The Ocean City Mayor and Town Council have approved new regulations on short-term rentals in R-1 single family residential districts and MH mobile home residential districts.  These zoning districts are comprised largely of single-family detached homes and mobile homes in communities such as Little Salisbury, Montego Bay, Mallard Island, Caine Woods and others.  The short-term rental changes that have come about over the past several months break down as follows:

• A moratorium was put in place for new short-term rental licenses in the R-1 and MH zoning districts.
• A new owner of a property in these zoning districts that has an existing rental license can apply for a new rental license that will be valid through 2025.
• Ocean City property owners that had a 2024 rental license for properties located in R-1 and MH zoning districts can apply for a renewal and a supplementary short-term rental license for the 2025 rental season.
• A five night minimum stay was instituted for the 2025 and 2026 rentals seasons.
• A thirty-one day minimum stay requirement will go into effect in 2027 in the R-1 and MH zoning districts
• Rental bookings for R-1 and MH properties that were made prior to March 3rd, 2025 can be honored under the previous rental guidelines and are not subject to any new minimum stay requirements that have been put in place.
• Occupancy restrictions that will limit two people per bedroom plus two additional occupants.  Children under the age of ten do not count towards the total occupancy.
• The Property Owner is now required to state the number of bedrooms in the property and how much onsite parking is available on their rental application.
• They reiterated that converting attics, garages or other rooms into bedrooms without meeting town permitting requirements is prohibited.  The property owner or their agency can not advertise the Ocean City property as having more bedrooms than what was permitted on the property's approved building permit plans.
• The definition of family was addressed in the context of rental agreements, which you can find outlined here.
• Property Owners are required to designate and provide contact information for a local agent that can accept service of process, address any issue on the property to include authorizing repairs and other remedial action, respond to any code violations and be able to arrive at the property within sixty minutes.
• The town is reserving the right to revoke rental licenses after three infractions.
• The new rental application contains a consent to inspection during reasonable hours for the entire term of the rental license.   

The Mayor and Town Council's rationale behind these new measures is that they "need to protect Ocean City's single-family neighborhoods."  

This is a fluid situation with a lot of moving pieces.  As such, please verify all information at your time of research.  If you have been adversely affected by these changes it is advisable to consult an attorney.

If you have any questions or would like to discuss Ocean City, Maryland real estate in greater detail, feel free to contact me directly anytime at 443-614-9179 or via email below.