Short-Term Rentals in Gaithersburg, MD

If you live in Gaithersburg or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Gaithersburg has 2 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Taxes & Fees

Gaithersburg's hotel rental tax, 2% of room rental charges, applies to short-term rentals because Chapter 3A's definition of 'hotel' expressly includes them. Hosts must also remit these taxes as a condition of their short-term rental license.

Key details: Tax rate: 2% of total room rental charge. Applies to: Hotels, defined to include short-term rentals. Reports due: Monthly, last day of following month. Late penalty: 1%/month interest + 5%/month, capped 25%. Recordkeeping: 3 years, subject to director inspection.

Failing to collect, report or remit the 2 percent hotel rental tax draws interest of 1 percent per month plus a penalty of 5 percent per month, capped at 25 percent of the tax owed, under Sec. 3A-5; the failure is also a municipal infraction with a maximum penalty set by city council resolution, and unpaid taxes can jeopardize a short-term rental license under Sec. 18AA-3.1(8).

Short-Term Rental Permits

Anyone offering a Gaithersburg dwelling for stays under 30 days needs a short-term rental license from the city manager. The license comes with nine specific conditions covering safety equipment, insurance, guest logs, posted signage and HOA sign-off.

Key details: License required: For all occupied short-term rental units. Max stay definition: Under 30 consecutive days, §18AA-2. Liability insurance: $1,000,000 minimum, city as additional insured. Guest registry: Names, check-in/out dates, rent paid. HOA sign-off: Required if fees not >30 days past due.

Operating a short-term rental without the Sec. 18AA-3.1 license, or violating any of its nine conditions, is a municipal infraction under Sec. 18AA-9, with a maximum penalty for initial and repeat violations set by city council resolution; the license itself can also be revoked under Sec. 18AA-8 for uncorrected violations, and the city may seek an injunction.

This is one of the stricter rules in Gaithersburg's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Gaithersburg'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 Gaithersburg is broadly strict or permissive.

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