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

Starting a Short-Term Rental Business in Franklin County

If you're considering starting a short-term rental business using platforms like Airbnb or VRBO in Franklin County, Ohio, there are several regulations you need to be aware of. These rules are typically found in the county's zoning codes, planning codes, and ordinances.

First, you will need to obtain a short-term rental permit from the City of Columbus. The application requires information such as the property address, number of bedrooms, and contact information for the host. There is a $75 fee for the permit, which must be renewed annually. The city also requires hosts to collect and remit applicable taxes.

In terms of zoning, short-term rentals are generally allowed in residential districts in Franklin County as long as the property is the host's primary residence. However, there may be restrictions on the number of days per year the property can be rented out. For example, the city of Dublin only allows hosts to rent their properties for a maximum of 14 days per year.

Some cities in Franklin County have implemented additional regulations on short-term rentals in response to concerns about safety, noise, parking, and housing availability. In January 2024, neighborhood leaders in Columbus proposed ideas such as limiting the number of short-term rentals per census tract, notifying neighbors of new listings, and imposing higher fees for hosts with multiple properties.

Hosts should also be aware of building and fire safety codes. The property may need to be inspected before the short-term rental permit is approved. Requirements often include working smoke and carbon monoxide detectors, fire extinguishers, and clearly marked emergency exits.

Anecdotally, some residents have expressed frustration with the growth of short-term rentals in their neighborhoods. One Columbus resident near Franklin Park said a formerly owner-occupied property became a "party house" after the owner moved out and listed it on Airbnb. Others argue the rentals are reducing housing stock for long-term residents.

Despite these concerns, short-term rentals remain a popular option for both hosts and guests in Franklin County. A 2023 report found Columbus had nearly 1,700 licensed short-term rentals. Proponents say the businesses provide income for residents and lodging options for visitors.

As you navigate starting a short-term rental, be sure to carefully review all applicable regulations at the city, county, and state level. Consider consulting with a local attorney specializing in real estate or land use law. With proper planning and compliance, a short-term rental can be a successful venture in Franklin County.

Short-Term Rental Licensing Requirements in Franklin County

To legally operate a short-term rental in Franklin County, Ohio, hosts must obtain a permit from the City of Columbus. The application process involves several steps and requirements:

1. Complete a BCI background check, which costs $32. This can be done at the License Section office or at an approved provider.

2. Fill out the short-term rental application, available online or at the License Section office. The application fee is $20.

3. Provide proof of identity and residency:

• For primary residences, provide two proofs such as a motor vehicle registration, tax documents, lease copy, or utility bill.
• For non-primary residences, provide proof of ownership.

4. Disclose names and addresses of any other hotels, motels, or short-term rentals in Columbus that you have an interest in.

5. Sign a notarized affidavit confirming compliance with all applicable laws and regulations. Notaries are available at the License Section office.

6. Provide tax information or consent for the Columbus Tax Department to share information with the License Section.

Applications can be submitted in person at the License Section office (4252 Groves Road, Columbus, OH 43232) during business hours, Monday-Friday, 8am-3:30pm. Alternatively, applications can be left in the secure drop box at the same location, but must be notarized in advance.

The permit fee is $75 per year for primary residences and $150 per year for non-primary residences. Permits must be renewed annually.

Once approved, hosts must display their permit number on all online listings and inside the rental unit. They are also required to collect and remit a 5.1% excise tax to the city monthly.

Failure to obtain a permit or comply with regulations can result in fines and penalties:

1. Initial violations: $150-250 fine
2. Subsequent violations: Up to $500 fine
3. Chronic non-compliance: Potential legal action and requirement to remit all rental revenue to the city

The City of Columbus estimates the licensing process takes about 2 weeks from application to approval, if all requirements are met. To ensure compliance and avoid costly fines, hosts should carefully review the city's short-term rental website and contact the License Section with any questions before listing their property.

Required Documents for Franklin County Short-Term Rentals

To legally operate a short-term rental in Franklin County, Ohio, hosts must obtain a permit from the City of Columbus. The following documents are required as part of the permit application process:

BCI Background Check: All applicants, short-term rental hosts, 24-hour local emergency contacts, and property managers must provide the results of a fingerprint-based background check performed by an approved Ohio Bureau of Criminal Investigation provider. This check can be completed at the Division of Licensing for a fee of $32.

Short-Term Rental Application: Applicants must fill out the short-term rental application, available online or at the License Section office. The application fee is $20.

Proof of Identity: Applicants must provide a valid form of identification.

Proof of Residency or Ownership:

1. For primary residences, provide two proofs such as a motor vehicle registration, tax documents, lease copy, or utility bill.
2. For non-primary residences, provide proof of ownership.

Disclosure of Other Short-Term Rental Interests: Applicants must disclose names and addresses of any other hotels, motels, or short-term rentals in Columbus that they have an interest in, including ownership, licensure, or management.

Notarized Affidavit of Compliance: Applicants must sign a notarized affidavit confirming compliance with all applicable laws and regulations. Notaries are available at the License Section office.

Tax Information: Applicants must provide tax information or consent for the Columbus Tax Department to share information with the License Section.

These documents serve to ensure short-term rental operators meet the city's requirements for background checks, property ownership or lease rights, and compliance with applicable regulations. The License Section processes applications to confirm all necessary paperwork is submitted before issuing permits.

Franklin County Short-Term Rental Taxes

Short-term rental hosts in Franklin County, Ohio, are subject to several types of taxes that must be collected from guests and remitted to the appropriate authorities. Understanding these taxes is crucial for compliance and profitability.

The first is the City of Columbus's 5.1% lodging excise tax, which applies to all short-term rentals within the city limits. This tax is administered by the Columbus Division of Income Tax and is due on the 20th of each month for the previous month's revenue.

On top of that, the Franklin County Convention Facilities Authority levies an additional occupancy tax. This amounts to 4.9% within Columbus (4% for the county plus 0.9% for the city) and 4% in the rest of Franklin County.

Finally, short-term rentals are also subject to the combined Ohio state and Franklin County sales tax rate of 7.5%. Hosts are responsible for collecting this from guests as well.

When you add it all up, the total tax rate for short-term rentals in Columbus comes to approximately 17.5%. For a $100/night rental, that equates to $17.50 in taxes that the host must collect and remit.

Failure to comply with these tax laws can result in significant penalties, including fines and being required to pay all back taxes owed. The City of Columbus is actively regulating the short-term rental industry to ensure proper tax collection.

Tax Deductions for Short-Term Rentals

While the tax obligations may seem daunting, short-term rental hosts are also able to deduct many of their business expenses to reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Maintenance and cleaning costs
4. Utility payments
5. Insurance premiums
6. Advertising and platform fees
7. Depreciation of assets

Keeping detailed records is essential for claiming these deductions. Hosts should consult with a tax professional to ensure they are maximizing their write-offs and maintaining proper compliance with all tax laws.

Overall, taxes are a significant consideration for any short-term rental business in Franklin County. But with an understanding of the requirements and strategic use of deductions, hosts can run profitable and fully compliant operations.

Ohio Wide Short-Term Rental Rules

In addition to the specific regulations in Franklin County, short-term rental hosts must also be aware of state-wide laws and requirements in Ohio that impact their operations.

One key piece of legislation is House Bill 563, which was introduced in 2022 and sought to create a uniform regulatory framework for short-term rentals across the state. If passed, this bill could potentially override local ordinances in places like Columbus and establish state-wide standards for issues like zoning, registration, and taxation of short-term rentals. The implications of this bill are significant for Franklin County hosts, as it may affect local control and their ability to operate in residentially zoned areas.

Another state-wide consideration is the combined Ohio state and Franklin County sales tax rate of 7.5%. Short-term rental hosts are required to collect this tax from their guests and remit it to the proper authorities, in addition to any local lodging taxes.

On the topic of taxes, it's important to note that while Airbnb automatically collects and remits some local taxes on behalf of hosts in Ohio, this is not universal. For example, in Cleveland, Airbnb collects the 5.5% Cuyahoga County bed tax, but hosts are still responsible for collecting and remitting the separate 3% city Transient Occupancy Tax themselves. Franklin County hosts should verify exactly which taxes are being collected by their platform and which they need to handle independently.

Lastly, while not a firm requirement, forming an LLC for a short-term rental business is an option some hosts in Ohio pursue. An LLC can provide personal liability protection and some tax benefits, which may be appealing for hosts operating multiple properties or those particularly concerned about legal risk. However, hosts should consult with a local attorney and tax professional to determine if an LLC structure makes sense for their specific situation.

Overall, while much of the short-term rental regulatory framework in Ohio is determined at the local level, Franklin County hosts must still be cognizant of state-wide laws and tax obligations. Paying close attention to proposed legislation like HB563 and ensuring full compliance with all state and local requirements is essential for running a successful and legal short-term rental business.

Does Franklin County Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on platforms like BiggerPockets and Reddit, it appears that Franklin County and the City of Columbus do actively enforce their short-term rental regulations, making them less friendly to hosts compared to some other markets.

Several hosts have reported receiving citations and fines for operating without the proper permits or failing to collect the required taxes. The city employs a third-party company to comb through listings and identify non-compliant properties. Anecdotally, some hosts claim nearly all their neighbors have turned them in for suspected violations.

This strict enforcement has led some hosts to simply ignore the rules and operate illegally, betting that the potential profits outweigh the risks of getting caught. However, this seems to be the minority approach. Most hosts on these forums advise carefully following all regulations to avoid costly penalties and preserve your ability to operate long-term.

The consensus is that, while it is possible to run a successful short-term rental business in Franklin County, it requires dotting every i and crossing every t when it comes to permitting and tax collection. The county's stringent approach leaves little room for error.

In comparison, hosts point to more lenient markets where enforcement is lax or non-existent. But in Franklin County, attempting to skirt the rules is seen as a major gamble. The advice is generally to either fully comply with all requirements or consider investing elsewhere.

So, in summary, Franklin County and Columbus appear to be on the stricter end of the spectrum when it comes to short-term rental regulation and enforcement. Hosts should be prepared to navigate the licensing process and abide by all rules if they want to legally operate in this jurisdiction. The risks of non-compliance are simply too high for most to ignore.

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

Starting a short-term rental business in Franklin County, Ohio, requires careful planning and compliance with local regulations. Here are the key steps to get your business up and running:

Research local laws and zoning: Before listing your property, thoroughly review Franklin County and Columbus city ordinances related to short-term rentals. Ensure your property is zoned for this use and understand any restrictions on rental duration or guest limits. Failure to comply can result in significant fines.

Obtain necessary permits and licenses: Apply for a short-term rental permit from the City of Columbus. You'll need to complete a BCI background check ($32), fill out the application ($20 fee), provide proof of identity and residency or ownership, disclose any other rental interests, and sign a notarized affidavit of compliance. Permit fees are $75/year for primary residences and $150/year for non-primary residences.

Register with tax authorities: Open a business account with the Columbus Division of Taxation. You'll be responsible for collecting and remitting the 5.1% lodging excise tax, as well as the 7.5% sales tax. Proper tax compliance is crucial to avoid penalties.

Obtain required insurance: Contact your insurance provider about appropriate coverage for a short-term rental business. Consider additional liability insurance to protect yourself and your property. Some hosting platforms offer insurance but review the details carefully.

Prepare your property: Assess your property's condition and amenities. Make any necessary repairs or upgrades to ensure guest comfort and safety. Thoughtfully furnish and decorate the space to appeal to your target demographic. Consider hiring a professional photographer to showcase your rental in its best light.

Establish house rules and pricing: Determine your daily rates based on research of comparable rentals while ensuring you can cover costs and meet profit goals. Develop clear house rules regarding issues like smoking, pets, events, and guest limits. Decide on your minimum and maximum rental periods.

Create a stellar listing:Craft an appealing, informative listing on popular platforms like Airbnb and VRBO. Use high-quality photos, write a compelling description, and communicate your rental's unique features. Be responsive to potential guest inquiries to maximize bookings.

Automate and streamline operations: Consider using vacation rental software to manage reservations, coordinate cleanings, and communicate with guests. Establish reliable cleaning and maintenance procedures to ensure a high standard of service. Create a comprehensive guest welcome guide with property and local area information.

Some additional tips for success:

1. Provide exceptional customer service to encourage positive reviews and repeat visits
2. Continuously monitor your competition and adjust your strategies as needed
3. Stay up-to-date on any regulatory changes that could impact your business
4. Network with other local short-term rental operators to share insights and support
5. Regularly reinvest in your property to keep it well-maintained and appealing

By following these steps and prioritizing compliance, service, and strategic management, you'll be well on your way to running a successful short-term rental business in Franklin County.

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

If you have questions about short-term rental regulations, permitting, or zoning in Franklin County, there are several key contacts and resources available:

For questions specifically about the City of Columbus's short-term rental permit application process, email ShortTermRentals@columbus.gov. You can also call the Columbus Department of Public Safety's License Section at (614) 645-8366.

To report a suspected unpermitted short-term rental or a short-term rental causing issues in your neighborhood, use the City of Columbus's 311 system and email details to ShortTermRentals@columbus.gov. A licensing officer will follow up.

For general questions about zoning in Franklin County, contact the Franklin County Economic Development & Planning Department at (614) 525-3094. They can help verify if a property is zoned for short-term rental use.

In addition to official channels, connecting with other local short-term rental hosts can be a valuable way to navigate the regulatory landscape and get advice. Some communities to check out include:

The Columbus Airbnb Host Club on Facebook: https://www.facebook.com/groups/columbusairbnbhostclub/

This private group has over 500 members and is a place for Columbus hosts to ask questions, share experiences, and stay updated on local short-term rental news.

The Columbus Area Airbnb Hosts group on BiggerPockets: https://www.biggerpockets.com/forums/530/topics/1101256-how-is-the-columbus-ohio-market-short-term-rentals

While less active than the Facebook group, this forum thread on the popular real estate investing site BiggerPockets provides another avenue to connect with local hosts.

The Short Term Rental Owners of Ohio (STROO): https://www.shorttermrentalownersofohio.org/

This statewide advocacy organization provides educational resources and lobbies on behalf of short-term rental operators in Ohio. Their site has useful information on state and local regulations.

By utilizing these official contacts and tapping into the knowledge of the local host community, you'll be well-equipped to ensure your Franklin County short-term rental is fully compliant and set up for success. Staying connected is key, as regulations can change over time.

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

Discussions among short-term rental hosts on platforms like Reddit and BiggerPockets provide valuable insights into how local regulations are impacting operators in Franklin County. Here are some key takeaways:

On Reddit, u/Bodycount9 commented that most Airbnb hosts likely won't obtain the newly required permit from the city of Columbus, which costs $75-150. They wrote, "I was supposed to get a permit for a lot of the stuff I've done on my house, too. Spoiler alert, I didn't. Most of the Airbnb hosts won't either." This suggests some hosts may choose to operate illegally rather than comply with permitting requirements.

Another Redditor, u/Jkbucks, noted that even when applying for unrelated zoning variances in Columbus, officials "were concerned about 'what if you put in an Airbnb and piss off the neighbors'." This indicates the city is wary of the impact of short-term rentals on residential neighborhoods.

On the BiggerPockets forums, a host going by @Brin Dillon asked if it's true that out-of-state operators can't run Airbnbs in Columbus, as they want to invest there but live in Las Vegas. While the question wasn't definitively answered, it highlights the complexity of navigating non-owner-occupied short-term rental regulations.

User @Myles Buchanan started a BiggerPockets thread titled "Starting Airbnb's in Columbus, Oh" and asked for advice from successful operators in the market. @James Wise replied, "We are doing Short-term rentals in Columbus. It is currently a decent market, but starting to get saturated with Airbnb and STR properties since the city passed legislation making it easier to operate them legally."

This comment suggests that while regulations have been streamlined, increased competition is an emerging challenge for hosts. It also indicates that the city has recently made an effort to legitimize short-term rentals, likely through the new permitting system.

Overall, these forums show that hosts have mixed feelings about short-term rental regulations in Franklin County. Some appreciate efforts to legalize and standardize the industry, while others chafe at permit fees and zoning restrictions. The posts also highlight key issues like market saturation, neighbor complaints, and the difficulty of navigating rules as an out-of-state investor. As the regulatory landscape continues to evolve, host discussions online provide a valuable pulse on the day-to-day realities and challenges of operating short-term rentals in this jurisdiction.

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.