Airbnb Cleveland, Ohio: Market Data, Laws & Investor Guide

Cleveland, Ohio is quickly becoming one of the hottest destinations for Airbnb hosts in 2024. With its vibrant culture, thriving economy, and growing tourism industry, the city offers a wealth of opportunities for savvy entrepreneurs looking to start a short-term rental business.

According to recent data, Cleveland welcomed over 19.6 million visitors in 2023, a 5% increase from the previous year. This surge in tourism has created a high demand for short-term rentals, with Airbnb listings in the city growing by 25% in the past 12 months.

But it's not just the tourism boom that makes Cleveland an attractive choice for Airbnb hosts. The city's affordable real estate market and low cost of living also make it an ideal location for starting a profitable short-term rental business. The median home price in Cleveland is just $105,000, nearly 60% lower than the national average. This means hosts can acquire properties at a lower cost and achieve higher rental yields compared to other major cities.

Moreover, Cleveland's strategic location and excellent transportation infrastructure make it easily accessible for travelers. The city is served by Cleveland Hopkins International Airport, which offers direct flights to over 50 destinations across the United States. This connectivity, combined with the city's proximity to other major Midwest cities like Chicago and Detroit, ensures a steady flow of visitors throughout the year.

As you can see, Cleveland offers a compelling mix of factors that make it an ideal destination for starting an Airbnb business in 2024. In this ultimate guide, we'll dive deeper into the key steps and strategies for launching a successful short-term rental in this thriving city. From understanding local regulations to optimizing your listing for maximum visibility, we've got you covered. Let's get started!

Cleveland Short-Term Rental Market Analysis

Cleveland's short-term rental market has shown impressive growth and resilience in recent years. According to data from AirDNA, the city's key Airbnb metrics for 2024 are as follows:

• Occupancy Rate: 60%
• Average Daily Rate: $110
• Annual Revenue: $24,100

Comparing this data to the previous year, we can see a steady increase in the market's performance:

1. Occupancy Rate in 2023: 58%
2. Average Daily Rate in 2023: $105
3. Annual Revenue in 2023: $22,200

Cleveland's tourism industry has also experienced significant growth over the past two years. In 2022, the city welcomed 17.9 million visitors, a 12% increase from the previous year and nearly 92% of pre-pandemic levels. This growth rate is double the overall tourist growth rate for the state of Ohio.

The city's strong event calendar plays a crucial role in driving tourism and boosting the short-term rental market. Some key events and festivals in Cleveland for 2024 include:

1. July 5-August 25, 2024: Asian Lantern Festival at the Cleveland Metroparks Zoo
2. August 2-3, 2024: Vintage Ohio Wine Festival
3. August 3, 2024: Feast of the Assumption
4. August 15-17, 2024: Midwest Reggae Fest

According to insights from Airbnb host forums and industry experts, the average booking duration in Cleveland ranges from 2-4 nights for short-term stays, with a growing demand for mid-term rentals (monthly stays) driven by remote workers and extended leisure trips.

As Cleveland continues to invest in its tourism infrastructure and attractions, such as the Rock & Roll Hall of Fame's $150 million expansion and the development of the 23-acre Irishtown Bend Park, the city's short-term rental market is poised for further growth in the coming years.

Best Neighborhoods in Cleveland for an Airbnb Business

When choosing the ideal location to start an Airbnb business in Cleveland, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA and Mashvisor, as well as incorporating local knowledge, we've identified the top 5 neighborhoods in Cleveland for starting an Airbnb.

1. Ohio City

Ohio City is a trendy neighborhood known for its vibrant arts scene, unique restaurants, and the historic West Side Market. Its proximity to downtown Cleveland and easy access to public transportation make it an attractive option for Airbnb hosts.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $120
3. Estimated Annual Revenue: $29,784
4. Median Home Price (Single-Family): $290,482
5. Best Performing Bedroom Count: 2-bedroom units

2. Tremont

Tremont is a charming neighborhood with a mix of historic homes, art galleries, and popular eateries. Its close proximity to downtown Cleveland and the Cleveland Metroparks Zoo makes it a desirable location for tourists.

1. Average Occupancy Rate: 66%
2. Average Daily Rate: $115
3. Estimated Annual Revenue: $27,700
4. Median Home Price (Single-Family): $345,556
5. Best Performing Bedroom Count: 1-bedroom units

3. University Circle

University Circle is a cultural hub, home to world-class museums, the Cleveland Orchestra, and Case Western Reserve University. This neighborhood attracts a diverse mix of visitors, including students, families, and art enthusiasts.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $105
3. Estimated Annual Revenue: $23,751
4. Median Home Price (Single-Family): $200,000
5. Best Performing Bedroom Count: Studio and 1-bedroom units

4. Detroit-Shoreway

Detroit-Shoreway is an up-and-coming neighborhood known for its eclectic mix of restaurants, theaters, and the famous Edgewater Park. Its proximity to Lake Erie and downtown Cleveland make it an attractive option for Airbnb hosts.

1. Average Occupancy Rate: 64%
2. Average Daily Rate: $100
3. Estimated Annual Revenue: $23,360
4. Median Home Price (Single-Family): $150,000
5. Best Performing Bedroom Count: 2-bedroom units

5. Kamm's Corners

Kamm's Corners is a family-friendly neighborhood with a small-town feel, offering a variety of local shops, restaurants, and parks. Its affordable housing prices and proximity to the Cleveland Hopkins International Airport make it an attractive option for Airbnb hosts.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $90
3. Estimated Annual Revenue: $19,710
4. Median Home Price (Single-Family): $140,000
5. Best Performing Bedroom Count: 3-bedroom units

When considering housing prices, it's important to note that single-family homes in these neighborhoods range from $140,000 in Kamm's Corners to $345,556 in Tremont. Hosts should also consider the best performing bedroom count for each neighborhood to maximize their return on investment.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Cleveland

To set competitive prices for your Cleveland Airbnb, consider factors like location, amenities, seasonality, and market demand. Analyze similar listings in your area and adjust your pricing based on occupancy rates and upcoming events. Implementing dynamic pricing tools like PriceLabs can help you optimize your rates and maximize revenue.

According to Airbnb data, the most in-demand and best-performing listings in Cleveland share the following amenities:

1. Air conditioning (92% of listings)
2. Dedicated workspaces (1.9K properties)
3. Washer/dryer (included in many top-rated listings)
4. Fully-equipped kitchens (95% of listings)
5. Outdoor spaces like patios or balconies (common in popular listings)
6. Unique decor and modern furnishings (featured in highly-rated properties)

To stand out and attract more bookings, consider adding these amenities to your property. Provide a comfortable workspace with a desk, ergonomic chair, and reliable Wi-Fi for remote workers. Upgrade your kitchen appliances and stock it with essential cooking items. Create an inviting outdoor area with seating and lighting for guests to enjoy.

In Cleveland, entire home rentals are the most popular property type, accounting for 84% of listings. Apartments and condos are in high demand, particularly in trendy neighborhoods like Ohio City and Tremont. Single-family homes are also sought-after, especially in residential areas like Kamm's Corners.

Here's a breakdown of average property prices and potential annual revenue (PAR) by bedroom count in Cleveland:

• Studio – Average property price: $80,000, PAR $15,000
• 1 Bedroom - Average property price: $120,000, PAR $20,000
• 2 Bedroom - Average property price: $1500,000, PAR $25,000
• 3 Bedrooms - Average property price: $200,000, PAR $30,000
• 4 or more Bedrooms - Average property price: $300,000, PAR $40,000+

Over the past few years, Cleveland's short-term rental market has experienced steady growth. In 2024, active listings increased by 8% year-over-year, with average occupancy rates rising to 50%. The average daily rate also grew by 5% to $167, resulting in a 5% increase in average monthly revenue to $12,794.

By leveraging these insights and implementing in-demand amenities, you can position your Cleveland Airbnb for success and maximize your rental income in this thriving market.

Understanding Cleveland Short-Term Rental Regulations

Cleveland, Ohio has specific regulations for short-term rentals that hosts must follow. Owners are required to register annually with the Department of Building & Housing and pay a $70 fee per unit. The rental must be the host's primary residence, and they must be present during the guest's stay. The city code mandates that property owners live on the property for more than 51% of the calendar year.

The Cleveland Rental Registration Ordinance requires any owner renting or offering to rent a dwelling or rooming unit to register annually with the Department of Building & Housing, with a $70 annual fee per unit. Guests can stay no more than seven consecutive nights.

Short-term rental owners must also pay a 3% Transient Occupancy Tax (TOT), while Cuyahoga County imposes a separate 5.5% bed tax, which Airbnb collects and remits on behalf of hosts. It is technically illegal for an off-site investor to operate a full-time Airbnb property in a residential area without seeking a zoning change and other regulatory approvals.

Cleveland is not considered particularly Airbnb-friendly compared to other cities, and it is unclear whether the city strictly enforces short-term rental rules. Some hosts operate in Cleveland despite the regulations.

To start a short-term rental business in Cleveland, it is crucial to consult with a local attorney, register annually with the Department of Building & Housing, pay the required fees, ensure compliance with building, zoning, and housing codes, and obtain any necessary permits or licenses.

Read our full STR regulations guide for more detailed information about Cleveland’s short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Cleveland Airbnb Host

Starting an Airbnb business in Cleveland can be a rewarding venture, but it requires careful planning, attention to detail, and a commitment to providing exceptional guest experiences. In this section, we'll explore the key factors that contribute to success as a Cleveland Airbnb host, including popular amenities, design themes, and strategies for attracting customers. We'll also discuss potential challenges and risks, along with guidelines for running a successful Airbnb based on insights from experienced hosts.

Popular Amenities and Design Themes in Cleveland

To stand out in Cleveland's competitive short-term rental market, it's essential to offer amenities and design elements that appeal to modern travelers. According to Airbnb data and host insights, some of the most popular amenities in Cleveland include:

• High-speed Wi-Fi
• Smart TVs with streaming services
• Well-equipped kitchens with modern appliances
• Comfortable bedding and linens
• Dedicated workspaces for remote workers
• Outdoor spaces like patios or balconies

In terms of design themes, Cleveland Airbnb hosts recommend incorporating elements that reflect the city's unique character and history. Industrial-chic decor, vintage furnishings, and local artwork are all popular choices that can help create a memorable and authentic experience for guests.

How to Attract Cleveland Customers

To attract customers to your Cleveland Airbnb, focus on creating a compelling listing that showcases your property's unique features and amenities. Use high-quality photos and detailed descriptions to highlight what sets your rental apart from others in the area.

Leverage Cleveland's cultural attractions, events, and local hotspots in your marketing efforts. Create guides or recommendations for guests that showcase the best restaurants, museums, and activities in the city. By positioning yourself as a local expert, you can attract travelers who are looking for an authentic Cleveland experience.

Encourage satisfied guests to leave positive reviews, as this can significantly impact your listing's visibility and bookings. Respond promptly to inquiries and maintain open communication with guests before, during, and after their stay to ensure a smooth and enjoyable experience.

Potential Challenges and Guidelines for Cleveland Airbnb Hosts

While operating an Airbnb in Cleveland can be lucrative, hosts should be aware of potential challenges and risks. Some common issues reported by Cleveland hosts include:

• Navigating local regulations and obtaining necessary permits
• Managing noise complaints from neighbors in residential areas
• Dealing with unexpected maintenance issues or repairs
• Handling difficult or demanding guests

To mitigate these challenges, experienced Cleveland hosts recommend the following guidelines:

• Thoroughly research and comply with all local regulations and zoning laws related to short-term rentals.
• Establish clear house rules and communicate expectations to guests upfront to minimize noise complaints and other issues.
• Build a reliable network of contractors, cleaners, and maintenance professionals to address any issues promptly.
• Screen guests carefully and trust your instincts when accepting bookings. Don't hesitate to decline reservations that raise red flags.
• Maintain open communication with guests and be responsive to their needs throughout their stay.
• Invest in quality amenities, furnishings, and regular property maintenance to ensure a positive guest experience.

By following these guidelines and staying attuned to the unique challenges and opportunities of the Cleveland market, Airbnb hosts can build successful and sustainable short-term rental businesses in this dynamic city.

Using BNBCalc to Find Profitable Properties in Cleveland, Ohio

Investing in a short-term rental property can be a daunting task, especially for aspiring business owners. However, with the right tools and strategies, finding a profitable property in Cleveland, Ohio, can be a straightforward process. BNBCalc is a powerful platform that helps investors analyze potential rental properties, benchmark comparable rentals, and determine the right price and property size to maximize revenue.

Analyze Properties Using BNBCalc

To get started, create an account on BNBCalc and input the address of the property you're interested in. The platform will provide you with a detailed analysis of the property's potential revenue, occupancy rates, and expenses. BNBCalc uses data from various sources to generate accurate projections and help you make informed investment decisions.

Benchmark Comparable Rentals

One of the key features of BNBCalc is its ability to show you other nearby rentals within the area. By analyzing the performance of comparable properties, you can gain valuable insights into pricing strategies, amenities, and design elements that can help you fetch top dollar for your rental. Use this information to optimize your listing and stay competitive in the Cleveland market.

Determine The Right Price and Property Size

BNBCalc can help you determine the ideal number of bedrooms, bathrooms, and purchase price to maximize your revenue potential. The platform provides a detailed breakdown of projected income and expenses based on different property configurations, allowing you to make data-driven decisions about your investment. By optimizing your property's size and price point, you can attract the right guests and maximize your returns.

Make an Offer

Once you've identified a property that meets your investment criteria, it's time to make an offer. BNBCalc's partnered STR lender, Brian Bockholdt at Alliant Credit Union, can help you get prequalified for financing at the lowest rates available. With a solid understanding of your projected returns and financing options, you can confidently negotiate with sellers and secure the best possible deal.

Use Our Tax Calculator

Short-term rental owners can benefit from significant tax deductions, including bonus depreciation. BNBCalc's built-in tax calculator helps you determine the potential tax savings associated with your investment, allowing you to optimize your cash flow and maximize your overall returns. By understanding the tax implications of your investment, you can make more informed decisions and keep more of your hard-earned profits.

Come Up With a Buy Box

When searching for a profitable short-term rental investment in Cleveland, it's essential to have a clear buy box in mind. Your buy box should include specific criteria that align with your investment goals and risk tolerance. Some key factors to consider include:

• Location: Focus on neighborhoods with strong demand for short-term rentals, such as Ohio City, Tremont, and University Circle.
• Property Type: Consider properties that are popular among Cleveland travelers, such as apartments, condos, and single-family homes.
• Amenities: Look for properties with in-demand amenities like dedicated workspaces, outdoor areas, and modern appliances.
• Price Point: Determine a purchase price range that allows for a healthy return on investment based on your projected revenue and expenses.
• Occupancy Rates: Aim for properties with high occupancy rates and consistent demand throughout the year.

By using BNBCalc to analyze properties, benchmark comparable rentals, and determine the right price and property size, aspiring business owners can confidently navigate the Cleveland short-term rental market and find profitable investment opportunities. With the right buy box and financing options, investors can build a successful and sustainable Airbnb business in this dynamic city.

Ready to start your Airbnb journey in Cleveland? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Cleveland Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.