D.C. offers some of the most extensive programs for down payment assistance that are managed by the Greater Washington Urban League and the DC Housing Finance Authority, for programs like HPAP and EAHP (Home Purchase Assistance Program and Employer Assisted Housing Program). 

The District also offers the DC Opens Doors Program. All of these are great examples of offerings to help first-time or newer home purchasers to afford buying in the District of Columbia, one of the nation’s most expensive housing markets. 

There are various requirements for a buyer to use the program. These can be found at dhcd.dc.gov/service/homeownership. Many qualified local lenders are knowledgeable about these programs and can assist in dozens of these transactions each year. Often, asking a lender about these programs is a great place to start. Tina Del Casale with Sandy Spring Bank has been helping her clients with these programs for years. As part of her education outreach for clients, Tina informs her buyers of the following:

• In the HPAP and the EAHP program, the seller must provide the opportunity for the buyer to perform a home inspection with a qualified home inspector.  
• The items that are flagged as “must repairs” need to be fixed by the seller.  
• The buyer must get their financial documentation to the lenders involved, as well as to the District of Columbia to be approved to use the program.  
• Whichever organization or department is managing the down payment assistance fund disbursal will also be involved in the process. 
• Ideally, it takes about 45-60 days from the date of ratification (going under contract) to close (the settlement date) 
• The lenders help to qualify/approve the condo buildings for financial health, ensuring that the finances within the building are being maintained by the homeowner association.

What happens, often, is that the process goes smoothly until the organization that manages the down payment assistance funds receives the file. The closing date can be extended time and time again, causing both the buyer and the seller to recalculate moving dates, moving trucks, packing, when to move funds around, whose home they will be sleeping at after the 3^rd or 4^th delay, and wondering if the seller is going to become so agitated with the entire process that they begin to Google search the term “small claims court.” In a recent instance, the buyer was delayed about four times over the holidays and when the file was ready to close, they were informed that the settlement had to be the following day. So, it was a situation of delay, delay, delay, delay, delay, delay, delay, and do this NOW, which means a buyer must coordinate (for the maybe 3^rd time) a day off of work and recalculate their entire schedule at the last second to accommodate an organization that seems to have made few efforts to stay in communication along the way.

These delays make the buyer less competitive to win an offer and can make a planned purchase fail due to the failure of the buyer to perform. Nobody wants to be told their house will sell and then must make alternative plans when they realize the contract is not going through, OR there will be a significant delay by up to one to three months. 

How can we make this process more user friendly? If we could, developers might be more motivated to make affordable housing units available for more people, knowing that the process of selling a unit won’t cause interminable delays and headaches for all parties involved.  Buyers must be fully vetted financially before submitting an offer. Is there a way to fully vet the down payment assistance funds, that they arrive in escrow at the title company a week or two before settlement so that all parties can plan their lives accordingly? 

Self-awareness as an organization is crucial for knowing where blind spots exist, how they can be looked at, and how a decent process can be improved to fulfill its own goal of helping buyers get into homeownership. Perhaps an exit interview or feedback form could be sent to each buyer after purchase and looked at for suggestions for improvement.

Joseph Hudson is a referral agent with Metro Referrals. Reach him at 703-587-0597 or [email protected].

I recently returned from cruising through the Caribbean, just in time to experience the last vestiges of a snowstorm and 15-degree weather, coupled with a plethora of angry people wearing red hats, absent-mindedly riding around in circles on the Metro. No matter – I still have that post-vacation glow.

The Caribbean, a diverse region of 13 independent countries, 12 dependencies, and seven overseas territories, has long been a dream destination for travelers, retirees, and investors alike. With its crystal-clear waters, pristine beaches, and relaxed lifestyle, it’s no wonder that many people are drawn to the idea of owning property in this tropical paradise.

Buying real estate in the Caribbean requires careful planning, research, and an understanding of the unique challenges and opportunities that come with investing in a foreign market. Selecting the right island and community is a critical step in the buying process.

Consider such factors as:

• Accessibility: Proximity to major airports and ease of travel
• Infrastructure: Availability of roads, utilities, and amenities such as internet and streaming services
• Safety and security: Crime rates and political stability
• Climate and weather risks: Susceptibility to hurricanes and natural disasters
• Healthcare: Quality and availability of medical services

Property prices and inventory vary widely across the region. Each Caribbean nation has its own rules regarding foreign ownership of property. Some countries have relatively open markets where foreigners can buy land freely. Others, such as the Bahamas, require special permits for non-residents purchasing property above a certain value.

It is essential to work with a reputable local attorney to navigate the legal requirements, including landownership laws and restrictions, residency and citizenship options, property taxes and fees, and title searches and due diligence.

Some islands, like Barbados and the Cayman Islands, offer residency permits for property owners who meet specific financial criteria. These programs can provide tax benefits, visa-free travel, long-term residency rights, and in some cases, top-tier medical facilities, including private hospitals and specialized care centers. 

Moreover, Antigua & Barbuda, Dominica, Grenada, St. Kitts, and St. Lucia offer a Citizenship by Investment (CBI) program for property buyers: In some cases, citizenship will grant you visa-free access to more than 150 countries. While the costs fluctuate depending on the country, the process can be completed in as little as 7-12 months. 

As you can imagine, there has been a surge of inquiries from the U.S. since last fall, so it would be wise to confirm the most recent amount and type of minimum investment required. You can find helpful information from the company La Vida at  goldenvisas.com.

Many buyers in the Caribbean look to generate income through vacation rentals or long-term leasing. Islands with strong tourism demand, such as Aruba, the Bahamas, and St. Lucia, offer excellent rental potential. 

Working with a reputable property management company can help maximize rental income and ensure smooth operations; however, investors should consider seasonal fluctuations in tourism, property management costs, and local regulations on short-term rentals in determining their return on investment before committing to a purchase. 

As in the U.S., buying property in the Caribbean comes with additional costs beyond the purchase price. These may include legal fees (typically 1-3% of the purchase price), stamp duties and transfer taxes that vary by country, real estate agent compensation, property insurance, and maintenance costs.

Financing can be a challenge for foreign buyers, as many Caribbean banks require substantial down payments or have stringent lending criteria. Some investors choose to secure financing from their home country or pay in cash.

Nonetheless, expatriates living in the Caribbean often benefit from a lower cost of living, warm climate, and relaxed lifestyle. Many islands have well-established expat communities, making it easier to adjust to life abroad. As you begin your journey, it is recommended that you secure health insurance that covers medical treatment in both the Caribbean and your home country.

To successfully purchase property in the Caribbean, research and choose your preferred island based on your budget, lifestyle, and investment goals. Work with a local real estate agent who understands the market and legal requirements and, if applicable, speaks the appropriate language. Hire an attorney to conduct a title search, review contracts, and ensure compliance with local laws. Negotiate the purchase price and sign a sales agreement. Secure financing (if needed) and transfer funds. 

Once you have completed additional legal requirements such as obtaining permits, paying taxes, and registering the property, you might consider rental or management options if you are not living there full-time.

But if the Caribbean is to be your home away from home for at least a few years, turn off the news, stick an umbrella in your favorite frothy adult beverage, and lean into island living. 

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs. 

The short-term rental landscape in Washington, D.C., has undergone significant transformation in recent years, driven by the dual market shocks of a pandemic and changing regulations. In addition, consumer preferences have been evolving. 

At the forefront of this shift is Charlotte Perry, owner of LUXbnb, who has been in this business for 14 years. Her experience and adaptability have helped her not only to survive, but also to thrive in the furnished rental market. I sat down with Charlotte to discuss her insights on mid-term rentals, the impact of recent regulations, and her strategies for success.

Scott: Charlotte, thank you for joining me in this discussion. You’ve been in the short-term rental business for over a decade. How have you seen the landscape change in recent years, particularly with the implementation of new regulations?

Charlotte Perry:  Yes, the market has definitely evolved, especially with the pandemic and restrictions on short-term rentals. I used to have greater than 80% of my revenue coming from Airbnb and VRBO, but in recent years, both platforms now account for roughly 25% of my rental revenue.

The shift has been dramatic, especially with the rise of mid-term rentals.

Scott: How did the pandemic impact your business?

Charlotte: The pandemic was tough, I lost 35% of my managed portfolio. All were one-bedroom units in multi-unit buildings. Travel came to a halt, and the few people moving around at that time were not willing to share common areas like lobbies and stairways. But the return of U.S. Foreign Service personnel from our embassies to Washington helped stabilize occupancy. The pandemic also forced me to reevaluate all aspects of the business and become lean and efficient. Despite losing those accounts, my revenue declined marginally in 2020 and then in 2021 and 2022 actually surpassed pre-pandemic results. 

Scott: That’s quite a recovery. The short-term rental regulations that went into effect in 2022 must have added another layer of complexity. How have you navigated those changes? 

Charlotte: The regulations that were passed in October 2018 and enforced in January 2022 were a significant market shock. The new rules require short-term rental properties to be licensed and only owner-occupied primary residences qualify. This reduced my short-term rental inventory by 75%. More critically, it also reduced the total available short-term rental inventory in D.C. across VRBO and Airbnb, the two main booking platforms. I focused right away on growing my mid-term and long-term rentals in response. The rapid shift in how people travel, along with remote work trends fueled by the pandemic, helped me in ramping up quickly.

Scott: Speaking of mid-term rentals, how do you define that market, and why do you think it’s growing?

Charlotte: Mid-term rentals are stays between one and 12 months, and they’ve grown in popularity due to the flexibility that remote work offers. People can now work from anywhere, and many are choosing to spend a few months in different cities to try out new lifestyles. This demand has been further fueled by a parallel trend in vacations. I see retirees coming to D.C. for a month rather than a week.  

Demand for multi-month rentals also comes from the fact that we are the nation’s capital so we have many different renters cycling through: federal government personnel, politicians, students on government internships, government contractors, our foreign service and military. In addition to our federal government, D.C. has a strong network of museums, medical centers, universities, NGOs, and international organizations, all of which bring in staff for several months at a time.

Scott: It sounds like adapting to this trend has been key to your success. What have you done to meet the needs of mid-term renters?

Charlotte: My main shifts have been focusing on the needs of longer stays, i.e, a separate workspace, a more complete kitchen set-up, clothing storage, improving appeal, and listening and responding to changing customer needs. Location will always be important, however the set-up and appeal of the property are equally important. I want my guests to feel comfortable and at home the moment they arrive.

Scott: How do you approach pricing, given the changes in demand and market conditions?

Charlotte: I use sophisticated software to analyze market demand and adjust the rental rates. After 14 years in business, I know the cyclical demands for rentals in  D.C.. I raise prices for last-minute bookings or high-demand periods like holidays and events. At other times, I may start with lower prices to build up occupancy, then gradually increase the rates as the property gains more visibility. It’s about being flexible and responding to the market.

Scott: What about the new regulations—how have they impacted your business?

Charlotte: The new regulations did significantly impact my inventory, as I mentioned earlier. But the mid-term rental demand has been strong. In fact, business has been growing steadily since 2020. People warned me that my business would collapse, but it’s been quite the opposite. I’ve adapted, and LUXbnb is thriving.

Scott: What other opportunities have you found in the current market?

Charlotte: I work with Realtors, because a temporary turn-key rental is often needed in the buying and selling process. When relocating to D.C. buyers appreciate a soft landing in a turn-key rental. It gives them time to explore neighborhoods and schools and look for the perfect home. Likewise, sellers too appreciate the flexibility of a turn-key temporary rental while they decide their next move. Another major opportunity has been the demand from homeowners who are renovating and need to vacate during construction.

Scott: You’ve also diversified your marketing platforms. Can you speak to that for our readers?

Charlotte: Yes, the first thing I did was make changes to my own website to ensure visitors knew LUXbnb handled furnished rentals for any length of stay, from 3 nights to 3 years. Additionally, while Airbnb and VRBO are important, I’ve found success using platforms for mid- and long-term rentals along with niche platforms like Furnished Finders and Sabbatical Homes. Depending on the property and its location, I’ll choose the platforms that best match my and my owners’ goals for the property, and the renters we are looking for. This has allowed me to reach a wider pool of potential renters and not rely on any one platform.

Scott: Compliance with local regulations is critical in this market. How do you manage that aspect?

Charlotte: Compliance is key, and I always make sure my properties are fully licensed with the various licenses that D.C. issues (short-term rental, vacation rental, single-family rental). Sometimes a property needs all three. Additionally, for all rental durations under 91 nights, we collect the 15.95% sales and use tax, and remit that monthly to the Office of Tax and Revenue. It’s an essential part of doing business here, and staying compliant keeps everything running smoothly.

Scott: You’ve also explored opportunities outside of  D.C. How has that experience been?

Charlotte: Yes, we have the infrastructure in place to expand in two directions. The first is Maryland, Virginia, and Delaware vacation homes. I am seeing good consistent demand with our pilot, so we plan to ramp this up. 

Scott: It sounds like you’ve built a resilient and adaptable business. Do you have any final thoughts on the future of the short-term and mid-term rental markets?

Charlotte: The rental landscape is always changing, but we know the mid-term rental market will continue to grow. We are riding the wave of market changes driven by societal shifts in how people work and travel. The demand for flexible, high-quality housing is only increasing. For now, I’m focused on providing the best possible experience for my renters and staying ahead of the market trends.

Scott: Charlotte, thank you so much for sharing your insights. Your expertise and adaptability have clearly positioned LUXbnb as a leader in this space. 

Charlotte: Thank you, Scott, it’s been a pleasure partnering with Columbia Property Management. I’m excited about the opportunities ahead for both of our businesses, furnished rentals at LUXbnb and unfurnished property management through CPM.

As Charlotte’s experience with LUXbnb shows, the mid-term rental market in Washington, D.C., offers incredible opportunities for landlords who can navigate the new regulatory landscape. With the right strategies and partnerships, there’s plenty of room for success in this growing segment.

For more information about short to mid-term rentals, LUXbnb and Charlotte Perry, please visit luxbnb.com.

Scott Bloom is owner and senior property manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.