OCEAN CITY, Md. - Despite opposition from more than 200 residents, the Ocean City Council has approved new restrictions on short-term rentals, including occupancy limits and a minimum stay requirement.
The council unanimously passed an occupancy proposal restricting the number of guests per rental unit to two people per bedroom, plus two additional occupants. Children under 10 will not count toward the total occupancy. The ordinance also prohibits converting attics, garages, and other rooms into bedrooms without meeting town permitting requirements. Additionally, the overnight accommodation period was adjusted to midnight to 7 a.m. to align with the town’s noise ordinance.
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. The proposal will require a second reading for final approval.
Realtor Terry Miller, who gathered about 200 signatures in opposition to the minimum stay requirement, argued that the policy could negatively impact rental income. “Guests now come for an average of 3.41 days, which is the national average,” Miller said. “By requiring five days, we’re cutting out half of people’s rental income in the summer.”
Mayor Rick Meehan defended the proposal, citing concerns about preserving the character of residential neighborhoods. “The expectation of people who bought homes in these neighborhoods is that they won’t have a lot of disturbances or excessive rental activity,” Meehan said.
In addition to these changes, the council approved an emergency ordinance imposing an 11-month moratorium on new short-term rental licenses in R-1 and MH districts. The moratorium applies from the ordinance’s effective date and excludes applications submitted before Jan. 28, 2025. Property owners with existing rental licenses may apply for renewal and a supplementary short-term rental license for the 2025 license year.
The minimum stay proposal will go before the council for a second reading at its next meeting.