If you have a home in Washington, DC with a basement, you might be tempted to rent it out. If you’re just using the space for storage or it’s sitting empty, why not take the opportunity to make some extra cash, right?
Not so fast. Renting out your basement without going through the proper channels would mean you have an illegal rental. For some people, their basement will be up to code, meaning it meets all the safety requirements to be rented out. For others, they may be some roadblocks before getting approval to rent out their basement.
So is your basement legal to rent out in DC? Here’s what you need to know from our property managers at FAS!
What You Need to Legally Rent Out Your Basement
To legally rent out your basement apartment in DC, you’ll need two things:
- Basic Business License (BBL). This is a document that basically ensures the safety of both you and your renter by giving you the right to do business (yes, even if you’re just operating as a landlord in your own home!).
- Certificate of Occupancy. This is a document that verifies your unit is safe for renting. To obtain this certificate, you’ll need to have your basement pass inspection; otherwise, your rental will be considered illegal. You must have a Certificate of Occupancy before you can get a BBL.
To pass inspection, your basement apartment will need a few things. First, the ceilings will need to be at least seven feet high (for habitable spaces), have two ways of safely exiting the apartment, and have separate heating and cooling.
As you can see, renting your basement in DC isn’t quite as simple as giving it a new coat of paint and putting an ad online!
Is There a Penalty for Not Having a Legal Apartment?
Despite DC regulations, many homeowners choose to rent out their basements without going through the proper channels. For tenants, this is a safety issue—not having more than one way to exit the apartment can be deadly in an accident such as a flood or fire. For landlords, this is a legal issue, and they risk being sued by their tenants should something happen, and they can see fines of several thousand dollars.
While some homeowners feel they don’t need to have their basement apartment up to code, if reported by neighbors or your tenants, you can face repercussions and if you want to keep renting out your basement, you may need to make some renovations.
Renovations You May Need to Plan for
Not every homeowner wanting to rent out their basement will need to make renovations. However, for many with older basements, there could be significant issues preventing you from making it a separate income-producing residence. For example, older basements with ceiling heights lower than seven feet will need to be raised up, which can get expensive.
For others, making a separate entrance or an additional egress in addition to the main door may not be a big issue. For others still, their unit may be up to code but they may need renovations to better appeal to renters, such as new flooring and appliances. These are all things to think about before renting out your basement in DC!
Get Your Basement Apartment Ready to Rent With Us!
Basement apartments are an excellent way for homeowners in DC to make additional income. And, since basement apartments are cheaper than traditional rentals, tenants love their affordability. However, while renting out your basement can be a win-win for everyone, ensuring your unit is up to code makes the most sense for both you and your renter. Is your basement apartment ready to rent? Let our professional property management team help you through the process at FAS Management. Call us at (202) 337-5080 today!
