Update sent to MHLA Members 10-24-18:
On October 23, 2018 the Prince George’s County Council unanimously passed legislation yesterday to license and regulate short-term rental (STR) hosts and platforms. We applaud Council Members and County Executive Rushern Baker for taking significant steps to eliminate unfair competition from investors renting multiple units, just like hotels, on platforms such as Airbnb and HomeAway without any oversight.
This legislative package was strongly supported by MHLA. It will establish much needed accountability on the part of platforms who often earn revenue by booking short-term rentals that are not in compliance with local laws, and ensures hosts are following basic rules to protect guests and our communities.
CB-10-2018 and CB-11-2018 will establish the following requirements on STR activity:
- A host may list only their primary residence to be rented a maximum of 180-days annually including a limit of 90 days on “unhosted” rentals. This ensures that real estate speculators or “illegal hotel” operators will not exploit STR platforms.
- Each host must have a license from the County, and pay $150 to renew it yearly. The licensing framework includes processes to suspend or revoke licenses and/or issue fines of $1,000 for violations by hosts.
- Hosts must follow basic rules in order to obtain a license from the County. The host must attest to compliance with health and safety standards and provide notification to neighbors as well as homeowner / condo associations. Some additional requirements include posting rules, designating an emergency contact, keeping record of guest stays and providing parking.
- Platforms must register and annually pay a $2,500 licensing fee to lawfully operate in the County. Platforms may not collect fees for rooms booked on behalf of unlicensed hostsand may be subject to fines of $1,000 for violations of this provision.
- Platforms must collect and remit applicable hotel taxes, and annually provide information to the Department of Permitting, Inspections and Enforcement, including a complete listing of all properties listed on the platform and the total number of nights each unit was rented during the reporting period.
The legislation was proposed by the County Executive, who is expected to sign the bill. It takes effect October 1, 2019.
Thank you to MHLA Members and especially those of who assisted with our advocacy on this issue.
Please contact me for more information.
Amy Rohrer, CAE
President & CEO
Maryland Hotel Lodging Association