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SB 666

Real Property - Short-Term Rentals

2026 Regular Session Introduced by Kevin Harris

Prohibits local bans on short-term rentals solely because the operator is a lessee/sublessee, while allowing limits on how many STRs such operators can run.

Favorable with Amendments Report by Judicial Proceedings
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Bill Summary · SB 666

Summary of Senate Bill 666 (2026) – Real Property: Short-Term Rentals

Jurisdiction: Maryland
Session: 2026
Sponsor: Senator Harris

Purpose and Intent

  • To restrict local governments from banning short-term rentals (STRs) solely because the operator is a lessee or sublessee of the property.
  • To empower local authorities to limit STRs operated by lessees/sublessees to more than one property within the jurisdiction, if they choose to do so.
  • To clarify that property owners may continue to impose restrictions on lessees or sublessees, independent of the lessee’s rights.

Key Provisions

  1. Definitions

    • “Operator”: The proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, in any capacity (owner, lessee, sublessee, mortgagee in possession, licensee, or other possessor).
    • “Short-Term Rental” (STR): A residential dwelling unit or portion thereof (including an accessory dwelling) used to provide housing for less than 31 consecutive days. Excludes hotels, motels, boarding houses, group residential facilities for students, fraternity/sorority houses, or similar housing.

  2. Limitations on Local Prohibition

    • A county or municipal governing body may not enact a local law or ordinance prohibiting an STR solely because the operator is a lessee or sublessee of the property.

  3. Potential Restrictions on Lessees/Sublessees

    • A county or municipal governing body may enact a local law or ordinance prohibiting an operator who is a lessee or sublessee from operating more than one STR within the jurisdiction.

  4. Non-Preemption of Other Rights

    • Nothing in the bill prevents a property owner from prohibiting or limiting the use of the property by a lessee or sublessee as a short-term rental (i.e., owner-specific restrictions remain applicable).

  5. Effective Date

    • The Act takes effect October 1, 2026.

Who/What Is Affected

  • Local governments (counties and municipalities) in Maryland: The bill constrains their ability to ban STRs solely on the basis that the operator is a lessee/sublessee, while allowing them to impose limits on the number of STRs operated by lessees/sublessees.
  • STR operators who are lessees or sublessees: Protections against a blanket prohibition by local governments; potential new limit of more than one STR per lessee/sublessee within the jurisdiction, if enacted.
  • Property owners: Not affected in terms of their ability to restrict or prohibit STR use by lessees or sublessees on their own property.

Procedural and Timeline Aspects

  • Legislative History:
    • Introduced and read first time: February 6, 2026.
    • Assigned to: Judicial Proceedings Committee.
    • Action: Favorable with Amendments reported on April 13, 2026.
  • Related/Designated Cross File: HB 993 (Delegate Valderrama) – Economic Matters.
  • Fiscal Impact: State and local finances not directly affected; bill described as having minimal impact on small businesses.

Practical Implications

  • If enacted, Maryland would limit local bans on STRs that target lessees/sublessees, shifting focus toward regulating the number of STRs operated by a single lessee/sublessee within a jurisdiction.
  • Local jurisdictions retain policy tools to manage STR activity through licensing, safety, zoning, taxation, and other non-prohibitory measures, and may impose limits on concentration of STRs operated by a single lessee/sublessee.
  • The bill preserves property-owner prerogatives to set rules on STR use by tenants where a lease agreement or property deed imposes restrictions.

Bottom Line

SB 666 offers a balance between allowing greater flexibility for lessees/sublessees to offer STRs and giving local governments the option to regulate concentration of STR activity, while prohibiting blanket prohibitions solely based on lessee/sublessee status. It takes effect October 1, 2026.

Compiled from official sources — confirm details with the bill’s official record.

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