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

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

Baltimore County, like many jurisdictions, has implemented regulations for short-term rentals operated through platforms like Airbnb and VRBO. These rules aim to balance the benefits of the sharing economy with the need to maintain the character and livability of residential neighborhoods. Let's explore the key aspects of Baltimore County's STR regulations.

Starting a Short-Term Rental Business in Baltimore County

To legally operate a short-term rental in Baltimore County, property owners must navigate a mandatory registration and licensing process. This applies to all STRs, regardless of whether they are owner-occupied "hosted" units or non-owner-occupied "un-hosted" units. The licensing fee is $60 per unit, and the license is valid for three years.

One important restriction is that new STR operations are limited to primary residences only. Investment properties and secondary homes cannot be used for short-term rentals in Baltimore County. This rule aims to prevent the proliferation of "investor-owned" STRs that could disrupt residential neighborhoods.

Prospective hosts must also inform their immediate neighbors of their intention to operate a short-term rental and provide contact information. This mandatory notification process helps maintain harmonious relationships between STR operators and the surrounding community.

Proper tax compliance is another crucial aspect. STR operators in Baltimore County must collect and remit the county's 9.5% transient occupancy tax and the state's 6% lodging tax from their guests. While platforms like Airbnb may handle tax collection, the ultimate responsibility lies with the host.

Based on discussions in online forums, the process of starting an STR in Baltimore County can be challenging. One Bigger Pockets user noted that the licensing office requires STRs to be registered the same way as long-term rentals, including a rental inspection and lead inspection for older properties. Another user on Reddit shared their positive experience with traditional year-to-year rentals as an alternative to STRs.

It's worth noting that Baltimore County takes a relatively strict approach to enforcing its STR regulations. Some hosts have reported difficulties navigating the licensing process and complying with the various rules. However, Baltimore County is still considered more Airbnb-friendly than some other major jurisdictions, as it allows both hosted and un-hosted rentals with the proper licensing.

As the STR landscape continues to evolve, it's crucial for hosts to stay informed about any updates to the regulations. Consulting with local authorities, property managers, and experienced hosts can provide valuable guidance for those looking to start a short-term rental business in Baltimore County.

Short-Term Rental Licensing Requirements in Baltimore County

To legally launch and operate a short-term rental in Baltimore County, property owners must obtain a rental license. This process involves several steps and requirements, as outlined by the Baltimore County Government:

• Registration: All STRs, whether owner-occupied (hosted) or non-owner-occupied (un-hosted), must be registered with the county. The registration fee is $60 per unit, and the license is valid for three years.
• Eligibility: Only primary residences are eligible for STR licensing. Investment properties and second homes cannot be used as short-term rentals in Baltimore County.
• Neighbor Notification: STR operators are required to inform their immediate neighbors of their intention to run a short-term rental and provide contact information. This helps maintain good relationships with the surrounding community.
• Inspections: For properties built before 1978, a lead inspection is required as part of the licensing process. A rental inspection may also be necessary, similar to the requirements for long-term rentals.
• Tax Compliance: STR hosts must collect and remit the 9.5% Baltimore County transient occupancy tax and the 6% Maryland lodging tax from their guests. While platforms like Airbnb may handle tax collection, the ultimate responsibility lies with the host.

To submit the required documentation and obtain an STR license, property owners should contact the Baltimore County Rental Registration office at 410-887-6060 or visit the Historic Courthouse, Room 150, at 400 Washington Avenue in Towson, Maryland.

The licensing process typically takes several weeks, depending on the completeness of the application and the scheduling of any necessary inspections. It's crucial to begin the process well in advance of the intended start date for the STR operation.

Operating an STR without a proper license can result in significant fines and penalties. Baltimore County takes a strict approach to enforcing its STR regulations, and non-compliant hosts may face legal action and the closure of their rental properties.

By adhering to these licensing requirements, STR operators in Baltimore County can ensure they are operating legally and responsibly, contributing to a well-regulated and sustainable short-term rental market in the region.

Required Documents for Baltimore County Short-Term Rentals

To legally operate a short-term rental in Baltimore County, property owners must submit several required documents as part of the licensing process. These documents ensure compliance with local regulations and help maintain the safety and well-being of both hosts and guests. Here's a list of the essential documents needed:

1. Rental Housing License Application: This form is the primary application for registering an STR in Baltimore County. It collects basic information about the property, owner, and intended use. The application can be completed online or downloaded from the Baltimore County Rental Registration website.
2. Inspection Sheet: All STRs in Baltimore County must pass a safety inspection conducted by a licensed home inspector. The inspector will complete an Inspection Sheet, verifying that the property meets minimum safety standards, including functional smoke detectors, carbon monoxide alarms, and proper ventilation. This sheet must be submitted with the license application.
3. Lead Inspection Certificate: For properties built before 1978, a lead inspection certificate is required to ensure the safety of guests. This certificate confirms that the property has been inspected for lead-based paint hazards and is in compliance with state and local lead laws.
4. New Tenant Information Form: STR hosts must provide their guests with a New Tenant Information form, which includes essential details about the rental property, emergency contacts, and tenant rights and responsibilities. This form is available on the Baltimore County Rental Registration website.
5. Proof of Primary Residence: Since Baltimore County only allows STRs in primary residences, hosts must provide documentation confirming that the rental property is their main home. This may include a driver's license, utility bills, or voter registration records.
6. Maryland State Use and Sales Tax Number: STR operators in Baltimore County are required to collect and remit state and local taxes. To do so, they must obtain a Maryland State Use and Sales Tax Number, which can be applied for online through the Comptroller of Maryland's website.
7. Neighbor Notification: As part of being a responsible STR host, Baltimore County requires operators to inform their immediate neighbors of their intention to run a short-term rental and provide contact information. This helps maintain good community relations and ensures that neighbors have a way to reach the host if any issues arise.

By gathering and submitting these required documents, STR hosts in Baltimore County can ensure they are operating legally and responsibly. The Baltimore County Rental Registration office is available to answer questions and provide guidance throughout the licensing process.

Baltimore County Short-Term Rental Taxes

Operating a short-term rental in Baltimore County comes with certain tax obligations. STR hosts are responsible for collecting and remitting various taxes, which contribute to local infrastructure, services, and tourism promotion. Here's a breakdown of the taxes that apply to STRs in Baltimore County:

1. Baltimore County Transient Occupancy Tax: This is a 9.5% tax on the rental price of all short-term lodging in Baltimore County, including STRs. Hosts must collect this tax from their guests and remit it to the Baltimore County Office of Budget and Finance on a monthly basis.
2. Maryland Sales and Use Tax: In addition to the county tax, STR operators must also collect and remit the 6% Maryland Sales and Use Tax. This tax applies to all short-term rentals, and hosts must file a sales and use tax return with the Comptroller of Maryland.
3. Maryland State Lodging Tax: Maryland imposes a 6% lodging tax on all short-term rentals, which is collected in addition to the sales and use tax. STR hosts are responsible for collecting this tax from their guests and remitting it to the state.

In total, STR operators in Baltimore County must collect and remit a combined tax rate of 21.5% on their rental income. This includes the 9.5% Baltimore County Transient Occupancy Tax, the 6% Maryland Sales and Use Tax, and the 6% Maryland State Lodging Tax.

While these taxes may seem daunting, STR hosts can take advantage of various write-offs and deductions to minimize their tax liability. Some common deductions include:

1. Mortgage interest and property taxes
2. Utilities, such as electricity, water, and internet
3. Cleaning and maintenance expenses
4. Supplies and amenities provided to guests
5. Depreciation of furniture and equipment used in the rental
6. Insurance premiums for the rental property
7. Advertising and marketing costs

To ensure accurate tax compliance and maximize deductions, STR hosts should consult with a tax professional familiar with the specific regulations in Baltimore County and Maryland. Proper record-keeping and documentation are essential for claiming deductions and avoiding potential audits or penalties.

By understanding and fulfilling their tax obligations, STR operators in Baltimore County can contribute to the local economy while running a successful and compliant short-term rental business.

Maryland-Wide Short-Term Rental Rules

In addition to the specific regulations in Baltimore County, short-term rental hosts must also comply with state-wide laws and requirements in Maryland. These rules provide a broader framework for the operation of vacation rentals and Airbnbs across the state.

One key aspect is the collection and remittance of taxes. Maryland imposes a statewide sales and use tax of 6% on short-term rentals, which hosts are responsible for collecting from guests and remitting to the state. Additionally, some jurisdictions levy local hotel rental taxes ranging from 3% to 9.5%, which may also apply to Airbnb-style rentals depending on the specific county or city laws.

Safety is another important consideration under Maryland law. Short-term rentals are required to meet certain standards, including having working smoke and carbon monoxide detectors, fire extinguishers, and proper emergency exits. Hosts must ensure their properties are up to code before welcoming guests.

On a broader level, Maryland allows local governments to create their own short-term rental policies and regulations. This means that hosts in Baltimore County must navigate not only the county-specific rules, but also any additional requirements imposed by their city or town. Some municipalities have implemented zoning restrictions, licensing processes, and other ordinances that go beyond what is required by the state or county.

It's worth noting that Maryland has taken steps to support the growth of the short-term rental industry while still prioritizing safety and neighborhood concerns. In 2018, the state passed a law that prohibits local governments from outright banning short-term rentals, similar to measures enacted in Arizona and Florida. However, this law still allows for reasonable regulations and does not override local rules that were already in place.

When it comes to licensing, there is no state-wide requirement in Maryland for short-term rentals. However, many local jurisdictions, including Baltimore County, have implemented their own licensing or registration processes that hosts must complete before operating. Failure to obtain the proper license can result in fines and legal issues.

As a host in Baltimore County, it's essential to understand and comply with all relevant laws at the state, county, and local levels. This may involve obtaining licenses, collecting taxes, ensuring safety standards are met, and adhering to zoning regulations. By staying informed and working within the legal framework, hosts can operate successful short-term rentals while being good neighbors and community members.

Does Baltimore County Strictly Enforce STR Rules?

Based on discussions in online forums like Bigger Pockets and Reddit, Baltimore County takes a relatively strict approach to enforcing its short-term rental regulations compared to some other jurisdictions. Hosts have reported challenges navigating the licensing process and complying with the various rules, such as the primary residence requirement and neighbor notification.

However, Baltimore County is still considered more Airbnb-friendly than certain major cities that have implemented outright bans or highly restrictive policies. The county allows both owner-occupied and non-owner-occupied rentals, as long as hosts obtain the proper licenses and follow the established guidelines. This structured regulatory framework provides a path for responsible STR operators to run their businesses legally.

That said, the stringent rules and active enforcement have led some hosts to operate under the radar or transition to longer-term rentals. Anecdotes from Reddit users highlight the potential for neighbor complaints and the need for diligent property management to avoid issues. The county's focus on preserving the character of residential neighborhoods means that STR hosts must be proactive in addressing concerns and maintaining positive community relations.

In summary, while Baltimore County enforces its STR regulations more rigorously than some other markets, it still offers a viable environment for Airbnb-style rentals with the proper licensing and responsible operation. Prospective hosts should carefully weigh the county's rules against their specific circumstances before pursuing the STR model.

How to Start a Short-Term Rental Business in Baltimore County

Starting a short-term rental business in Baltimore County requires careful planning and compliance with local regulations. Here's a step-by-step guide to help you navigate the process:

1. Determine Eligibility: Ensure your property is eligible for short-term rental use. In Baltimore County, only primary residences can be used for new STR operations. Investment properties and second homes are not permitted. Review the county's zoning codes and consult with local authorities to confirm your property's eligibility before proceeding.
2. Obtain a Rental License: All short-term rentals in Baltimore County must be licensed. Apply for a rental license through the county's Rental Registration office. The fee is $60 per unit, and the license is valid for three years. Gather all required documents, such as proof of primary residence and inspection certificates, before submitting your application to streamline the process.
3. Comply with Safety Requirements: Ensure your rental property meets all safety standards, including functional smoke detectors, carbon monoxide alarms, and proper ventilation. Schedule necessary inspections, such as lead inspections for older properties. Work with a licensed home inspector who is familiar with Baltimore County's requirements to ensure your property is up to code.
4. Notify Neighbors: Inform your immediate neighbors of your intention to operate a short-term rental and provide them with your contact information. This mandatory notification helps maintain good community relations. Consider going above and beyond by personally introducing yourself to neighbors and addressing any concerns they may have.
5. Register for Taxes: Obtain a Maryland State Use and Sales Tax Number and prepare to collect and remit the required taxes, including the 9.5% Baltimore County transient occupancy tax and the 6% state lodging tax. Use a tax professional or vacation rental software to help manage your tax obligations and ensure compliance.
6. Create a Comprehensive Listing: Develop a detailed and attractive listing for your short-term rental, highlighting its unique features, amenities, and proximity to local attractions. Use high-quality photos and an engaging description to stand out from the competition. Research successful listings in your area to identify best practices and competitive rates.
7. Establish House Rules and Policies: Create clear house rules and policies for your guests, including check-in/check-out procedures, occupancy limits, noise restrictions, and parking guidelines. Communicate these rules effectively to ensure a smooth rental experience. Consider using rental agreements or guest contracts to legally enforce your policies and protect your property.
8. Implement a Pricing Strategy: Develop a dynamic pricing strategy that accounts for seasonal demand, local events, and competitor rates. Use market research and vacation rental data to optimize your pricing and maximize occupancy. Utilize pricing tools and automation software to efficiently manage your rates and stay competitive in the market.
9. Provide Exceptional Guest Experience: Focus on delivering a memorable and positive experience for your guests. Provide high-quality amenities, maintain cleanliness, and be responsive to guest inquiries and needs. Encourage guests to leave reviews and use their feedback to continually improve your rental offering.
10. Stay Informed and Adaptable: Keep abreast of any changes to Baltimore County's short-term rental regulations and be prepared to adapt your business accordingly. Regularly review your operations to ensure ongoing compliance and success. Join local host communities or industry associations to stay informed about regulatory updates and best practices in the short-term rental industry.

By following these steps and prioritizing compliance, customer service, and continuous improvement, you can build a successful short-term rental business in Baltimore County.

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

For questions or concerns regarding short-term rental regulations and zoning in Baltimore County, you can contact the following offices:

1. Rental Registration Office: Call 410-887-6060 or visit the Historic Courthouse at 400 Washington Avenue, Room 150, Towson, MD 21204. This office handles the licensing and registration process for all short-term rentals in Baltimore County.
2. Zoning Review Office: Call 410-887-3391 or email paidirectorsoffice@baltimorecountymd.gov. Located at the County Office Building, 111 West Chesapeake Avenue, Room 124, Towson, MD 21204. Open Monday through Friday, 8:30 a.m. to 4:30 p.m. This office can assist with zoning classifications, prior zoning cases, and ensuring compliance with the Baltimore County Zoning Regulations.

In addition to these official resources, Baltimore County STR hosts may find support and community through the following groups and forums:

1. Baltimore Airbnb Hosts Facebook Group: This active group of hosts has been meeting together sporadically since 2015. It's a great place to connect with local hosts, share experiences, and stay updated on the latest regulations and best practices.
2. Bigger Pockets Short-Term Rental & Airbnb Investing Forum: While not specific to Baltimore County, this forum is a valuable resource for STR hosts nationwide. You can find discussions on a wide range of topics, from regulatory compliance to marketing strategies and operational tips.
3. Airbnb Community Center - Baltimore Forum: The Airbnb Community Center has a dedicated forum for Baltimore hosts, where you can ask questions, share insights, and engage with fellow hosts in the area.

By leveraging these official contacts and community resources, Baltimore County STR hosts can navigate the regulatory landscape, connect with peers, and access the support needed to run successful and compliant short-term rental businesses.

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

Based on discussions from Baltimore County hosts on Reddit and Bigger Pockets, there are mixed opinions about the local short-term rental regulations. Here are some key insights and experiences shared by hosts:

Strict Enforcement: Several hosts on Reddit have noted that Baltimore County takes a relatively strict approach to enforcing its STR rules compared to other jurisdictions. One host shared, "Baltimore passed a fairly strict law in 2018. Essentially, you can only do short term rental (less than 90 days) if you live in the property." This sentiment was echoed by others who found the licensing process challenging.

Primary Residence Requirement: The requirement that new STRs can only operate in primary residences has been a point of contention. A host on Bigger Pockets asked, "Is it correct you can only Airbnb at your primary residence? I do not understand the logic behind this rule." This restriction has limited the ability of some investors to expand their STR portfolios in Baltimore County.

Licensing Challenges: Hosts have reported difficulties in obtaining STR licenses due to evolving regulations and limited communication from the county. One Reddit user shared, "I recently tried to license some Airbnb units. I was denied because they said in order to get the license now, the property has to be registered in a personal name and not under an LLC."

Neighbor Concerns: Some hosts have encountered issues with neighbors who are unhappy with the presence of short-term rentals. A Reddit user recounted, "Be prepared to hear from your neighbors who get sick of your guests constantly in and out, parking issues, noise, parties, etc. Living near an AirBnB can get old really quickly." Managing neighbor relations appears to be a key challenge for Baltimore County hosts.

Potential for Success: Despite the regulatory hurdles, some hosts have found success with STRs in Baltimore County. One Reddit user shared, "I built and managed one of the highest rated and most popular airbnbs in Baltimore... Hosting Airbnb off and on has paid roughly half of my total contributions to my mortgage payment." This suggests that with careful management and compliance, STRs can still be viable in the county.

Overall, the experiences of Baltimore County hosts on Reddit and Bigger Pockets paint a picture of a challenging but potentially rewarding STR market. While the county's regulations are seen as strict by many, hosts who are able to navigate the licensing process and maintain good community relations have found success. As one Bigger Pockets user advised, "I suggest doing your research on Short Term Rental regulations in Baltimore."

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.