Annapolis short-term rental owner urges council to grandfather three-unit property after licensing confusion

Julie Gibson, a homeowner and short-term rental operator, told the Annapolis City Council on Tuesday that she may face bankruptcy because of inconsistent information from the city about short-term rental licensing.

Gibson said the property at 165 King George Street is a single building divided into three separate apartments, each with its own entrance, and that she obtained licensing after purchase. She told the council the city’s licensing staff gave her advice in May 2024 that one license could technically cover multiple units “under one umbrella” for tax and licensing purposes, but she has since been told an April 2024 change (referred to in materials as “Amendment 4”) limits a license to a single dwelling unit.

Gibson said the city’s recent shift in interpretation threatens about 50 short-term reservations she has on the books through 2027 and could jeopardize her mortgage and business standing on hosting platforms. She said the majority of her guests are Naval Academy families and requested that the council grandfather her three existing units as short-term rentals and allow transfer of that status to a future buyer, citing the historical example of the Gibson’s Inn being treated as transferable in the 1980s.

Alderman Savage said the council’s original intent had been to allow multiple rooms to be rented in one building under a single license and asked the city attorney and manager’s office to review the code and implementation. Alderman Harry Huntley is recorded…