As a popular destination known for its beautiful beaches and vibrant boardwalk, Ocean City, Maryland, has become a hotspot for short-term rentals (STRs), including those listed on Airbnb. However, with the rise in popularity of these rentals, the town has implemented specific regulations to manage their impact on the community. This guide will provide a comprehensive overview of Ocean City’s short-term rental regulations, ensuring you can operate your Airbnb legally and efficiently.
Understanding the Basics
In Ocean City, short-term rentals are defined as the rental of a residential dwelling unit for less than 28 consecutive days. This includes properties listed on platforms like Airbnb, VRBO, and other similar services. The regulations for these rentals are designed to balance the interests of property owners, renters, and the local community.
Licensing and Registration
To operate a short-term rental in Ocean City, property owners must obtain a rental license. This involves several steps:
- Application Process: Property owners must submit an application to the Ocean City Department of Planning and Community Development. The application requires detailed information about the property, including its location, the number of bedrooms, and proof of ownership.
- Inspection Requirements: The property must pass an inspection to ensure it meets safety and health standards. This includes having working smoke detectors, carbon monoxide detectors, and fire extinguishers. The inspection also checks for general property maintenance and compliance with zoning regulations.
- Renewal: Rental licenses must be renewed annually. This involves submitting a renewal application and possibly undergoing another inspection to ensure continued compliance with all regulations.
Zoning Regulations
Ocean City has specific zoning regulations that impact where short-term rentals can be located. These regulations are designed to maintain the character of residential neighborhoods and minimize disruptions caused by transient guests.
- Zoning Districts: Short-term rentals are generally permitted in commercial and mixed-use zoning districts. However, in strictly residential zones, there may be restrictions or additional requirements. It’s essential to check the zoning map and consult with the Department of Planning and Community Development to confirm your property’s eligibility.
- Occupancy Limits: The number of occupants allowed in a short-term rental is typically based on the number of bedrooms. For example, a two-bedroom property may be limited to four to six occupants. Exceeding these limits can result in fines and penalties.
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Compliance with Local Laws
In addition to obtaining a rental license and adhering to zoning regulations, short-term rental operators in Ocean City must comply with various local laws and ordinances.
- Noise Ordinance: Ocean City has strict noise ordinances to ensure that residential neighborhoods remain peaceful. Short-term rental guests must adhere to quiet hours, typically between 10 PM and 7 AM. Violations of noise ordinances can result in fines for both the guest and the property owner.
- Trash and Recycling: Property owners are responsible for ensuring that trash and recycling are properly managed. This includes providing adequate trash receptacles and informing guests of the scheduled pickup days.
- Parking Requirements: Adequate parking must be provided for guests. Ocean City has specific requirements for the number of parking spaces based on the size and occupancy of the rental property. Ensuring that guests park in designated areas and do not block public or emergency access is crucial.
Taxes and Fees
Operating a short-term rental in Ocean City also involves paying applicable taxes and fees:
- Room Tax: Ocean City imposes a room tax on short-term rentals. Property owners are responsible for collecting this tax from guests and remitting it to the city. The current room tax rate can be found on the Ocean City government website.
- Sales Tax: In addition to the room tax, Maryland state sales tax applies to short-term rentals. This tax must be collected and remitted to the Maryland Comptroller’s Office.
- Registration Fees: There may be additional fees associated with the rental license application and renewal process. These fees help cover the cost of inspections and administrative services.
Enforcement and Penalties
Ocean City takes the enforcement of short-term rental regulations seriously. Violations can result in significant penalties, including fines, suspension of the rental license, and legal action. Common violations include:
- Operating without a valid rental license
- Exceeding occupancy limits
- Violating noise ordinances
- Failing to pay required taxes and fees
Property owners are encouraged to stay informed about local regulations and ensure their Airbnb listings comply with all requirements.
Resources
For more information on short-term rental regulations in Ocean City, MD, the following resources are invaluable:
- Ocean City Department of Planning and Community Development: Official Website
- Ocean City Code of Ordinances: City Ordinances
- Maryland Comptroller’s Office: Sales and Use Tax Information
- Ocean City Room Tax Information: Room Tax Details
By adhering to these regulations and staying informed about any changes, you can successfully operate a short-term rental in Ocean City, MD, while contributing positively to the community.
