Overview: Are Short-Term Rentals Allowed?

Yes—short-term rentals are permitted in Westminster, Maryland, but they are not expressly regulated as a distinct land use. Practically, two pathways exist:

• As a traditional rental (any lease term) under Westminster’s Rental Housing License Program; or
• As a Bed & Breakfast (overnight lodging with owner presence and, for Country Inns, meals) in specific residential zoning districts.

In practice, many investors choose the “rental license” path because it avoids the owner-occupancy requirement imposed on Bed & Breakfasts. If you are outside city limits but within Carroll County, operate as a Bed & Breakfast (and related lodging uses) under county zoning or consult with the county zoning administrator to confirm whether a zoning certificate or conditional use approval is required for your specific district and property plan.

How to Start a Short-Term Rental Business in Westminster, MD

1. Confirm your property’s jurisdiction

• Within Westminster city limits: follow city licensing (Rental Housing License Program).
• Outside city limits but within Carroll County: county zoning rules apply; confirm permitted lodging uses and any required zoning certificates or conditional approvals before listing.

2. Decide your operating model

• Traditional rental (any term): obtain a Westminster Rental Housing License (no zoning certificate needed in city). Comply with the city’s Property Maintenance Code and nuisance/behavior standards.
• Bed & Breakfast (owner-occupied residential dwelling, rooms rented to paying guests overnight): permitted as a principal use in many county residential zoning districts (see county zoning code excerpts). Country Inns (with meals) are also an allowed lodging category. Confirm your district’s requirements and any additional permits.
• Accessory Dwelling Units (attached or detached): permissible under county zoning but typically for long-term occupancy; confirm use specifics and occupancy standards with the Zoning Administrator before listing short-term.

3. Secure licensing/approval

• Westminster city rentals: apply annually for a Rental Housing License before renting or leasing. Online applications and payments are available through the city’s portal.
• County properties (if not within city limits): contact the Zoning Administrator regarding lodging uses and whether a zoning certificate or conditional use approval is required.

4. Assemble compliance documentation

• Westminster licenses require affirming compliance with the city’s Property Maintenance Code.
• Maintain documentation for inspections, complaint resolution, and habitability standards. Keep records of communications with tenants/guests and corrective actions.

5. Taxes and reporting

• Collect and remit state sales and accommodation taxes as required; register for state tax accounts and file returns. Consult the Maryland Comptroller for current rates and filing cadence.
• Income tax: consult a CPA/tax advisor for federal and state income reporting obligations for short-term rental income.

6. Tenant/guest management and neighbor relations

• Establish house rules for noise, occupancy, pets, smoking, and parking to preempt violations.
• Display emergency contact information and local ordinances. Manage complaints promptly; the city’s complaint-based enforcement program is active.

7. Marketing and listings

• Comply with any state-level registration or disclosure rules (none identified in the provided materials).
• Use professional listing content with clear occupancy limits, parking rules, and quiet hours aligned with city/neighborhood standards.

Required Documents, Permits, Licenses, and Guidelines

Westminster (City Limits) – Traditional Rental

• Rental Housing License Application (annual; per unit).
• License fee payment. Online application and payment available via the city portal.
• Compliance attestation with Westminster’s Property Maintenance Code (self-attestation with the application).
• License must be in place before renting or leasing. Operating without a license is prohibited and subjects the property to enforcement action.
• If the property owner resides more than 50 miles from Westminster, designate a local agent whose contact information must be kept current.

Westminster (City Limits) – Bed & Breakfast Path

• If operating as a Bed & Breakfast (owner-occupied overnight lodging), treat the use as a residential lodging type; still ensure the unit meets housing standards and any relevant safety/compliance expectations. Confirm specific permit requirements with the city’s Housing Office; the provided sources do not list city Bed & Breakfast permits.

Carroll County (Outside City Limits) – Lodging Uses

• Bed & Breakfast and Country Inn are recognized lodging uses under county zoning definitions and generally permitted in residential districts subject to district-specific standards.
• Zoning certificate and/or conditional use approval may be required depending on your district and the scope of use. Confirm with the County Zoning Administrator before listing.

Habitual Offender Designation (Westminster)

• Properties with three separate violations within a 12-month period are designated “Habitual Offender,” triggering a $500 license fee per unit for a 12-month period and enhanced enforcement.

Westminster City Fee Schedule (Annual License)

• July 1–31: $20
• August 1–31: $30
• September 1–30: $50
• October 1–31: $100
• November 1–30: $150
• December 1–31: $200
• January 1–May 31: $250
• Over one year late: $350
• Over two years late: $450

Note: License fees are per unit and increase with lateness. Submit early to minimize costs.

Specific Regulations: City, County, and State

Westminster City

• Rental Housing License Program (Ordinance No. 839, effective June 1, 2013): Every rental unit in the city must be licensed annually before renting or leasing.
• Habitual Offender: Three violations in 12 months lead to increased license fees ($500/unit for 12 months).
• Local Agent Requirement: Owners residing more than 50 miles from Westminster must designate a local agent residing within 50 miles and maintain current contact information.
• Complaint-Based Enforcement: Tenants/guests can report conditions and nuisance behavior. The city can inspect and require corrections. Evictions are restricted until licensing and compliance issues are addressed.
• Property Maintenance Code: License applicants affirm compliance with basic clean, safe, and sanitary standards.
• Limitations on Evictions: Westminster cites the Maryland Court of Appeals decision in McDaniel v. Baranowski regarding summary ejectment; consult legal counsel for eviction procedures and timelines.

Carroll County Zoning (Outside City Limits)

• Bed & Breakfast: Defined as an owner-occupied residential dwelling where rooms are rented to paying guests overnight. Recognized and permitted in many residential districts under the county zoning code (Chapter 158).
• Country Inn: Defined as a dwelling where rooms are rented to paying guests on an overnight basis with meals served daily; may also host one-time events (banquets, weddings, receptions, etc.) not open to the general public.
• Accessory Dwelling Units: County zoning allows attached and detached accessory dwellings; confirm whether short-term rental use is consistent with the accessory dwelling framework and district standards.
• Zoning Certificates and Conditional Uses: Depending on your district and the scope of lodging operations, a zoning certificate and/or conditional use approval may be required. Contact the Zoning Administrator to confirm.

Maryland State

• No state-level short-term rental registration law is identified in the provided sources.
• Tax obligations: Collect and remit state sales and accommodation taxes as applicable; register with the Maryland Comptroller and file returns. Consult your CPA/tax advisor for details and current rates.
• Liability and Insurance: Verify coverage for short-term rental operations (premises liability, host liability, property damage) and ensure compliance with county/state health and safety requirements.

Enforcement and Compliance Notes (Westminster)

• Operating without a license is illegal.
• The city uses complaint-based inspections and enforcement; repeated violations can escalate fees and enforcement actions.
• Habitual Offender designation leads to higher license fees and potentially increased scrutiny.
• Code of Conduct for Tenants/Guests: Keep units clean and sanitary; manage rubbish and garbage; maintain equipment and fixtures; control pets and animal waste; minimize noise and avoid nuisance behaviors; report issues promptly and never retaliate against those who report problems.

Contacts and Authorities

Westminster Housing Office (Licensing and Compliance)

• Address: 45 W. Main St., Westminster, MD 21157
• Phone: 410-848-2261
• Fax: 410-876-0865
• Email: housing@westminstermd.gov
• Hours: Monday–Friday, 8:30 a.m.–4:30 p.m.
• Online Application/Payment: Westminster’s Rental Housing License portal (link provided below)

Carroll County Zoning Administration (County Zoning and Certificates)

• Zoning Administrator (Carroll County): Contact the Carroll County Department of Planning to confirm zoning certificate requirements, conditional use processes, and lodging use standards for properties outside city limits.
• Note: No specific phone/email/website details were provided in the sources. Contact Carroll County government main lines to be routed to Zoning Administration.

Source Links and Access

• Westminster Rental Housing License Program overview and fee schedule: www.westminstermd.gov/262/Rental-Housing-License-Program
• Westminster Tenant/Landlord Program Information (PDF): www.westminstermd.gov/DocumentCenter/Home/View/208
• Westminster Rental Housing License Online Portal (applications/payments): www.citizenserve.com/westminstermd
• Carroll County Zoning Regulations (Chapter 158) – Definitions and general provisions: www.carrollcountymd.gov/media/10972/chapter158-fullchapter-final-dec10-2019.pdf

Practical Checklist for Investors

• Confirm jurisdiction (Westminster vs. Carroll County).
• Choose operating model: (a) Rental License path or (b) Bed & Breakfast path.
• Submit annual license (city) or pursue zoning certificate/conditional approval (county).
• Affirm Property Maintenance Code compliance and maintain records.
• Designate a local agent if >50 miles from Westminster.
• Set up sales and accommodation tax accounts and filing cadence.
• Create guest rules and neighbor outreach to minimize violations.
• Monitor complaints and respond quickly to avoid Habitual Offender status.