Owning a rental property can provide you with extra income and, over time, become a sustainable investment. However, while owning an income property can offer monetary benefits, being a landlord requires time and commitment.
If you’re a first-time landlord in the nation’s capital, it’s natural that you’ll make a few mistakes over time as you learn and become more experienced. Let us help you prevent some common mistakes: read on to learn more about the three top slips first-time landlords in DC make!
1. Not Making the Unit Legal
It’s not uncommon for some rental units in DC to be illegal. Illegal units are those that don’t meet building code requirements for safety. Even if it’s just the basement of your home, your rental property needs to be licensed.
You’ll need to have a Basic Business License (BBL) as a landlord, and the rental property will also need what’s called a Certificate of Occupancy (COO). To get a Certificate of Occupancy, you’ll need to pay a fee and fill out an application from the Department of Consumer and Regulatory Affairs (DCRA). DCRA will review the application and decide if the unit is habitable for rental use.
The rental space will need to meet building zone requirements, including those for ceiling height, which needs to be a minimum of six feet eight inches in non-habitable rooms and seven feet in habitable rooms.
2. Not Screening Your Tenants Properly
Screening your tenants is one of the most important practices you can do as a landlord to protect your investment.
First-time landlords typically don’t have a process for sifting through rental applications and verifying tenant information, which can lead to a subpar tenant who ends up breaking the lease early or neglecting the unit.
As part of your tenant screening process, you must:
- Verify the potential tenant’s income
- Check the tenant’s employment history
- Do a credit and criminal background check
- Follow up with references and rental history
Even after verifying their information and checking that the tenant will be a good fit for your property, don’t give the tenant keys until they have signed the lease. And don’t forget to collect the security deposit as well as the first month’s rent before doing so!
3. Not Addressing Repairs Promptly
If this is your first income property, you may not have a maintenance or inspection schedule yet. Your responsibilities as a DC landlord can quickly get overwhelming, and you may not realize that you’ve let certain repairs go until the tenants complain.
Addressing repairs and maintenance as soon as possible helps prevent larger problems at your income property and keeps tenants happier. Make a schedule for regular inspections to identify potential repairs or maintenance, and be sure to establish a system for following up with tenant requests for maintenance so you can check the item off when it’s done.
Are You a Landlord in DC?
If you’re a first-time landlord in DC, it’s normal to make mistakes from time to time. However, if you’re getting overwhelmed with your responsibilities, it could be time to consider hiring a property management company. Contact FAS Management to learn how we can take over some or all of your rental property duties to keep your investment running smoothly. Call us at (202) 337-5080 today!
