multi-year tenants- but we make it clear we have zero intention to sell. They are professionals, have been heavily vetted and screened and haven't been a problem.

By no means can the squat indefinitely.

[Anonymous]

DC does have rent control, but as a small landlord ( i think it has to be 4 or fewer units) you can get an exemption from rent control. You generally cannot raise the rent 'vindictively' or as a means to force a tenant out. You can raise it to a fair market rate, but even then they can take you to landlord tenant court.

[Anonymous]

PP from 09:27 and 16:29 here-

0953- thanks for your clarification. Don't tenants not only have rights to make an offer after you serve them initially (in englsih and spanish, which we did) but also, if they remain in the property while you try to sell, they can match any offer?

[Anonymous]

Anonymous wrote:PP from 09:27 and 16:29 here-

0953- thanks for your clarification. Don't tenants not only have rights to make an offer after you serve them initially (in englsih and spanish, which we did) but also, if they remain in the property while you try to sell, they can match any offer?

They can also scam you by squatting in the house and selling their right to the house, holding up the sale, scam! DC government allows it, no protection for the honest landlord. My advice, do business in Maryland!

[Anonymous]

Anonymous wrote:PP from 09:27 and 16:29 here-

0953- thanks for your clarification. Don't tenants not only have rights to make an offer after you serve them initially (in englsih and spanish, which we did) but also, if they remain in the property while you try to sell, they can match any offer?

It can't be a ' fruitless' match. They have to meet financing/$ requirements and it has to be a legitimate, offer.

[Anonymous]

Here's the deal about right of first refusal: basically, the tenant can hold up the sale for months, in which time interested buyers could go elsewhere. So typically landlords agree to pay the tenant money in order for them to give up the tenant right of first refusal. This is usually anywhere from 3,000 to 12,000 dollars for a small landlord. Big buildings that are converting ownership to condos, etc, it is usually more like 20,000.

[Anonymous]

Anonymous wrote:Here's the deal about right of first refusal: basically, the tenant can hold up the sale for months, in which time interested buyers could go elsewhere. So typically landlords agree to pay the tenant money in order for them to give up the tenant right of first refusal. This is usually anywhere from 3,000 to 12,000 dollars for a small landlord. Big buildings that are converting ownership to condos, etc, it is usually more like 20,000.

This is why if you think you might sell---you start the process early. You notify the tenant early. You get the clock started and he has only 90 days. Period. I don't know where the hell you people get they can stay forever. When we were purchasing a FSBO with a World Bank tenant that did not want to leave, tried to woo the older, single woman with wine to let him stay (not kidding), said his momma in Italy was going to buy the place...we sought legal counsel from a very good real estate attorney and the guy was out in the minimum amount of time.

The key is---it's on you to cross your i's and dot your t's. If you screw up anywhere in the process, a scammer could stay longer.

That said--we rent out our place in Georgetown. We have professionals only---hell--many are more successful than me. We have open dialogue, did extensive credit, court and background checks (even if our gut said they were fine--we still did them!!!!). One woman that seemed totally normal--came back with a check of all kinds of tenant court problems, and skipping on rent, etc. Don't rely solely on their references even if they 'seem' legit and you verified employment.

DC real estate can be a big money maker.

[Anonymous]

Don't ever give the tenant extra time to pay the rent, esp. if you need the rent to cover a mortgage. Extra time for them to pay the rent is BUILT IN to the Landlord-Tenant court system. If they are a few days late, start the eviction process. I know that sounds heartless, but you can stop it at any time. However if you give them a month or 2 and they are still not paying, there is no way to speed things up so you can get a paying tenant in there.

[Anonymous]

We own and rent a number of properties in DC and never have had any significant problems. However, the PP's are correct - the DC laws heavily favor the tenant and you cannot go into any situation blindly (which, frankly, is sound advice for any investment anyone is making…). It is not impossible, though, to understand all of the rules and regulations - it's all available online through the DC government website. You must get a BBL and keep it up to date. There is an inspection required in the beginning, but it is easy and shouldn't be a problem if your property is in good shape and up to code. Also read the particular laws regarding your particular situation - apartment, house, condo, etc.

Totally agree with the PP that the key is to screen your tenants - credit checks and recommendations. Also, know your DC landlord/tenant laws. People who are saying that it is impossible to deal with tenants in DC obviously are not reading and understanding all of the laws and rules in place. As long as you know exactly what you are getting into and follow these rules it can be a great investment. We have 12 properties in DC and have been renting for over 15 years. In this time we have only had 1 bad tenant and, to be honest, she wasn't that bad - just young and a bit irresponsible. However, she always paid her rent each month - just late sometimes and had a few other issues with losing keys and some noise complaints. Nothing that wasn't easy to handle and we went from there. No longer renting to her and have all great tenants at this time!

[Anonymous]

Great discussion. There are certainly a number of benefits to owning property in DC but as everyone mentioned above it is not something to be taken lightly. Every landlord in D.C. must have a Basic Business License to rent out a property. In fact you must have one BBL for each location and the license varies based on what type of property you have. That can be a process in itself.

For example if you fail the inspection, you have 45 days to meet requirements otherwise the license may be revoked and you may lose all fees paid in connection with the licensing process.

Before you think about renting, do some research on market-rate rents for similar properties in your location to get an idea of what you can charge. Perhaps its not what you were expecting to make minus maintenance costs, etc. You will also want to make sure to be familiar with DC Landlord/Tenant laws to avoid potential legal issues.

As a property management firm we handle almost all of this for our clients so we've become quite good at the process. That being said, its definitely possible to do on your own, just make sure to weigh your options before you get your hands in the dough!

- Tom Carcone, Gordon James Realty

[Anonymous]

We would only be willing to rent out places in certain zipcodes/areas. Background checks are your friends.

We were willing to rent to unrelated groups but our homes were in Georgetown/Palisades so we didn't get the riff raff.

Listen to your gut- we had one guy who was nice enough, but then asked if he could have his girlfriend over from time to time- at the time it was a group of grad students living there and we felt it wasn't fair to the others because it would have been a free roommate situation so we declined to rent/didn't pursue it. If it was a random thing here and there- why ask- that would be up to the room mates, not us, so it didn't sit right with us. Also had a guy who knew we were background checking him who wasn't forthcoming about some DUI/DWIs. We declined to rent because we didn't want it to be a frathouse or worse.


In our experience- families are best- they have prideful rentership and will keep the place nice.

In general: Guys are waaaay messier but will NEVER call you (to your detriment; they will try to 'fix' things or not report them in a timely fashion)

Girls will call you ALL THE TIME but will report any issues (and even goofy things like wanting to change the paint from cream to ivory) but won't trash the place like guys.

[Anonymous]

Just "move in" to your rental then put it up for sale or rent it in a couple months if you have a difficult tenent

[Anonymous]

Honestly, how many people here went through the onerous process of getting a BBL?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will echo the previous comments about DC landlord/ tenant laws- they are incredibly biased in favor of the tenant. We have rented out our condo in Logan Circle, largely problem free, for the past 8 years, initially managing it ourselves and in later years using a management company.

The problem arose when we decided the market was right to sell it last year. We, naively, thought that with adequate notice, we could ask the tenants to leave (timing coincided with the end of their lease, which it turns out does not matter), get it on the market, and be done with it. Oh how wrong we were. Unless you are asking the tenant to vacate so that you can move in yourself, the tenant essentially owns the property until they choose to leave. If they don't pay or damage the property, that is a different story.

You definitely need to get yourself a BBL and an exemption from rent control, which requires some paperwork and a city inspection. It has been nice having someone else cover the mortgage these past few years, but the process of trying to sell the property has been, to say the least, difficult. Just be prepared to be a landlord for life, whether you want to be or not.

Why not just keep increasing the rent to get them to move? Or does DC have rent control/rent stabilization laws?

Or wait until the lease is up and say you're not renewing it? Even move in yourself for a time until you sell it if you have to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will echo the previous comments about DC landlord/ tenant laws- they are incredibly biased in favor of the tenant. We have rented out our condo in Logan Circle, largely problem free, for the past 8 years, initially managing it ourselves and in later years using a management company.

The problem arose when we decided the market was right to sell it last year. We, naively, thought that with adequate notice, we could ask the tenants to leave (timing coincided with the end of their lease, which it turns out does not matter), get it on the market, and be done with it. Oh how wrong we were. Unless you are asking the tenant to vacate so that you can move in yourself, the tenant essentially owns the property until they choose to leave. If they don't pay or damage the property, that is a different story.

You definitely need to get yourself a BBL and an exemption from rent control, which requires some paperwork and a city inspection. It has been nice having someone else cover the mortgage these past few years, but the process of trying to sell the property has been, to say the least, difficult. Just be prepared to be a landlord for life, whether you want to be or not.

Why not just keep increasing the rent to get them to move? Or does DC have rent control/rent stabilization laws?

Or wait until the lease is up and say you're not renewing it? Even move in yourself for a time until you sell it if you have to.

Lease expiring does not matter- leases in DC automatically revert to a month to month lease. Basically as long as the tenant continues to pay, they can remain in the apartment.