I owned and lived in condos and invested in and rented out condos, all of which is governed by HOA and it's bylaws.

Hey guys, how does the local government view short term vacation rentals?

I have always assumed that the state health dept operating license that says how many lots you can have is the governing document.

It’s the governments way of protecting homeowners.  

Remember--you must know and follow all the rules the government sets, or you could blow up the entire strategy. 

And found out if you rent to them, and they don't pay their taxes, the government will come after you for the rent they paid, wow! 

But like all horrible ideas other governments are sure to be eager to adopt!

I’ve done some searching online and it looks like somehow I need to show the government this info so they can track it.

That should be done in any case, and once you have that, you can get a rent control exemption from DC Government's Rental Accommodations Division, which should give you the green light to make that increase.

The law governing real property (including leases) follows the law of the state where the property sits, not where the owner resides.