Akron Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Akron

Akron, Ohio recently passed new regulations for short-term rentals (STRs) like Airbnb and VRBO that went into effect in January 2023. These rules require STR operators to register their properties annually with the city, pay a $250 registration fee, and collect a 5.5% excise tax from guests.

More than 160 units are currently listed in the Akron area on Airbnb and other STR platforms, and that number is expected to continue growing. The city decided legislation was necessary to regulate this expanding industry, ensure proper amenities and safety for visitors, and collect tax revenue from rentals.

Akron's STR ordinance aims to strike a balance between allowing short-term rentals to operate while providing oversight and structure for the industry. Officials carefully crafted the regulations to align with proposed state laws that would prevent municipalities from banning STRs outright.

The new rules come after Akron banned its first public case of an STR in 2017. The city imposed a $100 fine and ordered the property owner to stop renting his home on Airbnb after neighbors complained about parties and disruptions. At the time, Akron's laws predated concepts like Airbnb and officials said the rental was akin to an illegal hotel in a residential zone.

Now with clearer regulations in place, the city hopes to avoid similar conflicts while still enabling the STR market to thrive responsibly. Hosts should carefully review the full ordinance to understand all the requirements and ensure their properties are in compliance.

The STR registration process will be handled by Akron's Department of Neighborhood Assistance Housing Division. The city plans to use the registration fees and tax revenue to fund administration and enforcement of the program, as well as support local tourism promotion efforts.

Akron's approach to STR regulation has been closely watched by other Ohio cities considering similar measures. Some state lawmakers have proposed legislation to prevent municipalities from banning STRs entirely, but still allow for reasonable regulations and registration requirements like Akron's ordinance.

Short Term Rental Licensing Requirement in Akron

As of January 2023, all short-term rental operators in Akron are required to obtain a yearly registration certificate from the city and prominently display it in the rental unit. The annual registration fee is $250 and registrations must be renewed by January 31st each year.

The city is creating an online portal for STR hosts to register their properties. Existing STR operators have until January 31, 2023 to complete the registration process for the first time under the new ordinance.

To maintain their registration, STR hosts must remain current on all tax liabilities to the city, including payment of the short-term rental excise tax. Failure to register is a violation of Akron's housing code and subject to legal penalties.

The STR registration certificate is non-transferable and only valid for the specific rental property and owner listed on the application. If ownership of the STR changes, a new registration is required within 30 days.

Hosts are also required to include their STR registration number on any listings or advertisements for the property. This allows the city to more easily identify and track STRs to ensure compliance with the new regulations.

The Department of Neighborhood Assistance Housing Division will be responsible for processing STR registrations, collecting fees and taxes, and conducting inspections to ensure properties meet all applicable building and safety codes.

If an STR property is found to be in violation of any city regulations, the owner will have a certain timeframe to correct the issues or face fines and potential revocation of their registration. Repeat violations can result in escalating penalties.

Required Documents for Akron Short Term Rentals

To register a short-term rental, hosts must provide the following information and documentation to the city:

• Rental property address and owner contact information
• Floorplan sketch and completed registration application
• Local contact person who can respond to any issues within 1 hour
• Proof that the unit meets building code and safety requirements
• Functioning smoke detectors in each bedroom and common areas
• Fully functioning kitchen and bathroom facilities
• Mounted fire extinguisher in kitchen
• Stairs and handrails in good condition
• Proper electrical outlets and wiring
• Proof of property insurance covering short-term rental use
• Signed affidavit agreeing to comply with all city STR regulations
• Payment of $250 annual registration fee

The registration certificate is valid for one year from the date of issuance and must be renewed annually by January 31st along with payment of the $250 registration fee.

If any of the required information or documentation changes during the registration period, hosts must notify the city and update their registration within 30 days. This includes changes to ownership, local contacts, or the property itself.

The city may also require additional documentation or inspections as needed to verify compliance with STR regulations. Failure to provide requested information or access for inspections can result in fines and registration revocation.

Hosts should make copies of all documentation submitted with their STR registration application, as well as the issued registration certificate, for their records. Having this paperwork readily available can help resolve any potential issues or complaints that may arise.

Akron Short Term Rental Taxes

In addition to the registration fee, Akron charges a 5.5% excise tax on all short-term rental stays, which is the same rate as the hotel bed tax. This tax revenue is split between the city, county, and local tourism agencies.

STR hosts are responsible for collecting the 5.5% tax from their guests and remitting those tax payments to the city. Hosts must remain current on all tax liabilities, including the excise tax, in order to maintain their STR registration.

The city will collect the excise taxes, registration fees, and any penalty fees through the same online portal used for registrations. Revenue from fees and fines will fund the administration and enforcement of the STR program by the city's Department of Neighborhood Assistance Housing Division.For questions about the Summit County Lodging Excise Tax, hosts can contact the Fiscal Office at 330-643-2437.

The 5.5% STR excise tax is in addition to any state and local sales taxes that may apply to short-term rentals in Akron. Hosts should consult with a tax professional to ensure they are collecting and remitting all required taxes correctly.

Failure to collect and remit the STR excise tax is a violation of Akron's tax code and can result in fines, interest, and legal penalties. The city has the authority to audit STR hosts' records to ensure compliance with tax requirements.

Hosts must keep accurate records of all STR transactions, including dates, rates, and taxes collected, for at least three years. These records must be made available to the city upon request for auditing purposes.

Some STR platforms like Airbnb and VRBO offer tax collection and remittance services for hosts in certain markets. However, hosts are ultimately responsible for ensuring all taxes are properly collected and paid, even if using these services.

Akron-wide Short Term Rental Rules

Beyond the registration and tax requirements, Akron's STR ordinance establishes the following rules and restrictions that apply to all short-term rentals citywide:

• Rentals are limited to stays of less than 30 consecutive days
• The STR property owner must reside in the city of Akron
• Maximum occupancy limits of 2 adults per bedroom plus 4 additional persons
• No large events or parties are permitted without a special event permit
• Guests must be provided with owner contact info and property policies
• STRs are still considered residential properties for building code purposes
• Three trash containers maximum stored outside the property
• No parking in restricted areas of public streets
• Quiet hours between 10pm and 7am
• No signage advertising the STR permitted on the property
• STRs must maintain residential character and appearance
• Hosts must keep a log of all STR stays with contact info for 1 year
• Hosts are responsible for ensuring guests follow all rules and regulations

These regulations aim to ensure STRs have proper amenities to safely house visitors, centralize complaint response, and balance neighborhood impacts. Violations are subject to escalating fines of $100, $500, and $1000 for repeat offenses.

The occupancy limits are designed to prevent overcrowding and ensure STRs do not place undue strain on neighborhood infrastructure and parking. The caps are based on the number of bedrooms in the property and align with the city's existing limits for residential housing.

The requirement that STR owners reside in Akron is meant to ensure there is a local contact available to quickly address any issues and to prevent out-of-town investors from operating STRs like unofficial hotels. However, owners do not have to be present at the property during guest stays.

Trash and parking regulations aim to minimize the impact of STRs on the surrounding neighborhood and ensure they maintain a residential character. Hosts are responsible for ensuring guests follow all rules regarding noise, trash disposal, and parking.

The city has the authority to inspect STR properties to ensure compliance with these regulations. Hosts must provide access to inspectors upon request or face potential fines and registration revocation.

Does Akron strictly enforce STR rules? Is Akron Airbnb friendly?

Based on discussions among hosts on platforms like Bigger Pockets and Reddit, the consensus seems to be that Akron is taking a relatively balanced and reasonable approach to regulating short-term rentals compared to other cities.

City officials have stated their goal is to allow STRs to operate while providing oversight and collecting tax revenue, not to ban them entirely like some other markets have done. The ordinance was carefully written to align with proposed state laws that would prevent cities from prohibiting STRs.

Some hosts have expressed frustration with the new $250 annual registration fee and called it a "cash grab" by the city. But many seem to appreciate that Akron is still allowing STRs under the new rules, even if it adds some costs and red tape for operators.

There will likely be an initial education and grace period as the new regulations take effect in 2023. But the ordinance does include escalating fines for violations, so hosts will be incentivized to register and comply.

The city has said it will focus on bringing existing STRs into compliance with the new rules rather than immediately cracking down with strict enforcement and fines. Officials plan to work with hosts to help them understand the requirements and make any necessary changes to their properties or operations.

However, the city will be monitoring complaints and violations to identify problem properties. Hosts who repeatedly fail to comply with the regulations or generate excessive complaints from neighbors could face steeper penalties.

Some hosts have expressed concerns that the new rules could discourage STR activity in Akron and drive up costs for guests. But others believe the regulations will help legitimize the industry and weed out "bad actors" who give STRs a negative reputation.

Overall, while adapting to the new rules may be an adjustment, Akron appears to remain a viable market for STRs as long as hosts properly register, collect taxes, and follow the operating requirements. The city seems more STR-friendly than places that have completely banned them.

How to Start a Short Term Rental Business in Akron

If you're looking to start an Airbnb or short-term rental business in Akron, here are the key steps you'll need to take to operate legally under the city's new regulations:

• Confirm your property is in an area zoned for STRs and meets building/safety codes
• Register your STR with the city and pay the $250 annual registration fee
• Designate a local contact person who can respond to any issues within 1 hour
• Set up processes to collect the 5.5% excise tax from guests and remit it to the city
• Provide guests with required information about local rules, contacts, and policies
• Obtain proper insurance coverage for a short-term rental property
• Develop a business plan, pricing strategy, and listing details to attract target guests
• List your property on STR platforms like Airbnb and VRBO and automate tasks
• Keep accurate records of all STR transactions and guest information
• Comply with all city regulations and make any necessary updates to your property
• Renew your STR registration annually by January 31st and pay the $250 fee
• Stay informed of any changes to Akron's STR ordinance or state laws

Hosts should carefully review the full text of Akron's STR ordinance and consult with local officials if they have any questions about the requirements. Following the registration and operating rules will be critical to avoiding fines and maintaining good standing.

It's also important for hosts to understand the financial and legal implications of operating an STR business. This includes tracking expenses, reporting income, paying taxes, and obtaining appropriate insurance coverage.

Hosts should develop a detailed business plan that outlines their target market, pricing strategy, marketing approach, and projected income and expenses. This can help ensure the STR is set up for long-term success and profitability.

When listing the property on STR platforms, hosts should carefully craft their listing details, photos, and pricing to appeal to their target guests. Using a dynamic pricing tool can help optimize rates based on demand and maximize revenue.

Automating tasks like guest communication, check-in instructions, and review requests can help streamline operations and provide a better experience for guests. Many STR platforms offer built-in tools for these purposes.

Hosts should also have a plan for maintaining the property and handling any repairs or issues that may arise during guest stays. Having a reliable cleaning service and handyman on call can help minimize disruptions.

Finally, it's important for hosts to be good neighbors and communicate openly with residents in the surrounding area. Being proactive about addressing any concerns and following all city rules can help foster positive relationships and avoid potential conflicts.

Who to contact in Akron about Short Term Rental Regulations and Zoning?

For questions about Akron's new short-term rental registration process, requirements, and zoning, you can contact:

Emily Collins, Strategic Advisor to the Mayor
Phone: 330-375-2345
Email: ecollins@akronohio.gov

The city has also posted information about the STR program on its website at:
https://www.akronohio.gov/cms/site/c425d3c684445e10/index.html

Hosts can also contact the Akron Department of Neighborhood Assistance Housing Division, which administers the STR program, by calling 330-375-2366 or emailing HousingCodeCom.

What do Airbnb hosts in Akron on Reddit and Bigger Pockets think about local regulations?

On Bigger Pockets, one Akron host shared details of the new city ordinance requiring a $250 annual fee and 5.5% tax starting in 2023. They noted Akron was trying to get ahead of proposed state laws that would limit cities' ability to restrict STRs110.

In a Reddit thread, Akron hosts discussed the impact of the new regulations. Some felt the city was being reasonable by allowing STRs to continue operating with some guardrails, while others complained the registration fee was just a money grab. But most agreed Akron's approach was preferable to cities that fully banned STRs10.

Another local host on Bigger Pockets said he planned to comply with Akron's new rules but cautioned others to factor in the added costs of fees and taxes. However, he still felt STRs could be profitable in the Akron market with the right property and pricing strategy10.

The overall sentiment seems to be that while adapting to Akron's new STR regulations will take some work, the city remains more hospitable to Airbnb than many other markets. Hosts who do their homework, register properly, and comply with the operating rules can continue to run successful STRs.