Ocean City, Md. – In a decisive move, the Ocean City Council has approved new restrictions on short-term rentals, despite opposition from over 200 residents. The council’s decision came after a comprehensive review of community concerns and potential impacts on local neighborhoods.

Occupancy Limits Enforced

The newly approved occupancy proposal limits the number of guests in rental units to two people per bedroom, plus an additional two occupants. Significantly, children under 10 years old are not counted in this total. The ordinance also prohibits the conversion of attics, garages, and other non-bedroom spaces into bedrooms unless they comply with town permitting requirements. This measure aims to maintain the integrity of residential areas and align with the town’s noise ordinance, adjusting the overnight accommodation period to midnight through 7 a.m.

Minimum Stay Requirement

A second proposal, which establishes a five-night minimum stay for rentals in R-1 and MH zoning districts, passed its first reading with a 5-2 vote. This proposal is set for a second reading for final approval. Realtor Terry Miller, who spearheaded opposition with approximately 200 signatures, argued that this policy could drastically reduce rental income during the summer months, as the national average stay is just 3.41 days. However, Mayor Rick Meehan defended the measure, emphasizing the need to preserve the character and tranquility of residential neighborhoods.

Moratorium on New Licenses

Adding to the regulatory changes, the council has enacted an 11-month moratorium on new short-term rental licenses in the R-1 and MH districts. This moratorium is effective immediately but does not affect applications submitted before January 28, 2025. Property owners with existing rental licenses can apply for renewal and supplementary short-term rental licenses for the 2025 license year.

The original article detailing these developments can be accessed here. This decision by the Ocean City Council marks a significant shift in local policy, aimed at balancing rental activity with community interests. The minimum stay proposal awaits further deliberation in the upcoming council meeting.