Tuesday, August 19, 2008

DC Rent Control Laws

Recently I have listed a 6 unit building in Dupont Circle with my associate Martha Williams, located at 1610 19th Street NW. We have many inquires regarding DC rent control laws. In DC, if a landlord owns more than 4 rental units, their units are subject to rent control.

Rent Control in DC is very complex, and here's my understanding-for an existing tenant, you can charge the current CPI (Consumer Price Index) plus 2%-but not more than 10% from year to year. The 2008 CPI is 3.4%. Therefore, for an existing tenant, the maximum increase on a lease renewal this year is 5.4%. So, if you are renting an apartment at $1000/month in DC and the unit is subject to rent control, your landlord can only increase your rent to $1054/month at the time of renewal.

If there is a vacant apartment, the landlord can go up on rent a little more. The maximum increase in rent is 10% from the previous tenant's rent or rent for a comparable unit not to exceed 30%. A comparable unit is defined as same square footage and floor plan, location, and height in the building. Rent can only increase once in a 12 month cycle-even if the apartment is vacant more than once a year.

There are a few exceptions to the rule, but they become more complicated. For an overview on DC rent control laws, go to http://ota.dc.gov/ota/cwp/view.asp?a=3&q=573352&otaNav=33325

For more information on the 6 unit for sale in Dupont, including all of the cash flow statements, Certificate of Occupancy and Rent Roll, go to www.DupontInvestment.com

Thanks!
Rachel

Sphere: Related Content

1 comment:

Nicole said...

THanks for the info!