Anne Arundel County, Maryland Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Anne Arundel County, Maryland?

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in recent years. However, hosts need to be aware of the specific regulations that apply in their area. In Anne Arundel County, Maryland, there are several key rules and requirements for operating a short-term rental business.

Starting a Short-Term Rental Business in Anne Arundel County

To legally operate a short-term rental in Anne Arundel County, hosts must first register their property with the county. The county defines a "short-term rental" as a facility that offers sleeping accommodations to the transient public for rent, including hotels, motels, inns, and bed and breakfasts.

The registration process involves completing a Short Term Residential Rental Registration form, having it notarized, and submitting it along with a $100 fee for a two-year registration. Hosts are limited to registering a maximum of two properties.

Some key requirements for short-term rentals in Anne Arundel County include:

• The rental period must be at least 24 hours
• The host cannot have any overdue taxes, fines, or fees owed to the county
• The names of all hosting platforms (e.g. Airbnb, VRBO) being used must be provided to the county and updated within 10 days of any changes
• The county-issued registration number must be provided to the hosting platforms
• Smoke detectors must be installed on each level, in each bedroom, and outside each sleeping area

It's important to note that failing to properly register a short-term rental means the host cannot bring a failure to pay rent action in District Court if a tenant does not pay. So ensuring compliance with the county's registration and licensing requirements is critical.

After receiving a Short Term Residential Rental Registration number from the county, the final step is for the host to add this number to their online listing(s). The whole registration process can take a few weeks.

Hosts should also be aware that short-term rentals within the city limits of Annapolis are exempt from the county registration requirement and may be subject to different rules. Always check with the specific municipality for any additional regulations.

When getting started, presenting the property in the best light is key. Airbnb recommends using as many high-quality photos as possible to showcase the rental's top features. Being an attentive, responsive host can lead to positive reviews and "Superhost" status over time.

In summary, the most important things for prospective short-term rental hosts in Anne Arundel County are to:

1. Register the property with the county and pay the fee
2. Ensure compliance with county requirements around rental periods, taxes, hosting platforms, and safety
3. Provide an appealing, well-maintained property and great guest experience

By following the proper procedures and prioritizing guest satisfaction, hosts can build a successful short-term rental business in Anne Arundel County. Just be sure to understand and abide by all the relevant regulations.

Short-Term Rental Licensing Requirement in Anne Arundel County

To legally operate a short-term rental in Anne Arundel County, hosts must register their property with the county and obtain a Short Term Residential Rental Registration. The key requirements for this registration include:

1. Completing a Short Term Residential Rental Registration form, having it notarized, and submitting it to the county along with a $100 fee for a two-year registration
2. Hosts are limited to registering a maximum of two properties
3. The rental period must be at least 24 hours
4. The host cannot have any overdue taxes, fines, or fees owed to the county
5. The names of all hosting platforms (e.g. Airbnb, VRBO) being used must be provided to the county and updated within 10 days of any changes
6. The county-issued registration number must be provided to the hosting platforms
7. Smoke detectors must be installed on each level, in each bedroom, and outside each sleeping area

To submit the registration form and fee, hosts can either:

1. Apply online through the county's Land Use Navigator system
2. Apply in person at the Permit Center where staff will assist with the online application
3. Mail the completed application and materials to:
   2664 Riva Road, MS 6006
   Attention: License Division
   Annapolis, Maryland 21401

The whole registration process can take a few weeks. It's important to note that failing to properly register a short-term rental means the host cannot bring a failure to pay rent action in District Court if a tenant does not pay. Operating without the required registration could result in fines and penalties.

Also, short-term rentals within the city limits of Annapolis are exempt from the county registration requirement and may be subject to different rules. Annapolis has its own short-term rental portal where hosts must register, obtain a license, and pay occupancy taxes.

In summary, the key steps for Anne Arundel County hosts are:

1. Complete the Short Term Residential Rental Registration form and have it notarized
2. Submit the form and $100 fee to the county either online, in person, or by mail
3. Ensure the property meets all county requirements
4. Provide the county-issued registration number to hosting platforms
5. Pay the required 8% occupancy tax on rental income

Required Documents for Anne Arundel County Short-Term Rentals

To register a short-term rental in Anne Arundel County, hosts need to submit the following required documents:

Completed Short Term Residential Rental Registration form

1. This form collects key information about the rental property, host contact details, hosting platforms used, and number of bedrooms/parking spaces
2. The form must be signed by the host in the presence of a notary and include the notary's signature and seal
3. It is submitted to the county along with the registration fee

Proof of registration fee payment ($100 for a two-year registration)

1. This fee was reduced from $400 to $100 in January 2021 under an emergency ordinance
2. Payments can be made online, by mail, or in person at the Permit Center
3. The fee is non-refundable

List of all hosting platforms (e.g. Airbnb, VRBO) used for the rental

1. This list must be provided to the county and updated within 10 days of any changes
2. The county-issued registration number must then be added to the host's online listing(s)

Proof of a valid Anne Arundel County sales and use tax account number

1. This is required to pay the 8% occupancy tax on short-term rental income
2. Hosts can contact the Office of the Maryland Comptroller at 1-800-638-2937 to obtain this number

Once all required documents are submitted, the county will process the registration application. This can take a few weeks. After receiving their Short Term Residential Rental Registration number, hosts must add this number to their online listing(s) to finalize the registration process and be in full compliance.

Anne Arundel County Short-Term Rental Taxes

In addition to registering their property, short-term rental hosts in Anne Arundel County are required to collect and remit certain taxes. The key taxes that apply are:

Hotel Occupancy Tax (also known as Use or Occupancy Tax)

• Rate: 8% of the rent paid for stays of 120 nights or less (increased from 7% to 8% effective July 1, 2023)
• This tax applies to the listing price including any cleaning fees
• Hosts must have a valid Anne Arundel County sales and use tax account number to pay this tax
• The tax is due to the county by the 25th of each month, even if no tax was collected that month
• Failing to collect or remit this tax on time can result in interest charges and penalties

Maryland State Sales Tax

• Rate: 6% of the listing price including any cleaning fees
• This is a statewide tax that applies in addition to the county occupancy tax
• Hosts are responsible for collecting and remitting this tax to the Maryland Comptroller

It's important to note that short-term rentals within the city limits of Annapolis are exempt from the Anne Arundel County registration and occupancy tax. However, Annapolis has its own 7% Hotel Occupancy Tax that hosts must collect and remit through the city's separate registration process and portal.

Airbnb collects and remits the 8% Anne Arundel County Hotel Occupancy Tax and 6% Maryland State Sales Tax on behalf of its hosts. However, hosts are still responsible for registering with the county and state, and ensuring their Airbnb listings have the proper registration number included.

Occupancy Tax Write-Offs and Deductions

If a short-term rental guest believes they are exempt from the occupancy tax or were charged in error, they can apply for a refund using the county's Occupancy Tax Refund Request Form. This form should be used when the guest paid the full amount of the rent and tax directly to the host.

The guest must provide details on why they believe the stay was exempt and attach supporting documentation. If approved, the county will issue the refund directly to the guest. Common reasons a stay may be exempt include:

• The guest is a federal employee on official business
• The stay was for 121 consecutive days or more (considered long-term)
• The guest is a foreign diplomat

For hosts, the 8% occupancy tax and 6% state sales tax are ultimately paid by the guest and are not considered income. So these amounts do not need to be reported as revenue and are not eligible for write-offs or deductions.

However, hosts can typically deduct their other rental expenses such as supplies, repairs, maintenance, insurance, and depreciation. As always, it's best to consult a tax professional for guidance on maximizing deductions for your specific short-term rental business.

Maryland Wide Short-Term Rental Rules

In addition to the specific regulations in Anne Arundel County, short-term rental hosts must also be aware of and comply with any statewide rules in Maryland. While many of the detailed requirements are set at the county or municipal level, there are a few key state laws and regulations that apply:

Maryland Sales and Use Tax

• Short-term rentals are subject to the statewide 6% sales tax on the cost of accommodations
• This tax applies in addition to any local occupancy taxes
• Hosts are responsible for collecting this tax from guests and remitting it to the state

Homeowners Associations (HOA) and Condo Rules

• If the rental property is part of an HOA or condominium association, hosts must follow any rules set by those organizations
• This could include restrictions on short-term rentals altogether or requirements like providing the HOA with contact information for the host and guests
• These rules can be in addition to or more restrictive than county regulations

Building and Fire Safety Codes

• All rentals must meet state building codes and fire safety requirements
• This includes having working smoke detectors, carbon monoxide detectors, and fire extinguishers
• Proper egress windows and rails on decks and balconies are also critical

Liability and Insurance

• While not always required by law, it's strongly recommended that hosts have appropriate insurance coverage, either an endorsement on their homeowners policy or a separate commercial liability policy
• Platforms like Airbnb provide some coverage, but it's often limited and secondary to the host's own insurance

Taxes on Rental Income

• Income earned from short-term rentals is typically taxable and must be reported on state and federal income tax returns
• Hosts may be able to deduct certain expenses like supplies, cleaning fees, and a portion of mortgage interest and property taxes
• Consulting a tax professional is the best way to ensure proper reporting and optimization of deductions

It's important to note that the statewide rules are in addition to, not in place of, the specific regulations set by Anne Arundel County. Hosts must comply with all levels of regulation - state, county, and any applicable city or HOA rules.

Failing to comply can result in fines, penalties, and potentially even losing the ability to operate a short-term rental. Hosts should thoroughly research all applicable laws and regulations before listing their property to ensure they are in full compliance.

Does Anne Arundel County Strictly Enforce Short-Term Rental Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, the general consensus is that Anne Arundel County is relatively friendly towards short-term rentals compared to some other jurisdictions in Maryland. The county has established a straightforward registration and licensing process for STRs, with reasonable fees.

However, the county does appear to be actively enforcing its STR regulations. Several hosts on these forums reported receiving violation notices for operating without a proper license or exceeding the 120-day annual limit for unhosted rentals. The fines can be substantial, up to $1,000 per day of violation.

That said, many hosts continue to operate STRs in Anne Arundel County while following the rules. The key requirements hosts need to comply with are:

• Registering with the county and obtaining a short-term rental license
• Limiting unhosted rentals to 120 days per year
• Collecting and remitting the 8% county occupancy tax and 6% state sales tax
• Ensuring the property meets building and fire safety codes

Some hosts mentioned that certain areas within the county, like the City of Annapolis, have additional restrictions that can make STRs more challenging. Annapolis requires a separate rental operating license and has zoning rules that prohibit STRs in certain districts.

Overall, the takeaway is that Anne Arundel County is Airbnb-friendly as long as hosts follow the established rules. The county wants to allow STRs while preventing investor-owned properties from becoming de facto hotels in residential neighborhoods. Enforcement does happen, so operating "under the radar" is risky.

Hosts who register, get licensed, pay occupancy taxes, and abide by the 120-day unhosted limit can successfully run STRs in much of Anne Arundel County. But carefully research any additional regulations that apply in your specific municipality. With proper due diligence and compliance, Anne Arundel can be a profitable STR market given its proximity to Baltimore, Annapolis, and Washington D.C.

How to Start a Short-Term Rental Business in Anne Arundel County

Starting a short-term rental business in Anne Arundel County can be a great way to generate extra income from your property. But it's important to follow the proper steps to ensure you comply with all county and state regulations. Here's a numbered list of key steps to get started:

Research and understand all applicable regulations

1. Thoroughly review the Anne Arundel County rules for STRs, including the registration process, licensing requirements, occupancy taxes, and zoning restrictions
2. Determine if your property is in an area that allows STRs and if there are any additional regulations that apply in your specific municipality (e.g. City of Annapolis)
3. Understand the state-level requirements like the 6% Maryland sales tax, building and fire safety codes, and HOA rules

Prepare your property for rental

1. Ensure the space is clean, well-maintained, and equipped with all necessary furnishings and amenities
2. Make any upgrades or repairs needed to meet building and fire safety codes, such as installing smoke detectors and fire extinguishers
3. Consider hiring a professional photographer to take high-quality photos of the property for your listing

Register with Anne Arundel County and obtain a short-term rental license

1. Complete the county's STR registration form, have it notarized, and submit it along with the $100 fee for a two-year license
2. Provide the county with a list of all hosting platforms you plan to use (e.g. Airbnb, VRBO) and update them within 10 days of any changes
3. Once you receive your license number from the county, add it to your online listing(s)

Set up tax collection and remittance

1. Register for an Anne Arundel County sales and use tax account number to pay the 8% occupancy tax
2. Determine if you will collect and remit taxes yourself or if your hosting platform (e.g. Airbnb) will do it for you
3. Keep detailed records of all rental income and occupancy taxes collected and remitted

Create your online listing(s)

1. Choose the hosting platform(s) you want to use and create an account
2. Craft a compelling listing title and description that highlights your property's best features and amenities
3. Upload high-quality photos and consider adding a video tour
4. Set your nightly rate, minimum stay, and any other booking rules or requirements

Manage your bookings and guests

• Respond promptly to booking inquiries and guest questions
• Provide clear check-in instructions and any house rules
• Consider using a keyless entry system or lockbox for easy and secure guest access
• Be available to address any issues that arise during a guest's stay
• Encourage satisfied guests to leave positive reviews on your listing

Some additional tips for success:

1. Start with competitive rates to attract bookings, then adjust over time as you gain reviews and experience
2. Be a responsive and attentive host to earn positive reviews and "Superhost" status on platforms like Airbnb
3. Hire a reputable cleaning service to ensure the property is always guest-ready
4. Use dynamic pricing tools to automatically adjust your rates based on demand
5. Invest in durable, easy-to-clean furniture and furnishings
6. Consider using a short-term rental property management service if you don't have time to actively manage the property yourself

By following these steps and tips, you can launch and grow a successful short-term rental business in Anne Arundel County. Just be sure to stay informed of any changes to county or state STR regulations over time to maintain compliance.

Who to Contact in Anne Arundel County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Anne Arundel County, there are several key contacts and resources available:

Anne Arundel County Department of Inspections and Permits, License Division

1. This department handles the registration and licensing process for short-term rentals
2. Email: ipmailbox@aacounty.org
3. Phone: (410) 222-7788
4. Mailing Address:
   2664 Riva Road, MS 6006
   Attention: License Division
   Annapolis, MD 21401

Anne Arundel County Office of Planning and Zoning

1. For questions about zoning districts, permitted uses, and any potential zoning restrictions on short-term rentals
2. Phone: (410) 222-7450
3. Website: https://www.aacounty.org/departments/planning-and-zoning/

Anne Arundel County Short-Term Rental Registration Website

1. Provides information on the registration process, requirements, and links to the online application portal
2. Website: https://www.aacounty.org/departments/inspections-and-permits/permits/non-trade-permits/short-term-residential-rental/

Airbnb Help Center - Anne Arundel County

1. Airbnb's dedicated page with information for hosts in Anne Arundel County, including registration requirements and links to county resources
2. Website: https://www.airbnb.com/help/article/2917/anne-arundel-county-md

In addition to these official county contacts, connecting with other local short-term rental hosts can be a great way to get insights and learn from their experiences. Some online communities to check out include:

1. Airbnb Community Center - Maryland Hosts Forum: https://community.withairbnb.com/t5/Maryland/bd-p/md
2. BiggerPockets Forums - Maryland Real Estate Investing: https://www.biggerpockets.com/forums/64-maryland-real-estate-investing
3. Maryland Vacation Rental Managers Association: https://www.mvrma.org/
4. Facebook Groups like "Maryland Short Term Rental Alliance" and "DMV Short Term Rental Alliance"

These groups and forums can be helpful for asking questions, sharing tips, and staying up-to-date on any changes to local regulations. Just remember that while insights from other hosts can be valuable, always verify information with official county sources to ensure accuracy and compliance.

By utilizing these key contacts and community resources, you'll be well-equipped to navigate the short-term rental regulations and zoning requirements in Anne Arundel County. Don't hesitate to reach out to county officials with any questions to ensure you're operating your rental legally and successfully.

What Do Airbnb Hosts in Anne Arundel County on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions in real estate investing forums like BiggerPockets and local Maryland subreddits, here are some insights into what Airbnb hosts in Anne Arundel County think about the local short-term rental regulations:

Strict Zoning Laws Make House Hacking Challenging

1. In a BiggerPockets thread titled "Trying to house hack, but zoning says NO!", a user shared their experience trying to convert a single-family home in Annapolis into a rental property with a separate basement unit.
2. They found that the R5 zoning in their neighborhood only allows multi-unit rentals on lots larger than 14,000 sq ft where the owner lives in one of the units. Most SFHs they looked at were under 10,000 sq ft.
3. The user noted, "It appears to be near impossible to find a SFH that would rent even close to 1% RTV when we move out... the man is keeping me down!"
4. Other users confirmed that Anne Arundel County and Annapolis have very strict zoning laws that prohibit duplexes on single-family lots, making house hacking difficult.

Confusion Around Owner-Occupancy Requirement

1. In another BiggerPockets thread, a user asked about getting around the county's prohibition on duplexes by being an owner-occupant for a year before converting a single-family home into multiple rental units.
2. The user wrote, "I know AA County and Annapolis are very strict on their zoning laws and do not allow duplexes to be built on SFR lots but by being an owner occupier for a year, am I able to get around this?"
3. Responses were mixed, with some saying the owner-occupancy requirement only applies to the initial rental license application, while others warned that moving out after a year could violate county rules.

Overall, the sentiment seems to be that Anne Arundel County's strict zoning laws, particularly around multi-unit rentals, make strategies like house hacking challenging for short-term rental hosts. There is some confusion around owner-occupancy requirements and reports of hosts operating "under the radar."

Most posts focus on the difficulty of finding properties that comply with the county's rules and can still generate strong rental income. There appear to be fewer discussions about the licensing process itself or hosts' experiences with the county's STR enforcement.

As always, it's critical for hosts to do their own thorough research on the local regulations, consult with county officials directly, and ensure they are in full compliance before listing their property as a short-term rental in Anne Arundel County.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.