OCEAN CITY, Md. — Property owners in Ocean City are pushing back on an ordinance recently passed by the Mayor and Council, implementing minimum stays on hundreds of short-term rentals.
On March 3 Ocean City shook up requirements for rental properties in areas known as R1 and MH districts.
R1 areas are described as low density single family residential developments, while MH stands for mobile homes.
Under the new ordinance rentals booked in these districts require a minimum five-night stay.
Come January 1, 2027 that requirement increases to a 31-day minimum.
RELATED: Ocean City Mayor & Council now requiring some renters to book minimum 5 day stays
A group called OCMD Property Rights Inc. has since started a petition in opposition.
Earlier this week, they submitted over 1,300 signatures, which they claim is enough to trigger a referendum.
"On April 21, 2025, OCMD Property Rights Inc. submitted 1,327 signatures to the Ocean City Clerk, officially triggering the process to place Ordinance 2025-04 on the ballot for a public referendum," the group posted on their Facebook page."While the signature verification process is expected to be tedious and time-consuming, the organization remains confident that the petition will meet all necessary thresholds to move forward."
The Ocean City Council insists the ordinance will "prevent overcrowding of land and avoid undue concentration of population in the wrong zones caused by rental properties, to protect against noise and other disturbances."
OCMD Property Rights Inc. downplayed that argument stating "complaints about [short term rentals] are few and far between, far lower than those received from hotel and motel guests."
Property owners who already booked future reservations were outraged by the City's plan, with some threatening to sell off.
In turn, the City Council prohibited existing rental licenses from being part of any potential property sale, meaning prospective buyers would be forced to apply for their own rental license.
The City went even further, implementing an 11 month moratorium on short-term rental licenses for R1 and MH Districts.
OCMD Property Rights Inc. called the move "a shocking decision, with such widespread ramifications for every homeowner in Ocean City."
Group organizers say the ban means "fewer visitors, depressed property values, and a negative impact on local businesses and jobs."
There has been some questions as to how many properties the new police actually impacts.
While the City claims it's less than 500, Property Rights members say the numbers could reach 3,000.
While the current ban is targeting 300 property owners in the R1 and MH districts, it will impact every Ocean City resident and homeowner," the group argued. "The council is taking away a fundamental property right from over 3,000 homeowners and their heirs. It is also a slippery slope from R1 and MH having their rights stripped away to every property owner having the same thing done to them. The 7-person council should not have the right to make such a consequential decision. The public has the right to decide our own fate."
With the signatures now in the hands of the City Council, the ball's now in their court to either hold special election on the matter, or to pose the question on the next general election ballot.
As of Thursday afternoon, the group said it's still waiting for the City to provide a timeline for completing signature verification.
"They mentioned that the dates for vetting signatures are still being coordinated," the group's latest Facebook post reads. "We’ll keep you posted once we know."
Here is a map of R1 rentals impacted by the new policies.
To read a full description of the ordinances, click here and scroll pages 120-132.
