Can’t Sell? Think Twice Before Becoming A Landlord In D.C.
Selling a home can be difficult, particularly if you are in a position where you have to move. I am not talking about ‘forced’ sales as such, but there are situations such as employment that can bring unexpected changes into our lives. For some people, rather than having a house sitting there empty, the temptation may be to put it into the rental market. I suggest you think the situation very carefully first and do plenty of homework.
Each state treats rental accommodation in different ways. Take Washington DC and Maryland as prime examples. In DC, you cannot just decide to rent your property. If you want to rent out a single-family home, townhouse, duplex, individual condominium unit or even an individual room in your home, you are considered to be running a “residential rental business”. As such, you will need to apply for a Basic Business License (BBL). And that is just for starters.
You will also need to register with the Department of Housing and Community Development’s Rental Accommodation Division, and you must pass inspection by the Consumer and Regulatory Affairs’ Inspections Division. They will look at issues such as smoke alarms and fire exits. Starting to sound complex? It can be.
Let’s move across to Maryland. Here, everything is handled at the county level and is nowhere near as complex. Likewise in Virginia where you only need state registration if you own four or more rental units. You do need to comply with the Virginia Maintenance Code. Otherwise, it is all handled at the county level.
Gone are the days when you could just stick a sign in the window and rent out a room, or your whole home, to whomever impressed you the most. The cost to register as a landlord is minimal, often less then $200 per year. The cost if you fail will run into more than $1000 in fines.
If you can’t sell, renting is an option that does at least provide an income. Just do your home work well and ensure you have all the right licenses and inspections. In Virginia, you must appoint an agent that is residing in the state to act on your behalf. Perhaps finding a professional agent to manage your property should be your first step!
Related posts:
