Annapolis Increased Short-Term Rental Violation Fines

The city raised the maximum penalty for rental violations to $5,000 to discourage illegal operations.

Updated on Sept. 29, 2026 in Apartments

Annapolis Increased Short-Term Rental Violation Fines

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Do you support stricter city fines to limit the number of short-term rentals in your area?

The Annapolis City Council has voted to increase the maximum fine for short-term rental violations from $1,000 to $5,000. This change, which is effective immediately, aims to curb unlicensed rental activity across the city.

Why it matters

City officials implemented the higher fine because previous penalties were insufficient to dissuade property owners from operating unlicensed rentals. The move is part of a broader strategy to mitigate the impact of short-term lodging on local neighborhood character.

There are currently 376 licensed short-term rentals in Annapolis, with city policy limiting density to no more than 10% of homes on any single block. The new $5,000 fine represents the maximum amount permitted under state law.

The players

Annapolis City Council

This is the governing legislative body for the city of Annapolis that oversees municipal ordinances and zoning regulations.

Department of Planning and Zoning

This municipal agency is responsible for land use management and previously estimated that there were approximately 560 total short-term rentals in the city.

The details

City staff recommended the fine increase to ensure the penalty exceeds potential earnings from unlicensed operations. Annapolis has also maintained a one-year moratorium on all new short-term rental licenses since March 2026 to manage housing supply.

March 2026: The city placed a one-year moratorium on new rental licenses.
March 9, 2026: The moratorium on new short-term rentals went into effect.
September 28, 2026: The City Council voted to approve the fine increase.
September 29, 2026: The new fine amount became effective immediately.

Culture Shift

This move signals a shift toward more aggressive municipal enforcement as cities grapple with the impact of short-term platforms on housing availability. It reflects a broader trend of local governments prioritizing residential stability over the growth of transient rental markets.

Property owners operating without a license now face significantly higher financial risks for non-compliance. Residents may see more consistent enforcement of neighborhood density caps as the city attempts to address the 59 known code violations.

The takeaway

Property owners should ensure their rental status is fully compliant with municipal ordinances to avoid the new, steeper penalty. The city's focus on density and code enforcement highlights the growing tension between short-term rental platforms and residential neighborhood integrity.