One-year pause on new short-term rental licenses considered in Annapolis

Annapolis City leaders are considering a one-year pause on new short-term rental licenses

A resolution introduced this week would impose a one-year moratorium on new short-term rental licenses while the city takes a closer look at enforcement and the overall number of rentals operating in Annapolis.

Alderwoman Karma O'Neill introduced the resolution during Monday's City Council meeting. The measure is co-sponsored by Mayor Jared Littmann, who says restrictions passed by the council last fall did not go far enough.

"It doesn't solve our enforcement issue, and it doesn't solve the quantity of STRs," Littmann said.

What would happen if approved?

If passed, the moratorium would allow existing short-term rental licenses to be renewed but would pause the issuance of new licenses for one year. 

Owner-occupied rentals would be exempt, along with certain high-demand events such as the U.S. Naval Academy graduation and the city's spring and fall boat shows.

Littmann said the goal is to give the city time to improve enforcement and assess how many short-term rentals are operating.

"So we can give ourselves some space to fix that issue without running the risk of making the quantity problem worse," he said.

Concerns with the proposal

The proposal drew concern from several short-term rental operators who spoke during public comment at Monday's meeting.

"With the restrictions that have already been put in place, I just would ask that the City Council take a pause and not introduce any new changes," said Casey Johnson, a resident and short-term rental operator.

Megan Moore, who owns a short-term rental business, said she's managed over 40 properties and generated more than $750,000 in taxes. 

"Those of us who have followed every rule are now facing the consequences of bad actors and of the responsibilities that haven't been enforced," Moore said.

The debate follows the release of an August city report that found nearly half of short-term rentals in Annapolis were operating without a license.

While this week's proposal is a resolution, Littmann said he plans to reintroduce the moratorium as an ordinance on Dec. 18 — a move he said would better address enforcement issues.