I am getting ready to close on a property in the Washington DC area specifically the Petworth. The goal is to use this as a short term rental for the first year and then afterwards do longterm rental. I wanted to know if anyone has had experience working in this area. I've been doing research on rents in the DC area and it's pretty pricy so I was hoping to set my rent slightly below this to draw renters. Would love to hear what others thoughts/experiences are?
I used to live in Petworth, great area, what cross streets?
If the market can bear it, why lower your rents unless your unit isn’t comparable?
Lastly, what do you mean by short term rentals?
Specific location, proximity to metro, and of course condition is also worth considering when determining comparable rental rates-
@Temi Olufotebi congrats on the purchase!
What kind of asset in Petworth? Condo? Single Family? I wouldn't personally try to price it below market just to get a tenant. Price it accordingly to market and get the RIGHT tenant.
@Cassidy Burns it's a 2 bed 2 bathroom condo. And thank you for that advice I will definitely take that in consideration. Finding the right tenant is always the goal
@Marian Huish It's a newly rennovated 2 bedroom 2 bath condo that 1.5 miles from petworth-georgia ave metro so I was hoping this will be an attractive location for possible tenants.
@Justin Lanciault Did you enjoy living there? And did you own property there? When I refer to short term rentals I moreso refer to Airbnbs.
@Temi Olufotebi I did enjoy living there. I was on the top of the hill, near Lincoln’s Cottage, not that close to the metro. Sounds like you have a great location.
Reason I ask about the short term rentals is the new rules that just went into affect. Are you up to date on the new rules?
Hey @Justin Lanciault I was reading up on the rules a couple weeks ago. Yes it does suck for myself who was planning to use as short term rental for the near future. But I think I'm covered because I travel a lot for work related purposes so I hope I'm exempt from the 90 day cap (TBD not sure). But once I get acclimated it will be simply for long term rentals.
DC is changing right before our eyes and I definitely just had to jump into the market before it got out of hand.
So you are owner occupying?
A) does the condo allow short term rentals? Very few in the metro area do.
B) Are you familiar with the restrictions placed on short term rentals with the new law?
@Justin Lanciault yes owner occupying for forseeable future. I figure to make some adjustments while I'm there and once it's complete have it ready for tenants.
@Russell Brazil yes I'm aware. I still have to assess how it will work for an individual like myself as I believe the current cap is 90 days without owner on site but it can be increased for individuals who travel frequently. I do believe that it will be better to do long term rental however due to hassle of acquiring required licenses.