How Annapolis Handles Short-Term Rentals: A Practical Guide

Annapolis maintains 40 local ordinances across all categories, and 6 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Annapolis falls on the strict-to-permissive spectrum compared to other cities.

Insurance Requirements

Annapolis Code Chapter 17.44 does not set an explicit liability insurance dollar minimum for short-term rentals at the city level; the city's licensing focus is on a Maryland Sales & Use Tax license, a local property manager (if the owner is non-resident), occupancy and life-safety standards, and remittance of the Anne Arundel County use-or-occupancy tax. Hosts should still verify coverage through their hosting platform and a private STR or commercial-liability policy.

Key details: City Insurance Minimum: Not specified in Chapter 17.44. State Tax Authority: MD Tax-Gen §11-101 et seq.. Required at Application: MD Sales & Use Tax license. Local Manager: Required if owner non-resident. Other MD Jurisdictions: $1M typical (e.g., Prince George's, Gaithersburg).

Operating a short-term rental without an Annapolis rental license, failing to remit the Anne Arundel County use-or-occupancy tax, or violating Chapter 17.44 standards (occupancy, smoke alarms, reservation log) is a municipal infraction subject to fines and license revocation. Lack of insurance is not an Annapolis-specific code violation, but uninsured hosts may face full personal liability for guest injuries or property damage.

Occupancy Limits

Annapolis Code Chapter 17.44 caps short-term rental occupancy at two individuals per bedroom (excluding small children) and limits short-term residential rentals to no more than 120 consecutive days in a calendar year. The owner must post an occupancy notice on the back of the main entrance door.

Key details: Per-Bedroom Cap: 2 individuals per bedroom (small children excluded). Code Section: Annapolis Code §17.44.010. Stay Length Limit: 120 consecutive days/calendar year. Posted Notice: Required on back of main entrance door. Reservation Log: Owner/guest info required.

Failure to comply with the per-bedroom occupancy cap, the posted-notice requirement, the reservation-log requirement, or the smoke-alarm requirements is a municipal infraction subject to fines set by the City Council and may result in loss of the rental license under Chapter 17.44.

Permit Requirements

Annapolis requires STR operators to register through the city's Citizen Self-Service portal. The City Council passed a 10% per-block density cap on non-owner-occupied STRs. Owner-occupied rentals are exempt from the cap.

Key details: Registration: CSS portal required. Density Cap: 10% per block (non-owner-occupied). Owner-Occupied: Exempt from cap. STR Duration: 120 consecutive days or less.

Operating without registration: fines and cease-and-desist. Exceeding density cap: license denial or revocation.

This is not one of those rules that cities tend to ignore. Annapolis actively enforces its permit requirements requirements.

Noise Rules

Annapolis STR guests are subject to the same noise ordinance as permanent residents. Quiet hours 10 PM–7 AM. Hosts are responsible for guest compliance and can lose their registration for repeated noise complaints.

Key details: Quiet Hours: 10 PM–7 AM. Host Responsibility: Must ensure guest compliance. Posting: Rules posted in unit. Repeat Violations: License review or revocation.

Guest noise violations: police citation to guests. Repeated host violations: STR registration suspension or revocation.

Taxes & Fees

Annapolis STRs owe 8% Anne Arundel County occupancy tax (increased July 1, 2023) plus 6% Maryland state sales tax. Total effective rate approximately 14%. Registration must include a Maryland sales tax license number.

Key details: County Tax: 8% occupancy tax. State Tax: 6% sales tax. Total Rate: Approximately 14%. Tax Code: County §4-6-105.

Failure to collect/remit occupancy tax: back taxes plus interest and penalties under County Code §4-6-105.

Parking Rules

Annapolis STR guests must comply with residential permit parking zones near the Historic District, Naval Academy, and State House. No additional dedicated parking is required by STR registration rules, but congestion is a common complaint.

Key details: Permit Zones: Near Historic District, USNA, State House. Guest Permits: Not provided with STR. Paid Parking: Park Place, Hillman garages. Events: Special restrictions during Boat Show.

Parking in permit zone without permit: $50 citation. Unpaid parking tickets: vehicle boot or tow.

The Bottom Line

Annapolis's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Annapolis is broadly strict or permissive.

This guide is based on Annapolis's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.