In Washington D.C., owners who are renting out part or all of their residential property must obtain a Basic Business License, or “BBL.” This includes simply renting out a room in your home.
The city government does not consider the rental a legal business without one. One of the main reasons, which may be obvious, is to protect occupants by ensuring that all landlords adhere to the housing code regulations and that they are providing safe and habitable dwellings.
Possessing an active business license also helps landlords protect their rights and interests when dealing with their tenants, particularly if they need to go to court.
Various local companies, such as a business license “concierge” service or a residential property management company offer support to landlords to get their business license.