Montgomery Passes Legislation On Short-Term Rentals

Legislation Addresses Short-Term Rental Services Like Airbnb and HomeAway

The Montgomery County Council voted unanimously on Tuesday to enact two legislative proposals that address the legal and regulatory status of short-term rentals in the County. The two measures, Zoning Text Amendment 17-03 and Bill 2-16, represent Council Vice President Riemer’s and the Montgomery County Planning Board’s recommendations to balance the substantial economic potential for County residents of short-term residential services like Airbnb with concerns about regulating these services.

According to a press release:

ZTA 17-03 makes bed and breakfasts limited uses in most residential and mixed-use zones. It limits the total number of adult overnight guests in a short-term rental to six, limits the total number of adult overnight guests per bedroom to two, and requires one off-street parking space for each rental contract. These measures put in place a regulatory framework that did not exist before, addressing concerns about the potential for residential housing to be used exclusively as a short-term rental service.

ZTA 17-03 was approved with two revisions: (1) The dwelling unit used as a short-term rental must be the property owner’s or owner-authorized resident’s primary residence, which was an amendment recommended by the PHED Committee and (2) If the property owner or owner-authorized resident is not present in the residence, the property can be used as a short-term residential rental for a maximum of 120 days in a calendar year, which was an amendment recommended by Councilmember Katz.

The Council also enacted Bill 2-16, which requires that several conditions be met to receive short-term residential licensing. Bill 2-16 was introduced by Council Vice President Riemer and cosponsored by Councilmember Rice.

“By bringing all the stakeholders together, we were able to find a balance that works for us here in Montgomery County,” said Council Vice President Riemer. “This legislation will allow residents and visitors to get the value of home-sharing services, while preventing abuse and stopping investors from creating de facto hotels in residential neighborhoods and taking valuable housing stock off the market.”

Useful Links

Montgomery County Council Bill 2-16

Montgomery County Council Zoning Text Amendment 17-03