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.

This entry was posted in Condominiums, Covenants and Bylaws, Document Amendments, Maryland Condominium Associations, Maryland Homeowner Associations and tagged , , , , , , by Tom Schild. Bookmark the permalink.

About Tom Schild is written by Thomas C. Schild. Tom focuses his practice in the representation of community associations. Since 1985, he has represented condominiums, homeowners associations, and housing cooperatives throughout Maryland and Washington D.C. He is recognized locally and nationwide as a leader in the field of community association law. Tom has written numerous articles and presented many seminars concerning various aspects of condominium and homeowners associations operations. He has recently presented programs regarding community associations insurance, contracts, leasing restrictions, tips for avoiding litigation, and community governance. He is a long-time member and past Chair of the Maryland Legislative Action Committee of the Community Associations Institute (CAI), which represents community association interests before the Maryland General Assembly. Tom is also a member of CAI's National Faculty and teaches a Community Governance course for community association managers in cities nationwide. And, he is a member of the College of Community Association Lawyers (CCAL) which is comprised of fewer than 150 lawyers nationwide recognized for their leadership and contributions in the field of community law. He previously served on the Board of Directors of CAI's Washington Metropolitan Chapter. Tom is a 1976 graduate of Northwestern University and a 1980 graduate of the George Washington University Law School. He is admitted to practice before the state and federal courts in Maryland and the District of Columbia.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.