Is Airbnb legal in Cleveland?

Cleveland, Ohio, has implemented specific regulations for short-term rentals (STRs), including those listed on platforms like Airbnb, to maintain a balance between property owners, residents, and community interests. Here’s a succinct overview based on the latest information for 2024:

Definition of Short-Term Rental (STR)

Cleveland defines a short-term rental as any residential unit occupied by guests for less than 30 days, utilized for more than 91 days per year. This includes owner-occupied homes, where the host must reside for over 51% of the year.

Licensing Requirements

• Registration: Property owners must register annually with the Department of Building & Housing and pay a non-refundable fee of $70 for each unit.
• Occupancy Limits: Each rental can only be booked for a maximum of 91 days per year, imposing restrictions on full-time short-term rentals.
• Living Requirement: Hosts are required to live in the property during guest stays, which includes being present throughout the rental period.

Zoning and Ownership Restrictions

• Zoning Compliance: Short-term rentals are permitted only in residentially zoned areas. Off-site investors must seek zoning changes and approvals to operate full-time rentals.
• Limitations on Investors: The city discourages bulk property purchases for STRs in residential neighborhoods, leading to stricter compliance requirements for investors.

Operational Considerations

• Taxes: Hosts must remit a 3% Transient Occupancy Tax (TOT) to Cleveland and a 5.5% bed tax collected by Cuyahoga County. Airbnb automatically handles the collection of the county tax.
• Inspections: All properties must pass both interior and exterior inspections focusing on safety and compliance with local housing standards.

Insurance and Renewal

• Insurance: While specific insurance coverage is not mandated, hosts are encouraged to obtain tailored liability insurance.
• License Renewal: STR licenses are valid for one year, requiring annual renewal and potentially subject to inspection to ensure compliance.

Practical Considerations for Hosts

Hosts are advised to stay informed on local regulations and consult with legal professionals to navigate compliance effectively. Given the evolving nature of these laws, understanding and adhering to Cleveland's regulations is crucial for maintaining operational legality and success as a short-term rental host.

In summary, Cleveland provides a structured but stringent framework for short-term rentals aimed at protecting neighborhood integrity while allowing for property owners to engage in the STR market.