General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated almost 6 years ago,
Washington DC rent increase and DC property registration
This question is specific to Washington, DC, but related to rent increases. I have posted this in the local DC forum but wanted to check here as well.
I am a new home owner and have an english basement rental with its own CofO. The lease expires in June, therefore I am in a scramble to understand the rules around rent increases.
Current rent is $1550 and I would like to raise it to $1600. In fact, I may have gotten ahead of myself by already notifying the tenant of my intention to raise it $1600. This amounts to approximately a 3.2% rent increase, which is likely above the CPI+2% on the OTA site, however this is my only property and my understanding is that guidance may only apply to rent controlled properties.
So my question is, am I okay with that rent increase or do I need to stick within CPI+2%? In either event, I haven't "registered" my property with the city. Do I need to do that or anything to ensure our rental property can stand up against any challenge from the tenant (not that I have any reason to believe they have an issue or will take an issue at this stage). I only took possession this fall and only received the CoO a month ago so am unclear if I need to file any additional paperwork or go through steps with the city to ensure i'm not in violation of any ordinance.
Thanks for your guidance BP!
Rent control only happens when you have 5 or more units. You are exempt
- Russell Brazil
- Russell@RussellBrazil.com
- (301) 893-4635
- Podcast Guest on Show #192
this doesnt pertain to you, since your small youll be ok, I suggest buying in growing NON rent controlled areas from here on out
@Brad Wood As I believe I mentioned in your other thread with the same topic (which apparently you didn't like the responses so you posted here) if your tenant isn't sophisticated (meaning they don't challenge you on the rent increase) then you don't need to do anything. If they do challenge you on the rent increase then in order to be exempt from rent control you will need to register your rental with The Rental Accommodations Division (RAD).
Every housing accommodation or rental unit must be registered with RAD by filing a RAD Registration and Claim of Exemption form. Once registered, the housing accommodation or rental unit is assigned a registration number if it is subject to rent control. If it is exempt, it is assigned an exemption number. You put that exemption number in the appropriate spot in your DC Lease Agreement.
If you are challenged by the tenant about the rental increase, which in your case seems to be a little bit over the CPI-W + 2%, and you are registered as exempt with RAD then you can tell the tenant that you have the right to raise the rent to whatever you want.
Here's a pamphlet where you can read more about Rent Control in DC and cure your insomnia: https://dhcd.dc.gov/sites/default/files/dc/sites/dhcd/publication/attachments/RentControlFactSheet.pdf
The real question is why are you investing in a place with such ridiculous rules and restrictions like DC. Come across the river to Arlington where there is no such interference and we have Amazon 2.