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Aaron S.
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ADUs in Howard, Anne Arundel, and Baltimore Counties (Maryland)

Aaron S.
Posted

All,

I'm new to real estate investing. Looking to buy a SFH in one of these counties, with the intent to convert a basement into an ADU and rent it out (short or long term) - and live in the main unit as owner-occupied. Does anyone have any experience / can advise on the process in each of these counties?

It looks like in Baltimore county, you can't rent out an ADU unless it's to family members. (https://www.biggerpockets.com/forums/853/topics/1171225-pote...) What are the rules on that?

I've heard that Howard county allows building and renting out ADUs, but the permitting and becoming a landlord process can be a pain.

Looks like Anne Arundel allows building ADUs and renting out short-term (but not long-term?), as long as it's not zoned R22-Residential (https://www.aacounty.org/sites/default/files/2023-07/adu-fac...). Overall, it sounds to me like the process might be easiest here. Can anyone confirm that?

In general, I'm looking to learn: Does the county allow building and renting out an ADU, either short or long term? What's the permitting process like for both building out the ADU and obtaining a license to rent it out?

Thanks!

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Russell Brazil
Agent
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
Agent
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

ADU allowed in Anne Arundel, Montgomery and Howard Counties. Montgomery and Anne Arundel refer to them in code as ADU. Howard refers to them as Accesory Apartment. PG does not allow them

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Jack Seiden
Pro Member
  • Real Estate Agent
  • Washington DC
605
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804
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Jack Seiden
Pro Member
  • Real Estate Agent
  • Washington DC
Replied
Quote from @Aaron S.:

All,

I'm new to real estate investing. Looking to buy a SFH in one of these counties, with the intent to convert a basement into an ADU and rent it out (short or long term) - and live in the main unit as owner-occupied. Does anyone have any experience / can advise on the process in each of these counties?

It looks like in Baltimore county, you can't rent out an ADU unless it's to family members. (https://www.biggerpockets.com/forums/853/topics/1171225-pote...) What are the rules on that?

I've heard that Howard county allows building and renting out ADUs, but the permitting and becoming a landlord process can be a pain.

Looks like Anne Arundel allows building ADUs and renting out short-term (but not long-term?), as long as it's not zoned R22-Residential (https://www.aacounty.org/sites/default/files/2023-07/adu-fac...). Overall, it sounds to me like the process might be easiest here. Can anyone confirm that?

In general, I'm looking to learn: Does the county allow building and renting out an ADU, either short or long term? What's the permitting process like for both building out the ADU and obtaining a license to rent it out?

Thanks!


 The other thing to note, and o don’t remember each counties rules off the top of my head but in some counties you lose the ability to rent the adu if you move out & it’s not owner occupied.

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Tim Jacob
Pro Member
  • Real Estate Agent
  • Baltimore, MD
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506
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Tim Jacob
Pro Member
  • Real Estate Agent
  • Baltimore, MD
Replied

The biggest thing you can be fought on is parking.  You should make sure your place has the parking available.  Secondly the square footage.  Underpinning or an addition would make most conversions not feasible economically.  I always worry about forecode as well.  As of now you don't need to retrofit places with sprinklers but Maryland is ridiculous on that.