Prince George’s County, Maryland Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Prince George's County, Maryland?

Prince George's County, Maryland has specific regulations in place for homeowners who want to rent out their properties on short-term rental platforms like Airbnb and VRBO. These rules are outlined in the county's Short-Term Rentals Program.

Starting a Short-Term Rental Business in Prince George's County

To legally operate a short-term rental in Prince George's County, homeowners must obtain a Short-Term Rental License from the Department of Permitting, Inspections and Enforcement (DPIE). The key requirements for the license include:

• The rental property must be the host's primary residence and they must provide proof of ownership and a copy of their homestead property tax credit.
• The host must have current and valid liability insurance of at least $1,000,000.
• The property must comply with all applicable laws and codes, including property maintenance, electrical, plumbing, and building codes. It must have no outstanding taxes, liens, or code violations.
• Smoke and carbon monoxide detectors must be installed in all bedrooms (or hallways outside bedrooms). Photos proving this must be submitted.
• A properly charged fire extinguisher (minimum size 2A:10BC) must be mounted in a fixed location along the path to an exit, not near the stove or higher than 5 feet. A photo proving this is required.
• A floor plan designating fire exits and escape routes must be conspicuously posted inside the rental, with a photo submitted as proof.
• The property must have two outdoor trash receptacles and one recycling receptacle.
• The host must check their HOA regulations, as the rental is not allowed if the HOA prohibits short-term rentals.
• Notification of intent to apply for the license must be provided to immediate neighbors on all sides of the property and to the HOA.

The initial license fee is $165, with an annual renewal fee of the same amount. Hosts must also complete human trafficking training videos and a quiz.

There are no limitations on who can rent their homes based on criminal records, as long as the property complies with county code. The minimum age to rent is 18 years old, which is the legal age in Maryland, although most rental platforms set their own age requirements.

By carefully following Prince George's County's detailed short-term rental regulations, hosts can legally rent out their properties on popular platforms while ensuring the safety of their guests and community. Failure to comply can result in denial or revocation of the rental license.

Short-Term Rental Licensing Requirements in Prince George's County

To legally launch and operate a short-term rental in Prince George's County, homeowners must obtain a Short-Term Rental License from the Department of Permitting, Inspections and Enforcement (DPIE). The key requirements for the license include:

1. The rental property must be the host's primary residence. Proof of ownership and a copy of the homestead property tax credit are required.
2. Current and valid liability insurance of at least $1,000,000.
3. Compliance with all applicable laws and codes, including property maintenance, electrical, plumbing, and building codes. The property must have no outstanding taxes, liens, or code violations.
4. Smoke and carbon monoxide detectors installed in all bedrooms (or hallways outside bedrooms). Photos proving this must be submitted.
5. A properly charged fire extinguisher (minimum size 2A:10BC) mounted in a fixed location along the path to an exit, not near the stove or higher than 5 feet. A photo is required as proof.
6. A floor plan designating fire exits and escape routes must be conspicuously posted inside the rental, with a photo submitted.
7. The property must have two outdoor trash receptacles and one recycling receptacle.
8. Hosts must check their HOA regulations, as rentals are not allowed if the HOA prohibits short-term rentals.
9. Notification of intent to apply for the license must be provided to immediate neighbors on all sides of the property and to the HOA.

To apply for the Short-Term Rental License, hosts must complete the online application and pay the $150 fee. A 90-day certificate will be granted pending approval of the full license.

The initial license fee is $150, with an annual renewal fee of the same amount. Hosts must also complete human trafficking training videos and a quiz as part of the application process.

The licensing process usually takes around 90 days. If a license is denied, applicants have the right to appeal, first to the DPIE Enforcement Division Associate Director, and then to the Prince George's County Board of Appeals for a $200 fee.

Falsifying licensing documents or operating without a valid license can result in denial of the application, permanent revocation of an active license, enforcement action, and being permanently barred from the Short-Term Rentals program. Fines and penalties for unlicensed rentals are not specified but implied.

Required Documents for Prince George's County Short-Term Rentals

To apply for a Short-Term Rental License in Prince George's County, hosts must provide the following documents:

1. Proof of Ownership and Homestead Property Tax Credit: Provide proof that you own the short-term rental property and a copy of your homestead property tax credit for the rental location. This verifies the property is your primary residence.
2. Liability Insurance: Provide proof of current and valid liability insurance coverage of at least $1,000,000. This protects you and your guests in case of accidents or injuries.
3. Smoke and Carbon Monoxide Detector Photos: Submit labeled photos as proof that the required smoke and carbon monoxide detectors have been installed in all bedrooms (or hallways outside bedrooms). This ensures your rental meets fire safety standards.
4. Fire Extinguisher Photo: Provide a labeled photo showing a properly charged fire extinguisher (minimum size 2A:10BC) mounted in a fixed location along the path to an exit, not near the stove or higher than 5 feet. This is another critical fire safety requirement.
5. Floor Plan with Fire Exits: Submit a labeled photo proving you have conspicuously posted a floor plan inside the rental that designates the fire exits and escape routes. This helps guests locate emergency exits if needed.
6. Neighbor Notification Form: Provide the "Intent to Apply for Short-Term Rentals License Neighbor Notification Form" to the adjacent neighbors on all sides of your rental property, as well as those directly across from it. This informs them of your plans to operate a short-term rental.
7. HOA Notification Form: If applicable, submit the "Intent to Apply for Short-Term Rentals License Homeowners Association Notification Form" to your HOA. This ensures your HOA allows short-term rentals, which is a requirement for licensing.

These documents serve to verify you meet Prince George's County's stringent requirements for legally operating a short-term rental, with the aims of ensuring guest safety, minimizing community impact, and maintaining positive relationships with neighbors and HOAs. The forms can be accessed on the county's website as part of the online licensing application process.

Prince George's County Short-Term Rental Taxes

When operating a short-term rental business in Prince George's County, Maryland, it's crucial to understand the various taxes that apply. Properly collecting and remitting these taxes is a key responsibility for hosts.

State Sales Tax

Maryland imposes a statewide sales tax of 6% on the listing price, including any cleaning fees, for short-term rentals. This tax applies to all stays of 88 nights or less. Hosts are responsible for collecting this tax from guests and remitting it to the State of Maryland.

Hotel Tax

In addition to the state sales tax, Prince George's County levies a hotel tax of 7% on the listing price, including cleaning fees, for reservations of 89 nights or less. This tax is collected by Airbnb on behalf of hosts and remitted to the county.

Occupancy Taxes

Depending on the specific location of your rental within Prince George's County, additional occupancy taxes may apply. For example, listings located in the City of Annapolis are subject to a 7% hotel occupancy tax for stays of 120 nights or less. Be sure to check with your local tax authority to determine if any city-specific occupancy taxes apply to your rental.

Tax Deductions and Write-Offs

As a short-term rental operator, you may be able to deduct certain expenses related to your business on your tax return. These can help offset your tax liability. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Cleaning and maintenance costs
5. Supplies for guests (e.g., toiletries, linens)
6. Depreciation of furniture and equipment
7. Fees paid to rental platforms like Airbnb

It's important to keep detailed records of all your rental-related expenses throughout the year. Consult with a tax professional to ensure you're claiming all the deductions you're entitled to and that you're properly documenting and reporting your rental income and expenses.

By understanding the tax landscape for short-term rentals in Prince George's County and taking advantage of available deductions, hosts can stay compliant and maximize their rental profits.

Maryland-Wide Short-Term Rental Rules

In addition to Prince George's County's specific regulations, short-term rental hosts must also comply with state-wide rules set by the Maryland General Assembly. These laws provide a framework for local jurisdictions to build upon.

State-Wide Licensing and Registration

As of October 1, 2019, Maryland law requires short-term rental hosts to be licensed at the state level before offering or operating rentals. Hosts must register with the Maryland Short-Term Rental Commission and pay an annual $100 licensing fee. Failure to register can result in fines of up to $1,000 per violation.

Taxation

Maryland imposes a state-wide sales tax of 6% on all short-term rentals of 88 nights or less. Hosts are responsible for collecting and remitting this tax to the state. Many hosting platforms like Airbnb collect and remit this tax on behalf of hosts.

Insurance Requirements

Maryland law mandates that short-term rental hosts maintain a minimum of $1,000,000 in commercial liability insurance coverage. This protects both hosts and guests in the event of accidents or injuries. Proof of insurance must be provided as part of the state licensing process.

Residency and Occupancy Limits

Maryland places no state-wide restrictions on the type of property that can be used as a short-term rental (e.g., primary residence vs. investment property). There are also no state-imposed limits on the number of days per year a property can be rented. However, local jurisdictions like Prince George's County may implement their own residency rules and occupancy caps.

Safety and Habitability Standards

The state requires short-term rentals to comply with all applicable building, fire, health, and safety codes. Smoke and carbon monoxide detectors must be installed and maintained. Hosts must also provide guests with emergency contact information and clearly post fire escape routes.

Neighbor Notification

While not required by state law, the Maryland Short-Term Rental Commission strongly encourages hosts to notify adjacent neighbors of their intent to operate a short-term rental. This promotes transparency and allows neighbors to voice any concerns.

By understanding and adhering to these state-wide regulations, in addition to Prince George's County's local rules, hosts can operate legally and avoid potential fines or legal issues. As always, it's wise to consult with a local lawyer or tax professional to ensure full compliance.

Does Prince George's County Strictly Enforce STR Rules?

Based on discussions in online real estate investing communities like Bigger Pockets and Reddit, Prince George's County appears to be fairly strict in enforcing its short-term rental regulations compared to many other cities. The county requires all hosts to obtain a license, limits rentals to primary residences only, and caps the number of nights per year a property can be rented.

While some hosts may attempt to skirt the rules, the consensus is that Prince George's County is not particularly Airbnb-friendly. One Reddit user commented, "PG city council is on the wrong side of this. They say they want STRs to accommodate travel nurses and transient workers, yet they don't seem to realize that making the city better and more affordable will attract permanent nurses and permanent workers."

Another pointed out the county's detailed requirements: "If you want to run a hotel/rooming house, great, get the appropriate approvals. Governments should be giving fines to these illegal businesses until they're forced to comply or have the property seized for non-compliance."

The strict regulations have pushed some hosts to sell their rental properties. As one Redditor noted, "There was a realtor who was complaining in the local paper that her EIGHT properties would likely have to be sold."

While there are always rule-breakers, most hosts agree that operating an unlicensed short-term rental in Prince George's County is risky. With the county's detailed licensing requirements, caps on rental nights, and prohibition on non-primary residences, the STR environment is tightly controlled. Hosts looking for a more Airbnb-friendly location may want to consider other markets with looser regulations.

How to Start a Short-Term Rental Business in Prince George's County

Starting a short-term rental business in Prince George's County requires careful planning and adherence to local regulations. Follow these steps to launch your rental venture:

1. Verify Your Property Meets Requirements: Ensure your property is your primary residence, complies with all applicable laws and codes, has no outstanding taxes, liens, or violations, and meets safety standards like having smoke detectors, fire extinguishers, and posted fire escape routes. Check that your HOA allows short-term rentals.
2. Obtain Proper Insurance: Secure liability insurance coverage of at least $1,000,000. This is required for licensing and protects you in case of guest injuries or property damage. Shop around for the best rates and consider additional coverage like property damage protection.
3. Apply for a Short-Term Rental License: Complete the online application with Prince George's County DPIE, pay the $150 fee, and submit all required documents, including proof of ownership, homestead tax credit, insurance, safety features, and neighbor/HOA notifications. You'll receive a 90-day provisional license while your application is reviewed. Thoroughly review the licensing requirements and gather all necessary documents before starting your application to avoid delays.
4. Prepare Your Space for Guests: Furnish and equip your rental to provide a comfortable, inviting stay. Invest in quality linens, towels, kitchenware, and amenities. Consider hiring a professional photographer to showcase your property in its best light for online listings.
5. Create House Rules and Guidelines: Establish clear house rules covering items like parking, maximum occupancy (2 guests per bedroom, up to 8 total), noise levels, pet policies, and check-in/check-out procedures. These must be posted prominently in the rental.
6. List Your Property on Hosting Platforms: Once licensed, create listings on popular short-term rental sites like Airbnb and VRBO. Craft an enticing property description, use high-quality photos, set competitive rates, and outline all rules and expectations. Familiarize yourself with each platform's hosting tools and policies.
7. Implement a Cleaning and Maintenance Plan: Cleanliness is crucial for positive guest reviews and return visits. Hire a reputable cleaning service or create a thorough cleaning checklist to tackle between bookings. Plan for regular deep cleanings and maintenance of appliances, HVAC, and safety features.
8. Understand Tax Obligations: Short-term rentals are subject to Prince George's County's 7% hotel tax and Maryland's 6% sales tax on stays under 90 nights. Platforms like Airbnb typically collect and remit these taxes on your behalf, but confirm you're meeting all tax requirements. Consult a tax professional to ensure you're properly reporting rental income and claiming allowable deductions to minimize your tax liability.
9. Provide Excellent Customer Service: Respond promptly to inquiries, send helpful pre-arrival information, and be available to address any issues during guest stays. Consider hiring a co-host or management service if you're unable to be readily accessible to guests.
10. Comply with Ongoing Licensing Requirements: Keep your license current by renewing annually and paying the $150 fee. Regularly review county and state short-term rental regulations to stay compliant. Swiftly address any neighbor complaints or code violations to avoid jeopardizing your license.

By following these steps and prioritizing compliance, safety, and guest satisfaction, you'll be well-positioned to launch and grow a successful short-term rental business in Prince George's County.

Who to Contact in Prince George's County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Prince George's County, here are the key contacts:

Department of Permitting, Inspections and Enforcement (DPIE)

1. Short-Term Rental Licenses: dpierentallicenses@co.pg.md.us
2. Enforcement Division: 301-883-6168
3. Permitting and Licensing Division: 301-636-2050

Prince George's County Planning Information Service

1. Phone: 240-545-8976
2. Address: 14741 Governor Oden Bowie Drive, Upper Marlboro, MD 20772

For general questions about the short-term rental licensing process, email dpierentallicenses@co.pg.md.us. If you need to report a potential zoning violation related to a short-term rental, contact the DPIE Enforcement Division at 301-883-6168.

The Planning Information Service can assist with questions about zoning designations and allowable uses for specific properties. Reach them at 240-545-8976 or visit their office in Upper Marlboro.

In addition to these official contacts, Prince George's County hosts may find the following online communities helpful for connecting with other local hosts and staying up-to-date on regulatory changes:

1. Airbnb Community Center Prince George's County Hosts Forum: https://community.withairbnb.com/t5/Prince-George-s-County/gh-p/PrinceGeorgesCounty
2. BiggerPockets Prince George's County Real Estate Investing Forum: https://www.biggerpockets.com/forums/851-prince-georges-county-md
3. Reddit /r/AirBnB Prince George's County Thread: https://www.reddit.com/r/AirBnB/comments/agaeap/new_shortterm_rental_legislation_in_pg_countymd/

These forums allow hosts to ask questions, share experiences, and learn from one another as they navigate the evolving short-term rental landscape in Prince George's County.

What Do Airbnb Hosts in Prince George's County on Reddit and Bigger Pockets Think about Local Regulations?

Hosts in Prince George's County have shared their experiences and thoughts on local short-term rental regulations in online forums like Reddit and Bigger Pockets. Here are some notable examples:

Reddit user u/Comprehensive_Cow859 posted about the county's 180-day rental limit, asking if there was a way to circumvent it. They wanted to host their basement year-round but were unsure if they should pursue long-term renting instead due to the restriction.

In a Bigger Pockets thread titled "Short term vs longer term rentals in Prince George's County MD", user Paul Georgia noted that non-owner occupied properties are limited to just 90 rental days per year, making short-term rentals less viable in the county compared to long-term strategies.

Bigger Pockets user Alinda Saffell expressed concerns about a "perfect storm" of regulations impacting mom-and-pop landlords in Prince George's County, including a 3% cap on annual rent increases that was made permanent. They worry these rules will lead to blight as maintenance costs outpace allowed rent hikes.

A Redditor shared their frustration with the county's short-term rental legislation that went into effect in October 2019, limiting rentals to 180 days per year and requiring a license. They had planned to Airbnb their basement much sooner but were told it would be illegal and jeopardize future licensing if they started before the law's active date.

These posts highlight the challenges Prince George's County hosts face in navigating the area's strict short-term rental regulations, from annual caps on rental days to licensing requirements and restrictions on rent increases. Many express frustration and concerns about the viability of hosting short-term stays under the county's rules.

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.