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Cleveland Short Term Rental Regulation: A Guide For Airbnb Hosts

Cleveland, Ohio

What are short term rental (Airbnb, VRBO) regulations in Cleveland,Ohio?

Short-term rental regulations in Cleveland, Ohio require owners to register annually with the Department of Building & Housing and pay a $70 fee for each unit1. The rental must be the host's primary residence, and they must be present during the guest's stay1. The city code on short-term rentals requires that property owners live on the property for more than 51 percent of the calendar year1.

The Cleveland Rental Registration Ordinance requires any owner who rents or offers to rent a dwelling or rooming unit to register annually with the Department of Building & Housing. The fee is $70 per year, per dwelling or unit1. The owner of the short-term rental must live in the home, and guests can stay no more than seven consecutive nights1.

Before starting a short-term rental business in Cleveland, it is important to consult with an attorney in your area1. Short-term rental owners in Cleveland are required to register annually with the Department of Building & Housing1. The City of Cleveland imposes a 3% Transient Occupancy Tax (TOT) on operators of hotels that provide short-term rentals1. Cuyahoga County imposes a separate 5.5% bed tax, with Airbnb collecting and remitting the Cuyahoga County bed tax1.

On May 10, 2022, an Ohio House committee passed House Bill 563, which would prohibit local governments from enacting laws that ban short-term rentals altogether or regulate the number, duration, or frequency of rental periods for these properties1. It is unclear whether Cleveland strictly enforces STR rules1.

However, it is technically illegal for an off-site investor to operate a full-time Airbnb property in a residential area of Cleveland without seeking a zoning change and other regulatory approvals1. Cleveland is not considered to be particularly Airbnb-friendly compared to other cities1. Some hosts operate in Cleveland despite the rules1.

Starting a Short Term Rental Business in Cleveland

Starting a short-term rental business in Cleveland, Ohio, requires a clear understanding of the city's regulations and requirements. The Department of Building & Housing is responsible for enforcing the regulations and ensuring compliance with the city's housing codes1.

To start a short-term rental business in Cleveland, it is important to consult with an attorney in your area to ensure that you are in compliance with all local laws and regulations1. The city code requires that property owners live on the property for more than 51 percent of the calendar year, and the rental must be the host's primary residence, where they must be present during the guest's stay1.

Additionally, short-term rental owners in Cleveland are required to register annually with the Department of Building & Housing and pay a $70 fee for each unit1. The city imposes a 3% Transient Occupancy Tax (TOT) on operators of hotels that provide short-term rentals, and Cuyahoga County imposes a separate 5.5% bed tax, with Airbnb collecting and remitting the Cuyahoga County bed tax1.

In 2016, there was an influx in short-term rentals across the city, and the Department of Building and Housing established codes and ordinances to ensure that these properties comply with the standards for residential occupancy2. Any units that are intended to be used as a short-term rental property for more than 91 days per calendar year require a Rental Unit Registration form and must obtain a rental permit in order to operate2.

It is important to note that it is technically illegal for an off-site investor to operate a full-time Airbnb property in a residential area of Cleveland without seeking a zoning change and other regulatory approvals3. However, some hosts operate in Cleveland despite the rules2.

Short Term Rental Licensing Requirement in Cleveland

The short-term rental licensing requirement in Cleveland, Ohio, mandates that owners must register annually with the Department of Building & Housing and pay a $70 fee for each unit12. This registration is crucial for short-term rental operators to comply with the city's regulations and ensure that their properties meet the necessary standards for residential occupancy.

Additionally, the city code stipulates that property owners must live on the property for more than 51 percent of the calendar year, and the rental must be the host's primary residence, where they must be present during the guest's stay12.

The Cleveland Rental Registration Ordinance further emphasizes the need for any owner renting or offering to rent a dwelling or rooming unit to register annually with the Department of Building & Housing, with a fee of $70 per year per dwelling or unit12.

Required Documents for Cleveland Short Term Rentals

To operate a short-term rental in Cleveland, Ohio, there are several required documents and steps that hosts must follow. Here is a list of the necessary documents and procedures:

  • Rental Unit Registration Form: If a property is intended to be used as a short-term rental for more than 91 days per calendar year, a Rental Unit Registration form must be completed and a rental permit obtained2.
  • Proof of Ownership: Hosts must provide proof of ownership of the property, such as a deed or property tax bill1.
  • Valid ID: Hosts must provide a valid ID, such as a driver's license or passport1.
  • Completed Registration Form: Hosts must complete the registration form provided by the Department of Building & Housing1.
  • Compliance with Building, Zoning, and Housing Codes: The property must comply with all building, zoning, and housing codes, and hosts must ensure that their property meets all safety and health standards2.
  • Transient Occupancy Tax (TOT): Short-term rental owners in Cleveland are required to pay a 3% TOT on operators of hotels that provide short-term rentals1.
  • Cuyahoga County Bed Tax: Airbnb collects and remits a separate 5.5% bed tax on behalf of short-term rental owners in Cleveland1.
  • Annual Registration with the Department of Building & Housing: Hosts must register annually with the Department of Building & Housing and pay a $70 fee for each unit1.

It is important to note that it is technically illegal for an off-site investor to operate a full-time Airbnb property in a residential area of Cleveland without seeking a zoning change and other regulatory approvals5. However, some hosts operate in Cleveland despite the rules1.

Cleveland Short Term Rental Taxes

In Cleveland, Ohio, short-term rental owners are required to register annually with the Department of Building & Housing and pay a $70 fee for each unit124. This registration is crucial for short-term rental operators to comply with the city's regulations and ensure that their properties meet the necessary standards for residential occupancy.

Short-term rental owners in Cleveland are also required to collect and remit taxes on their rentals. The city imposes a 3% Transient Occupancy Tax (TOT) on operators of hotels that provide short-term rentals, and Cuyahoga County imposes a separate 5.5% bed tax4. Airbnb collects and remits the Cuyahoga County bed tax on behalf of its hosts4.

In addition to these taxes, short-term rental owners may also be subject to other local and state taxes. For example, short-term rental operators in Ohio are required to collect and remit sales tax, which is currently 5.75% statewide, and any applicable local sales taxes5.

It is important for short-term rental owners in Cleveland to understand their tax obligations and ensure that they are collecting and remitting the correct amounts. Failure to comply with tax laws can result in fines and penalties, and can also negatively impact the city's tourism industry.To ensure compliance with short-term rental regulations and tax laws in Cleveland, it is recommended that owners consult with a local attorney or tax professional. They can provide guidance on the specific requirements for registering and operating a short-term rental in the city, as well as assistance with tax compliance.

Cleveland Wide Short Term Rental Rules

Cleveland has specific rules regarding short-term rentals. The city code requires that property owners live on the property for more than 51 percent of the calendar year3. Guests can stay no more than seven consecutive nights. Additionally, the Cleveland Rental Registration Ordinance requires any owner who rents or offers to rent a dwelling or rooming unit to register annually with the Department of Building & Housing3.

Does Cleveland Strictly Enforce STR Rules?

It is unclear whether Cleveland strictly enforces short term rental (STR) rules. However, it is technically illegal for an off-site investor to operate a full-time Airbnb property in a residential area of Cleveland without seeking a zoning change and other regulatory approvals3.

Cleveland Airbnb Friendliness

Cleveland is not considered to be particularly Airbnb-friendly compared to other cities. Some hosts operate in Cleveland despite the rules3.

How to Start a Short Term Rental Business in Cleveland

To start a short-term rental business in Cleveland, follow these steps:

  • Consult with an attorney in your area.
  • Register annually with the Department of Building & Housing.
  • Pay a $70 fee for each unit.
  • Ensure that your property complies with all building, zoning, and housing codes.
  • Obtain any necessary permits or licenses.

Who to Contact in Cleveland about Short Term Rental Regulations and Zoning

To contact the Department of Building & Housing in Cleveland about short-term rental regulations and zoning, you can visit their website or contact them directly.

The Cleveland Division of Records at 216.664.2000 is another resource for obtaining information on short-term rental regulations in the city, Additionally, the Cleveland Rental Registration Ordinance requires owners to register annually with the Department of Building & Housing if they rent or offer to rent a dwelling or rooming unit. This registration is crucial for ensuring compliance with the city's housing codes and regulations.

Short-term rental owners in Cleveland are required to register annually with the Department of Building & Housing and pay a $70 fee for each unit, The registration process involves providing information about the property and the owner, as well as ensuring that the property complies with the city's housing codes and regulations.

What do Airbnb Hosts in Cleveland on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Cleveland have expressed varying opinions on local regulations. While some hosts operate in Cleveland despite the rules, others have raised concerns about finding enough short-term renters to make their business profitable.

According to a post on BiggerPockets, a user planning to start a rental arbitrage business in Cleveland expressed concern about finding enough short-term renters, especially during the slow season3. The user was considering starting a rental arbitrage business near The Flats and Play House Square on Euclid Ave, but was worried about the potential lack of clients.

However, there are no relevant sources found on Reddit or Bigger Pockets regarding Airbnb hosts in Cleveland and their opinions on local regulations1.

In Cleveland, short-term rental regulations require owners to register annually with the Department of Building & Housing and pay a $70 fee for each unit1. The rental must be the host's primary residence, and they must be present during the guest's stay2. The city code on short-term rentals requires that property owners live on the property for more than 51 percent of the calendar year3.

The Cleveland Rental Registration Ordinance requires any owner who rents or offers to rent a dwelling or rooming unit to register annually with the Department of Building & Housing. The fee is $70 per year, per dwelling or unit1.The City of Cleveland imposes a 3% Transient Occupancy Tax (TOT) on operators of hotels that provide short-term rentals1. Cuyahoga County imposes a separate 5.5% bed tax, with Airbnb collecting and remitting the Cuyahoga County bed tax1.

On May 10, 2022, an Ohio House committee passed House Bill 563, which would prohibit local governments from enacting laws that ban short-term rentals altogether or regulate the number, duration, or frequency of rental periods for these properties1. However, it is unclear whether Cleveland strictly enforces STR rules1.

In summary, while some Airbnb hosts in Cleveland operate despite the rules, others have expressed concerns about finding enough short-term renters to make their business profitable. Cleveland's short-term rental regulations require owners to register annually with the Department of Building & Housing and pay a $70 fee for each unit, with the rental being the host's primary residence and them being present during the guest's stay.

The city imposes a 3% TOT and Cuyahoga County imposes a separate 5.5% bed tax, with Airbnb collecting and remitting the latter. It is unclear whether Cleveland strictly enforces STR rules, but the city does not appear to be particularly Airbnb-friendly compared to other cities.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.