HB705 would add a new section to Maryland’s Real Property law limiting local government authority over short-term rentals. Specifically, it would prohibit a county or municipality from adopting a local law or ordinance that bars a residential property from being used as a short-term rental solely because the operator is a lessee or sublessee rather than the owner. The bill defines “operator” broadly to include owners, lessees, sublessees, mortgagees in possession, licensees, and other possessory interests, and it defines “short-term rental” as a residential dwelling unit or portion of a unit, including an accessory dwelling, used for housing for less than 31 consecutive days.
The bill also makes clear that it does not override private property rights between owners and tenants. A property owner would still be able to prohibit or limit a lessee or sublessee from using the property as a short-term rental. The measure would take effect October 1, 2025, and would be codified as Section 14-126.1 of the Real Property Article.
Impact
HB705 would preempt local zoning or rental ordinances to the extent they single out lessees or sublessees and prohibit them from operating short-term rentals solely on that basis. It would affect county and municipal regulation of Airbnb-style and similar rental activity, while preserving a property owner’s ability to restrict such use through lease terms or other private agreements. The bill would not create a general right to operate short-term rentals, but it would narrow one common basis for local exclusion.
Sentiment
Based on the bill text and the absence of committee testimony or recorded votes, the available record suggests a straightforward policy proposal with no documented public debate in the materials provided. The bill’s framing indicates support for expanding flexibility in the short-term rental market, especially for tenants and subtenants who want to participate in that market. Because there are no transcripts or votes, no clear legislative consensus or opposition can be inferred from the provided context.
Contention
The main point of contention is likely the balance between local control and statewide uniformity. Counties and municipalities may object to losing the ability to restrict short-term rentals by non-owner occupants, particularly in neighborhoods concerned about noise, parking, housing availability, or enforcement. On the other hand, supporters would likely argue that lessees and sublessees should not be categorically barred from short-term rental participation if the property owner allows it. The bill preserves owner authority, which may reduce opposition from landlords and property owners, but it still limits local governments’ regulatory discretion.