Executive Summary

Yes, short-term rentals are explicitly allowed in Gaithersburg, MD, but only under specific conditions and subject to comprehensive regulations. The City of Gaithersburg enacted ordinances effective November 10, 2019, that permit residents to operate STRs while balancing income generation opportunities with neighborhood safety and integrity. As of 2025, Gaithersburg maintains its own independent licensing and regulatory framework that supersedes Montgomery County requirements, making it essential for investors to understand city-specific regulations.

How to Start a Short-Term Rental Business in Gaithersburg

1. Initial Property Assessment

Before proceeding, verify that your specific property qualifies for STR operation:

• Confirm property type eligibility: Single-family homes, apartments, accessory dwelling units (ADUs), and condominiums are permitted
• Verify rental duration compliance: STRs are defined as rentals for less than 30 consecutive days
• Check community restrictions: Obtain written approval from your Homeowner's Association, Condominium Board, or property management company, as these entities can impose stricter limitations than city requirements

2. Obtain Required Licenses and Permits

Gaithersburg requires all STR operators to obtain a city license before operation:

• License validity: One year from issuance date
• Application process: Submit through the city's online licensing system or in person
• Processing timeline: Submit applications in advance to allow for processing

3. Establish Operational Framework

Define your business structure:

• Licensee requirements: Must be a permanent resident and/or owner of the property
• Authorized agent designation: Appoint a responsible party (who can be a long-term renter) available 24/7 for complaint resolution
• Property management: Establish systems for guest screening, property maintenance, and emergency response

Required Documents, Permits, Licenses, and Guidelines

Municipal Licensing Requirements

• Short-Term Rental License Application (fee: $150)
• Proof of property ownership or written permission from property owner if leasing
• HOA/Condo Board approval documentation (if applicable)
• Emergency contact information and local agent designation
• Property insurance documentation with liability coverage

Compliance Documentation

• Required safety postings (downloadable from city website)
• Hotel tax registration and collection systems
• Parking arrangements documentation (one off-street space required unless listing prohibits vehicle parking)
• Guest capacity documentation showing compliance with occupancy limits

Operational Guidelines

• Maximum rental period: Minimum one-night stay, maximum 120 days per 365-day license term
• Occupancy limits: Maximum 2 adults (18+) per bedroom, unlimited minors under 18
• Contract restrictions: Only one rental contract per unit at any given time
• Usage limitations: STRs must be used exclusively for lodging; events and commercial activities are prohibited

Specific Regulations by Jurisdiction

City of Gaithersburg Requirements

• Definition: Furnished residential properties rented for less than 30 consecutive days
• License fee: $150 annually (effective since November 2019)
• Enforcement: $500 fine for operation without proper licensing
• Hotel tax applicability: All STRs subject to city's hotel tax collection and remittance
• Operational restrictions:
  • No event hosting (parties, weddings, commercial gatherings)
  • Only registered guests may occupy the property
  • One off-street parking space required per unit

Montgomery County Framework

Important: Montgomery County's STR regulations explicitly do not apply to properties within the City of Gaithersburg. The county framework excludes Gaithersburg, along with other incorporated municipalities (Chevy Chase Village, Rockville, Kensington, etc.), from county licensing requirements. Property owners within Gaithersburg must comply with city regulations only.

State of Maryland Requirements

While Maryland maintains a statewide framework for short-term rentals, Gaithersburg's municipal regulations serve as the primary governing authority for local STR operations. The city's ordinances were carefully crafted to address local housing markets and neighborhood characteristics while maintaining consistency with broader state housing policies.

HOA and Community Restrictions

Gaithersburg's regulations recognize that community associations may impose additional or stricter limitations:

• Covenant enforcement: HOAs and condo associations can prohibit STRs entirely through governing documents
• Additional restrictions: Communities may impose parking requirements, occupancy limits, or operational standards beyond city requirements
• Verification requirement: Property owners must confirm community compliance before applying for city licenses

Contact Information for Local Authority

City of Gaithersburg - Neighborhood Services Division

Primary Contact for STR Licensing and Compliance:

• Department: Neighborhood Services Division - Rental Housing
• Phone: 301-258-6340
• Email: rentalhousing@gaithersburgmd.gov
• Hours: Monday-Friday, 8 AM - 5 PM
• Address: City Hall, 31 South Summit Avenue, Gaithersburg, MD 20877

For Online Applications and General Licensing:

• Phone: 301-258-6330
• Email: Licensing@gaithersburgmd.gov
• Online System: Gaithersburg Online Licensing Portal

For Neighborhood Concerns and Violations:

• Email: Neighborhoods@gaithersburgmd.gov
• Phone: 301-258-6340
• Business Hours: Monday-Friday, 8 AM - 5 PM

General City Information:

• Main Phone: 301-258-6300
• Website: www.gaithersburgmd.gov

Source Documentation

Official Government Sources:

1. City of Gaithersburg - Short-Term Rentals
2. City of Gaithersburg - Rental Housing Overview
3. Montgomery County DHCA - STR FAQ

Important Note on Third-Party Information: While third-party resources like Checkmate Rentals may provide additional context, investors should rely primarily on official city documentation for regulatory guidance, as third-party sources may contain outdated or inaccurate information regarding specific fee structures and operational requirements.

This guide reflects Gaithersburg's current STR regulations as of 2025. Given the evolving nature of short-term rental legislation, investors should verify current requirements directly with the City of Gaithersburg Neighborhood Services Division before making investment decisions or beginning licensing procedures.