HOA rental restrictions in Maryland: Everything you need to know

Can HOAs restrict rentals in Maryland?

Yes, most Maryland HOAs can limit or regulate rentals, but only if those restrictions are outlined in the association’s governing documents. Maryland HOA laws typically allow rental restrictions when they help protect the community’s long-term interests, but boards must follow the process laid out in their declaration, bylaws, and rules and regulations. In many cases, adding or changing rental restrictions requires a membership vote. Any new rules must also comply with state and federal housing laws and be applied consistently to avoid claims of unfair treatment.

If your board is considering HOA rental restrictions, it’s important to start with your governing documents and consult your association’s attorney. Taking the time to follow the right process helps protect your association from legal risk and keeps your community’s goals at the center of the conversation.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Common rental restrictions

Many Maryland HOAs include rental restrictions to help protect property values and support long-term community stability. Some of the most common policies address:

• Rental caps: Boards may limit how many homes in the community can be rented at one time. For example, a governing document might cap rentals at 20% of all homes.
   
• Minimum lease terms: To discourage short stays, many communities require leases to be at least 30 days. This can help maintain a sense of consistency for neighbors.
   
• Owner-occupancy periods: Some associations require owners to live in their unit for a set period (such as 12 months) before renting it out. This limits investor-owned rentals and encourages resident involvement.
   
• Tenant registration and lease reporting: Many boards require owners to share a copy of the lease and tenant contact information to help the association stay informed and connected with all residents.
   
• Tenant screening procedures: Some communities adopt screening processes like background checks or income verification. These must be applied consistently and comply with fair housing laws.
   
• Short-term rental restrictions: To align with local laws or protect community values, some HOAs restrict or ban rentals through platforms like Airbnb or Vrbo.

The right approach depends on your community’s goals and must always be reflected in your governing documents.
 

Legal considerations

Rental restrictions must be clearly written into your association’s governing documents. Many unenforceable HOA rules arise because the board didn’t follow the proper process for adopting them. Before making changes, your board should consult with your association’s attorney to confirm compliance with:

• The Maryland Homeowners Association Act
   
• The federal Fair Housing Act and Maryland Fair Housing laws
   
• Local zoning ordinances and rental registration laws

In some cases, existing rental arrangements may need to be grandfathered in, meaning current landlords may continue renting under the terms of their existing leases even if new restrictions apply to future rentals. No matter the approach, rental restrictions must be applied fairly and consistently. Selective enforcement opens the door to disputes and legal challenges, while clear processes and board accountability help reduce that risk.
 

How to adopt HOA rental restrictions in Maryland

Most Maryland HOAs adopt rental restrictions by amending their governing documents. This usually requires a vote of the full membership. The process generally looks like this:

1. The board works with legal counsel to draft the proposed amendment.
    
2. Homeowners receive notice and the proposed language in advance of the vote.
    
3. A community-wide vote is held, following the quorum and approval rules outlined in your bylaws or declaration.
    
4. If the amendment passes, the board records it in the county land records.

Because this process changes your governing documents, it’s critical to work closely with your attorney and HOA management company to follow the right legal steps and communicate clearly with homeowners.
 

Do Maryland HOA rental restrictions apply to short-term rentals?

Yes, Maryland HOA rental restrictions can apply to short-term rentals, but only if your governing documents say so. Some associations ban rentals under a certain number of days, while others specifically prohibit short-term rental platforms like Airbnb, Vrbo, or Booking.com. If your board wants to regulate short-term rentals, it’s important to define what counts as a short-term rental in your governing documents and work with your attorney to draft clear language. You'll also want to verify that your rules align with local requirements. Cities like Ocean City and Baltimore have their own short-term rental laws and licensing rules, which apply alongside your HOA’s restrictions. Clear, enforceable guidelines can help protect your community and give homeowners clarity on what’s allowed.
 

Benefits of HOA rental restrictions in Maryland

When thoughtfully written and consistently applied, HOA rental restrictions in Maryland can help protect your community’s long-term interests. Some of the most common benefits include:

• Supporting property values by reducing frequent turnover and absentee ownership, which can make a community feel less stable.
   
• Helping control insurance costs, since some carriers offer better rates to communities with lower rental percentages and consistent occupancy.
   
• Encouraging resident engagement, as owners who live in the community often participate more actively in HOA meetings, elections, and community improvements.
   
• Promoting long-term stability by creating an environment where more neighbors know one another and take shared responsibility for the community’s success.

These benefits should be carefully balanced against individual homeowner rights. Boards should always work with legal counsel and their management partner to draft rental restrictions that comply with Maryland law and reflect the community’s goals.
 

How FirstService Residential can help

Navigating rental restrictions can be complex, especially when your board wants policies that are fair, enforceable, and aligned with your community’s goals. At FirstService Residential, we partner with Maryland HOA boards to simplify the process, providing expert guidance every step of the way. From reviewing your governing documents to collaborating with your association attorney and communicating changes to your homeowners, we can help your board create rental policies that protect property values and reflect your community’s vision.

Ready to simplify your board’s responsibilities and support your community’s success? Contact our team today to learn how our property management experts can help.