Annapolis city officials are taking significant steps to regulate short-term rentals in residential neighborhoods, aiming to preserve community character and address concerns from residents. During the Rules and City Government Committee meeting on September 8, 2025, the committee discussed a proposed amendment that would limit the number of short-term rentals to no more than 10% of the properties on any given block face.

Karen Krause, the city’s short-term rental coordinator, reported that the current enforcement system, which relies on Host Compliance, has identified approximately 560 short-term rentals in the city, while only 283 are properly licensed. This discrepancy highlights the need for improved tracking and compliance efforts. Krause noted that many unlicensed operators are now being contacted to ensure they either comply with licensing requirements or cease operations.

The proposed amendment aims to mitigate the impact of short-term rentals on long-term residents, who have expressed concerns about the changing dynamics of their neighborhoods. The concentration of short-term rentals can disrupt community ties, as neighbors may not be present to support one another. The amendment seeks to limit the number of rentals to maintain the residential character of these areas.

The committee's analysis revealed that Ward 1 has the highest concentration of short-term rentals, with 30 block faces exceeding the proposed 10% limit. In contrast, Wards 2 and 8 have fewer instances of over-concentration. The committee emphasized the importance of balancing the interests of short-term rental operators with the needs of long-term residents.

As the city moves forward with this amendment, officials are committed to ensuring that the enforcement of short-term rental regulations is effective and fair. The next steps will involve further discussions and potential adjustments to the proposed legislation, with the goal of fostering a harmonious living environment for all Annapolis residents.