Background
Yarmouth Management is a privately owned small business that has been specializing in renting and managing residential properties on Capitol Hill since 1981. Our staff of a dozen includes agents who show properties; application processing specialists; maintenance managers who oversee the licensed, bonded contractors who care for the properties we manage; financial staff who process income and expenses and report to property owners; a computer specialist who maintains this Web site and our e-mail list; and the president who is the primary liaison with property owners.
Services
If you are an owner of properties on Capitol Hill who needs assistance in finding the right tenant for your property or if you need our complete property management services, contact us at 202-547-3511 or by email.
If you want us to RENT YOUR PROPERTY, we will visit it, give you an estimate of an accurate rental price based upon our years of experience, and will advertise the property for rent, including any preferences you may have relating to pets, smokers, etc. This includes listing it on this Web site, sending it by e-mail to an extensive list of clients who have specifically asked to be on this list, promoting it on Craigslist and a number of other web-based promotion tools, and handing out copies to individuals who visit our office. All of these recipients are your primary targets.
Our agents will show the property to clients from whom we have gotten identification; no lock boxes, no property visits without a Yarmouth staff member, no unannounced visits. Often we are able to find applicants within a few days.
When clients apply for a property, we get a signed application for each adult who will live at the property, which includes information about their identification, their rental history, and their current and past employment. All of this is checked individually, along with their credit histories. Applicants who meet our standards are presented to you for choice.
When you have chosen the applicants, we prepare a lease developed over years in the business that covers all eventualities. Applicants have 24 hours to sign the lease and give us a security deposit equal to one month’s rent, which holds the property for them until they move in. We also give new tenants a move-in package to assure that they will take care of utility accounts, have all of the legal documents required by the Federal and District governments, and that they will keep your repair costs to a minimum.
On the day the new tenants move in, they bring us certified funds for the first month’s rent. We give them the keys and a signed copy of the lease, and answer any last minute questions. Within days, you will have your first income from the rental.
If you decide to have us MANAGE THE PROPERTY, we will receive rents monthly, pay all bills you specify, and reply to maintenance requests, making minor repairs without bothering you. If repairs are major, you will be consulted, no matter where you are in the world. And we will assure that you get the best prices, along with quality service, for these repairs. We will also keep you up to date on the latest laws that might affect you.
Every month you will receive a statement of income and expenses. Your income can be deposited directly into your bank account.
You will also have access to an online owner portal, which allows owners to see real-time property data. This includes rent payments, bills, and occupancy details. Owners can customize their Real-Time Dashboard to create a unique viewing experience. If you are the owner of a Yarmouth Managed property, you can access your online owner portal here.
We’ll treat you like a neighbor – which you are – even if you are on the other side of the world.
And either way, you will need to have the District of Columbia Basic Business License.
Additional Information
Before you rent a property, you should always seek the expertise of an attorney and an accountant who can advise you on legal and tax liabilities. The information here is a non specific overview that can’t possibly be tailored to every unique tax situation. Yarmouth Management is not a law firm or tax firm and does not provide legal or tax advice. That being said, there are 3 tax forms that come up: cancelling homestead deduction and filing forms for franchise tax and personal property tax.
Cancel Homestead Tax Credit
You already know that you have to pay property taxes. But maybe you didn’t know this: If your rental property was your primary residence but it no longer is, and you have a Homestead Exemption on that property, then you must cancel the exemption. The cancellation does not happen automatically when you apply for a rental license. Failure to remove the exemption can result in you getting stiff penalties plus having to pay back the credit you received. And remember – when you remove the exemption, the taxable assessment (value) of your property will go up & increase in your property tax bill.
Franchise tax
Renting out property in D.C. is considered a business and thus requires a District of Columbia Basic Business License. The rental income that you receive is considered business income. Even if you are not a D.C. resident, and you file taxes in another state or foreign national that does not normally file taxes in the U.S., you are still obligated to pay D.C.’s franchise tax and follow its reporting requirements.
If the property owner/licensee holder is a sole proprietor, trust, or any business entity that is not a corporation, you will be subject to an unincorporated business franchise tax. This means you are required to file a D-30 tax return with the Office of Tax and Revenue (OTR).
If you (the owner/licensee holder) are a corporation, you will be subject to a corporate franchise tax. This means you are required to file a D-20 tax return with the OTR.
Personal property tax
In many cases, as part of your tax registration, OTR will automatically register you (or your business entity) for a personal property tax return. This tax is levied once per year, requires the filing of an FP-31, and is due by July 31st. According to the DC Office of Tax and Revenue, individuals, corporations, partnerships, executors, administrators, guardians, receivers, and trustees that own or hold personal property trust in DC must file a personal property tax return. In the event that you do not have $225,000 worth of personal property, you will likely have no tax due. Note: Even if you do not have a tax liability, you must still file a personal property tax return (FP-31), which is due annually by July 31.