How to apply for a Short-Term or B & B Rental License

Follow the steps below to apply for a bed and breakfast or a short-term rental license. The bed and breakfast license is $150 and the short-term residential rental license fee is $325. These licenses are valid for 12 months license applications will be approved or denied within 30-60 days of receipt of the application.

1. Obtain a Maryland State Sales Use and Tax ID Application

   Obtain a Maryland State Sales Use and Tax ID Maryland Comptroller Sales & Use Tax ID online. 

   ·       https://www.marylandtaxes.gov/business/sales-use/index.php
   ·       Register a New Business

   NOTE:  You must provide your 8-digit central registration number when applying for the short-term residential rental license.

2. Apply for Montgomery County's Short-Term Rental and Room Rental-Transient Tax

   Montgomery County Department of Finance Apply for the Transient Tax online.
   As a provider that receives payments for a short-term rental, you are liable to pay the Room Rental-Transient Tax. If you use an online broker such as HomeAway, VRBO (Vacation Rental By Owner), FlipKey, Hometogo, Homelidays, VacationRentals, Airbnb, Craigslist, etc., you are still responsible for paying the tax.  However, your online broker may pay the tax on your behalf. 
   
   For additional information on the Room Rental-Transient Tax, your responsibilities as a provider, and instructions on how to apply for a Room Rental-Transient Tax account, go to the Montgomery County Department of Finance website at https://www.montgomerycountymd.gov/finance/taxes/hotel-tax.html

3. Additional Requirements for Bed and Breakfast Rentals Only

   • Must apply for a permit of occupancy at DPS - Infill Development Process - Department of Permitting Services - Montgomery County, Maryland (montgomerycountymd.gov)
   • Must obtain a license if you are serving hot food at Food Service Facility (montgomerycountymd.gov)

4. Apply for Montgomery County DHCA Short-Term Rental License

   Follow DHCA's  Rental License Application Process Guide. Apply for or Renew your rental license online, with a  short-term rental License application. Owners and property managers may contact DHCA by calling MC311 at 240-777-0311 to place a service request for assistance or go to Short Term Rental.  Please indicate if you have a licensing or code inspection request or complaint.

Helpful Information:

Short Term Rental Information (PDF File)
How to Apply (PDF File)
Business Registration Guide (PDF File)

If you have further questions about the Bed and Breakfast and Short-Term Residential Rental Program, please visit  FAQs - Rental License or owners and property managers may contact DHCA  by calling MC311 at  240-777-0311 to place a service request for assistance.   Please indicate if you have a licensing or code inspection request or complaint.