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

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

Short-term rental regulations in Ohio vary by city, with some cities like Cleveland and Columbus having specific requirements while others provide more flexibility. It's crucial for hosts to research the rules in their particular jurisdiction.

Starting a Short-Term Rental Business in Ohio

Before launching an Airbnb or Vrbo in Ohio, there are several key steps to ensure compliance with local regulations:

Register and obtain a permit: Many cities, such as Cleveland, require short-term rental operators to register annually with the city and pay a fee for each rental unit. In Cleveland, there is a $70 annual fee per unit. Columbus has a similar requirement, mandating a short-term rental permit that must be renewed each year.

Ensure your rental is your primary residence: Some cities, like Cleveland, stipulate that the short-term rental must be the host's primary residence, and the host must be present during the guest's stay13. Cleveland's city code requires short-term rental owners to live on the property for over 51% of the calendar year.

Pay applicable taxes: Cleveland imposes a 3% Transient Occupancy Tax (TOT) on short-term rental operators, while Cuyahoga County levies a separate 5.5% bed tax which is collected and remitted by Airbnb. Columbus has a 5% excise tax on short-term rentals that hosts must collect and remit.

Comply with building and safety codes: Cities like Cincinnati require certification that the short-term rental property conforms to building, safety, and fire codes. Cleveland mandates interior and exterior inspections to ensure compliance with the city's standards.

It's important to note that while some hosts operate illegally, it is technically prohibited for off-site investors in Cleveland to run full-time Airbnbs in residential areas without obtaining a zoning change and other regulatory approvals.

Proposed legislation like House Bill 563 could provide more flexibility for Ohio short-term rental operators in the future by limiting the ability of local governments to restrict rentals. However, the bill has not yet been finalized.

For hosts in Columbus looking to rent out individual rooms, obtaining a short-term rental license is often easier than securing a rooming house license, which has zoning restrictions that can be difficult to meet.

The most prudent approach is to thoroughly review the specific short-term rental regulations and processes in your Ohio city, consult with local authorities and legal professionals if needed, and ensure full compliance before welcoming your first guests.

Short-Term Rental Licensing Requirement in Ohio

Short-term rental licensing requirements in Ohio vary by city and county. Here are the specific requirements for some major cities:

Columbus

In Columbus, anyone who hosts short-term stays (fewer than 30 nights at a time) needs a short-term rental permit, which must be renewed annually. The process involves:

• Registering as a short-term rental operator in person at the Department of Public Safety
• Completing a BCI background check
• Paying a $20 application fee and a permit cost of $75 for a primary residence or $150 for a non-primary residence
• Providing proof of identity and residency documentation
• Submitting a notarized affidavit confirming compliance with laws and regulations
• Once the registration number is received, it must be added to the listing. Failure to obtain a permit can result in criminal penalties8. The process usually takes a few days to a week.

Cleveland

In Cleveland, short-term rental operators must:

1. Register annually with the Department of Building & Housing
2. Pay a $70 fee per rental unit
3. Ensure the rental is their primary residence where they live for over 51% of the year
4. Allow guests to stay no more than 7 consecutive nights
5. Pass interior and exterior inspections to ensure code compliance
6. Hosts are subject to a 3% Transient Occupancy Tax and a 5.5% county bed tax collected by Airbnb. Operating without a permit can lead to fines and having the rental shut down.

Cincinnati

Cincinnati requires short-term rental operators to:

1. Register with the city prior to operation
2. Pay a registration fee
3. Receive and display the permit in the unit
4. Include the registration ID in all listings
5. Collect and pay a 7% excise tax on gross revenues (Airbnb collects this for hosts)
6. Permits are valid for 3 years. Hosts must also comply with building codes and allow property inspections.

Other Ohio cities like Canton and Beavercreek have their own short-term rental permit requirements that typically involve an application, fee, proof of ownership, and agreeing to occupancy limits and other operating rules.

Statewide, proposed House Bill 563 aims to limit the ability of cities to restrict short-term rentals, but has not been finalized yet. Overall, it's crucial for Ohio hosts to thoroughly research the specific licensing requirements in their city to ensure full compliance and avoid penalties. The registration process can often be completed in person at the relevant city department.

Required Documents for Ohio Short-Term Rentals

The specific documents required for short-term rentals in Ohio vary by city, but generally include:

1. 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 obtained. This form is typically available from the city's Department of Building & Housing or Planning Department.
2. Proof of Ownership: Hosts must provide proof of ownership of the property, such as a deed or property tax bill. This document establishes the host's legal right to rent out the property.
3. Valid ID: Hosts must provide a valid government-issued ID, such as a driver's license or passport. This is used to verify the host's identity for registration purposes.
4. Completed Registration Form: Hosts must complete the short-term rental registration form provided by their city's relevant department, such as the Department of Building & Housing in Cleveland or the Planning and Development Department in Beavercreek. This form collects essential information about the rental property and host.
5. Proof of Compliance with Building, Zoning, and Housing Codes: The rental property must comply with all applicable building, zoning, and housing codes. Hosts may need to provide proof, such as an inspection report, that their property meets all safety and health standards. Cities like Cleveland require interior and exterior inspections.
6. Tax Registration: In some cities, registering a short-term rental with the planning department also registers it with the finance department for tax purposes. For example, in Beavercreek, hosts must submit a Hotel/Motel/Short-Term Rental Tax Remittance Form monthly, even if there have been no rentals.
7. Emergency Contact Information: Some cities, like Beavercreek, require hosts to provide emergency contact information as part of the registration process. This is so the city can quickly reach the host or a designated representative in case of an emergency at the rental property.

The purpose of these required documents is to ensure that short-term rental properties are properly registered, safe for guests, and in compliance with local regulations. Hosts should carefully review the specific requirements for their city and submit all necessary documents to the appropriate department to obtain a short-term rental permit or license. Failure to comply can result in fines and penalties.

Ohio Short-Term Rental Taxes

Short-term rental operators in Ohio are subject to various taxes at the state and local levels. Here's a breakdown of the key taxes that apply:

Ohio Sales Tax: The state sales tax rate in Ohio is 5.75%, which applies to short-term rentals. Some counties and cities levy additional sales taxes, so the total rate can be higher depending on the location.

County Lodging Taxes: Many Ohio counties impose a lodging tax on short-term rentals. For example, Cuyahoga County (where Cleveland is located) has a 5.5% bed tax that Airbnb collects and remits on behalf of hosts.

City Lodging Taxes: Some cities in Ohio also have their own lodging taxes. Cleveland imposes a 3% Transient Occupancy Tax (TOT) on short-term rentals, which hosts must pay directly to the city. Cincinnati has a 7% Short Term Rental Excise Tax that applies to rentals of 29 nights or less.

Municipal Taxes: Depending on the municipality, there may be additional taxes or fees for short-term rentals. For instance, Athens County has a 3% lodging tax on rentals of 29 nights or shorter.

In total, short-term rental operators in Ohio can expect to pay anywhere from 8.75% to over 15% in taxes, depending on their specific location and the combination of state, county, and city taxes that apply.

Possible Deductions and Write-Offs

Short-term rental operators in Ohio may be able to deduct certain expenses to reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Maintenance and cleaning costs
6. Advertising and marketing expenses
7. Supplies and linens
8. Depreciation of the rental property

It's important to keep accurate records and consult with a tax professional to ensure you're claiming all eligible deductions and complying with tax laws.

Overall, while the tax landscape for short-term rentals in Ohio can be complex, understanding your obligations and taking advantage of available deductions can help you manage your rental business effectively.

Does Ohio Strictly Enforce STR Rules?

Ohio's enforcement of short-term rental regulations varies by city, but overall, the state is relatively Airbnb-friendly compared to other major markets. However, some cities like Cleveland and Columbus are cracking down on non-compliant hosts.

According to discussions on Reddit and BiggerPockets, many hosts continue to operate in Ohio despite not fully complying with local rules. One Reddit user noted, "In my experience, enforcement is pretty lax in most of Ohio. I know several hosts who have been operating without permits for years without any issues."

However, this doesn't mean hosts should flout the rules. Another BiggerPockets member cautioned, "Just because enforcement is spotty doesn't mean you should risk it. All it takes is one neighbor complaint, and you could be facing hefty fines or even having your listing removed."

Cleveland, in particular, has ramped up enforcement efforts in recent years. The city has dedicated staff who monitor short-term rental listings and issue violations to hosts operating illegally. In 2022, Cleveland issued over $100,000 in fines to non-compliant Airbnb operators.

Columbus has also taken steps to regulate the short-term rental market more stringently. The city now requires all hosts to obtain a permit and pay a 5% excise tax on gross revenues. Failure to comply can result in fines of up to $500 per day.

That said, Ohio is still considered more Airbnb-friendly than cities like New York, San Francisco, and Santa Monica, which have highly restrictive short-term rental laws. Ohio's proposed House Bill 563 also aims to prevent local governments from outright banning short-term rentals, which would further protect hosts.

In summary, while some Ohio hosts do fly under the radar, the state's major cities are increasingly enforcing short-term rental regulations. Operating legally is always the wisest choice to avoid potential penalties and maintain good standing with the community. Compared to other states, though, Ohio remains relatively welcoming to Airbnb and other short-term rental platforms.

How to Start a Short-Term Rental Business in Ohio

Starting a short-term rental business in Ohio can be a lucrative venture, but it's essential to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a comprehensive guide to getting started:

Research local regulations: Before investing in a short-term rental property, thoroughly research the specific regulations in your city and county. Ohio's short-term rental laws vary by location, with cities like Cleveland, Columbus, and Cincinnati having their own unique requirements for permits, licenses, and taxes. Familiarize yourself with zoning restrictions, occupancy limits, and any other rules that may impact your ability to operate a short-term rental.

Choose a property: Once you understand the local regulations, select a property that meets your criteria and has the potential to attract guests. Consider factors like location, amenities, and the type of guests you want to host (e.g., families, business travelers, or tourists). If you already own a property, assess its suitability for short-term rentals and make any necessary upgrades or renovations.

Register and obtain permits: In most Ohio cities, you'll need to register your short-term rental with the local government and obtain any required permits or licenses. For example, in Cleveland, hosts must register annually with the Department of Building & Housing and pay a $70 fee per unit. In Columbus, hosts need a short-term rental permit, which involves a background check and a $75-$150 fee depending on the type of property.

Prepare your property: To create a welcoming space for guests, equip your short-term rental with essential amenities, such as comfortable furniture, clean linens, and well-stocked kitchens. Consider adding unique touches that reflect your local area or cater to your target audience. Ensure your property meets all safety requirements, such as smoke detectors, fire extinguishers, and carbon monoxide detectors.

Create a compelling listing: To attract guests, craft an appealing listing on popular short-term rental platforms like Airbnb and Vrbo. Use high-quality photos that showcase your property's best features, and write an engaging description that highlights its unique selling points. Be transparent about your property's amenities, house rules, and any potential drawbacks to set accurate expectations.

Set competitive rates: Research the rates of similar short-term rentals in your area to ensure your pricing is competitive. Consider factors like seasonality, events, and demand when setting your rates. Many platforms offer dynamic pricing tools that can automatically adjust your rates based on market conditions.

Manage your bookings and guests: Once your listing is live, be prepared to manage bookings, communicate with guests, and handle any issues that may arise. Establish clear check-in and check-out procedures, and be responsive to guest inquiries and feedback. Consider using a property management software or hiring a professional property manager to streamline your operations.

Comply with tax requirements: Short-term rental operators in Ohio must collect and remit applicable taxes, such as state sales tax, county lodging taxes, and city lodging taxes. For example, Cleveland imposes a 3% Transient Occupancy Tax, while Cuyahoga County levies a 5.5% bed tax. Familiarize yourself with the tax requirements in your area and set up a system to collect and remit taxes regularly.

Promote your listing: In addition to creating a compelling listing on short-term rental platforms, promote your property through other channels to attract more guests. Leverage social media, create a website, and consider partnering with local businesses or tourism boards to increase your visibility.

Continuously improve your business: As you gain experience hosting short-term rentals, seek ways to improve your business continually. Analyze your booking data and guest feedback to identify areas for improvement, and stay up-to-date with changes in local regulations and industry trends. Consider expanding your portfolio or offering additional services to guests to grow your business over time.

By following these steps and staying compliant with Ohio's short-term rental regulations, you can build a successful and sustainable business in the Buckeye State.

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

If you have questions about short-term rental regulations and zoning in Ohio, it's best to contact the relevant department in your specific city or county. Here are some key contacts for major Ohio cities:

Columbus

For questions about short-term rental regulations or the application process in Columbus, email ShortTermRentals@columbus.gov or call the City of Columbus License Section at (614) 645-8366.

Cincinnati

If you have questions about zoning laws affecting short-term rentals in Cincinnati, call the Department of City Planning and Engagement at (513) 352-2430 or email zoninginfo@cincinnati-oh.gov.

Cleveland

In Cleveland, short-term rental operators can contact the Department of Building & Housing for questions about registration and compliance. Call (216) 664-2282 or visit their website at city.cleveland.oh.us/CityofCleveland/Home/Government/CityAgencies/BuildingHousing.

Beavercreek

For assistance with Beavercreek's short-term rental ordinance or registration process, contact the Planning and Development Department at (937) 427-5512 or planning@beavercreekohio.gov. For questions about the city's hotel/motel/short-term rental tax, contact the Finance Department at (937) 427-5511 or finance@beavercreekohio.gov.

In addition to contacting local government offices, Ohio short-term rental hosts may find it helpful to connect with other hosts and industry professionals through online communities and local meetups. Some resources include:

1. The Airbnb Hosts forum on BiggerPockets, which includes discussions specific to Ohio markets like Columbus
2. The Ohio Airbnb Hosts Facebook group, a community of over 1,000 hosts across the state
3. The Short Term Rental Owners in Ohio Facebook group, another active community for Ohio hosts to share resources and experiences

By staying connected with local government contacts and plugged into the broader short-term rental community, Ohio hosts can stay informed about regulatory changes and learn from the experiences of others in their market.

What Do Airbnb Hosts in Ohio on Reddit and Bigger Pockets Think about Local Regulations?

Ohio Airbnb hosts have shared their thoughts and experiences with local short-term rental regulations on various online forums. Here are some notable examples:

In a Reddit thread titled "Suburbs in Columbus banning Airbnbs?", hosts discussed the varying regulations in different Columbus suburbs. One user noted that Bexley limits short-term rentals to a combined total of 60 days per year and a maximum of two occupants per bedroom, while Dublin allows only two 1-week rental periods annually. Some hosts expressed frustration with the restrictions, while others supported reasonable limitations.

On the BiggerPockets forum, an Ohio host shared their experience with Cleveland's short-term rental regulations. They mentioned that the city requires annual registration with the Department of Building & Housing, a $70 fee per unit, and ensuring the rental is the host's primary residence. The host found the process straightforward but emphasized the importance of understanding and complying with local rules.

In a Facebook group for Ohio Airbnb hosts, a member asked about the registration process in Columbus. Several hosts chimed in with their experiences, noting that the city requires a short-term rental permit, background check, and a $75-$150 fee depending on the property type. They advised the original poster to contact the City of Columbus License Section for guidance.

A host on the Airbnb Community forum shared their story of operating a short-term rental in Cincinnati. They mentioned that the city requires hosts to register with the Department of Buildings and Inspections, obtain a short-term rental permit, and pay a 7% excise tax on gross revenues. The host found the process manageable but stressed the importance of staying informed about any regulatory changes.

In a Reddit thread about proposed Ohio House Bill 563, which aims to prevent cities from banning short-term rentals, hosts expressed mixed opinions. Some supported the bill, arguing that property owners should have the right to use their homes as they see fit. Others worried that the legislation could exacerbate housing shortages and drive up prices by allowing more properties to be used as short-term rentals.

Overall, Ohio Airbnb hosts seem to accept the need for some local regulation but appreciate when the rules are clear, consistent, and not overly burdensome. Many hosts emphasize the importance of doing thorough research, understanding the specific requirements in their area, and staying compliant to avoid potential issues. While opinions vary on the ideal level of regulation, most hosts agree that navigating local short-term rental laws is a crucial part of operating a successful Airbnb business in Ohio.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each area and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.