The Ocean City Council passed a bill limiting short-term rentals in certain parts of town.

Ordinance 2025-04 mandates five-night consecutive minimum lengths of stay in R1 and MH districts for 2025 and 2026. The bill would later implement a 31-night minimum stay, which would take effect Jan. 1, 2027. Any bookings made before March 3, 2025, would be exempt.

An R1 is defined as alow-density single-family residential development, according to the town. An MH is a district that regulates mobile home parks and subdivisions.

Ocean City Manager Terry McGean said there are about 10,000 rental units in Ocean City, and approximately 300 to 350 of those properties will be affected by the ordinance.

“With the short-term rentals, you had a huge bunch of people coming in and renting a home in these neighborhoods for a long weekend and it was becoming disruptive and not suitable to the character of these neighborhoods,” McGean said. “I think the council felt it was necessary to protect those neighborhoods. That’s sort of the place where the year-round residents live and they are the backbone. They are the people that own the businesses and work here or are the little league coaches.”

Rob Bouse, co-owner of Rob & Anne-Marie Bouse, REMAX Advantage Realty, said the rental market for the Oceanside condos will not be affected. However, Bouse predicts some families with homes in these R1 and MH zones might have to sell, which has troubled some residents.

“It’s definitely a big deal for our market here in Ocean City,” Bouse said. “A lot of current homeowners are very upset. It will stop future investors on properties in the R1 and MH zoning. It will then affect the value of all homes in that zoning as it limits people on what they can do with properties they wish they could invest now for the future of their families

“It’s a shame that they let a few problem properties affect everyone like this.”

Dan Jasinski, a Baltimore native and full-time Ocean City resident for the past nine years, supported the measure.

“It only affects 300 of the short-term rentals in the town,” Jasinski said. “It is a start for much-needed regulations. Currently, short-term rentals do not need to abide by life safety and permitting like hotels do but provide the same service. It would be like if I decided to open a restaurant in my house with no health permit.”

Ocean City Councilman President Matt James could not be reached Tuesday for comment.

Berlin resident Ryan Kirby believes that the majority of year-round residents are in favor of the 31-day minimum. He said Ocean City has lacked affordable year-round housing since Covid began and believes the bill might help alleviate that.

“When you live here and share a street or neighbor with an Airbnb, it makes some weeks and weekends tougher than others,” Kirbey said. “Obviously, it’s a blow to many second homeowners who use short-term rentals to subsidize their housing costs so they can enjoy a few weeks in their home. Many of them will be forced into a very different business model. Year-round or October-May rentals — or sell the home.”

Jay Pierorazio, an agent with Coastal Life Realty Group, does not believe the new ordinance will benefit the rental market. He contends the new rules limit the overall options for the public and take away property owners’ rights that they had up until now. He said some of those families purchased with the intent to strictly use the property for investment purposes.

“I have had that specific conversation with multiple clients the last few weeks, who are now considering when to sell because they will not be able to,” Pierorazio said. “I think it will drive business elsewhere to an extent, like the hotels, that charge a much higher rate, and maybe those people now can’t afford what a hotel is charging so they decide to go elsewhere like Virginia Beach, Myrtle Beach, etc.

“At the end of the day, I don’t agree with taking away someone’s right to rent their property in a resort town.”

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