What are Maryland short-term rentals? A guide to laws, restrictions, and guidelines

What is a short-term rental?

In Maryland, a short-term rental is typically defined as the rental of an entire home or a unit/room in a single-family home, apartment, or condominium that is available for rent for less than 30 consecutive days. Local rules and definitions vary, so it’s important to confirm your city’s definition.
 

Short-term rentals vs. long-term rentals

Short-term rentals typically last less than 30 days, while long-term rentals usually involve a lease of 30 days or more. Long-term rentals are generally treated differently and are usually governed more by standard landlord-tenant, zoning, and local rental licensing requirements than by hotel tax rules.
 

Can HOAs restrict rentals?

Yes, Maryland HOAs can often restrict or prohibit short-term and long-term rentals through their governing documents.
 

Where to find your association’s rental rules

Before you list a home, confirm what your association’s governing documents actually say. If you are not sure what applies, you can review the resale package you received at closing. For the most up-to-date documents, request a copy of your governing documents through your board or community manager.

FirstService Residential Connect™ makes this easier for homeowners and board members with secure access to community information, including posted association documents, notices, and records through an interactive community website and mobile options.
 

What happens if someone violates the rules?

Most communities start with a written compliance notice to the owner and may also notify the occupant if the association has their information. If the activity continues, the next step is usually a clearer demand to stop and a timeline to comply, supported by documentation like concierge logs, fob audit information, elevator bookings, or confirmed listings.

If it still does not stop, the HOA typically escalates through its formal enforcement process, which may include letters from legal counsel, cost recovery where appropriate, and an application to court for a compliance order in more serious cases. Consistent enforcement is critical to avoid creating unenforceable rules.
 

Common short-term rental restrictions

Even when a community does not fully ban rentals, it may control them by:

• Minimum lease term requirements (e.g., 6 to 12 months)
   
• Requiring owners to provide tenant/guest contact details and a local emergency contact
   
• Requiring registration of renters/occupants and vehicle info for parking rule compliance
   
• Restricting amenity access for non-residents or limiting guest passes
   
• Enforcing occupancy caps, noise rules, trash rules, and pet rules
   
• Requiring quiet hours and complaint response procedures

Learn more in our guide to HOA rental restrictions in Maryland.
 

Statewide short-term rental taxes

Rentals of less than 30 days are generally subject to Maryland sales and use tax and may also be subject to local hotel, room rental, or occupancy taxes, depending on the jurisdiction. If you do not exclusively use a third-party booking site like Airbnb, or if your third-party broker does not collect and remit applicable taxes, you generally must register for the appropriate state and/or local tax account(s).
 

Local laws to know in Maryland

• Baltimore: Requires a short-term residential rental license from the Housing Commissioner. Baltimore also requires the property to be the host’s principal residence, and the license expires every two years.
   
• Montgomery County: Short-term residential rentals are licensed through the County. Applicants are directed to obtain a Maryland sales and use tax registration number and apply for the County’s room rental/transient tax. The short-term residential rental license fee is $500, and licenses are valid for 12 months.
   
• Annapolis: Short-term rentals require a city license. The license costs $400 per year and must be renewed every year. One renter cannot stay for more than 90 days in a row, and the license holder must either live in Annapolis or hire a local property manager with a city home or office.
   
• Ocean City: If you intend to rent your residential property for any length of time, you need an annual rental license and noise control permit.
   
• Prince George’s County: Short-term rental licenses are processed online through the Department of Permitting, Inspections, and Enforcement (DPIE). The property generally must be the host’s permanent residence, and the county requires items such as liability insurance, posted emergency contact information, and neighbor and HOA notification as part of the licensing process.

Insurance and liability

Short-term and long-term rentals can change the risk profile of a home. Owners should confirm, in writing, whether their homeowner’s insurance covers rental activity, and whether an endorsement or commercial coverage is needed.

From the association side, repeated rental activity can also increase claims exposure and operational risk in common areas (pool, clubhouse, parking), which is why Maryland boards often treat this as a safety and liability issue, not just a rules issue.

FirstService Residential clients can also tap our affiliate, FS Insurance Brokers, which combines insurance expertise with property management insight. Their licensed professionals help communities evaluate coverage, improve risk planning, and advocate through the insurance process, often with an eye toward enhancing coverage while keeping premiums competitive.
 

How an HOA management company can help

A strong community manager helps boards handle rental pressure points in a way that is organized and consistent. That includes tracking what the governing documents actually say, standardizing violation documentation, coordinating vendor workflows, and supporting compliance with Maryland and local requirements where applicable.

Management can also help the board stay proactive by identifying trends (noise calls, parking issues, amenity misuse), tightening procedures where allowed (amenity access policies, guest parking controls), and coordinating with legal counsel when needed.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential serves Maryland communities with local expertise backed by national resources. Our teams support board members with running meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.

With over 25 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence.

To learn how we can support your association, contact our Maryland team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.