All Forum Posts by: Guka Kagu

I listed my property for rent, and a prospective tenant wants to rent the entire house and run a daycare for 8 kids from the basement. I currently have standard landlord insurance.

How does insurance work in this situation?

• Do I need to get commercial insurance as the landlord?

• Or is it enough if the tenant has daycare insurance and adds my rental property to her policy?

• She said she’s willing to pay extra rent and cover any damage caused by the kids. How much extra is reasonable to charge for this kind of setup?

Any advice or experience with similar situations would be appreciated!

My tenants just moved out. I conducted an inspection of the property and found multiple big colorful stains on the carpet. It appears they tried to remove the stains, but they are still visible. I contacted a professional cleaning company, and they said I will have to remove the entire carpet since they are permanent. Should I deduct the cost from their security deposit or is it considered normal wear and tear?

I have such a hard time finding contractors in the DMV area. They overcharge and the work isn't good either. I had a contractor tell me that he makes 100% profit and he doesn't do anything other than meeting a client for an estimate. He hires people who does everything. He advised me to find somebody directly because he's just a middle man but he didn't tell me where to find those workers. Does anybody know where I can find those workers? Thank you! 

We signed a two year lease last year. I always hear apartments and landlords increasing rent every year plus property taxes went up a lot. Can you increase the rent every year? It's capped at 5.8% increase this year. 

I'm so confused. I watched so many you tube videos but still I haven't gotten the answer.  Is there any specific book that would answer the following questions?

1. How does investors use leverage to buy rental properties? I always hear people saying mortgage debt is good. Don't use your own money. How? Homes are so expensive plus interest rate is so high. Rent isn't that much. 

2. Investors/wealthy people don't take out salary. They take out loan. How does that work? Let's say their business is $1 million, they take out $100,000 loan (income), what do they do the next year?

Let's say you have $500,000. Which one is the best option and why?

1.Buy 1 property for $400,000 cash (no mortgage, positive cash flow after expenses)

2. Buy 2 properties 400k each with 225k down for each property (interest rates are so high - it will eat up all the rent). 

3. Buy $950,000 home, pay $450,000 cash, $450,000 mortgage. LTR will cover the mortgage and other expenses. STR might be profitable.

Quote from @Russell Brazil:

Quote from @Guka Kagu:

Quote from @Russell Brazil:

Quote from @Guka Kagu:

Quote from @Russell Brazil:

Quote from @Guka Kagu:

 Short term rentals in DC are limited to 90 days per year for owner occupants, or unlimited if you are present in the property..such as renting out a bedroom while you are physically present in the house.

A short term rental is defined as any stay under 30 days. Anything over 30 days qualifies as a long term rental. You will need a BBL license and inspection to rent out your property long term

I contacted DLCP again and they said I can get Single family rental license for Row home and condo and list it on Airbnb. They also said if I buy 4 units then I can list 3 units on Airbnb. There are so many owners/hosts who are renting their entire home. Some even mentioned their unhosted license no.  I'm trying to find out the correct information before I purchase a property.

 It sounds like youre looking for the answer you want even if it isnt the right answer. I and DCLP both told you the same thing, but it seems like you want a different answer. 

Read through the regulations. They are very clear.

https://dlcp.dc.gov/shorttermrentals

If that's the case then how come these people are able to rent the entire home
1. https://www.airbnb.com/rooms/15373088?check_in=2023-09-03&am...
2. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
3. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
4. https://www.airbnb.com/rooms/903580802291779765?check_in=202...

 1) They could be breaking the law

2) They could be exempt from the law 

I looked into exemptions. It's either employment or medical. I work from home so I don't qualify.  I'm also looking into Arlington and Falls Church. Frederick looks promising too. Do you recommend any other areas close to DC for short or long rentals?

 In virtually every jurisdiction in the metro area, short term rentals have almost the same regulations. The City of Alexandria, not to be confused with Alexandria Fairfax County, is the only viable option for a short term rental strategy.

Thank you

Quote from @Russell Brazil:

Quote from @Guka Kagu:

Quote from @Russell Brazil:

Quote from @Guka Kagu:

 Short term rentals in DC are limited to 90 days per year for owner occupants, or unlimited if you are present in the property..such as renting out a bedroom while you are physically present in the house.

A short term rental is defined as any stay under 30 days. Anything over 30 days qualifies as a long term rental. You will need a BBL license and inspection to rent out your property long term

I contacted DLCP again and they said I can get Single family rental license for Row home and condo and list it on Airbnb. They also said if I buy 4 units then I can list 3 units on Airbnb. There are so many owners/hosts who are renting their entire home. Some even mentioned their unhosted license no.  I'm trying to find out the correct information before I purchase a property.

 It sounds like youre looking for the answer you want even if it isnt the right answer. I and DCLP both told you the same thing, but it seems like you want a different answer. 

Read through the regulations. They are very clear.

https://dlcp.dc.gov/shorttermrentals

If that's the case then how come these people are able to rent the entire home
1. https://www.airbnb.com/rooms/15373088?check_in=2023-09-03&am...
2. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
3. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
4. https://www.airbnb.com/rooms/903580802291779765?check_in=202...

 1) They could be breaking the law

2) They could be exempt from the law 

I looked into exemptions. It's either employment or medical. I work from home so I don't qualify.  I'm also looking into Arlington and Falls Church. Frederick looks promising too. Do you recommend any other areas close to DC for short or long rentals?

Quote from @Russell Brazil:

Quote from @Guka Kagu:

 Short term rentals in DC are limited to 90 days per year for owner occupants, or unlimited if you are present in the property..such as renting out a bedroom while you are physically present in the house.

A short term rental is defined as any stay under 30 days. Anything over 30 days qualifies as a long term rental. You will need a BBL license and inspection to rent out your property long term

I contacted DLCP again and they said I can get Single family rental license for Row home and condo and list it on Airbnb. They also said if I buy 4 units then I can list 3 units on Airbnb. There are so many owners/hosts who are renting their entire home. Some even mentioned their unhosted license no.  I'm trying to find out the correct information before I purchase a property.

 It sounds like youre looking for the answer you want even if it isnt the right answer. I and DCLP both told you the same thing, but it seems like you want a different answer. 

Read through the regulations. They are very clear.

https://dlcp.dc.gov/shorttermrentals

If that's the case then how come these people are able to rent the entire home
1. https://www.airbnb.com/rooms/15373088?check_in=2023-09-03&am...
2. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
3. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
4. https://www.airbnb.com/rooms/903580802291779765?check_in=202...

If that's the case then how come these people are able to rent the entire home
1. https://www.airbnb.com/rooms/15373088?check_in=2023-09-03&am...
2. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
3. https://www.airbnb.com/rooms/927160057614097967?check_in=202...
4. https://www.airbnb.com/rooms/903580802291779765?check_in=202...

 Short term rentals in DC are limited to 90 days per year for owner occupants, or unlimited if you are present in the property..such as renting out a bedroom while you are physically present in the house.

A short term rental is defined as any stay under 30 days. Anything over 30 days qualifies as a long term rental. You will need a BBL license and inspection to rent out your property long term

I contacted DLCP again and they said I can get Single family rental license for Row home and condo and list it on Airbnb. They also said if I buy 4 units then I can list 3 units on Airbnb. There are so many owners/hosts who are renting their entire home. Some even mentioned their unhosted license no.  I'm trying to find out the correct information before I purchase a property.