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

Starting a Short-Term Rental Business in Akron

Like many cities across the U.S., Akron, Ohio, has seen a rise in short-term rentals through platforms like Airbnb and Vrbo in recent years. However, the city has been relatively slow to implement specific regulations around this rental market compared to some other Ohio municipalities.

Currently, Akron's zoning code does not directly address short-term rentals. They fall under the same residential use regulations as long-term rentals. This means hosts do not need any special permits or licenses from the city to operate a vacation rental.

However, in 2017, the city took action against one homeowner, Octavian Maianu, who was operating his home as a short-term rental. The city imposed a $100 fine and ordered him to stop renting after receiving around 20 complaints from neighbors about noise, parking issues, and disruption to the area's residential character.

Maianu appealed the order, but the City Council ultimately rejected his request, ruling that short-term rentals violate zoning laws that predate the Airbnb concept. This set a precedent that the city could crack down on short-term rentals, even without explicit regulations, if they created nuisances for neighborhoods.

Since then, the city has indicated it is exploring potential regulations specifically for short-term rentals. In 2022, a city spokesperson stated Akron is "looking to draft regulations that are simple and fair, preserve the residential character of neighborhoods and promote safety." However, no concrete proposals have been made public yet.

Some real estate investors on forums like BiggerPockets have expressed concerns that Akron could implement restrictive regulations similar to cities like Cleveland, which limits short-term rentals to 90 days per year in residential areas. Others believe Akron will continue to take a relatively hands-off approach as long as short-term rentals don't create issues.

For now, aspiring short-term rental hosts in Akron simply need to follow the same rules as long-term landlords, including obtaining rental registrations, ensuring properties meet housing codes, and avoiding public nuisances. However, they should closely monitor the city's policy discussions, as new regulations could be on the horizon.

Checking with the city's Planning Department and Code Enforcement Office is advisable to ensure compliance with any applicable zoning, permitting, or registration requirements before launching a short-term rental business. Consulting a local landlord-tenant attorney may also be wise, given the regulatory uncertainty around this market in Akron.

Short-Term Rental Licensing Requirement in Akron

As of 2023, Akron has implemented a licensing requirement for short-term rentals operating within city limits. Under Ordinance 291-2022, passed by the Akron City Council in November 2022, all short-term rental operators must obtain an annual registration certificate from the city.

The key requirements for obtaining an Akron short-term rental registration certificate include:

• Submitting a completed application to the city's Planning Department, including the property address, owner contact information, number of bedrooms, and maximum occupancy.
• Providing proof of ownership, such as a deed or property tax statement.
• Paying an annual registration fee of $250.
• Obtaining liability insurance coverage for the rental property with minimum limits set by the city.
• Passing an initial safety inspection to ensure the property meets all applicable building, fire, and housing codes.

Short-term rental registrations must be renewed annually by January 31st each year. Failure to renew by the deadline results in a late fee penalty.

In addition to the registration certificate, hosts must comply with several operational requirements under the ordinance, including:

1. Limiting overnight occupancy based on the number of bedrooms and overall square footage
2. Providing adequate off-street parking for guests
3. Posting the registration certificate number and maximum occupancy inside the rental unit
4. Designating a local contact person to respond to any issues or complaints within a set timeframe
5. Collecting and remitting applicable taxes, including state sales tax and the city's new 5.5% excise tax on short-term rentals

Violations of the ordinance, such as operating without a valid registration or exceeding occupancy limits, can result in fines starting at $100 for the first offense and escalating to $1,000 for the third and subsequent offenses within a 12-month period.

The registration and licensing process is designed to help the city track the proliferation of short-term rentals and ensure they meet minimum safety standards and operational guidelines. It also provides a mechanism for enforcement against problem properties that create nuisances or disrupt residential neighborhoods.

While the new regulations add some costs and administrative hurdles for short-term rental operators in Akron, many hosts view them as a reasonable tradeoff to legally operate their businesses within the city. However, careful adherence to the licensing requirements and rules is essential to avoid penalties or a potential shutdown by the city's code enforcement division.

Required Documents for Akron Short-Term Rentals

To legally operate a short-term rental in Akron, Ohio, hosts must obtain an annual registration certificate from the city. As part of the application process, several key documents are required to be submitted:

1. Completed application form: Hosts must fill out the city's official short-term rental registration application, providing details such as the property address, owner contact information, number of bedrooms, and maximum occupancy.
2. Proof of ownership: A copy of the property deed or recent tax statement showing the applicant as the legal owner of the rental unit.
3. Liability insurance: Documentation demonstrating that the rental property is covered by a valid liability insurance policy with minimum coverage limits set by the city ordinance.
4. Floor plan: A detailed floor plan or sketch of the rental unit, clearly indicating the layout, room dimensions, locations of smoke detectors, fire extinguishers, and emergency exits.
5. Parking plan: A diagram or description of the available off-street parking spaces for guest vehicles, including the number of spaces and their locations on the property.
6. Local contact information: The name, phone number, and email address of a designated local contact person who can respond to any issues or complaints related to the short-term rental within a specified timeframe.
7. Tax documentation: Proof of registration with the Ohio Department of Taxation for the collection and remittance of state sales tax and any applicable local lodging taxes.
8. Payment of registration fee: A check or money order for the annual $250 short-term rental registration fee, made payable to the City of Akron.

In addition to these required documents, hosts may also need to provide additional information or documentation upon request from the city's Planning Department or Code Enforcement Office. This could include copies of rental agreements, guest policies, or other operational details.

It's important to note that the city may conduct inspections of short-term rental properties to verify compliance with building, fire, and housing codes before issuing a registration certificate. Hosts should ensure their rental units meet all applicable safety standards and are prepared for these inspections.

Failure to provide the required documents or to maintain compliance with the city's short-term rental regulations can result in fines, penalties, or the revocation of the registration certificate. Hosts are encouraged to carefully review the ordinance and application requirements to ensure they have all necessary documentation in order before submitting their registration application.

By requiring this comprehensive set of documents and information, Akron aims to ensure that all short-term rentals are properly registered, insured, and operated in a manner that protects the safety and well-being of guests and neighboring residents. Responsible hosts who diligently comply with these requirements can help maintain the viability of the city's short-term rental market.

Akron Short-Term Rental Taxes

Short-term rental operators in Akron, Ohio are subject to several taxes at the state and local levels. Understanding and complying with these tax obligations is crucial for running a successful and legal vacation rental business.

At the state level, Ohio imposes a 5.75% sales tax on all short-term rentals of 30 days or less. This tax applies to the total rental amount, including any cleaning fees or other charges. Short-term rental hosts must register with the Ohio Department of Taxation to obtain a sales tax vendor's license and file regular tax returns.

In addition to the state sales tax, the City of Akron recently implemented a 5.5% excise tax specifically on short-term rentals. This local tax, which went into effect in January 2023, is designed to help offset the impacts of vacation rentals on neighborhoods and city services.

The combined state and local tax rate on short-term rentals in Akron is currently 11.25%. For example, if a vacation rental charges $100 per night, the host would need to collect and remit $11.25 in taxes ($5.75 for state sales tax and $5.50 for the Akron excise tax).

It's important to note that short-term rental platforms like Airbnb and Vrbo do not currently collect or remit taxes on behalf of hosts in Akron. This means that individual operators are solely responsible for registering with the appropriate tax authorities, collecting the required taxes from guests, and filing regular tax returns.

Failure to comply with state and local tax requirements can result in penalties, interest charges, and potential legal action. Short-term rental hosts should keep detailed records of their rental income and taxes collected in case of an audit by either the Ohio Department of Taxation or the City of Akron.

Given the complexity of the tax landscape, many short-term rental operators in Akron choose to work with local tax professionals or specialized vacation rental tax services to ensure compliance. These experts can assist with registration, tax collection, and filing requirements, helping hosts avoid potential pitfalls and penalties.

It's also worth noting that the tax situation for short-term rentals in Akron could change in the future as the city continues to evaluate the impacts of this industry. Additional local taxes or changes to existing rates are possible as the city seeks to balance the economic benefits of vacation rentals with concerns about housing availability, neighborhood character, and quality of life.

In summary, short-term rental hosts in Akron must collect and remit both the 5.75% Ohio sales tax and the 5.5% Akron excise tax on all rental income, for a combined tax rate of 11.25%. Compliance with these tax obligations is essential for operating legally and avoiding potential penalties. As the short-term rental landscape continues to evolve, hosts should stay informed and seek professional guidance to navigate the complex tax requirements in Akron.

Ohio Wide Short-Term Rental Rules

While many short-term rental regulations are implemented at the local level in Ohio, there are also some statewide laws and guidelines that apply to vacation rental operations across the state.

One key piece of legislation is the Ohio Revised Code Section 3783.53, which establishes basic safety standards for short-term rentals. This law requires all short-term rental units to have working smoke alarms, carbon monoxide detectors (if applicable), and fire extinguishers. It also mandates that hosts provide guests with information on emergency procedures and evacuation plans.

Additionally, the Ohio Revised Code Section 5739.09 outlines the state's sales tax requirements for short-term rentals. As mentioned previously, Ohio imposes a 5.75% sales tax on all rentals of 30 days or less, which hosts must collect and remit to the state.

Beyond these specific statutes, the Ohio Department of Health has issued guidelines and best practices for short-term rental operators. These guidelines cover areas such as sanitation, water quality, and food safety for rentals that provide meals or kitchen facilities to guests.

It's important to note that while these statewide rules establish a baseline for short-term rental operations, they do not preempt local governments from implementing their own additional regulations. In fact, the Ohio Revised Code Section 3783.54 explicitly states that municipalities and counties can adopt and enforce their own ordinances and resolutions related to short-term rentals, as long as they are not less stringent than the state standards.

As a result, many cities and counties across Ohio have enacted their own licensing requirements, zoning restrictions, occupancy limits, and other rules for short-term rentals. These local regulations often go beyond the state's minimum safety and tax guidelines, reflecting the unique concerns and priorities of each community.

For example, cities like Columbus, Cincinnati, and Cleveland have implemented permitting processes, annual registration fees, and restrictions on the number of short-term rentals allowed in certain residential areas. Other municipalities have taken a more hands-off approach, relying primarily on existing zoning and nuisance ordinances to address any issues that arise.

In addition to local regulations, short-term rental operators in Ohio should also be aware of any rules or guidelines established by the platforms they use to list their properties, such as Airbnb or Vrbo. These platforms may have their own policies and requirements for hosts, which can vary from one service to another.

Overall, while Ohio has established some statewide standards for short-term rentals, the regulatory landscape remains highly localized. Hosts must not only comply with state laws but also carefully research and adhere to the specific ordinances and regulations in the city or county where their rental property is located. Staying informed about changes at both the state and local levels is crucial for operating a compliant and successful short-term rental business in Ohio.

Does Akron Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Akron appears to be taking a relatively balanced approach to enforcing its short-term rental regulations compared to some other Ohio cities. While the city has implemented licensing requirements and operational rules, many hosts report being able to operate successfully as long as they comply with the ordinances.

One recurring theme in these online forums is that Akron's enforcement efforts seem to be primarily complaint-driven. Hosts who maintain good relationships with their neighbors and avoid creating nuisances are less likely to face scrutiny or penalties from the city's code enforcement officers.

For example, a BiggerPockets user shared their experience operating multiple short-term rentals in Akron without any issues from the city. They noted that by following the registration process, maintaining their properties well, and being responsive to any neighbor concerns, they've been able to run their vacation rental business without interference from local authorities.

However, several hosts have also reported receiving warnings or fines from the city for violations such as exceeding occupancy limits, failing to post their registration certificate, or generating noise complaints. These enforcement actions seem to be triggered by neighbor complaints or proactive inspections by code enforcement officers.

In contrast, some hosts operating in cities like Columbus or Cincinnati, which have more extensive short-term rental regulations, report facing stricter enforcement and higher fines for even minor infractions. There is a general sentiment that Akron's approach, while not completely hands-off, is more reasonable and focused on addressing actual nuisances rather than creating unnecessary barriers for responsible operators.

That being said, some hosts on these forums have expressed concerns that Akron's enforcement stance could become more stringent in the future as the short-term rental industry continues to grow. They point to examples of other cities that initially took a lenient approach but later implemented stricter regulations and enforcement measures in response to community concerns about housing availability, neighborhood character, and quality of life.

Overall, the consensus among hosts on BiggerPockets and Reddit seems to be that Akron is a relatively Airbnb-friendly market, at least for the time being. While the city has implemented licensing and operational requirements, enforcement appears to be focused on addressing specific complaints or violations rather than creating unnecessary obstacles for responsible operators.

However, hosts also acknowledge the importance of staying compliant with the city's regulations and maintaining good relationships with neighbors to avoid drawing unwanted attention or enforcement actions. As the short-term rental landscape continues to evolve, it's possible that Akron could take a more aggressive stance on enforcement in the future, similar to what has happened in some other Ohio cities.

How to Start a Short-Term Rental Business in Akron

If you're considering starting a short-term rental business in Akron, Ohio, here are the key steps to follow:

1. Research local regulations: Carefully review Akron's short-term rental ordinance and zoning laws to understand the requirements for registration, occupancy limits, parking, and operational standards. Consult with the city's Planning Department and Code Enforcement Office for guidance.
2. Obtain a short-term rental registration certificate: Submit a completed application to the city, along with required documents like proof of ownership, liability insurance, floor plans, and a parking plan. Pay the annual $250 registration fee.
3. Prepare your property: Ensure your rental meets all safety requirements, such as working smoke alarms, carbon monoxide detectors, and fire extinguishers. Make any necessary repairs or upgrades to comply with building codes and create an attractive space for guests.
4. Register for tax collection: Obtain a sales tax vendor's license from the Ohio Department of Taxation to collect and remit the required 5.75% state sales tax on rental income. Register with the City of Akron to collect and remit the 5.5% local excise tax on short-term rentals.
5. Choose a rental platform: Decide which vacation rental site(s) you want to list your property on, such as Airbnb, Vrbo, or Booking.com. Create a detailed listing with accurate descriptions, high-quality photos, and competitive pricing.
6. Set up your business: Open a separate bank account for your rental business and obtain appropriate insurance coverage, such as a vacation rental policy or landlord insurance. Consult with a tax professional to understand your income reporting and tax payments obligations.
7. Establish policies and procedures: Create a comprehensive rental agreement outlining house rules, cancellation policies, check-in/out procedures, and guest expectations. Develop a system for managing bookings, communicating with guests, and handling maintenance issues.
8. Arrange cleaning and turnover: Decide whether you'll handle cleaning between guests yourself or hire a professional service. Establish a thorough cleaning checklist and ensure the property is well-maintained and fully stocked for each new guest.
9. Market your listing: In addition to the exposure from listing platforms, promote your rental through social media, local tourism websites, and online travel forums. Encourage satisfied guests to leave reviews and recommendations.
10. Provide excellent guest service: Respond promptly to inquiries and booking requests. Offer local recommendations and thoughtful amenities to create a memorable stay. Address any issues or concerns quickly and professionally to maintain a high rating and attract repeat guests.
11. Comply with operational requirements: Adhere to the city's occupancy limits, parking requirements, and noise ordinances. Post the required information, including your registration certificate number and maximum occupancy, inside the rental unit.
12. Monitor and adapt: Regularly review your booking calendar, pricing strategy, and guest feedback to identify areas for improvement. Stay informed about any changes to local regulations or tax requirements that may affect your business.

By following these steps and prioritizing compliance with Akron's regulations, you can establish a successful short-term rental business in the city. While the requirements may seem extensive, they are designed to ensure the safety and well-being of guests and neighboring residents. Consulting with local officials, property managers, or legal professionals can help you navigate the process smoothly and avoid potential pitfalls.

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

If you're considering starting a short-term rental business in Akron, it's essential to understand and comply with the city's regulations. Here are the key contacts and departments to reach out to:

1. Akron Planning Department

This department oversees implementing and enforcing the city's short-term rental ordinance, including the registration process and operational requirements. They can provide guidance on zoning, permitting, and other regulations specific to vacation rentals.

Planning Department
166 S High St, Room 109
Akron, OH 44308
Phone: (330) 375-2090
Email: planning@akronohio.gov

2. Akron Code Enforcement Division

The Code Enforcement Division is responsible for ensuring compliance with the city's codes and ordinances, including those related to short-term rentals. They can address any complaints or violations regarding noise, parking, occupancy limits, or other issues.

Code Enforcement Division
166 S High St, Room 201
Akron, OH 44308
Phone: (330) 375-2075
Email: codeenforcement@akronohio.gov

3. Ohio Department of Taxation

Short-term rental operators in Akron must register with the Ohio Department of Taxation to collect and remit the required state sales tax on rental income.

Ohio Department of Taxation
4485 Northfield Rd
Akron, OH 44310
Phone: (330) 643-9600
Website: www.tax.ohio.gov

4. Akron Income Tax Division

In addition to state sales tax, hosts must register with the Akron Income Tax Division to collect and remit the city's 5.5% excise tax on short-term rentals.

Akron Income Tax Division
166 S High St, Room 201
Akron, OH 44308
Phone: (330) 375-2290
Email: incometax@akronohio.gov

By reaching out to these key departments and agencies, you can ensure that you have the most up-to-date information on Akron's short-term rental regulations and guidance on obtaining the necessary licenses, permits, and tax registrations. Maintaining open communication with local authorities is crucial for operating a compliant and successful vacation rental business in the city.

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

To gauge the sentiment of short-term rental operators in Akron regarding local regulations, let's look at some discussions on popular real estate investing forums like BiggerPockets and Reddit.

BiggerPockets Forum - "Navigating Akron's Short-Term Rental Regulations"

In this thread, several hosts share their experiences with Akron's new registration and licensing process for vacation rentals. While some express frustration with the paperwork and fees involved, others note that the requirements are relatively straightforward compared to some other Ohio cities. There is a general consensus that compliance is important to avoid fines or potential shutdown by the city.

Reddit - r/AirbnbHosts - "Akron STR Regulations: Reasonable or Overreach?"

This post sparks a lively debate about whether Akron's short-term rental ordinance strikes the right balance between regulation and allowing the industry to thrive. Some users argue that the occupancy limits and parking requirements are too restrictive, while others appreciate the city's efforts to address neighborhood impacts. Overall, opinions are mixed.

BiggerPockets Forum - "Operating STRs in Akron: Lessons Learned"

An experienced host shares their insights and advice for navigating Akron's regulatory environment after operating multiple short-term rentals in the city for several years. They emphasize the importance of maintaining open communication with neighbors, being responsive to any complaints, and staying compliant with registration and operational requirements.

Reddit - r/RealEstate - "Akron vs. Cleveland for Short-Term Rentals"

A user considering investing in vacation rentals asks for opinions on whether Akron or Cleveland is a better market, taking into account each city's regulations. Commenters generally view Akron as having a more balanced approach compared to Cleveland's stricter rules, but caution that both cities require diligent compliance.

BiggerPockets Forum - "Akron STR Regulations Update"

In this recent thread, hosts discuss the potential impact of Akron's new 5.5% excise tax on short-term rentals, which went into effect in 2023. While some express concerns about the additional tax burden, others argue that it's a reasonable tradeoff for being able to legally operate vacation rentals in the city.

Overall, the sentiment among Airbnb hosts on BiggerPockets and Reddit seems to be that Akron's short-term rental regulations are reasonable, albeit with some frustrations about specific requirements like occupancy limits or the registration process. Many hosts appreciate the city's efforts to balance the industry's growth with addressing neighborhood concerns, even if they don't agree with every aspect of the ordinance.

However, there is also a recognition that compliance with the rules is essential to avoid potential fines, warnings, or even shutdowns from the city's code enforcement division. Experienced hosts emphasize the importance of maintaining open communication with local authorities, being responsive to any complaints, and staying informed about any changes or updates to the regulations.

Disclaimer: While we here at BNBCalc strive to keep all of our city 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 city 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.