Yes, in the District of Columbia, if you are renting out residential property, even if it is only a single room in your home, you are required to do the following before you begin renting out your property:

• File a registration or claim of exemption from the Rent Stabilization Program (rent control);
• Obtain a housing business license; and
• Obtain a certificate of occupancy unless the property you are renting out is an apartment, cooperative unit, or condominium that is located in a building that already has a certificate of occupancy for the whole building or the rental property is an entire single-family home.

If you are already renting property and have not met these requirements, you are breaking the law.  You may want to talk to a lawyer before you attempt to register your property to see if you can avoid incurring penalties when you register.

The Rent Stabilization Program (rent control) applies to all residential rental units unless you have filed a proper claim of exemption from the program.  You are entitled to claim an exemption from rent control for a rental unit if:

• You personally own (not through a business), either alone or with four or fewer other people (not businesses), four or fewer rental units; or
• You are receiving a local or federal rent subsidy or mortgage subsidy for the unit; or
• The rental unit has a building permit that was issued after December 31, 1975, or has an initial certificate of occupancy issued after January 1, 1980, as long as the construction of this new building did not require demolition of a rent-controlled building with the same or greater number of units; or
• The entire building in which the unit is located was continuously vacant since January 1, 1985, provided that, upon re-rental, the building is in compliance with the D.C. Housing Regulations.

Remember, even if you are entitled to an exemption, you must still file paperwork to get an exemption number in order to be able to raise the rent and conduct business as a landlord.

Some types of units are excluded from rent control entirely.  These include: hospitals, nursing homes, dormitories, rental units operated by foreign governments, and certain units operated by non-profit organizations that provide social services to residents.

The licensing process depends on the type of property you are renting:

• One family rental units: single-family homes, town homes, duplexes, individual condominium units, or individual rooms;
• Two family rental units: a building that contains two separate units, such as a house with an English basement apartment;
• Apartment house: a dwelling that contains three or more units.

The Department of Consumer and Regulatory Affairs is responsible for granting business licenses.  Click here to access the application materials online. From the list of business types, select "One Family Rental," "Two Family Rental," or "Apartment House."

The landlord is responsible for repairs, including those caused by normal wear and tear, except if the tenant or the tenant's guests caused the problems.  If there are substantial housing code violations in the rental unit, the tenant may not be required to pay the rent or to pay the full rent, and you may be subject to civil and criminal liability for violating the housing code.

The tenant is responsible for keeping the unit clean and for using the fixtures and appliances properly.  The tenant is also prohibited from destroying or damaging the unit, appliances, fixtures, and equipment intentionally or by serious neglect.

These are some of the potential consequences of failing to correct housing code violations.

• If the housing code violations are severe (for example, no heat in winter), the tenant can immediately file in the Civil Actions Branch of Superior Court a Temporary Restraining Order to get the heat restored.  If the housing code violations are less severe, the tenant can file a Civil Action requesting that you make repairs and/or requesting a refund in rent because the tenant paid too much for the rental during periods when housing code violations existed.  If the lawsuit only seeks money, and not an order to make repairs, the tenant must request more than $5,000 or the case must be filed in the Small Claims Court.
• If the housing code violations are less severe, but still major, the tenant can file a Tenant Petition with the Rental Accommodations and Conversion Division (RACD).  This agency allows tenants to bring actions against their landlords.  The rules and procedures are very informal and landlords and tenants usually do not need lawyers to proceed.
• The tenant can request a housing inspector visit the property and make a report of all the housing code violations.  To schedule an appointment, call 202.442.4610.  The inspector will send a copy of the inspection report to you and instruct you to make repairs within a certain amount of time.  If repairs are not made on time, you may be fined.
• The tenant can stop paying the rent.  Because only landlords can bring an action in Landlord Tenant Court, the only way for tenants to get in front of a Judge in this Court is to withhold their rent and wait to be sued by their landlords.  Once you are in Landlord Tenant Court, the tenant can ask the Judge to order you to make the repairs.  The tenant may be able to get a reduction in the rent he or she owes.
• The tenant can bring an action in Small Claims Court.  If a tenant thinks that you should reimburse him or her for money the tenant spent fixing problems in the rental unit or that you owe the tenant money since the tenant paid too much for the rental during periods when housing code violations existed, the tenant can bring an action in Small Claims Court up to $5,000.
  

Can I raise the rent?

You cannot raise the rent if you and the tenant have agreed, usually in a written lease, on a certain amount.  Usually, you and the tenant will agree on a certain amount for a specific period of time.  Once that time period ends, you can raise your rent with 30 (thirty) days written notice.  If you and the tenant never agreed on a specific period of time, you can usually raise the rent with 30 (thirty) days written notice. 

If you are allowed to raise the rent, then how much and how often you can raise the rent depends on whether the unit is subject to rent control.  If the unit is exempt from rent control, then you can raise the rent by any amount any time, as long as you are not raising the rent for an illegal reason, such as to retaliate against the tenant for taking some lawful action like reporting housing code violations or requesting repairs.  You must give the tenant at least 30 days written notice before the date on which you want the rent increase to take effect. 

If the unit is subject to rent control, then you can raise the rent if:

• The last increase in rent was at least 12 months ago (unless the unit is vacant);
• The unit is properly registered with the RACD;
• The rental unit and the housing accommodation's common elements are in substantial compliance with housing regulations; and
• You give a 30-day written notice of any increase in rent.

In general, you can only raise the rent in a rent-controlled unit by a certain percentage each year.  That percentage cannot be more than 10% and the exact amount that you can raise the rent each year is determined by the Department of Consumer and Regulatory Affairs and is based on the Consumer Price Index.  You should contact the Department of Consumer and Regulatory Affairs at (202) 442-4610 to find out how much you can raise the rent.

If your rental property is not returning at least a 12% rate of return, you can ask the Rent Administrator to allow you to raise the rent by more than the amount approved by the Department of Consumer and Regulatory Affair, instead of making the regular annual rent increase.  To do this, you must file a "Hardship Petition," showing the equity you have in the property, the operating expenses, how much rent you are collecting, and other financial information.  You should contact the Department of Consumer and Regulatory Affairs at (202) 442-4610 to find out how to file a Hardship Petition.

Finally, if you are making certain types of capital improvements to the building, you can apply for permission to raise the rent to help pay for the improvements.  You will need permission from the Rent Administrator to raise the rent for this reason.  Contact the Department of Consumer and Regulatory Affairs at (202) 442-4610.