DC's SHORT TERM RENTAL | AIRBNB LAW TAKES EFFECT
ON JANUARY 10, 2022
Who needs a license, what types of licenses are required and what are the penalties for not having a license?
DCRA will begin accepting license applications effective January 10th. After a grace period, Short-Term Rental hosts must be licensed by April 10, 2022.
DC's 2022 requirements adhere to the Short-Term Rental Regulation Act of 2018, and corresponding regulations that were finalized in early December 2021.
There are two license types available to homeowners in the District:
- Short-Term Rental License: This license allows a host to offer fee-based lodging at their primary residence while the host is present on the property (partial property rental; for example, renting a bedroom within a home). As long as the host is present, there is no limit on the number of stays allowed during a calendar year, but each short-term rental stay is limited to 30 or fewer continuous nights.
- Short-Term Rental: Vacation Rental License: A “Vacation Rental” allows a host to offer fee-based lodging at their primary residence without being present on the property (full property rental). Cumulatively, vacation rentals cannot exceed 90 nights in any calendar year, and each rental is limited to 30 or fewer continuous nights.
All short-term rentals are limited to the 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.