Short Term Rentals Now OK in Montgomery County, Maryland

Short term daily and weekly rentals are now allowed in all residential areas of Montgomery County, Maryland, beginning July 1, 2018.

Previously, no residential rentals were permitted in Montgomery County for less than 30 days.  Faced with widespread illegal daily and weekly rentals, the County Council passed legislation in October, 2017 to allow these rentals where the property is the primary residence of the owner or owner-authorized resident of the rental property. However, condominiums, homeowner associations and housing cooperatives are still allowed to ban or restrict short term rentals

Unless the rental is limited by the governing documents of the condo, HOA or co-op, a home can be used for a short term rental for up to 120 days in a calendar year where the owner or authorized resident is not physically occupying the residence during the rental stay.  There is no limit on the number of days the home can be used for a short term rental where the owner or authorized resident is present and occupies the home.

Up to six adults and no more than two adults per bedroom are permitted. To address concerns of neighboring residents about “party house” rentals, only registered guests will be allowed on the property with no visitors except persons visiting the primary resident.

On behalf of the Community Associations Institute, attorney Tom Schild wrote to the Montgomery County Council and testified at the Council hearing to request changes to the proposed legislation to include provisions to better protect condos, HOAs, and coops.  Many of the requested changes are included in the new law.

An applicant for a short term rental license must certify that the use is not prohibited by the association governing documents and that the association fees for the property are not more than 30 days past due. Additionally, the person applying for a short term rental license must notify the condo, HOA or coop and the association can challenge an application which does not meet the licensing requirements.

Many condominium bylaws ban rentals of less than six months and some coop documents prohibit any sublease without the consent of the coop.   For associations which do not currently restrict such use, the governing documents can be amended to restrict or prohibit short term rentals.  

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowner associations and housing cooperatives in Maryland -– including Montgomery County, Prince George’s County, Howard County, and Baltimore County; and in Baltimore City and Washington, D.C.

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