PROPOSED RENTAL REVISIONS

Current Proposed Ordinance

Proposed Ordinance – Length of Stay – Sec. 14-178

Current Proposed Ordinance Language

“Sec. 14-178. – There shall be a five (5) consecutive overnight minimum length of stay for any dwelling rented in the R-1 single family residential district or in the MH mobile home residential district. This shall not apply to a rental booking in the R-1 single family residential district or in the MH mobile home residential district reserved prior to January 29, 2025, for a 2025 calendar year stay.

When will the Mayor and City Council discuss this ordinance?

The Mayor and City Council will consider the ordinance for a second reading during their regular meeting on Tuesday, February 18, 2025, at 6:00 PM.

Will the ordinance be adopted then?

Yes, if the Mayor and Council vote in favor of it.

Current Adopted Ordinance as of February 3, 2025

What codes have been adopted

• Ordinance 2025-01 to Amend Various Articles of Chapter 14, Businesses (short-term rental housing regulations; occupancy and property management/administration)

• Ordinance 2025-02 to Amend Chapter 110, Zoning, Article I (definition of Family)

• Ordinance 2025-05 Establishing a Moratorium on the Issuance of New Short-term Rental Licenses in the R-1 and MH Districts

How do these new ordinance effect rentals in the MH and R-1 Zoning districts?

Ordinance 2025-05 Establishing a Moratorium.

Moratorium on Short-Term Rental Licenses:

• For 11 months, new short-term rental licenses (31 days or less rentals) cannot be issued for properties in the R-1 Single Family Residential and MH Mobile Home Residential districts.

• Applications for new licenses in these areas will not be accepted, processed, or reviewed during this time.

• Any applications submitted before January 28, 2025, will not be affected by this rule.

• Property owners who already have a rental license for 2024 can apply for a license for 2025.

• No new licenses will be issued for properties that change ownership, except if the property owner passes away, in which case an exception can be requested.

Review by Mayor and City Council:

• The Mayor and City Council will review this moratorium in a public meeting no later than October 28, 2025, to decide what to do for 2026 and beyond.

Effective Date:

• This moratorium is effective as of February 3, 2025.

Ordinance 2025-01 & 2025-02 regarding occupancy

Four or more unrelated person is no longer a restriction for occupancy in R-1 district.

For dwellings in the R-1 Single Family Residential and MH Mobile Home Residential districts being used as rental housing:

Occupancy is limited to 2 persons per bedroom.

Plus 2 additional persons, with the exception of children 10 years old or younger.

Between midnight and 7:00 AM, occupancy is restricted to these limits.

Ordinance 2025-01 Summary of Additional Ordinance Language:

Responsible Person Requirement:

• Property owners must provide the town with the name, address, and phone number of a person qualified and legally authorized to:

◦ Can accept legal notices and handle property issues (e.g., repairs).

◦ Responds to the property within 60 minutes.

◦ Has the authority to handle code violations.

• The application requires consent to inspections during reasonable hours and includes a declaration about the number of bedrooms and available parking.

• Property owners must provide accurate information.

Advertising Bedrooms:

• Property owners cannot advertise more bedrooms than are approved on the building permit plans for the property.

Room Conversions:

• Rooms, attics, or garages cannot be converted into bedrooms without following all town rules and obtaining the necessary permits.

Ordinance 2025-01 Summary of new enforcement requirements:

1. Suspension of a License:

◦ The city manager can suspend a rental license for up to 30 days if the licensee:

▪ Breaches any license conditions or fails to follow certain city codes.

▪ Engages in unlawful activities or nuisances related to the use of the property .

▪ Has 3 documented service calls for service (e.g., law enforcement, fire marshal) that require a response and/or citations for different incidents within 12 months for issues like disturbances, noise, vandalism, or overcrowding.

1. If there are 3 documented calls for service (e.g., law enforcement, fire marshal, or other officials) within a 12-month period for incidents like noise, overcrowding, vandalism, or disturbances, the rental license is automatically suspended for up to 30 days.

2. The property owner or local agent must be notified of these calls to be considered a documented service call.

3. The twelve-month period starts from the first call for service or citation.

4. The suspension applies to actions by the owner, renters, guests, and invitees.

5. The procedure for suspension of a rental license shall follow section 14-38 (c) and (d).


2. Revocation of a License:

◦ The city manager can revoke a rental license if:

▪ It was issued mistakenly and improperly .

▪ It was obtained through fraud, misrepresentation etc.

▪ There has been a previous suspension within the last 12 months for similar issues.

▪ There is a violation of any laws that endanger public health, safety, or welfare.

◦ The revocation also follows specific procedures in the city’s code.

3. Other Enforcement Actions:

◦ The Mayor and City Council can take legal action in court to enforce these rules if needed.

How can I review the proposed ordinance?

Ordinance 2025 – Length of stay 

How can I review the adopted ordinance?

Ordinance 2025-02 – Amend Chapter 110, Zoning, Sect 110-2 Definitions

Ordinance 2025-01 – Amend Chapter 14 Regulations

Ordinance 2025-05– Moratorium

How can I find out what zoning district I am in?

View Online Map

View PDF

When can I make public comments about this?

Mayor and Council Regular Session Tuesday, February 18, 2025, at 6:00 PM.

All meetings will take place at City Hall, 301 Baltimore Ave, and will be live-streamed here https://oceancitymd.gov/oc/meeting-portal/