Tell me about being a landlord in dc

[Anonymous]

Anonymous wrote:I disagree. Have been a DC landlord 3+ years with positive experience and cashflow overall. I make good money renting and plan to continue renting after I retire. My advice?

Make sure you are charging enough $$ for it to be worth your while. You need to make a profit and plan for potential repairs and vacancy.

Review the law and have a good tight lease. http://och.georgetown.edu/uploadedfiles/Tenant_Survival_Guide.pdf is wonderful. Make sure your lease has a waiver of notice to quit.

Screen your tenants carefully. Confirm employment and run background checks and rental history always. No exceptions and no sob stories.

Don't overrenovate. A mediocre rental often has better cashflow than high end fixtures. A lot of people waste money on kitchen and bath. Aim for cheap, clean, and replaceable fixtures.

I agree with the PP. Only thing I would change is the fixtures and repairs in general. The people renting aren't the owners and won't treat your place like the owner. If you put in a good sturdy fixture that will stand the test of time but cost a little more it is worth it. Much better than paying to replace cheap stuff every time a tenant moves out. Spend money once and move on. Also get a good accountant and keep track of expenses and know the difference between maintenance things and improvements.

[Anonymous]

Anonymous wrote: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.

That only applies if you have >4 units in DC rented. You can still raise rent to what you want in between leases and tenants.

[Anonymous]

Anonymous wrote: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.

This is so true. If you give them extra time the judge will even question you about why you didn't start the process right away. I have lunch every month with good friend on the 5th of every month. First thing she ask is are all my rents paid. If not we start the process. Have never had a problem.

[Anonymous]

Anonymous wrote: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

This guy also failed to mention the percentage they take each month from your rental payment. I can't stand property management places. Haven't seen a decent one yet. Almost all of them gouge you with fees and if they do a repair they add their own fees on to that to make it even more expensive. If you can manage it on your own do it. Also if they find a tenant for you it usually cost a full month rent and they barely check them out.

[Anonymous]

Anonymous wrote:

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.

Best thing to do is before you even put the house on the market is talk to you tenants about them buying it. If it is out of the question have them sign off on first right of refusal then there is no problem when it hits MLS. Be reasonable about accommodating them for move out and base your closing on them being gone at least a week before closing. If you have a tenant that is hold up the process just to hold it up means you didn't screen well enough in the first place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Best thing to do is before you even put the house on the market is talk to you tenants about them buying it. If it is out of the question have them sign off on first right of refusal then there is no problem when it hits MLS. Be reasonable about accommodating them for move out and base your closing on them being gone at least a week before closing. If you have a tenant that is hold up the process just to hold it up means you didn't screen well enough in the first place.

Actually, the BEST thing to do is to wait until your tenants leave before ever mentioning to anyone that you are thinking about putting the house on the market.

[Anonymous]

We have rented the basement of our rowhome for the past few years with no problems. When we move we intend to hold onto the property. It will give us positive cash flow which is a great saving/investment mechanism.

[Anonymous]

Anonymous wrote:DC is a disaster for good honest landlords. Some tenants take advantage of an old law designed to protect the less fortunate. Don't do it!

I agree. I've been a landlord for 10 years and got guided into doing section 8 by my property manager. Let me tell you, what ever the tenant does in the house, the landlord pays and pays and pays. House passes initial inspection and less than 3 months later there is suddenly a gas leak behind the stove; tenant's off the hook and landlord pays. A washer, less than 2 years old has the motor burn out, landlord pays. Nearly impossible to get the tenant out and now i'm hearing that monthly inspections can be considered harassment.

My advice, if your thinking about being a small (2 properties or less) landlord in DC is DON"T DO IT! You'll end up frustrated because NO ONE cares about landlord concerns!


And be clear on section 8 inspection, you WILL pay (unless your outside the norm) ALL the time......I had 1 beautiful section 8 tenant a while back and our house passed inspection all the time....since then, with less attractive tenants we pay ALL THE TIME; regardless of whether the tenant caused the problem. And i know many other small landlords that have the same problems.

DC will cry all day long about needing housing but will screw you to the wall if you become a landlord. Unless you have to DON'T DO IT! The law is NOT on the landlord's side and no one will give a care about the preservation of your property.

[Anonymous]

Read this BEFORE you become a landlord in DC


http://www.efairbankslaw.com/blog-non-redeemable/2012/12/12/should-you-become-a-dc-landlord.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:DC is a disaster for good honest landlords. Some tenants take advantage of an old law designed to protect the less fortunate. Don't do it!

I agree. I've been a landlord for 10 years and got guided into doing section 8 by my property manager. Let me tell you, what ever the tenant does in the house, the landlord pays and pays and pays. House passes initial inspection and less than 3 months later there is suddenly a gas leak behind the stove; tenant's off the hook and landlord pays. A washer, less than 2 years old has the motor burn out, landlord pays. Nearly impossible to get the tenant out and now i'm hearing that monthly inspections can be considered harassment.

My advice, if your thinking about being a small (2 properties or less) landlord in DC is DON"T DO IT! You'll end up frustrated because NO ONE cares about landlord concerns!


And be clear on section 8 inspection, you WILL pay (unless your outside the norm) ALL the time......I had 1 beautiful section 8 tenant a while back and our house passed inspection all the time....since then, with less attractive tenants we pay ALL THE TIME; regardless of whether the tenant caused the problem. And i know many other small landlords that have the same problems.

DC will cry all day long about needing housing but will screw you to the wall if you become a landlord. Unless you have to DON'T DO IT! The law is NOT on the landlord's side and no one will give a care about the preservation of your property.

Yes, housing choice voucher (formerly and still known as section 8) is set up all wrong. I have been saying for years that if the govt wants small landlords to offer housing to the poor, the govt should just sign leases with the landlords and then the govt can do whatever it wants, rent to whomever for whatever price and be liable for damages, return the property in the same state at the end of the lease. The problem now is that the govt pays section 8 but in many neighborhoods it doesn't even cover market rent and it definitely doesn't cover the increased likelihood of damage and evictions. It's a shame.

[Anonymous]

Nightmare on ELM street. I had many years with decent cashflow but 2016 has been horrible. There are some squatter/scammers out there I have learned who will use the city's tenant friendly,difficult to interpret laws to have you in and out of court for months. I'm over $3,000 in legal fees and haven't even gotten close to satisfying housing codes demands which are ridiculous at best. The city's inspectors don't even know the laws but the landlords are expected to follow them or fines imposed and judgements granted to tenants who could have just moved if it were that bad. I'm here hoping to find other angry landlords to make these issues known to those who have the ability to amend these laws that are entirely unjust to the person who put forth the effort to provide the housing.

[Anonymous]

OP, you might want to research elsewhere. As you can see, you're getting a lot of hysterical responses from people who have either had bad experiences, or more likely just have a bad impression of DC laws. I am a career investor in DC real estate, and yes, the laws are tenant-friendly. That said, if you are diligent in your screening, and follow the law, it really isn't bad. It does require that you take your business seriously, though. Simple oversights, such as not sending required paperwork, can cause a lot of hassle. DCRA has lots of good information for landlords, and OTA publishes a Tenant Handbook that is equally useful for landlords.

If you can commit the necessary time and diligence, and if the financials make sense, then I say do it!

[Anonymous]

Anonymous wrote:I disagree. Have been a DC landlord 3+ years with positive experience and cashflow overall. I make good money renting and plan to continue renting after I retire. My advice?

Make sure you are charging enough $$ for it to be worth your while. You need to make a profit and plan for potential repairs and vacancy.

Review the law and have a good tight lease. http://och.georgetown.edu/uploadedfiles/Tenant_Survival_Guide.pdf is wonderful. Make sure your lease has a waiver of notice to quit.

Screen your tenants carefully. Confirm employment and run background checks and rental history always. No exceptions and no sob stories.

Don't overrenovate. A mediocre rental often has better cashflow than high end fixtures. A lot of people waste money on kitchen and bath. Aim for cheap, clean, and replaceable fixtures.

Wow, PP here. Who dug up this thread? Now 8 yrs landlord. Still recommend it.