OCEAN CITY, Md. — Ocean City council members are set to discuss the future of short-term rentals during a council meeting Monday night at 6 p.m., as officials consider possible new regulations for residential neighborhoods and mobile home communities.
The Ocean City Council recently extended its current moratorium on new short-term rental licenses for another year, pushing the expiration date from Jan. 3, 2026, to Jan. 3, 2027. The moratorium restricts any new short-term rental licenses in residential areas and mobile home communities.
Supporters of the restrictions say they are necessary to protect year-round residents and preserve neighborhood stability.
“The uncertainty of who’s going to be next door to you is really unsettling,” said Linda Foster, a full-time Ocean City resident.
Others argue the limits unfairly impact property owners while benefiting hotels. Terry Miller and Robert Knauer say the restrictions infringe on property rights and amount to hotel protectionism.
Terry Miller and Robert Knauer say the restrictions infringe on property rights and amount to hotel protectionism.
“So this is the trends over the prime season over the past couple of years,” Knauer said while referencing data comparing hotel and short-term rental revenue. “The blue line shows the hotel revenue per hotel room. And the orange line shows the short-term rental revenue per room. And it’s hotel protectionism that they’re trying to do.”
During tonight’s meeting, council members are expected to weigh several options for how to proceed once the moratorium expires.
Three options are currently under consideration: phasing out short-term rentals in residential and mobile home districts, freezing the current number of licenses, or capping how many are allowed.
Phasing out would eventually eliminate short-term rentals in those areas by ending licenses when properties are sold or when licenses are not renewed. A freeze would lock in the current number of licenses, preventing any new ones from being issued. A cap would allow a limited number of additional licenses.
A fourth option is also being discussed that would take no action and allow the moratorium to expire without further regulation, something Miller hopes the council will choose.
“It’s their goal to kill short-term rentals in these neighborhoods,” Miller said. “And that’s what all of their proposals aim to do. It is not what is needed.”
Foster, however, hopes the council ultimately moves to phase out short-term rentals in residential areas.
“When you live here year round, you never know what’s arriving next door,” she said. “It becomes a point of anxiety.”
City officials are expected to hear public input before deciding the future of short-term rentals in Ocean City’s residential and mobile home communities.