Short-Term Residential Rental | Licensing & Permit Process
On October 10, 2017, the Montgomery County Council adopted zoning text ammendment (ZTA) 16-03 and Bill 2-16 to define short-term residential rentals and to establish standards and licensing regulations. The law became effective July 1, 2018.
Failure to comply with the short-term rental licensing requirements may result in additional fees, penalties and possible restrictions on the short-term residential rental property.
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When must one obtain a Short-Term Residential Rental license?
Montgomery County property owners who are renting out their homes (or a room within the home) for less than 30 consecutive days must obtain a short-term residential rental license prior to operating in Montgomery County.
Zoning regulations. prohibitshort-term residential rentals in the following municipalities: Chevy Chase Village, Town of Chevy Chase, Town of Chevy Chase View, Chevy Chase Section 3, City of Gaithersburg, Town of Garrett Park, Town of Kensington, Town of Laytonsville, Town of Poolesville, City of Rockville, Town of Somerset, and Town of Washington Grove.
Who must obtain a Short-Term Residential Rental license?
Property owners cannot rent out accessory apartments or farm tenant dwellings as short -term rentals. Visit the Department of Housing and Community Affairs' website for more information about Accessory Dwelling Units (ADU).
What is the maximum number of guests you can rent to at one time? Are there any parking requirements?
The maximum number of adults 18 years and older per short-term residential rental is six and the maximum number of adults per bedroom is two.
Each rental contract requires one off-street parking space unless the online listing indicates that vehicle parking is prohibited.
What is the maximum number of rentals allowed per calendar year?
When the owner or authorized resident is absent, the maximum rental days per calendar year is limited to 120. There is no limit if the owner or authorized resident is present.
How does one obtain a Short-Term Residential license? Are there any fees?
To obtain a license, owners must first notify immediate neighbors and their homeowners'/condominium association, if there are any, that they plan to rent out their home or unit. A sample notification letter is provided for you to use for this purpose. It is recommended that the letter(s) be sent to neighbors via certified U.S. mail.
The application will require you to certify that you have notified all the following parties:
- In a single-unit or attached unit, abutting and confronting neighbors;
- In a multi-unit building, neighbors living across the hall and those that share a ceiling, floor, and walls with the applicant’s unit;
- The municipality in which the residence is located;
- Any applicable homeowner’s association, condominium, housing cooperative; and
- The owner of the unit or the owner’s rental agent, if the applicant is not the owner;
The property must have paid all relevant taxes and comply with zoning restrictions and must keep a record of the guests who stay there. Licenses are issued for one year and require an application to be renewed annually. Once a license is issued, property owners are required to post their license number on Airbnb or other short-term rental websites, along with their listing, to rent their home or a room in their home.
Property owners who rent their property, or part of their property, for short-term lodging must also pay the County’s Room Rental-Transient Tax, through the Department of Finance, Division of Treasury, a requirement that went into effect July 1, 2017. Click on the links under “Room Rental – Transient” for more information, or call 311 (240-777-0311 if you are calling from outside of Montgomery County).
Apply for a license online
Annual License Fee
The annual license fee is $150 plus applicable processing fees.
License Renewals Fee
Licenses are issued for one year. To renew your license, submit a new application.
Additional Short-Term Residential Rental Fees
Failure to comply with the short-term rental licensing requirements may result in additional fees, penalties and possible restrictions on the short-term residential rental property.
What is the process for applying for a Short-Term Residential license?
- Submit an application online.
If an application is complete and payment is submitted, the application is typically approved within one to two business days. - An email notification is sent upon approval or denial. The applicant will receive an email payment confirmation and this serves as proof of licensure.
- If there is a problem with the application or if the application is denied, the applicant will receive notification by email.
- You will receive a unique license identification number.
- The license number must be included on any website where property is advertised.
- Property owners will be notified 60 days prior to the expiration of the current license.
Short-Term Residential Rental Process Guide
1. Apply Online
Short-Term Residential Rental Permits | Format |
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Maryland State Sales Use and Tax ID Application | Online |
Montgomery County Department of Finance, Room Rental-Transient Tax |
Online |
Short-Term Residential Rental Registration & Renewal Form | Online |
2. Review
- Have a Plan: Obtain a Maryland State Sales Use and Tax ID number first. Then complete the Short-Term Rental application. Be sure to apply for the County’s Room Rental and Transient Tax, through the County Dept. of Finance, Division of Treasury.
- Review: be sure to double check all of your paperwork to ensure faster processing time.
- Submit online: We now offer a platform powered by CivicGov for filing an application and paying fees online. We provide this digital platform to decrease the use of paper and our impact on the environment. PDF applications should be mailed to the Licensure & Regulatory Services office (2425 Reedie Drive, 9th floor, Wheaton, MD 20902) or faxed to 240-777-3088.
3. Approval
If approved, you will hear back us within 10 - 14 business days.
- 240-777-3986
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Helpful Short-Term Rental Resources
Bill No. 2-16 - Define Short-Term Residential Rental Standards and Licensing Regulations
Human Trafficking 101 in Short-Term Residential Rentals
Room Rental-Transient Tax, Montgomery County Department of Finance
Short-Term Residential Rental Liscense Sample Letter
Accessory Dwelling Unit (ADU)