Short-Term Rentals in Washington, DC

Every city handles short-term rentals a little differently. In Washington, District of Columbia, there are 9 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Insurance Requirements

Every DC short-term rental host must carry at least $500,000 in current liability insurance before renting to a transient guest. D.C. Code § 30-201.02(b) lets the booking service supply that coverage instead of the host, and the Mayor can raise or lower the dollar threshold by rulemaking without a new act of the Council.

Key details: Governing section: D.C. Code § 30-201.02(b). Minimum coverage: At least $500,000 liability insurance. Who can provide it: Host or the booking service. Adjustment authority: Mayor may change the amount by rulemaking. Penalty for lapse: $500 to $6,000 plus revocation, § 30-201.10(a).

A host who lets required liability coverage lapse, or who cannot show at least $500,000 in current coverage on inspection, is treated as violating § 30-201.02 and faces the civil penalties in § 30-201.10(a): $500 for a first violation, $2,000 for a second, and $6,000 plus revocation of the license endorsement for a third.

Occupancy Limits

A Washington, D.C. host running more than one short-term rental at the same address, say a spare bedroom plus an in-law suite, doesn't get a pass on occupancy caps. D.C. Code § 30-201.02(e) ties that permission directly to the occupancy limits already set by Title 11, Title 12, and Title 14 of the D.C. Municipal Regulations.

Key details: Governing provision: D.C. Code § 30-201.02(e). Occupancy limits come from: Title 11, 12, 14 DCMR. Enforcing agency: Dept. of Licensing and Consumer Protection. First violation penalty: $500 civil fine. Third violation penalty: $6,000 fine plus license revocation.

A host found in violation of § 30-201.02, which covers the occupancy-limit condition in subsection (e), faces a civil penalty under § 30-201.10: $500 for a first violation, $2,000 for a second, and $6,000 for a third violation along with revocation of the short-term rental license endorsement. The Mayor may adjust these dollar amounts by rulemaking.

Host Platform Liability

Airbnb, Vrbo, and other booking services operating in the District carry direct legal duties under D.C. Code § 30-201.08, not just the host. A booking service must verify a listing's license number, stop booking suspended units within 5 business days, and report every District transaction to DLCP, or face a $1,000 penalty per violating booking under § 30-201.10(b).

Key details: Governing section: D.C. Code § 30-201.08. Penalty per violation: $1,000 per violating booking transaction. Suspension response time: Must stop bookings within 5 business days. Reporting frequency: Monthly transaction report to DLCP. Record retention: 2 years of booking records required.

Each booking transaction that violates § 30-201.08, such as booking a suspended listing, exceeding the 90-night vacation-rental cap without a DLCP exemption notice, or failing to remit occupancy taxes, draws a separate $1,000 civil penalty under § 30-201.10(b). DLCP and the Office of the Chief Financial Officer both have authority to investigate booking-service violations under § 30-201.09(a)(4), and can refer cases to the Office of the Attorney General.

This is not one of those rules that cities tend to ignore. Washington actively enforces its host platform liability requirements.

Repeat Violator Strikes

DC hits a short-term rental host with escalating fines for repeat violations of the licensing and operating rules: $500 for a first offense, $2,000 for a second, and $6,000 plus revocation of the license endorsement for a third. D.C. Code § 30-201.10(a) applies this schedule to violations of §§ 30-201.02 and 30-201.06.

Key details: Governing section: D.C. Code § 30-201.10(a). First violation: $500 civil penalty. Second violation: $2,000 civil penalty. Third violation: $6,000 plus license endorsement revocation. Enforcing agency: Department of Licensing and Consumer Protection.

A first violation of § 30-201.02 or § 30-201.06 costs a host $500; a second costs $2,000; a third costs $6,000 and comes with automatic revocation of the short-term rental license endorsement under § 30-201.10(a). DLCP investigates suspected violations under § 30-201.09(a)(4) and can refer cases to the Office of the Attorney General under § 30-201.09(b).

Night Caps

A DC vacation rental, one where the host is not present and the guest gets the whole place, is capped at 90 cumulative nights per calendar year under D.C. Code § 30-201.06(e). Hosts who need more nights can apply to DLCP for a narrow exemption tied to work travel or a serious health condition.

Key details: Governing section: D.C. Code § 30-201.06(e). Night cap: 90 nights cumulatively per calendar year. Applies to: Vacation rentals only (host not present). Exemption grounds: Employer travel or serious health condition. Host penalty: $500 to $6,000 plus revocation, § 30-201.10(a).

Renting a vacation rental past the 90-night cap without an approved DLCP exemption violates § 30-201.06 and triggers the civil penalties in § 30-201.10(a): $500 for a first violation, $2,000 for a second, and $6,000 with revocation of the license endorsement for a third. A booking service that keeps booking past the cap without exemption notice from DLCP is separately liable for $1,000 per violating transaction under § 30-201.10(b).

Primary-Residence-Only Rule

A DC short-term rental can only operate at the host's primary residence. D.C. Code § 30-201.02(d) ties eligibility to the property that already qualifies for the homestead deduction under § 47-850, closing off the option of licensing an investment property or a second home as a short-term rental.

Key details: Governing section: D.C. Code § 30-201.02(d). Eligibility test: Property must qualify for the homestead deduction. Cross-referenced statute: D.C. Code § 47-850 (homestead deduction). Applies to: Both standard and vacation rental endorsements. Penalty for violation: $500 to $6,000 plus revocation, § 30-201.10(a).

Operating a short-term rental at a property that is not the host's homestead-eligible primary residence violates § 30-201.02(d) and exposes the host to the civil penalty schedule in § 30-201.10(a): $500 for a first violation, $2,000 for a second, and $6,000 with revocation of the license endorsement for a third.

Compared to other cities, Washington takes a harder line on primary-residence-only rule. The enforcement and penalty structure reflects that.

Short-Term Rental Permits

DC requires a license to operate any short-term rental under the Short-Term Rental Regulation Act of 2018 (D.C. Law 22-307, DC Code 30-201.01 et seq.). Two license types exist: Short-Term Rental (host present, unlimited nights) and Vacation Rental (host absent, max 90 nights per year). Only primary residences eligible for the Homestead Tax Deduction qualify.

Key details: Law: D.C. Law 22-307. Host Present: Unlimited nights. Host Absent: Max 90 nights/year. License Fee: $104.50 (2-year). Insurance: $250,000 minimum.

First violation: $250 fine. Second violation: $500. Third and subsequent: $1,000 each. Operating without a license subjects the host to all applicable penalties plus back taxes.

This is not one of those rules that cities tend to ignore. Washington actively enforces its short-term rental permits requirements.

Short-Term Rental Parking Rules

Guests of a DC vacation rental do not count as a 'resident's guest' for the Advisory Neighborhood Commission's annual visitor parking permit. D.C. Code § 30-201.02(f) blocks vacation-rental hosts and their transient guests from using the ANC visitor pass system under 18 DCMR § 2414.14, unlike a standard short-term rental where the host stays on site.

Key details: Governing section: D.C. Code § 30-201.02(f). Applies to: Vacation rentals only (host not present). Cross-referenced rule: 18 DCMR § 2414.14 (ANC visitor parking permit). Effect: Guest excluded from resident visitor-parking eligibility.

A vacation-rental guest who obtains or uses an ANC annual visitor parking permit under 18 DCMR § 2414.14 is not entitled to that status under D.C. Code § 30-201.02(f), and a host who misrepresents visitor-parking eligibility to guests risks a violation of § 30-201.02 and the resulting civil penalties in § 30-201.10(a), which run from $500 up to $6,000 with revocation for repeat offenses.

If you are coming from a city with tighter rules, you will find Washington gives residents more flexibility on short-term rental parking rules.

Taxes & Fees

DC imposes a 15.95% transient accommodations tax on all short-term rental stays, effective through March 30, 2027. Hosts must collect and remit this tax. The two-year STR license costs $104.50 through DLCP.

Key details: Transient Tax: 15.95%. Tax Period: Through March 30, 2027. License Fee: $104.50 (2-year). Insurance Required: $250,000 liability. Tax Authority: OTR.

Failure to collect or remit the transient accommodations tax may result in back taxes, interest, and penalties assessed by OTR. Operating without a license: fines starting at $250.

Compared to other cities, Washington takes a harder line on taxes & fees. The enforcement and penalty structure reflects that.

The Bottom Line

Washington is tougher than many cities when it comes to short-term rentals. Out of the 9 rules covered here, 4 are rated strict. If you are a homeowner, renter, or business owner in Washington, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Washington's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.