OCEAN CITY, Md. - A proposed regulation aimed at limiting short-term rental licenses in residential neighborhoods and mobile home communities has divided Ocean City residents, with some calling the plan a necessary step toward preserving quality of life and others arguing it goes too far.

The Ocean City Council discussed the issue during a work session Tuesday, where officials reviewed five possible options to regulate short-term rentals in those areas. After discussion, council members narrowed the choices down to one proposal, which was then pushed to a future work session for further consideration.

The option moving forward would cap short-term rental licenses at 10 percent in residential neighborhoods and mobile home communities. Under the proposal, primary homeowners would receive priority when purchasing a license. At a later date, non-primary Ocean City homeowners would be able to apply if the cap has not been reached.

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The option moving forward would cap short-term rental licenses at 10 percent in residential neighborhoods and mobile home communities. 

Some residents say regulations could be needed as more people choose to live in Ocean City year-round. "people are coming here to retire here. They want quiet and peace. They want normalcy," said local Evelyn Anderson.

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Others believe the proposed cap infringes on property owners’ rights. "We want everybody to have quiet enjoyment in their property, without taking away their rights," said Terry Riley, an Ocean City realtor.

According to the Ocean City agenda, there are currently 341 short-term rental licenses in residential areas and mobile home communities. If the town were to move forward with the 10 percent cap today, that number would be limited to 375 licenses, allowing for only 34 new short-term rental licenses in those areas.

Riley said the proposal could affect thousands of families in the future and believes enforcement should instead focus on problem rental owners. "they're still going to be impacting somewhere north of 3000 families in the future and take their rights away from their ability to rent their property short term," Riley said.

Anderson, however, believes the proposed cap strikes a reasonable balance. "I think it's probably a nice medium way to go."

The Ocean City Council is expected to continue the conversation during a future work session.

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Kevin joined the CoastTV News team in November 2023 as a video journalist. He is a Rowan University graduate with a degree in radio television and film and a minor in sports communications. While at Rowan, Kevin worked at the campus television station, RTN, and was also a member of the Rowan radio station, 89.7 WGLS-FM.

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