Toledo, Ohio Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Toledo, Ohio?

Toledo, Ohio, has been steadily growing as a destination for travelers, creating opportunities for property owners to tap into the short-term rental market. With hundreds of short-term rentals and growing, Toledo has implemented specific regulations to ensure safety and minimize neighborhood impacts. If you’re considering starting an Airbnb or VRBO in Toledo, here’s what you need to know about the current regulations.

Starting a Short-Term Rental Business in Toledo, Ohio

Getting started in the Toledo short-term rental market requires understanding and complying with the city’s permit requirements and regulations. The city has established a framework to balance the interests of property owners, guests, and local residents. Some of the things you’d first need to consider are:

• Permit Requirements: You must obtain a permit for each unit you plan to rent out.
• Local Contact Requirements: This individual must be available 24 hours a day, seven days a week and able to respond within 45 minutes of notification regarding any complaints about the property or its occupants.
• Occupancy and Safety Standards: Toledo has established a maximum of two occupants per bedroom with an additional two guests allowed per property.
• Neighborhood Notification: Within 48 hours of submitting your application, you must send a neighborhood notice to all adjacent property owners.
• Tax Obligations: Short-term rentals in Toledo are subject to the County’s Transient Occupancy Tax (TOT).

For those serious about entering this market, consulting with local real estate professionals who specialize in short-term rentals can provide valuable insights into neighborhood-specific considerations and help navigate the regulatory landscape.

Short-Term Rental Licensing Requirement in Toledo, Ohio

Operating a short-term rental in Toledo requires strict adherence to the city’s licensing requirements. The Toledo City Council has established a comprehensive permitting system to ensure accountability and safety for both hosts and guests. Here’s everything you need to know about getting properly licensed.

Permit Application Process

To legally operate a short-term rental in Toledo, you must obtain a permit for each individual unit. These permits are valid for one year from the date of issue and must be renewed annually. The application must be submitted to the Department of Finance, Division of Taxation on forms provided by the Mayor’s office or designee.

The application requires several key components:

• Your full legal name, mailing address, email address, and telephone number
• If you’re a lessee rather than the owner, you must include the owner’s full legal name, contact information, and a signed acknowledgment from the owner indicating their understanding of Toledo’s STR rules
• Certificate of tax and public utility compliance or evidence of compliance with a payment plan
• Evidence of compliance with any applicable rental registry requirements
• An Affidavit of Life Safety Compliance verifying the number, locations, and operation of required life safety equipment
• Proof of general liability insurance in the amount of at least $1,000,000
• Contact information for a local representative who will be available 24/7 to respond within 45 minutes to any complaints
• A basic site plan identifying the number of sleeping rooms and the number and location of designated off-street parking spaces

Neighborhood Notification Requirement

Within 48 hours of submitting your application, you must send a neighborhood notice form (supplied by the Division of Taxation) by first-class mail or hand delivery to all property owners adjacent to your proposed short-term rental. This includes properties that:

1. Directly abut your property
2. Are located across the street or alley from your property
3. Are diagonal across the street or alley from your property

You must provide the Division of Taxation with the names and addresses of all property owners who received these notices.

Application Fee and Submission

The application fee is $50 per unit, payable at the time of submission. This fee covers the administrative costs of processing your application and enforcing the regulations. Applications can be submitted in person at the Department of Finance, Division of Taxation.

Processing Time

While we can’t provide an exact timeframe for application processing, it’s advisable to apply well in advance of your intended start date to allow for processing, neighborhood notifications, and any potential issues that may arise.

Display Requirements

Once approved, your permit must be prominently displayed in each short-term rental unit where it’s visible to guests and inspectors. This is a non-negotiable requirement for all permitted STRs in Toledo.

Penalties for Non-Compliance

Operating or even advertising a short-term rental without a valid permit is considered a public safety hazard in Toledo. The consequences are significant:

1. The city may issue a penalty of $100 per week to the operator and/or owner
2. Penalties can accumulate up to a maximum of $500 for operating or advertising without a permit
3. Appeal Process

If your application is denied by the Director of Finance, you have the right to appeal the decision as provided under Section 701.10 of the Toledo Municipal Code.

The licensing requirements in Toledo strike a balance between allowing the short-term rental market to flourish while ensuring proper oversight and safety standards. City Council member Katie Moline has emphasized that these regulations are “focused on ensuring safety and accountability” rather than disrupting the normal use of services like Airbnb and VRBO.

For property owners looking to enter the short-term rental market in Toledo, understanding and complying with these licensing requirements is the essential first step toward building a successful and legal operation.

Required Documents for Toledo, Ohio Short-Term Rentals

Securing the proper documentation is a crucial step in legally operating your short-term rental in Toledo. The city has established clear requirements for what paperwork must be submitted with your application.

Completed Permit Application Form

The foundation of your short-term rental business begins with the official permit application form provided by the Mayor’s office or designee. This document collects essential information about you as the operator and details about your rental property. The form must be submitted to the Department of Finance, Division of Taxation.

Proof of General Liability Insurance

Toledo requires all short-term rental operators to maintain general liability insurance with minimum coverage of $1 million. This insurance protects both you and your guests in case of accidents or injuries on your property. You’ll need to obtain this from an insurance provider that offers coverage specifically for short-term rentals, as standard homeowner’s policies often exclude such commercial activities.

Certificate of Tax and Public Utility Compliance

This document verifies that you’re current on all city taxes and utility payments. If you have outstanding balances, you may still qualify by providing evidence of compliance with an approved payment plan. This can be obtained from the Toledo Department of Finance.

Rental Registry Compliance Evidence

Toledo requires all rental properties to be registered with the County Auditor. For Toledo, this falls under the Lucas County office. You can file for registration online or via mail. You’ll need to provide this along with documentation showing you’ve properly registered the property.

Affidavit of Life Safety Compliance

This sworn statement verifies that your property meets all required safety standards. The affidavit must detail the number, locations, and operational status of all required safety equipment, including smoke detectors, carbon monoxide detectors, and fire extinguishers. This document helps ensure your guests will be staying in a safe environment.

Basic Site Plan

Toledo hosts are required to submit a simple floor plan or diagram that identifies:

1. The number of sleeping rooms (which determines maximum occupancy)
2. The number and location of designated off-street parking spaces
3. Any other relevant property features that affect occupancy or safety

This helps city officials verify that your property meets occupancy and parking requirements.

Local Contact Information

While not a physical document, you must provide detailed contact information for a local representative who will be available 24/7 and able to respond within 45 minutes to any complaints. This person must be able to take remedial action as necessary to resolve issues. If you don’t live in Toledo, you’ll need to arrange for a local property manager or representative to fulfill this requirement.

Neighborhood Notification Documentation

After submitting your application, you must send notification to all adjacent property owners using the form provided by the Division of Taxation. You’ll then need to provide the Division with a list of names and addresses of all those to whom notices were sent, serving as proof that you’ve fulfilled the notification requirement. This is one of the more time-consuming requirements for setting up a short-term rental in Toledo.

Payment of $50 Application Fee

Each application must be accompanied by a $50 fee, payable to the Department of Finance. This fee covers the administrative costs of processing your application and is required for each individual unit you plan to operate as a short-term rental.

All these documents must be current and valid at the time of submission. The city may request additional information or clarification during the review process, so it’s advisable to maintain copies of all submitted materials. With proper preparation and attention to detail, navigating Toledo’s documentation requirements can be a straightforward process in establishing your short-term rental business.

Toledo, Ohio Short-Term Rental Taxes

Operating a short-term rental in Toledo, Ohio, involves navigating several tax obligations. Understanding these tax requirements is essential for compliance and proper financial planning. Here’s a breakdown of the taxes that apply to short-term rental operators in Toledo:

Sales Tax

Toledo short-term rental operators must collect and remit Ohio state sales tax. As of 2025, the minimum combined sales tax rate for Toledo is 7.75%. This total comprises:

1. Ohio state sales tax: 5.75%
2. Lucas County sales tax: 1.5%
3. Toledo Area Regional Transit Authority tax: 0.5%

Before you can begin collecting these taxes, you must register with the Ohio Department of Taxation through their online portal.

Transient Occupancy Tax (TOT)

Short-term rental hosts in Toledo are required to collect a transient occupancy tax from their guests. This tax is set at 3% of the rental amount. The TOT applies to all short-term stays and must be remitted to the city regularly.

Lodging Taxes

All short-term rentals in Ohio are responsible for paying lodging taxes to Ohio tax authorities. Your specific lodging tax rate depends on your property’s location within Toledo. These taxes are separate from the sales tax and must be tracked and paid accordingly.

Resort Area Gross Receipts Excise Tax

If your short-term rental has five or more sleeping rooms, you may be subject to the Resort Area Gross Receipts Excise Tax. This is an additional tax imposed by the state of Ohio on larger short-term rental operations. The specific rate varies, so consulting with a tax professional for your particular situation is advisable.

Tax Deductions and Write-Offs for Toledo STR Owners

The good news is that short-term rental operators can offset some of their tax burden through various deductions. Here are some key write-offs to consider:

Property-Related Deductions:

1. Mortgage interest on your rental property
2. Property taxes paid on your rental
3. Insurance premiums for your short-term rental
4. Depreciation of the property (typically calculated at 3.636% annually over 27.5 years)

Operational Expenses:

1. Cleaning services and supplies
2. Maintenance and repairs (up to $2,500 for individual repairs)
3. Utilities (electricity, water, gas, internet)
4. Property management fees
5. Airbnb or VRBO service fees

Guest Amenities:

1. Toiletries and supplies for guests
2. Welcome gifts or refreshments
3. Streaming services provided for guests
4. Linens and towels

Marketing and Business Expenses:

1. Advertising and promotional costs
2. Photography for your listing
3. Professional services (accounting, legal)
4. Travel costs related to property management

Remember that if you use your property personally for at least 14 days (or 10% of the total rental days, whichever is greater), you’ll need to track personal versus rental use days carefully. Expenses can only be deducted proportionally based on rental use.

For Toledo property owners who rent their property for fewer than 15 days per year, there’s a significant tax advantage: under the IRS 14-day rule, you don’t need to report the rental income or expenses on your tax return.

Given the complexity of short-term rental taxation in Toledo, many successful hosts work with tax professionals who specialize in real estate investments to ensure compliance and maximize deductions. This investment in professional guidance often pays for itself through optimized tax strategies and peace of mind.

Ohio Wide Short-Term Rental Rules

The short-term rental landscape in Ohio is evolving, with significant legislative developments that could impact Toledo hosts. Understanding these statewide regulations is essential for anyone operating or planning to operate a short-term rental in Toledo.

Proposed State Legislation

As of April 2025, Ohio has two identical bills under consideration—Senate Bill 104 and House Bill 109—that would significantly impact local short-term rental regulations across the state, including Toledo. These bills, if passed, would:

• Prohibit local governments from banning short-term rentals in residential zones
• Prevent municipalities from implementing lottery systems for STR permits
• Forbid restrictions on the number of STR properties one person can operate
• Eliminate requirements for owners to occupy short-term rental properties

The legislation would still allow local jurisdictions to require STR licenses and adopt ordinances related to health and safety. The bills have been assigned to the Senate Local Government Committee and House Development Committee respectively, with hearings underway but no votes yet as of March 2025.

State Tax Requirements

All short-term rental operators in Ohio must comply with state tax requirements:

• Ohio State Sales Tax: Currently set at 5.75%, this tax applies to short-term rentals with five or more sleeping rooms
• Lodging Taxes: If the proposed legislation passes, all short-term rentals would be subject to lodging taxes, potentially increasing state revenue from $121 million to $150 million annually

The proposed legislation would require collection and remittance of these taxes by the short-term rental platform operators (like Airbnb and VRBO), potentially simplifying the process for individual hosts.

Licensing Fee Limitations

The proposed legislation would cap local government registration or licensing fees at $20 per property, which could benefit Toledo hosts who currently pay $50 per unit. The proceeds from these fees would be restricted to enforcing local short-term rental regulations.

Impact on Local Regulations

If passed, these bills would override more restrictive local ordinances. For Toledo hosts, this could mean fewer restrictions on how they operate their rentals, though they would still need to comply with basic safety and licensing requirements.

Current Statewide Requirements

Until the proposed legislation passes, short-term rental regulations remain primarily under local control. However, all Ohio short-term rental operators must:

• Register with the Ohio Department of Taxation if they meet the threshold for collecting sales tax
• Maintain proper insurance coverage
• Comply with Ohio’s landlord-tenant laws for applicable situations
• Adhere to state building and fire safety codes

Transient Occupancy Classification

Under Ohio law, guests staying fewer than 30 consecutive days are classified as “transient guests.” This classification affects both tax obligations and the legal relationship between hosts and guests, as standard landlord-tenant protections may not apply to short-term stays.

The potential passage of SB 104 and HB 109 represents a significant shift toward standardizing short-term rental regulations across Ohio. Toledo hosts should stay informed about these developments, as they could substantially impact local operating requirements and create new opportunities for expanding short-term rental businesses in the city.

Does Toledo, Ohio Strictly Enforce STR Rules?

Toledo’s approach to short-term rental enforcement can best be described as relatively lenient compared to many other cities across the United States. Based on current market data and host experiences, Toledo does not appear to be aggressively enforcing its short-term rental regulations.

Toledo’s enforcement strategy appears to prioritize safety and accountability rather than restricting the growth of the short-term rental market. While the city has an established regulatory framework that includes permits, insurance requirements, and safety standards, the practical implementation of these rules has been relatively relaxed.

Toledo’s City Council members have explicitly stated that their goal is to “protect residents and build a better relationship with property owners” rather than to restrict or eliminate short-term rentals. This philosophy has translated into a regulatory environment that allows the short-term rental market to flourish while maintaining basic standards for safety and accountability.

In summary, Toledo presents a favorable environment for short-term rental operators, with regulations that are present but not overly burdensome, and enforcement that remains relatively relaxed compared to many other U.S. cities.

How to Start a Short-Term Rental Business in Toledo, Ohio

Starting a short-term rental business in Toledo requires careful planning and adherence to local regulations. Follow these steps to establish your STR business legally and set yourself up for success in the Toledo market:

1. Research Toledo’s Short-Term Rental Regulations

Begin by thoroughly familiarizing yourself with Toledo’s short-term rental regulations. The city requires permits for properties rented for 30 days or less, including those listed on platforms like Airbnb and VRBO. Understanding these requirements from the start will save you time and potential penalties later.

2. Select an Appropriate Property

Choose a property in a desirable Toledo location that aligns with visitor preferences. Consider proximity to attractions like the Toledo Museum of Art, the National Museum of the Great Lakes, and the Toledo Zoo. Properties in Old West End and Downtown Toledo tend to be popular due to their historic architecture and convenient location. Ensure the property is in a zone that permits short-term rentals. Use BNBCalc’s property analysis to narrow down suitable properties and project the rental revenue you can potentially earn.

3. Secure Financing and Purchase/Lease the Property

If you don’t already own a suitable property, secure financing and purchase or lease one. Work with a real estate agent familiar with Toledo’s short-term rental market to find properties with good investment potential. Consider factors like purchase price, potential rental income, and renovation needs.

4. Apply for a Short-Term Rental Permit

Submit an application to the Department of Finance, Division of Taxation to obtain your short-term rental permit. The application requires:

• Your full legal name, mailing address, email address, and telephone number
• If you’re a lessee, the owner’s information and signed acknowledgment
• Certificate of tax and public utility compliance
• Evidence of rental registry compliance
• Affidavit of Life Safety Compliance
• Proof of $1 million general liability insurance
• Local contact person information
• Basic site plan showing sleeping rooms and parking spaces
• Include the $50 application fee per unit. This permit must be renewed annually.

5. Send Neighborhood Notifications

Within 48 hours of submitting your application, send the required neighborhood notice form to all adjacent property owners. This includes properties that abut your rental, those directly across the street or alley, and those diagonal across the street or alley. Provide the Division of Taxation with the names and addresses of those who received notices.

6. Ensure Safety Compliance

Install all required safety equipment, including smoke detectors, carbon monoxide monitors, and fire extinguishers. These safety features must be properly located and operational, as verified in your Affidavit of Life Safety Compliance.

7. Designate a Local Contact Person

Identify a reliable individual who can serve as your local contact person. This person must be available 24/7 and able to respond within 45 minutes to any complaints about your property. If you don’t live in Toledo, you’ll need to hire a local property manager or find a trusted contact to fulfill this requirement.

8. Renovate and Furnish Your Property

Prepare your property to stand out in Toledo’s competitive market. Invest in quality furnishings, comfortable bedding, and a well-equipped kitchen. Consider incorporating unique decor elements and local touches that showcase Toledo’s character. Properties with outdoor spaces, fast Wi-Fi, and self-check-in options tend to perform better in the market.

9. Set Up Your Business Structure and Tax Accounts

Establish your business structure (LLC, sole proprietorship, etc.) and register with the appropriate tax authorities. You’ll need to collect and remit various taxes, including:

• Ohio state sales tax (5.75%)
• Lucas County sales tax (1.5%)
• Toledo Area Regional Transit Authority tax (0.5%)
• Transient Occupancy Tax (3%)

10. Create Compelling Listings on Rental Platforms

Develop attractive listings on platforms like Airbnb and VRBO. Use high-quality photos that showcase your property’s best features. In your description, highlight nearby attractions, unique amenities, and local recommendations. Consider hiring a professional photographer to make your listing stand out.

11. Develop an Operations Plan

Create systems for guest communication, check-in procedures, cleaning, and maintenance. Consider using digital guidebooks to provide guests with property information and local recommendations. Establish relationships with reliable cleaning services and maintenance professionals to ensure your property remains in excellent condition.

12. Monitor and Adjust Your Strategy

Once operational, regularly review your performance metrics. Adjust pricing based on seasonality (peak season in Toledo is June to August), monitor guest feedback, and continuously improve your offering. Stay informed about any changes to Toledo’s short-term rental regulations to ensure ongoing compliance.

By following these steps and maintaining a commitment to quality and compliance, you can build a successful short-term rental business in Toledo, Ohio. Remember that the city’s focus is on ensuring safety and accountability, so prioritizing these aspects will help you establish a reputable operation that benefits both you and your guests.

Who to Contact in Toledo, Ohio about Short-Term Rental Regulations and Zoning?

Navigating Toledo’s short-term rental regulations requires connecting with the right departments and officials. Here’s who to contact for information, applications, and clarification about STR regulations in Toledo:

Department of Finance, Division of Taxation

This is the primary department responsible for processing short-term rental permit applications in Toledo. All permit applications, along with the required documentation and $50 fee, must be submitted to this division.

• Phone: (419) 245-1662
• Address: One Government Center, Suite 2070, Toledo, OH 43604
• Office Hours: Monday through Friday, 8:30 AM to 4:30 PM

Toledo City Council

The City Council is responsible for establishing and modifying short-term rental regulations. If you have questions about current or proposed changes to STR ordinances, contacting your district’s council member can provide valuable insights.

• Phone: (419) 245-1050
• Address: One Government Center, Suite 2120, Toledo, OH 43604
• Email: council@toledo.oh.gov

Toledo Department of Neighborhoods

This department can provide information about zoning requirements and neighborhood-specific regulations that might affect your short-term rental operation.

• Phone: (419) 245-1400
• Address: One Government Center, Suite 1800, Toledo, OH 43604

Toledo-Lucas County Plan Commission

For questions about zoning compliance and land use regulations related to short-term rentals:

• Phone: (419) 245-1200
• Address: One Government Center, Suite 1620, Toledo, OH 43604

Toledo Regional Chamber of Commerce

While not a regulatory body, the Chamber can provide valuable resources and networking opportunities for short-term rental operators.

1. Phone: (419) 243-8191
2. Address: 300 Madison Ave, Suite 200, Toledo, OH 43604

Community Resources and Forums

Several online communities provide support and information for Toledo short-term rental hosts:

1. Airbnb Hosts Club Facebook Group: A community of hosts sharing experiences and advice specific to the Airbnb and short-term rental market.
2. Bigger Pockets Real Estate Forum: The section frequently features discussions about the short-term rental market and regulations.
3. r/Toledo on Reddit: This subreddit occasionally has threads discussing local short-term rental regulations and experiences.

When contacting these departments, it’s advisable to prepare specific questions in advance and have your property information readily available. Many hosts report that scheduling an in-person appointment can be more productive than phone or email communications, especially for complex situations or when seeking clarification on specific aspects of the regulations.

Remember that regulations can change, so maintaining regular contact with these departments and participating in community forums can help you stay informed about any updates or modifications to Toledo’s short-term rental ordinances.