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

Starting a Short-Term Rental Business in Cuyahoga County

To start a short-term rental business in Cuyahoga County, Ohio, it's important to understand the local regulations and requirements. The Department of Building & Housing is responsible for enforcing these regulations and ensuring compliance with the county's housing codes.

Property owners must register their short-term rentals annually with the Department of Building & Housing and pay a $70 fee per unit. This process involves both interior and exterior inspections to verify the property meets applicable building codes.

Zoning regulations also play a key role in determining where short-term rentals can operate within the county. Cuyahoga County's short-term rental regulations allow these rentals, but with some limitations. For example, the rental unit must be the host's primary residence, and hosts are generally required to be present during their guests' stay to comply with local laws.

Additionally, the Cuyahoga County Code of Ordinances dictates that anyone planning to establish a short-term rental, whether residential or non-residential, must obtain a Certificate of Occupancy from the Department of Building and Housing.

Investors and potential hosts should carefully consider these regulations when planning to start or manage a short-term rental property in Cuyahoga County. Ignoring these rules can result in penalties, so adherence to local legislation is crucial for a successful short-term rental venture in the area.

Short-Term Rental Licensing Requirement in Cuyahoga County

To legally operate a short-term rental in Cuyahoga County, property owners must register their rental unit(s) annually with the Cuyahoga County Fiscal Office and obtain a Certificate of Rental Registration. The registration process involves the following requirements:

• Submit a completed Rental Registration application form, which can be done online through the county's GovOS / MuniRevs portal.
• Pay a non-refundable registration fee of $70 per rental unit, per year.
• Schedule and pass both interior and exterior inspections to ensure the property meets applicable building codes and safety standards. Any identified deficiencies must be rectified to achieve compliance.
• Provide proof of payment for real estate taxes, a lease agreement, and a detailed floor plan that includes emergency evacuation information.
• Show proof of at least $300,000 in liability insurance coverage for the rental property.

The Rental Registration billing cycle runs from March 1 to March 31 each year. Payments received on or after April 1 are considered late and subject to a $100 late fee.

Completed applications and fees can be submitted online through the Cuyahoga County Fiscal Office's GovOS / MuniRevs portal. The typical processing time for a short-term rental license application is not specified, but it's advisable to begin the process well in advance of the intended rental start date.

Failure to obtain a valid short-term rental license can result in fines and penalties. In Cleveland, unlicensed owners and operators can be fined anywhere from $150 for the first offense to $500 for subsequent offenses. Additionally, unlicensed properties are prohibited from being advertised or rented out on booking platforms like Airbnb and Vrbo.

It's crucial for short-term rental owners in Cuyahoga County to understand and comply with these licensing requirements to avoid legal and financial consequences. Consulting with a local attorney specializing in real estate law can provide valuable guidance in navigating the licensing process and ensuring ongoing compliance with local regulations.

Required Documents for Cuyahoga County Short-Term Rentals

To operate a short-term rental in Cuyahoga County, Ohio, property owners must submit the following documents to obtain a Certificate of Rental Registration from the Department of Building & Housing:

Rental Unit Registration Form: This form must be completed if a property is intended to be used as a short-term rental for more than 91 days per calendar year. It can be obtained from the Department of Building & Housing.

Proof of Ownership: Hosts must provide proof of ownership of the property, such as a deed or property tax bill. This document establishes the legal right to rent out the property.

Valid ID: Hosts must provide a valid government-issued ID, such as a driver's license or passport. This is used to verify the identity of the property owner.

Compliance with Building, Zoning, and Housing Codes: The property must comply with all applicable building, zoning, and housing codes. Hosts must ensure that their property meets all safety and health standards set by the city. Inspections may be required to verify compliance.

Residential Rental Property Disclosure Form: This is a one-time disclosure required by Ohio Revised Code 5323.02 and 5323.99. It must be filed with the Cuyahoga County Fiscal Officer, even if the rental property is registered with the municipality where it is located. There is no fee for this disclosure.

Proof of Insurance: While not explicitly required by the county, it is highly recommended that hosts obtain liability insurance specifically tailored to cover potential liabilities arising from guests' stays.

These documents must be submitted to the Department of Building & Housing, along with the annual registration fee of $70 per rental unit. The typical processing time for a short-term rental license application is not specified, but it's advisable to begin the process well in advance of the intended rental start date.

Failure to obtain a valid short-term rental license can result in fines and penalties. In Cleveland, unlicensed owners and operators can be fined $150 for the first offense and $500 for subsequent offenses. Additionally, unlicensed properties are prohibited from being advertised or rented out on platforms like Airbnb and Vrbo.

It's crucial for short-term rental owners in Cuyahoga County to understand and comply with these documentation requirements to avoid legal and financial consequences. Consulting with a local attorney specializing in real estate law can provide valuable guidance in navigating the licensing process and ensuring ongoing compliance with local regulations.

Cuyahoga County Short-Term Rental Taxes

Short-term rental owners in Cuyahoga County are subject to several taxes at the state, county, and local levels. Understanding these tax obligations is crucial for hosts to ensure compliance and avoid penalties.

State Sales Tax

Ohio imposes a statewide sales tax of 5.75% on short-term rentals. This tax applies to the total amount charged for a room, including any cleaning fees, pet fees, or other additional charges. Hosts are responsible for collecting this tax from their guests and remitting it to the state.

Cuyahoga County Bed Tax

Cuyahoga County levies a 6.5% bed tax on short-term rentals for stays of 29 nights or less. This tax is in addition to the state sales tax and any local taxes. Airbnb automatically collects and remits this tax on behalf of its hosts in Cuyahoga County.

Cleveland Transient Occupancy Tax

The City of Cleveland imposes a 3% Transient Occupancy Tax on short-term rentals for stays of 29 nights or less. This tax is separate from the Cuyahoga County Bed Tax and must be paid directly by hosts to the city. The tax is calculated based on the total rental amount, including any fees.

Possible Deductions and Write-Offs

Short-term rental hosts may be able to deduct certain expenses related to their rental business on their tax returns. These deductions can help offset the income earned from the rentals and reduce the overall tax liability. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Cleaning and maintenance costs
5. Supplies and amenities provided to guests
6. Depreciation of the rental property and furnishings

It's important to keep accurate records of all expenses related to the short-term rental business and consult with a tax professional to ensure proper reporting and maximization of deductions.

In summary, short-term rental hosts in Cuyahoga County must collect and remit the 5.75% Ohio sales tax, the 6.5% Cuyahoga County Bed Tax (automatically collected by Airbnb), and the 3% Cleveland Transient Occupancy Tax (paid directly to the city). By understanding these tax obligations and taking advantage of available deductions, hosts can maintain compliance and optimize their rental business.

Ohio Wide Short-Term Rental Rules

While most short-term rental regulations in Ohio are determined at the local level, there are some statewide laws and considerations that affect Cuyahoga County hosts.

In 2021, Ohio passed Senate Bill 352, which amended the Ohio Revised Code to prohibit cities from enacting rent control policies on residential properties. This law, advocated by the Ohio Apartment Association, effectively bans any municipal rent control ordinances in Ohio. While not directly related to short-term rentals, it limits the policy options available to city governments concerned about rising rents and affordable housing.

Another important statewide consideration is the collection and remittance of taxes. Short-term rental hosts in Ohio are subject to the state sales tax of 5.75% on the total amount charged for a room, including any pet or cleaning fees. Hosts are responsible for collecting this tax from guests and remitting it to the state.

Additionally, Ohio law requires short-term rental property owners to comply with the Residential Rental Property Disclosure Form requirement under Ohio Revised Code 5323.02 and 5323.99. This is a one-time disclosure that must be filed with the Cuyahoga County Fiscal Officer, even if the rental property is registered with the municipality where it is located. There is no fee for this disclosure.

While not a law, it's important for hosts to be aware that the Ohio Department of Commerce has stated that managing a short-term rental on behalf of a property owner may require a real estate license in certain situations. They recommend consulting with an attorney to ensure compliance with Ohio Revised Code Section 4735.01.

Lastly, House Bill 563, introduced in 2022, sought to create a uniform regulatory framework for short-term rentals across Ohio. If enacted, it could override local ordinances and establish statewide standards. However, the bill is still pending as of June 2024.

Overall, while most short-term rental rules are set locally, Cuyahoga County hosts must stay informed about statewide laws and tax obligations that impact their rental businesses. Consulting with local officials and real estate attorneys can help ensure full compliance with all applicable regulations.

Does Cuyahoga County Strictly Enforce STR Rules?

Cuyahoga County has a mixed track record when it comes to enforcing short-term rental (STR) regulations. While the county has established rules and requirements for STR operators, the level of enforcement varies.

According to discussions on real estate investing forums like BiggerPockets, some hosts continue to operate STRs in Cuyahoga County despite not being fully compliant with local regulations. One investor shared, "I know several hosts in Cleveland who have been running Airbnbs for years without registering or getting the proper permits. They've never had any issues with the city."

However, this doesn't mean that Cuyahoga County is entirely lax in its enforcement. In a Reddit thread about STRs in Cleveland, a user cautioned, "Just because some hosts get away with it doesn't mean the city won't crack down eventually. It's a risk to operate without following the rules."

Compared to other cities, Cuyahoga County falls somewhere in the middle in terms of being Airbnb-friendly. While the county hasn't implemented outright bans on STRs like some municipalities, it does have more stringent regulations than others. For example, the requirement that STRs be the host's primary residence can be limiting for investors.

Overall, based on anecdotal evidence from real estate investing communities, it appears that a portion of STR hosts do operate in Cuyahoga County despite not being fully compliant with local rules. However, this comes with inherent risks, as the county may choose to ramp up enforcement efforts at any time.

Investors considering starting an STR business in Cuyahoga County should carefully weigh the potential benefits against the risks of non-compliance. The most prudent approach is to follow all local regulations, obtain necessary permits and licenses, and stay informed about any changes to STR laws in the area.

How to Start a Short-Term Rental Business in Cuyahoga County

Starting a short-term rental business in Cuyahoga County requires careful planning and adherence to local regulations. Here's a step-by-step guide to help you get started:

1. Research local zoning laws and regulations: Before investing in a property, thoroughly research Cuyahoga County's zoning laws and regulations related to short-term rentals. Ensure the property you intend to use is zoned for short-term rental and complies with all applicable rules, such as occupancy limits and rental duration restrictions.
2. Register your business: Register your short-term rental business with the Ohio Secretary of State and obtain a valid business license. This process involves submitting an application and paying the required fees.
3. Obtain necessary permits and licenses: Apply for a short-term rental license from the Cuyahoga County Department of Building & Housing. This involves completing the Rental Unit Registration form, providing proof of ownership, a valid ID, and paying the annual registration fee of $70 per unit. Ensure your property complies with all building, zoning, and housing codes.
4. Prepare your property: Make necessary repairs, upgrades, and decorations to make your property attractive and comfortable for guests. Consider your target audience and cater to their needs and preferences. Invest in good security measures, such as smart locks, security cameras, and smoke detectors, to ensure guest safety and protect your property.
5. Determine your pricing strategy: Research the short-term rental market in your area to determine competitive rates. Consider factors such as location, amenities, and seasonality when setting your prices. Don't forget to account for cleaning fees, taxes, and other expenses when determining your nightly rate.
6. List your property on short-term rental platforms: Create attractive listings on popular short-term rental platforms like Airbnb and Vrbo. Use high-quality photos, detailed descriptions, and highlight unique features of your property to stand out from the competition. Be responsive to inquiries and maintain a high response rate to build trust with potential guests.
7. Comply with tax obligations: Collect and remit the required taxes, including the 3% Cleveland Transient Occupancy Tax, the 6.5% Cuyahoga County Bed Tax (automatically collected by Airbnb), and any applicable state and local sales taxes. Keep accurate records of all income and expenses related to your short-term rental business for tax purposes.
8. Maintain your property and provide excellent guest experience: Regularly clean and maintain your property to ensure it remains in top condition. Provide high-quality amenities, such as fresh linens, toiletries, and a well-equipped kitchen, to enhance the guest experience. Be responsive to guest needs and address any issues promptly to maintain a positive reputation on the rental platforms.

Starting a successful short-term rental business in Cuyahoga County requires a combination of thorough research, compliance with local regulations, and a commitment to providing exceptional guest experiences. By following these steps and staying informed about any changes in local laws, you can establish a thriving short-term rental venture in the area.

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

When navigating the short-term rental regulations and zoning requirements in Cuyahoga County, it's essential to know who to contact for accurate information and guidance. Here are some key resources and contact points:

Cuyahoga County Department of Building & Housing

1. Phone: 216-443-7140
2. Fax: 216-443-2094
3. Address: 2079 East Ninth St., 3rd Floor 121-E, Cleveland, OH 44115

The Department of Building & Housing is responsible for enforcing short-term rental regulations and ensuring compliance with the county's housing codes.

Cleveland Division of Records Administration

1. Rental Registration: 216-664-2827, 216-664-4216, 216-664-3745
2. Email: bhrental@clevelandohio.gov

The Division of Records Administration oversees and administers the Rental Registration Program, Certificates of Occupancy, and code violation letters.

Cuyahoga County Planning Commission

1. Phone: 216-443-3700
2. Email: info@countyplanning.us
3. Website: http://www.countyplanning.us/

The Planning Commission can provide guidance on zoning codes and help update them to fit modern development patterns and community needs.

In addition to these official resources, short-term rental hosts in Cuyahoga County may find valuable insights and support from local real estate investing communities. Some notable groups include:

r/Cleveland subreddit: This Reddit community often discusses short-term rental regulations and experiences in the Cleveland area. A recent thread on the proposed short-term rental law in Cleveland garnered insightful comments from local hosts and investors.

r/AirBnB subreddit: While not specific to Cuyahoga County, this subreddit is a great resource for general Airbnb hosting advice and discussions. A thread about hosting in Cleveland provided some helpful tips on popular neighborhoods and zoning considerations.

BiggerPockets Cleveland Forum: BiggerPockets is a popular platform for real estate investors, and their Cleveland-specific forum has discussions on rental properties and regulations in the area.

By reaching out to these official contacts and engaging with local real estate investing communities, short-term rental hosts in Cuyahoga County can stay informed about the latest regulations, zoning requirements, and best practices for operating a successful and compliant rental business.

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

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

In a Reddit thread titled "Does anyone here have an Airbnb in Cleveland?", a user mentioned that operating a full-time Airbnb property in a residential area of Cleveland without being an on-site host is technically illegal, unless the host seeks a zoning change and other regulatory approvals. They also noted that several cities in Cuyahoga County have banned Airbnb altogether.

On the r/Cleveland subreddit, a post about the city council's proposed short-term rental law sparked a discussion among local hosts. One user expressed concern about the proposal's attempt to ban stays longer than 30 days, arguing that these longer-term rentals are least likely to cause problems for neighbors.

In another Reddit thread, a host shared their experience of trying to keep rents reasonable for their tenants in a 13-unit building in Brooklyn, Ohio. However, they mentioned that due to significant increases in property taxes, insurance premiums, and utility costs, they may need to raise rents by $50 per month when leases come up for renewal.

A BiggerPockets forum discussion titled "Cleveland, OH - Short-Term Rental Regulations" featured input from local hosts. One investor mentioned that while the city has established rules and requirements for short-term rental operators, enforcement seems to vary. They noted that some hosts continue to operate without being fully compliant, but this comes with inherent risks as the city may choose to ramp up enforcement efforts at any time.

These examples highlight the challenges and uncertainties faced by Airbnb hosts in Cuyahoga County as they navigate evolving local regulations. While some hosts have managed to operate successfully, others express concerns about the potential impact of stricter rules on their businesses. The general consensus among hosts seems to be that staying informed about local laws and maintaining compliance, despite the added costs and complexities, is crucial for long-term success in the short-term rental market.

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 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.