Overview: Are Short-Term Rentals Allowed in Salisbury, MD?

Yes, short-term rentals are explicitly allowed in Salisbury, Maryland. The City of Salisbury has adopted comprehensive regulations for short-term rentals through Ordinance No. 2880, which amended Section 15.26 of the Salisbury City Code. STRs are defined as "the offering of lodging accommodations in a residential dwelling unit or accessory building for periods of less than thirty-one (31) consecutive days to transient guests."

The city has established a regulatory framework that permits both owner-occupied and non-owner-occupied properties to operate as short-term rentals, provided they comply with all registration, licensing, inspection, and safety requirements. The ordinance took effect following its final passage on July 22, 2024, and represents a structured approach to regulating the growing short-term rental market while ensuring public safety and neighborhood stability.

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

Step 1: Obtain a Rental Owner's License

Before operating any rental property (standard or short-term), you must secure a Rental Owner's License from the Housing and Community Development Department (HCDD). This license is required for any individual, partnership, corporation, or other legal entity that owns a majority interest in one or more dwelling units.

Key Requirements:

• Submit license application within 60 days of becoming a new owner
• Annual renewal required on or before March 1st
• Annual license fee set by ordinance (contact HCDD for current fees)

Step 2: Register Your STR Property

Once you have your Rental Owner's License, you must register each short-term rental unit with HCDD.

Registration Timeline:

• New STR units must be registered within 60 days of becoming a rental dwelling unit
• Initial registration deadline for existing units: March 1, 2025
• Annual renewal required on or before March 1st each year

Step 3: Complete Required Inspections

All occupied and advertised STR units must pass annual external and internal inspections by HCDD before registration can be completed. Properties built before 1978 requiring lead paint certification must submit this during the registration process.

Step 4: Ensure Safety Compliance

Your property must meet all applicable city, state, and federal safety requirements, including:

• Working smoke alarms in every bedroom and on every level
• Carbon monoxide alarms outside sleeping areas and on every level
• Fire safety compliance per city fire codes

Step 5: Prepare Required Documentation

Compile all necessary documentation before applying:

• Property ownership proof
• Insurance documentation
• Floor plans showing fire exits and escape routes
• Emergency contact information
• HOA/condominium association confirmation (if applicable)

Required Documents, Permits, Licenses, and Guidelines

Licenses and Registrations

1. Rental Owner's License - Required for all rental property owners
2. Short-Term Rental Unit Registration - Required for each STR unit
3. Property Insurance - Must demonstrate adequate coverage
4. Lead Paint Certification - Required for properties built before 1978

Documentation Requirements

1. Guest Registry - Must maintain and keep readily available:

   • Guest names
   • Check-in/out dates
   • Rent paid

2. Posted Information (must be conspicuous in each STR unit):

   • Emergency contact information
   • Host or authorized agent contact information
   • Street address
   • Floor plan with fire exits and escape routes
   • HCDD contact information (address and email)
   • City and association rules regarding parking, noise, and trash

3. Compliance Documentation:

   • Signed declaration of compliance with all applicable laws
   • Statement regarding primary residence, second home, or secondary residence status
   • HOA/condominium association written confirmation (if applicable)
   • Valid rental license number posted on all listings

Safety Requirements

• Approved working smoke alarms in every bedroom and on every level
• Carbon monoxide alarms outside sleeping areas and on every level
• Fire safety compliance per city fire codes
• Emergency egress compliance

Specific Regulations for Short-Term Rentals

City-Level Regulations (Salisbury Municipal Code Chapter 15.26)

Maximum Stay: STRs are defined as rentals for less than 31 consecutive days.

Inspection Requirements: Annual external and internal inspections by HCDD are mandatory for all occupied/advertised STR units.

License Renewal Deadlines:

• Annual renewal due March 1st
• Non-compliant designation after March 1st
• Delinquent owner/unit status after July 1st
• 60-day vacate notice for delinquent units (48 hours for STR units specifically)

Posting Requirements: Specific information must be posted conspicuously in each STR unit, including emergency contacts, address, floor plans with exits, HCDD contact information, and local rules.

Guest Registry: Hosts must maintain detailed records of all guests, including names, stay dates, and payment information.

Tax Compliance: Hosts must remit all applicable local taxes and required fees.

HOA/Condominium Compliance: Written confirmation from any applicable homeowners' or condominium association is required, confirming that STR use is permitted and that association fees are not more than 30 days past due.

County-Level Regulations

According to property management sources, Wicomico County imposes a 4.5% room tax on short-term rentals. This is in addition to state sales tax requirements.

State-Level Regulations (Maryland)

Sales Tax: Maryland requires collection and remittance of 6% sales tax on short-term rentals.

Lead Paint Certification: Properties built before 1978 require lead paint certification from the Maryland Department of the Environment (MDE) for leases over 90 days. While this specifically applies to longer-term rentals, the city ordinance notes lead paint requirements for standard rentals.

Smoke and Carbon Monoxide Alarm Requirements: Maryland law requires:

• Carbon monoxide alarms "outside and in the immediate vicinity of each separate sleeping area" and "every level of the unit, including the basement"
• Automatic smoke alarm for each sleeping area in residential dwellings

Contact Information for Local Authority

Housing and Community Development Department (HCDD)

Primary Contact for STR Regulations

• Address: 207 W. Main St. Suite 102, Salisbury, MD 21801
• Phone: (410) 341-9550
• Email: HCDD@salisbury.md
• Website: salisbury.md/departments/housing-community-development

Key Personnel:

• Director: Muir Boda
  • Email: mboda@salisbury.md
• Assistant Director: Mike Thomason
  • Email: mthomason@salisbury.md

Department of Finance

Handles License and Registration Fee Payments

• Phone: 410-548-3110 (Taxes)
• Phone: 410-548-3115 (Utilities)
• Pay bills via Interactive Voice Response (IVR): 1-888-250-1639

Fire Marshal's Office

Safety Inspections and Fire Code Compliance

• Phone: (410) 548-3120
• Email: ecramer@salisbury.md
• Website: salisbury.md/departments/fire

Salisbury Police Department

Non-Emergency Issues

• Phone: (410) 548-3165
• Hearing Impaired Only: (410) 749-5756
• Email: spatrol@salisburypd.com

Maryland Department of the Environment (MDE)

Lead Paint Certification and Registration

• Website: mde.maryland.gov/programs/land/LeadPoisoningPrevention/pages/leadregistration.aspx
• Lead Paint Information: mde.maryland.gov/programs/land/LeadPoisoningPrevention/pages/rentalowners.aspx

Source Pages

1. Salisbury City Ordinance No. 2880 (2024): salisbury.md/wp-content/uploads/2024/07/Ord2880.pdf
2. Salisbury Landlord's Guide 2024: salisbury.md/wp-content/uploads/2024/09/Landlords-Guide.pdf
3. HCDD Rental License Application: salisbury.md/departments/housing-community-development/applying-rental-license
4. HCDD Rental Unit Registration: salisbury.md/departments/housing-community-development/registering-rental-unit
5. Minimum Livability Standards for Inspections: salisbury.md/wp-content/uploads/2024/03/Minimum-Livability-Standards-Criteria-Needed-to-Perform-Inspections.pdf
6. Tenant's Rights Lease Addendum: salisbury.md/wp-content/uploads/2023/12/REVISED-Tenants-Rights-Lease-Addendum-with-watermark-12-28-2023.pdf
7. Properties Exempted for 4 Unrelated Persons: salisbury.md/properties-exempted-permitting-occupancy-4-unrelated-persons
8. Properties Exempted for 3 Unrelated Persons: salisbury.md/properties-exempted-permitting-occupancy-3-unrelated-persons
9. Vacant Building Registration Form: salisbury.md/departments/housing-community-development/vacant-building-registration-form
10. HCDD Affidavit - Mailing Address Update Form: salisbury.md/departments/housing-community-development/hcdd-affidavit-mailing-address-update-form
11. Non-Rental Affidavit Form: salisbury.md/departments/housing-community-development/non-rental-affidavit-form

Important Note for Investors: The regulatory landscape for short-term rentals continues to evolve. While this guide reflects the current requirements as of 2024-2025, investors should regularly consult with HCDD and stay informed about any ordinance amendments or new regulations that may affect their operations. The city has demonstrated its commitment to balancing tourism growth with neighborhood stability, and ongoing compliance with all requirements is essential for maintaining a successful STR business in Salisbury.