Baltimore Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Baltimore, Maryland?

As the popularity of platforms like Airbnb and VRBO continues to grow, the city of Baltimore, Maryland, has taken a proactive approach to regulating the short-term rental (STR) industry within its boundaries. Recognizing both the benefits and potential challenges of the sharing economy, Baltimore has implemented a comprehensive set of rules and requirements to ensure that these rentals are operated responsibly and in a manner that preserves the character and livability of the city's diverse neighborhoods.

At the heart of Baltimore's STR regulations is a mandatory registration and licensing process. All short-term rentals, whether they are owner-occupied "hosted" units or non-owner-occupied "un-hosted" units, must be licensed by the city, regardless of the rental period. This licensing requirement, which comes with a $200 biennial fee, is designed to give the city oversight over these commercial activities and to ensure that each rental property meets the necessary safety, zoning, and community compatibility standards.

In addition to the licensing process, Baltimore has also placed restrictions on the types of properties that can be used for short-term rentals. The city limits new STR operations to primary residences only, prohibiting the use of non-primary residences, such as investment properties, for this purpose. This rule is intended to prevent the proliferation of "investor-owned" short-term rentals, which can disrupt the residential character and affordability of Baltimore's neighborhoods.

Maintaining harmonious relationships between short-term rental operators and their local communities is another key priority for Baltimore. The city's regulations include a mandatory neighbor notification process, requiring hosts to inform their immediate neighbors of their intention to operate a short-term rental and provide contact information in case of any issues or concerns.

Ensuring proper tax compliance is also a crucial component of Baltimore's STR regulations. Short-term rental operators in the city are required to collect and remit both the city's 9.5% transient occupancy tax and the state's 6% lodging tax from their guests. While platforms like Airbnb may handle the tax collection on behalf of the host, the ultimate responsibility for compliance lies with the host.

Based on discussions on forums like Bigger Pockets and Reddit, it appears that Baltimore takes a relatively strict approach to enforcing its short-term rental regulations. Some hosts have reported challenges in navigating the licensing process and complying with the various rules, which may deter some from operating in the city. However, Baltimore is still considered relatively Airbnb-friendly compared to other major cities, as it does allow both hosted and un-hosted short-term rentals, provided they meet the licensing requirements.

For those interested in starting a short-term rental business in Baltimore, the key steps include determining if the property is eligible for a license, obtaining a state Tax ID, applying for the city's short-term rental license, and ensuring proper tax compliance. Hosts should also be prepared to maintain open communication with their neighbors and stay up-to-date with any evolving regulations or enforcement practices.

Starting a Short Term Rental Business in Baltimore

In Baltimore, all short-term rentals, regardless of whether they are owner-occupied "hosted" rentals or non-owner-occupied "un-hosted" rentals, must be registered and licensed by the city. This licensing requirement applies to any rental period of less than 90 consecutive nights. The city's goal in implementing this regulation is to strike a balance between the benefits of the sharing economy and the need to maintain the integrity of residential areas.

By requiring hosts to obtain a license and comply with various rules and standards, Baltimore aims to ensure that short-term rentals are operated in a way that is compatible with the surrounding community. This includes considerations around safety, zoning, noise, parking, and trash management, among other factors.

The city recognizes that while short-term rentals can provide economic opportunities and flexible accommodations for visitors, they can also have the potential to disrupt the character and livability of residential neighborhoods if not properly regulated.

Short Term Rental Licensing Requirement in Baltimore

To operate a short-term rental in Baltimore, hosts must obtain a biennial license from the city, which comes with a $200 fee. The licensing process requires hosts to provide detailed information about their property, including the number of bedrooms, the maximum occupancy, and the specific location of the rental unit. Hosts must also agree to abide by the city's short-term rental regulations, which cover a range of operational and compliance requirements.

The licensing requirement is a cornerstone of Baltimore's approach to regulating the short-term rental industry. By requiring all hosts to go through this process, the city can ensure that each rental property meets the necessary safety and zoning standards, and that hosts are aware of their responsibilities in operating a short-term rental. This includes adhering to rules related to noise, parking, trash management, and other quality-of-life factors that can impact the surrounding neighborhood.

Required Documents for Baltimore Short Term Rentals

As part of the licensing process, hosts must provide a state Tax ID, which can take up to two weeks to obtain. Once the city processes the application, the host will receive a short-term rental license number, which must be displayed on all property listings. This license number serves as a visible indicator that the rental is operating in compliance with Baltimore's regulations.

In addition to the license, hosts may need to obtain other permits or approvals, depending on the specific characteristics of their rental property. For example, if the property is located in a historic district or has certain zoning restrictions, additional approvals may be required.

Navigating these additional requirements can add complexity to the process, but they are essential for ensuring that short-term rentals are integrated into the city's existing regulatory framework.

Baltimore Short Term Rental Taxes

Short-term rental operators in Baltimore are required to collect and remit both city transient occupancy tax and state lodging tax from their guests. The city's transient occupancy tax is currently set at 9.5%, while the state lodging tax is an additional 6%.Airbnb and other platforms may collect these taxes on behalf of the host, but the host is ultimately responsible for ensuring proper tax compliance.

Failure to collect and remit the required taxes can result in fines and other penalties, so it is crucial for hosts to understand and fulfill their tax obligations.

The tax requirements are an important component of Baltimore's short-term rental regulations, as they ensure that the city and state are able to generate revenue from these commercial activities and that short-term rental operators are contributing their fair share to the local economy.

Baltimore-wide Short Term Rental Rules

In addition to the licensing and tax requirements, Baltimore's short-term rental regulations include a mandatory neighbor notification process. Hosts are required to notify their immediate neighbors of their intention to operate a short-term rental and provide contact information in case of any issues or concerns.

Furthermore, the city limits new short-term rentals to primary residences only, meaning that hosts cannot operate short-term rentals in properties that are not their primary place of residence. This rule is designed to prevent the proliferation of "investor-owned" short-term rentals, which can disrupt the character and affordability of residential neighborhoods.

By restricting short-term rentals to primary residences, Baltimore aims to maintain the residential nature of its neighborhoods and ensure that short-term rental activity does not become a dominant commercial use in residential areas. This approach is intended to balance the needs of the short-term rental industry with the preservation of the city's housing stock and the quality of life for local residents.

Does Baltimore Strictly Enforce STR Rules? Is Baltimore Airbnb Friendly?

Based on discussions on forums like Bigger Pockets and Reddit, it appears that Baltimore takes a relatively strict approach to enforcing its short-term rental regulations. Some hosts have reported challenges in navigating the licensing process and complying with the various rules, which may deter some from operating in the city.

However, Baltimore is still considered relatively Airbnb-friendly compared to other major cities, as the city does allow both hosted and un-hosted short-term rentals, provided they meet the licensing requirements. Some hosts continue to operate in Baltimore despite the regulations, though they emphasize the importance of staying up-to-date with the evolving rules.

One Bigger Pockets user noted that "Baltimore has a pretty robust short-term rental regulatory framework, but it's still more Airbnb-friendly than some other major cities." Another Reddit user commented that "the rules can be a bit of a hassle, but as long as you follow them, you can still run a successful short-term rental business in Baltimore."

It's important to note that the short-term rental landscape in Baltimore is constantly evolving, and the city's enforcement approach may change over time. Hosts should stay informed about any updates or changes to the regulations to ensure they are operating in compliance and avoiding potential penalties or legal issues.

How to Start a Short Term Rental Business in Baltimore

• Determine if your property is eligible for a short-term rental license, either as a primary residence or a grandfathered secondary unit. The city's regulations prohibit new short-term rentals in non-primary residences.
• Obtain a state Tax ID, which can take up to two weeks to process. This is a required step in the licensing application.
• Apply for a short-term rental license on the city's website, a process that typically takes a few days to complete. The license is valid for two years and must be renewed.
• Add your license number to your Airbnb or VRBO listing to finalize the registration process. Displaying the license number is a requirement for all short-term rental listings in Baltimore.
• Ensure you are collecting and remitting the required city transient occupancy tax (9.5%) and state lodging tax (6%) from your guests. Failure to comply with tax requirements can result in fines and other penalties.

Who to Contact in Baltimore About Short Term Rental Regulations and Zoning?

For questions or concerns regarding short-term rental regulations and zoning in Baltimore, you can contact the city's Department of Housing and Community Development at (410) 396-3100 or visit their website at https://dhcd.baltimorecity.gov/.

The department's staff can provide guidance on the licensing process, answer questions about the city's short-term rental rules, and assist with any zoning-related inquiries.

What do Airbnb Hosts in Baltimore on Reddit and Bigger Pockets Think About Local Regulations?

On the Bigger Pockets forum, some Baltimore Airbnb hosts have expressed frustration with the city's strict licensing requirements and the challenges of navigating the regulatory environment. One host commented, "The licensing process is a real headache, and it feels like the city is making it harder and harder to operate a short-term rental."

However, other hosts on Bigger Pockets have noted that the rules help maintain the integrity of the local community and provide a level of oversight that can benefit responsible hosts. As one host stated, "While the regulations can be a bit of a hassle, I understand the city's desire to ensure short-term rentals are operated responsibly and don't disrupt the neighborhood."

On Reddit, Baltimore Airbnb hosts have also discussed the importance of staying up-to-date with the evolving regulations, as the city continues to refine its approach to short-term rentals. Some hosts have reported success in operating within the rules, while others have faced difficulties in meeting the compliance standards. One Reddit user shared, "The rules can be a moving target, so it's crucial to keep an eye on any updates or changes from the city."

Overall, the sentiment among Baltimore Airbnb hosts seems to be a mix of frustration with the regulatory burden and an acknowledgment of the city's efforts to balance the needs of the short-term rental industry with the concerns of local residents. Responsible hosts who are willing to navigate the licensing process and comply with the rules appear to be able to operate successfully in Baltimore, though the city's strict enforcement approach may deter some potential short-term rental operators.

It's important to note that the short-term rental landscape in Baltimore is constantly evolving, and hosts should stay informed about any changes to the regulations or enforcement practices.