Potomac Short-Term Rentals: Registration Rules Rules (2026)

Montgomery County Code Chapter 54 mandates that all short-term rental operators obtain a license before listing or renting their property. The application process requires proof of property ownership or authorization from the owner, completion of a life safety inspection (smoke detectors, carbon monoxide detectors, fire extinguishers, egress windows), registration with the county Department of Finance for hotel tax collection, and disclosure of the maximum occupancy. Licenses must be renewed annually with updated documentation. The license number must be displayed on all booking platform listings. The county actively monitors booking platforms to identify unlicensed operators and issues cease-and-desist notices. Only primary residences may be licensed as STRs in most residential zones, preventing investors from operating multiple STR properties. The licensing program went into effect following the passage of the STR regulatory framework and represents one of the more comprehensive local STR programs in the DC metropolitan area. Licensed operators must comply with all conditions including the 120-night cap, noise rules, parking provisions, and insurance requirements.