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

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

Baltimore City has established comprehensive regulations for short-term rentals (STRs) like Airbnb and VRBO to balance the benefits of the sharing economy with neighborhood preservation. Whether you're considering hosting guests in your primary residence or wondering about investment properties, understanding these regulations is crucial before listing your property.

In Baltimore, a short-term rental is defined as the rental of all or part of a home for periods of less than 90 consecutive nights. Both hosted (owner-occupied) and un-hosted (non-owner occupied) units must comply with specific requirements to operate legally.

Starting a Short-Term Rental Business in Baltimore, Maryland

If you're looking to enter the short-term rental market in Baltimore, you'll need to navigate several important requirements:

Licensing Requirements

All short-term rentals in Baltimore must be registered and licensed with the city. This applies to both hosted and un-hosted properties. The licensing process includes a $200 biennial fee and requires detailed information about your property, including bedroom count, maximum occupancy, and specific location.

Property Eligibility Criteria

To obtain a short-term rental license in Baltimore, your property must meet three critical requirements:

• It must be your principal residence
• The property must be deeded in your name as an individual (not a company)
• The property must be free of any code violations

Primary Residence Restriction

One of the most significant limitations in Baltimore's STR regulations is that the city limits new short-term rental operations to primary residences only. This effectively prohibits the use of investment properties or second homes for short-term rental purposes. This restriction aims to preserve neighborhood character and prevent the conversion of long-term housing into vacation rentals.

Notification Requirements

Baltimore requires hosts to notify their immediate neighbors about their intention to operate a short-term rental. You must provide your contact information to neighbors in case issues arise during guest stays. This promotes accountability and helps maintain good relationships within the community.

Zoning Considerations

Before listing your property, you must verify that it's located in an appropriately zoned area for short-term rental activities. Failure to comply with zoning regulations could result in enforcement actions and penalties.

Tax Obligations

Like other businesses, short-term rentals in Maryland are subject to state and local taxes, including sales tax and, in some jurisdictions, hotel taxes. Maintaining proper tax compliance is essential for legal operation.

Platform Reporting Requirements

It's worth noting that short-term rental platforms like Airbnb and VRBO are subject to a 2018 law requiring them to report any illegal listings within the city. Non-compliance could lead to criminal charges, highlighting Baltimore's serious approach to STR enforcement.

For those considering a multi-room rental setup, be aware that specific considerations apply. Some Baltimore residents have explored options like purchasing larger properties (such as a 7-bedroom house) and renting out multiple rooms as individual STRs. However, this approach still requires proper licensing and compliance with all regulations.

Baltimore's regulatory framework for short-term rentals is designed to ensure these properties are operated responsibly while preserving neighborhood character. By understanding and following these requirements, you can establish a successful and compliant short-term rental business in Baltimore, Maryland.

Short-Term Rental Licensing Requirement in Baltimore, Maryland

Operating a short-term rental in Baltimore requires strict adherence to the city's licensing requirements. The Baltimore City Council established these regulations through Ordinance 19-217 (Council Bill 18-0189), which can be found in the Baltimore City Code Article 15, Licensing and Regulation, Subtitle 48, Short-Term Residential Rentals.

License Application Process

To legally operate a short-term rental in Baltimore, hosts must complete the following requirements:

Verify Property Eligibility: Before applying, ensure your property meets the three fundamental criteria:

1. The property must be your principal residence
2. It must be deeded in your name as an individual (not a company)
3. The property must be free of any code violations

Register Your Property: All short-term rentals must be registered with the Department of Housing and Community Development (DHCD) using their online portal.

Property Inspection: Your property must be inspected by a State Licensed, Baltimore City registered Home Inspector to verify compliance with safety standards.

Complete the Registration Form: The process officially begins on the city of Baltimore's website, where you'll need to fill out the required forms with detailed information about your property, including:

1. Number of bedrooms
2. Maximum occupancy
3. Specific location of the rental unit

Obtain a State Tax ID: This is required for the application and can take up to two weeks to process.

Pay the License Fee: The short-term rental license comes with a $200 biennial (every two years) fee that must be paid at the time of application.

Neighbor Notification: You must notify immediate neighbors about your intention to operate a short-term rental and provide your contact information.

Where to Submit Requirements

You can complete most of the registration process online through the Baltimore City's official website. However, if you need assistance, the city provides several options:

1. In-Person: Visit the registration office located at 417 E. Fayette Street, Room 100, Baltimore
2. Office Hours: Monday through Friday, 8:30 AM to 4:30 PM (except on official holidays)
3. Phone Support: 410-396-3575
4. Email: Contact the Property Registration and Multifamily Licensing Office via email

Processing Timeline

The licensing process typically takes several steps:

1. State Tax ID acquisition: Up to two weeks
2. License application processing: A few days to complete once all documentation is submitted
3. Total time from start to finish: Approximately 2-3 weeks, depending on inspection scheduling

Once approved, you'll receive a unique license number that must be displayed on all your property listings across platforms like Airbnb and VRBO.

License Renewal

Short-term rental licenses in Baltimore are valid for two years from the date of issue. Before expiration, hosts must apply for renewal to maintain legal operation. The renewal process involves:

1. Tracking expiration dates
2. Reapplying before the deadline
3. Demonstrating continued compliance with all requirements
4. Paying the renewal fee

Penalties for Non-Compliance

Operating a short-term rental without proper licensing in Baltimore can result in significant consequences:

1. Hosts who violate the city's short-term rental regulations may be subject to fines of up to $500 per violation
2. Serious violations can potentially result in imprisonment of up to 10 days
3. Continued non-compliance may lead to the revocation of your ability to operate short-term rentals
4. Short-term rental platforms are required to report illegal listings, which can lead to additional enforcement actions

Additionally, property owners who misrepresent tenant rights or diminish essential services (such as gas, electricity, water, heat, light) without tenant consent face misdemeanor charges with fines up to $500 and possible imprisonment.

The city takes enforcement seriously, with random inspections conducted to ensure ongoing compliance with health and safety standards. Maintaining proper licensing and adhering to all regulations is essential for anyone looking to operate a successful and legal short-term rental business in Baltimore.

Required Documents for Baltimore, Maryland Short-Term Rentals

Successfully licensing your short-term rental in Baltimore requires thorough documentation. Here's a comprehensive list of all required documents and their purposes:

Property Registration Form
This is the primary application form for registering your short-term rental property with the Department of Housing and Community Development (DHCD). The form collects essential information about your property, including address, number of bedrooms, maximum occupancy, and your contact details. This form can be accessed and submitted through Baltimore City's online portal.

Proof of Primary Residence
Since Baltimore City only permits short-term rentals in primary residences, you must provide documentation proving the property is your main home. Acceptable documents include a driver's license, voter registration card, utility bills in your name, or tax records showing the property as your primary residence.

Property Deed
The property must be deeded in your name as an individual, not a company. You'll need to submit a copy of your property deed to verify ownership. This document can be obtained from the Baltimore City Circuit Court Land Records office if you don't have a copy.

Third-Party Inspection Report
All short-term rentals must pass an inspection conducted by a State Licensed, Baltimore City registered Home Inspector. This report verifies that your property meets all safety standards and building codes. The inspector will check for functional smoke detectors, carbon monoxide alarms, proper ventilation, and other safety features.

Lead Certification
For properties built before 1978, a lead inspection certificate is mandatory. This document confirms your property has been inspected for lead-based paint hazards and complies with Maryland's lead laws. You can obtain this certification through a Maryland-accredited lead inspection contractor.

Maryland State Tax ID
You must register with the Comptroller of Maryland to obtain a tax ID for collecting and remitting the 6% Maryland sales and use tax on short-term rental transactions. This registration can be completed through the Comptroller of Maryland's website.

Neighbor Notification Documentation
Baltimore requires hosts to notify immediate neighbors about their intention to operate a short-term rental. You'll need to provide documentation showing you've informed your neighbors and shared your contact information with them. This helps maintain good community relations and ensures neighbors can reach you if issues arise.

Code Violation Clearance
Your property must be free of any open code violations. You can request a verification letter from the Baltimore City Department of Housing and Community Development confirming no outstanding violations exist for your property.

Short-Term Rental License Application
The final application form specifically for short-term rental licensing must be completed once all other documents are gathered. This form, along with the $200 biennial fee, finalizes your registration process.

Floor Plan or Property Layout
Some applications require a basic floor plan showing the layout of your rental property, including bedrooms, bathrooms, and emergency exits. This helps verify occupancy limits and safety compliance.

All these documents must be submitted together as part of your application package to the Baltimore City Department of Housing and Community Development. The thoroughness and accuracy of your documentation will directly impact the processing time of your application, so it's advisable to prepare all materials well in advance of your intended rental start date.

Baltimore, Maryland Short-Term Rental Taxes

Operating a short-term rental in Baltimore comes with specific tax obligations that hosts must understand and fulfill. Proper tax compliance is not only legally required but also essential for avoiding penalties and maintaining a legitimate business. Here's a comprehensive breakdown of the tax requirements for Baltimore short-term rental operators:

Baltimore City Transient Occupancy Tax
Short-term rental hosts in Baltimore City must collect and remit a 9.5% transient occupancy tax from their guests. This tax applies to all rentals with stays shorter than 90 consecutive nights. The tax is calculated based on the total listing price, including any cleaning fees or additional charges. This revenue helps fund city services and tourism development initiatives within Baltimore.

Maryland State Sales and Use Tax
In addition to the city tax, hosts must collect the Maryland state sales and use tax of 6% on all short-term rental transactions. This tax applies to rentals of 88 nights or less and is calculated on the full rental amount, including any cleaning fees. The Maryland State Department of Assessments and Taxation (SDAT) requires regular filing of this tax, with specific deadlines based on your assigned filing frequency.

Maryland State Lodging Tax
Short-term rental operators in Baltimore must also collect a 6% state lodging tax from their guests. This tax is separate from the sales tax and applies specifically to accommodations. Like the sales tax, it's calculated on the total rental amount including any additional fees charged to guests.

Tax Collection Responsibilities
While platforms like Airbnb and VRBO may collect some taxes on behalf of hosts, the ultimate responsibility for tax compliance remains with the property owner. It's crucial to verify which taxes are being collected by your listing platform and which ones you need to handle directly. For example, Airbnb currently collects the state sales tax for Maryland hosts but may not collect all local taxes.

Tax Filing Deadlines
Tax returns must be filed according to the schedule assigned by tax authorities:

1. Monthly filers: Due by the 20th day of the month following the end of the filing period
2. Quarterly filers: Due by the 20th day of the month following the end of the quarter

Even during periods with no rental activity, registered hosts must file "zero dollar returns" to maintain compliance with tax regulations.

Possible Tax Deductions and Write-Offs

Short-term rental hosts in Baltimore can offset some of their tax liability through various deductions related to their rental business:

Property-Related Deductions

1. Mortgage interest on the portion of the property used for rental
2. Property taxes (proportional to rental use)
3. Homeowners insurance and specialized short-term rental insurance
4. Depreciation of the property (for the percentage used as a rental)

Operational Expenses

• Utilities (electricity, water, gas, internet, cable TV)
• Cleaning services and supplies
• Maintenance and repairs under $2,500 per item
• Replacement of linens, towels, and guest supplies
• Platform service fees from Airbnb, VRBO, or other listing sites

Business Expenses

• Marketing and advertising costs
• Professional photography for listings
• Accounting and legal services
• Business licenses and permit fees
• Home office expenses (if part of your home is used exclusively for managing the rental)

Guest Amenities

• Coffee, tea, snacks, and other consumables provided for guests
• Toiletries and bathroom supplies
• Welcome gifts or local guidebooks

To maximize these deductions, maintain detailed records of all expenses related to your short-term rental business, including receipts, invoices, and payment confirmations. Consider using accounting software specifically designed for rental properties to track income and expenses throughout the year.

Consulting with a tax professional familiar with short-term rental regulations in Baltimore is highly recommended to ensure you're claiming all eligible deductions while remaining compliant with tax laws. Proper tax planning can significantly reduce your overall tax burden while keeping your short-term rental business in good standing with local and state authorities.

Maryland Wide Short-Term Rental Rules

While Baltimore has its own specific short-term rental regulations, hosts must also be aware of state-level requirements that affect their operations. Maryland doesn't have a comprehensive state-wide short-term rental law, but rather delegates much of the regulatory authority to individual counties and municipalities. However, there are several state-level considerations that all short-term rental operators in Baltimore should understand.

State Tax Collection Requirements
All short-term rental hosts in Maryland, including those in Baltimore, must collect and remit the 6% Maryland state sales and use tax on rental transactions. This tax applies to rentals of 88 nights or less and must be calculated on the full rental amount, including any cleaning fees or additional charges. Hosts must register with the Comptroller of Maryland to obtain a tax ID for proper collection and remittance of these taxes.

State Lodging Tax
In addition to the sales tax, Maryland imposes a 6% state lodging tax specifically for accommodations. Baltimore hosts must ensure this tax is properly collected and remitted to state authorities. While some platforms may collect certain taxes automatically, hosts remain ultimately responsible for tax compliance.

Maryland Short-Term Rental Commission
As of October 2019, Maryland established a Short-Term Rental Commission that oversees rental operations throughout the state. All short-term rental hosts in Maryland, including those in Baltimore, must register with this commission and pay an annual $100 licensing fee. This registration is separate from any local licensing requirements and failure to register can result in fines of up to $1,000 per violation.

Safety Standards
Maryland enforces statewide safety standards for all rental properties. These include requirements for functioning smoke detectors, carbon monoxide alarms (for properties with fuel-burning appliances or attached garages), proper electrical systems, and adequate means of egress. Baltimore hosts must ensure their properties comply with these state safety standards in addition to any city-specific requirements.

Human Trafficking Prevention
A newer addition to Maryland's state requirements is mandatory human trafficking prevention training for short-term rental operators. Hosts must complete an online training course on identifying and reporting signs of human trafficking and include the certificate of completion with their license applications. This requirement reflects the state's commitment to preventing illegal activities in rental properties.

Fair Housing Laws
Maryland's Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, familial status, national origin, or disability. These protections extend to short-term rentals, meaning Baltimore hosts cannot discriminate against potential guests based on these protected characteristics.

Accessibility Requirements
The Maryland Accessibility Code requires certain accommodations for individuals with disabilities. While single-family homes used as short-term rentals may have limited requirements, hosts should be aware of their obligations under state accessibility laws, particularly if they operate multiple units or larger properties.

Understanding these state-wide requirements is essential for Baltimore short-term rental hosts to operate legally and avoid potential penalties. While local regulations may be more stringent in some areas, compliance with these state-level rules forms the foundation of a legitimate short-term rental operation in Maryland.

Does Baltimore, Maryland Strictly Enforce STR Rules?

Baltimore takes a relatively strict approach to enforcing its short-term rental regulations compared to many other cities across the United States. The city's enforcement mechanisms are robust, with clear consequences for non-compliance that hosts should be aware of before entering the market.

Baltimore is known for its vigilant enforcement of short-term rental regulations. The city has implemented a comprehensive framework that includes regular monitoring of listing platforms and follow-up on unlicensed properties. The 2018 law requiring platforms like Airbnb and VRBO to report illegal listings demonstrates Baltimore's serious commitment to enforcement. This reporting requirement creates an additional layer of accountability that many other cities lack.

Many hosts report that Baltimore's licensing process is particularly stringent and can be challenging to navigate. The primary residence requirement serves as a significant barrier for investors looking to operate multiple properties as short-term rentals. This restriction is more limiting than regulations in cities like Nashville or Austin, which allow non-primary residences to operate as STRs in certain zones with proper permits.

While Baltimore does allow both hosted and un-hosted short-term rentals (provided they meet licensing requirements), its primary residence restriction makes it less Airbnb-friendly than other cities, which have more flexible approaches in certain zones. However, Baltimore is not as restrictive as New York City or San Francisco, which have implemented even more stringent regulations and aggressive enforcement actions.

Despite the strict regulations, hosts continue to operate in Baltimore, finding ways to work within the system. Many have shifted to medium-term rentals of 90+ days to avoid the short-term rental restrictions altogether. As one Bigger Pockets user noted, "you can do 90 days or over, there are good amount of corporate people, travelling nurses etc." This adaptation allows property owners to still capitalize on the furnished rental market without dealing with the STR licensing requirements.

The consensus among Baltimore hosts is that while operating within the rules requires significant effort and limits investment opportunities, those willing to navigate the licensing process and comply with regulations can still run successful short-term rental businesses. The primary residence requirement remains the most significant hurdle, effectively preventing the development of large-scale STR investment portfolios within city limits.

For hosts considering entering the Baltimore market, the recommendation is clear: be prepared for a thorough licensing process, ensure you're operating from your primary residence, and consider the 90+ day rental market as an alternative if you're looking to invest in properties specifically for rental purposes.

How to Start a Short-Term Rental Business in Baltimore, Maryland

Starting a short-term rental business in Baltimore requires careful planning and adherence to the city's regulations. Here's a comprehensive step-by-step guide to help you navigate the process successfully:

Verify Property Eligibility

Before investing time and money, confirm that your property meets Baltimore's eligibility criteria. The property must be your principal residence, deeded in your name as an individual (not a company), and free of any code violations. This restriction effectively prevents using investment properties or second homes for short-term rentals unless they were grandfathered in when the regulations were implemented. Check your property's zoning to ensure short-term rentals are permitted in your area.

Obtain a Maryland State Tax ID

Apply for a state Tax ID through the Comptroller of Maryland's website. This ID is essential for collecting and remitting the required 6% Maryland sales and use tax and 6% state lodging tax. The process can take up to two weeks, so plan accordingly. Having this tax ID ready before applying for your license will streamline the overall process.

Complete Property Inspections

Schedule an inspection with a State Licensed, Baltimore City registered Home Inspector to verify your property meets all safety standards. If your property was built before 1978, you'll also need a lead inspection certificate from a Maryland-accredited lead inspection contractor. Addressing any potential safety issues before the inspection can help avoid delays in the licensing process.

Notify Your Neighbors

Baltimore requires hosts to inform immediate neighbors about their intention to operate a short-term rental. Provide your contact information so neighbors can reach you if issues arise during guest stays. Consider going beyond the minimum requirements by personally introducing yourself and addressing any concerns they might have. Building good relationships with neighbors can prevent complaints that might jeopardize your license.

Register Your Property

Complete the registration form on Baltimore City's official website. You'll need to provide detailed information about your property, including the number of bedrooms, maximum occupancy, and specific location. Gather all required documents beforehand, including your Tax ID, inspection certificates, proof of primary residence, and property deed.

Pay the License Fee

Submit the $200 biennial (every two years) license fee along with your application. This fee is non-refundable, so ensure all your documentation is accurate and complete before submitting. Consider this fee as part of your business startup costs and factor it into your pricing strategy.

Obtain Proper Insurance Coverage

While not explicitly required by the city, securing appropriate insurance for your short-term rental is crucial. Standard homeowner's policies typically don't cover commercial activities like short-term rentals. Look for specialized short-term rental insurance that provides liability coverage and protection against property damage by guests.

Create Comprehensive House Rules

Develop clear house rules that address noise, parking, trash disposal, maximum occupancy, and other potential issues. Having well-defined rules helps manage guest expectations and reduces the likelihood of neighbor complaints. Consider local ordinances when creating these rules to ensure they align with Baltimore's regulations.

Set Up Tax Collection Systems

Establish a system for collecting and remitting the 9.5% Baltimore City transient occupancy tax and required state taxes. While some platforms like Airbnb may collect certain taxes automatically, verify which taxes you're responsible for handling directly. Consider using vacation rental software to help manage your tax obligations.

List Your Property with License Number

Once approved, you'll receive a unique license number that must be displayed on all your property listings across platforms like Airbnb and VRBO. Create detailed, attractive listings that highlight your property's unique features and amenities. Use high-quality photos and engaging descriptions to stand out in Baltimore's competitive market.

Implement a Reliable Cleaning and Maintenance Schedule

Establish relationships with reliable cleaning services and maintenance professionals. Regular cleaning and prompt maintenance are essential for positive guest experiences and maintaining your property's condition. Consider creating a maintenance checklist and scheduling regular inspections to address issues before they become problems.

Monitor Regulatory Changes

Stay informed about any changes to Baltimore's short-term rental regulations. The regulatory landscape can evolve, and staying compliant requires ongoing attention. Join local host groups or associations to network with other hosts and stay updated on regulatory developments.

By following these steps and maintaining compliance with Baltimore's regulations, you can establish a successful and legally-operated short-term rental business. Remember that the licensing process typically takes several weeks to complete, so start well in advance of your intended rental start date.

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

Navigating the regulatory landscape for short-term rentals in Baltimore requires knowing who to contact for accurate information and assistance. Here are the key departments, offices, and community resources available to Baltimore STR hosts:

Baltimore City Department of Housing and Community Development (DHCD)

The DHCD is the primary regulatory authority for short-term rentals in Baltimore City. They oversee the licensing process and enforce compliance with the city's STR regulations.

• Main Office Address: 417 E. Fayette Street, 14th Floor, Baltimore, MD 21202
• Property Registration and Licensing Division: 417 E. Fayette Street, Room 100, Baltimore, MD 21202
• Phone: 410-396-3575
• Office Hours: Monday through Friday, 8:30 AM to 4:30 PM (except on official holidays)

The DHCD can provide information on licensing requirements, application procedures, and answer questions about Baltimore's short-term rental ordinances. Their office also has kiosks available for those who need assistance with the online registration process.

Housing Authority of Baltimore City (HABC)

While not directly responsible for STR regulations, the HABC can provide general information about housing policies in Baltimore.

• Central Office: 417 E. Fayette Street, Suite 1339, Baltimore, MD 21202
• Phone: 410-396-3232
• Fax: 410-545-3238

When contacting any of these resources, be prepared with specific questions about your property and situation. Having your property address, current zoning information, and details about your intended STR operation will help you receive the most accurate and helpful information. Remember that regulations can change, so maintaining connections with these resources is valuable for staying updated on any new requirements or enforcement practices.