Short-Term Residential Rentals

New! On October 10, 2017, the County Council adopted zoning text amendment (ZTA) 16-03, and Bill 2-16 to define short-term residential rentals and to establish limited use standards and licensing regulations. The ZTA will become effective on July 1, 2018. The Montgomery County Department of Health and Human Services will be responsible for licensing and enforcement; please direct questions to that agency.

Background

With the rise of the sharing economy, and the economic and social benefits to residents of sharing resources, short-term rental activity continues to grow. This increased activity has led the Montgomery County Council to work toward modifying short-term rental laws, and prompted an examination of parameters to regulate short-term rentals and establish a pathway to legalize this activity. Currently, the County’s Zoning Ordinance does not allow for short-term residential rentals of less than one month, unless the home has been approved for use as a Bed and Breakfast. Bed and Breakfasts are only allowed in detached houses, and they are subject to specific standards.

In May 2015, County Council enacted a bill (Expedited Bill 14-15) that requires short-term renters to pay the same tax required of hotel guests. In February 2016, the Council introduced proposed legislation (zoning text amendment ZTA 16-03) to allow short-term residential rentals under certain parameters. The ZTA was introduced in conjunction with Bill 2-16, which would update the licensing requirements for all transient housing, including a bed and breakfast.

The Planning Board suggested a different approach to ZTA 16-03, but advised the Council that very little time was provided for the community to discuss the issue (view the transmittal letter and staff report here). After holding a public hearing on ZTA 16-03 and Bill 2-16, the Council asked Planning Department Staff to reach out to the community and other stakeholders for feedback on short-term residential rental (STRR) agreements, such as Airbnb, Flipkey, Homeway, and VRBO, in order to help draft legislation affecting this use. The Council has directed the Planning Department to research best practices across the country and reach out to County residents and stakeholders to provide opportunities for their input in establishing new regulations.

Some critics have noted that widespread conversion of residential housing to short-term rentals, when taken to extremes, could result in the loss of housing for permanent residents. The overall intent of any proposed legislation is to strike a balance in recognizing the demand for short-term tenancy of residential property, while minimizing negative impacts on the residential character of existing neighborhoods.

Past Meetings and Documents

Planning Board’s draft ZTA of 16-03
May 11, 2017 Planning Board meeting
December 5, 2016 community meeting
September 19, 2016 community meeting
- Video of meeting
- Staff powerpoint presentation
July 18, 2016 community meeting

Frequently Asked Questions

What is the online residential rental industry?
What is a short-term residential rental (e.g. Airbnb) and how is it different than a bed and breakfast?

Airbnb is an internet-based incarnation of a bed and breakfast. Airbnb and other similar on-line short-term residential rental companies allow the occupants of a housing unit to advertise their willingness to rent an entire residence, or room or space in the residence, for any duration; rentals could be as short as one day, but are generally for fewer than 30 days. Homeowners or tenants renting space to Airbnb users would still be required to obtain a County license allowing “transient visitors.” This type of use is considered “accessory” to the primary use of the property as a residence. A Bed and Breakfast is considered a “Commercial” use under the “Lodging” category of the Zoning Ordinance; thereby allowing rental of rooms as the primary use. The owner of a Bed and Breakfast must also reside on the premises.
Where are Bed and Breakfasts allowed in the County and what zoning laws apply*?

Bed and Breakfasts are allowed as a “limited” use in the following zones: AR, R, RC, RNC, RE-2, RE-2C, RE-1, R-200, CRN, CRT, GR, NR. As a limited use, a Bed and Breakfast must satisfy a number of requirements including:

-A Bed and Breakfast must be in an owner occupied detached house.
A Bed and Breakfast is not allowed on a property that includes an accessory apartment.
-In the Agricultural, Rural Residential and Residential zones, the minimum lot area is the greater of 9,000 square feet, or the minimum lot area for a detached house in the zone.
Parking must be located behind the front building line.
-A guest may only stay at the Bed and Breakfast for 14 days in any one visit.
In the R-60 and R-90 zones, Bed and Breakfasts are allowed as a “conditional” use. In addition to the requirements described above for a limited use, a conditional use must be approved by the Hearing Examiner.

*For a complete list of the requirements for Bed and Breakfasts, refer to the Zoning Ordinance (Section 3.5.6.B)
Are the current Airbnb listings in Montgomery County illegal?

Last Updated: May 31, 2022

Topics

Montgomery County
Planning Department
2425 Reedie Drive, 14th Floor
Wheaton, MD 20902

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