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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Hamilton County, Ohio?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Hamilton County, Ohio, which includes the city of Cincinnati. However, these rentals are subject to various regulations at both the county and city levels. It's important for property owners to understand and comply with these rules before starting a short-term rental business.

Starting a Short-Term Rental Business in Hamilton County

To operate a short-term rental in Hamilton County, property owners must first register their rental with the City of Cincinnati. Registration is valid for three years and requires a $250 fee per unit. Owners must certify that their rental complies with all applicable building, zoning, housing, and fire codes.

In buildings with five or more units, only four units plus one additional unit for every four units over four are allowed to be registered as short-term rentals. For example, in a building with 12 units, only 6 could be registered (4 + 2 additional).

Once registered, owners must include their registration ID in all listings and display the permit and a short-term rental advisory in the unit. They are also responsible for collecting and remitting a 7% excise tax on gross revenues, unless the booking platform like Airbnb has an agreement with the city to collect taxes on the owner's behalf.

Outside of Cincinnati, some other Hamilton County municipalities like Hamilton require short-term rentals to obtain a license, which costs a flat $50 fee. However, countywide regulations are still being considered.

In April 2023, county officials proposed changing the definition of hotels to include rentals with one room or more, making them subject to the county's 6.5% hotel tax. This change, if enacted, would bring in an estimated $400,000 per year from about 1,300 short-term rentals. The county commissioners seem open to the idea but want to consider a gradual phase-in of the tax rate for small operators.

Property owners should be aware that operating an unregistered short-term rental or violating other provisions of the regulations can result in fines, suspension, or revocation of their registration. The city monitors complaints and has the authority to take enforcement actions.

Despite the regulatory hurdles, many owners have found success with short-term rentals in Hamilton County. One Bigger Pockets user shared their experience evicting a troublesome tenant from their rental property in order to turn it into an Airbnb, noting that Ohio is a landlord-friendly state.

However, some residents worry about the impact of short-term rentals on housing affordability and neighborhood character. In Cincinnati, limited housing inventory has led to bidding wars and high prices, while some residents complain about noise and parties at neighboring Airbnbs.

As Hamilton County and its municipalities continue to grapple with the growth of short-term rentals, property owners should stay informed about evolving regulations and make sure they are in full compliance before listing their rentals. With proper planning and management, short-term rentals can be a profitable venture, but owners must be prepared to navigate the legal landscape.

Short-Term Rental Licensing Requirements in Hamilton County

While Hamilton County itself does not currently have a short-term rental licensing program, the City of Cincinnati, which is located within the county, does require all short-term rental operators to register their properties with the city.

To register a short-term rental in Cincinnati, owners must:

• Complete the registration form and pay a $250 registration fee per unit
• Certify that the rental complies with all applicable building, zoning, housing, and fire codes
• Receive a permit from the city
• Print and display the permit and a short-term rental advisory in the unit
• Include the registration ID in all listings

Registration is valid for three years from the date of issuance. In buildings with five or more units, there are limits on how many can be registered as short-term rentals. Only four units plus one additional unit for every four units over four are allowed. For example, in a 12-unit building, a maximum of 6 units could be registered as short-term rentals.

Completed registrations and fees should be submitted to:

City of Cincinnati
801 Plum Street, Room 202
Cincinnati, OH 45202
Phone: 513-352-3224
Email: Treasury.License@cincinnati-oh.gov

The city has not provided an estimate of how long the registration process typically takes. However, operating an unregistered short-term rental or violating other provisions of the ordinance can result in fines, suspension, or revocation of the registration. The city monitors complaints and has the authority to take enforcement actions against non-compliant operators.

In addition to registration, short-term rental operators in Cincinnati are responsible for collecting and remitting a 7% excise tax on their gross revenues, unless the booking platform they use, such as Airbnb, has an agreement with the city to collect the taxes on the operator's behalf. Airbnb is currently the only platform with such an agreement in place.

While Cincinnati has established short-term rental regulations, Hamilton County as a whole is still considering implementing countywide rules, such as extending the hotel tax to include short-term rentals. Property owners should stay informed about any changes to ensure they remain in compliance.

Required Documents for Hamilton County Short-Term Rentals

To operate a short-term rental in Hamilton County property owners must submit the following documents:

1. Short-Term Rental Registration Form: This form is required for all short-term rental operators. It collects information about the rental property, including the address, number of units, and owner/agent contact details. The purpose is to ensure the city has a record of all short-term rentals operating within its jurisdiction.
2. Proof of Compliance with Building, Zoning, Housing, and Fire Codes: As part of the registration process, short-term rental operators in Hamilton County must certify that their property complies with all applicable codes. This may require obtaining permits, passing inspections, or providing documentation from relevant city departments. The purpose is to ensure the safety and habitability of the rental unit.
3. Excise Tax Registration: Short-term rental operators in the county are responsible for collecting and remitting a 7% excise tax on their gross revenues, unless they use a booking platform like Airbnb that has an agreement with the city to collect taxes on their behalf.
4. Residential Rental Property Registration Form: At the county level, all rental property owners in Hamilton County must submit this form to the County Auditor's office, per Ohio state law. The form collects owner and agent contact information for emergency purposes. There is no fee, but failure to register can result in a $150 penalty on future tax bills. The form can be downloaded from the Hamilton County Auditor's website.

While these are the primary required documents, short-term rental operators should also be aware of any additional requirements in their specific municipality within Hamilton County. Some cities, villages, and townships have their own rental registration programs that may involve inspections and fees.

As Hamilton County considers implementing countywide short-term rental regulations, property owners should stay informed about any new documentation requirements. Currently, a license is not required at the county level, but this may change in the future as officials seek to address the growth of short-term rentals in the region.

Hamilton County Short-Term Rental Taxes

Short-term rental operators in Hamilton County are subject to several taxes:

Short-Term Rental Excise Tax: There’s a 7% excise tax on the gross revenues generated from short-term rental operations for stays of 29 nights or less. Operators using hosting platforms like Airbnb that have an agreement with the city will have this tax collected and remitted on their behalf. Otherwise, operators are responsible for collecting and paying this tax quarterly.

Hotel Lodging Tax: Hamilton County levies a 7.5% lodging tax on stays of less than 30 consecutive days. This tax is distributed as follows:

1. 3% to the Cincinnati USA Convention and Visitors Bureau
2. 3.5% for renovation and expansion of the Duke Energy and Sharonville Convention Centers
3. 1% (effective December 1, 2023) for convention-related facilities and other uses

Sales Tax: Short-term rentals are subject to both state (7%) and local (1.5-2.75%) sales taxes in Ohio for stays less than 90 days per guest. Marketplace facilitators like Airbnb are responsible for collecting and remitting these taxes on behalf of hosts.

Business Tax: Short-term rental operators must register for a business tax license with both their county and city. Business tax applies to gross sales, including non-refundable deposits and cleaning fees, if they exceed $100,000 annually.

Potential Deductions and Write-Offs

Short-term rental operators may be able to deduct certain expenses from their taxable rental income:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Cleaning fees
6. Rental platform commissions
7. Advertising and marketing costs
8. Repairs and maintenance
9. Depreciation of the property and capital improvements

Hosts should keep detailed records and consult with a tax professional to determine which deductions apply to their specific situation. If a rental is used for personal purposes for more than 14 days per year, deductions may be limited.

Proper tax compliance is essential for short-term rental operators. Failure to register, collect taxes, or file returns can result in penalties, interest, and legal issues. Staying informed about evolving regulations at both the state and local levels will help hosts run a successful rental business while avoiding potential pitfalls.

Ohio-Wide Short-Term Rental Rules

While most short-term rental regulations in Ohio are determined at the local level, there are a few state laws and potential legislative changes that Hamilton County hosts should be aware of.

1. House Bill 563: Introduced in the Ohio General Assembly in 2023, HB 563 seeks to create a uniform regulatory framework for short-term rentals across the state. If passed, this bill would prevent local governments from banning short-term rentals outright or imposing regulations on the frequency, duration, or number of such rentals. The bill is still pending as of July 2024, but its passage could significantly impact the ability of cities like Cincinnati to enforce their own short-term rental ordinances.
2. Lodging Taxes: The State of Ohio imposes a sales tax of 7% on short-term rentals, which is collected in addition to any local lodging taxes. Hosts are responsible for collecting and remitting these taxes, unless they use a platform like Airbnb that has an agreement to collect and remit taxes on their behalf.
3. Building and Housing Standards: While specific requirements vary by municipality, all short-term rentals in Ohio must comply with the state's building and housing codes related to health, safety, and habitability. This includes having working smoke detectors, carbon monoxide detectors, and fire extinguishers.
4. Landlord-Tenant Law: Ohio's landlord-tenant laws generally do not apply to short-term rentals of less than 30 days. However, hosts should still be aware of their rights and responsibilities under these laws, especially if they also rent their property on a longer-term basis.
5. Zoning: Zoning regulations for short-term rentals are largely determined at the local level in Ohio. However, state law requires that any zoning ordinances be consistent with the municipality's comprehensive plan and not unreasonably restrict the use of private property.

As the short-term rental industry continues to grow in Ohio, hosts should stay informed about any changes to state laws or regulations that could impact their business. This may include following the progress of HB 563, as well as any new tax collection requirements or building safety standards. By staying compliant with both state and local rules, Hamilton County hosts can operate their short-term rentals with confidence and avoid potential legal issues.

Does Hamilton County Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, it appears that Hamilton County, particularly the City of Cincinnati, does enforce its short-term rental regulations, although the strictness and consistency of enforcement may vary.

Cincinnati is generally not considered as Airbnb-friendly as some other cities, due to its registration requirements, excise tax, and limits on the number of units that can be registered as STRs in multi-unit buildings. Some hosts have reported issues with the registration process and expressed frustration with the regulations.

However, compared to cities with outright bans or very restrictive ordinances, Cincinnati's rules are more moderate. The city allows STRs in most residential zones, as long as hosts comply with the registration, tax collection, and other requirements.

Despite the rules, it seems that a significant number of hosts do operate STRs in Cincinnati and Hamilton County. As evidenced by the Reddit post about the host with 71 Airbnb listings in Cincinnati, some hosts have built substantial STR businesses in the area. This suggests that while the county does enforce its rules, determined hosts are still able to navigate the system.

Nonetheless, non-compliance comes with risks. Hosts who fail to register or follow other regulations may face fines, tax penalties, and legal issues. The county has the authority to revoke registrations and take other enforcement actions against problem properties, especially those generating noise complaints or other neighborhood disturbances.

In summary, while Hamilton County enforces its STR regulations more than some cities, it is not among the strictest jurisdictions. The rules create some hurdles for hosts but do not prevent the operation of STRs. Hosts can succeed in the county but must be diligent about compliance to avoid penalties. Compared to Airbnb-friendly cities with minimal regulation, Hamilton County is a more challenging environment, but a viable market for hosts willing to follow the rules.

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

Starting a short-term rental business in Hamilton County requires careful planning and adherence to local regulations. Follow these steps to launch your rental business successfully:

1. Research local zoning laws and regulations: Before investing in a property or listing your existing home, thoroughly review zoning codes and short-term rental ordinances. Ensure your property is eligible for short-term rentals and understand any restrictions on rental duration, occupancy limits, and other requirements.
2. Register your short-term rental with the city: Certain cities require all short-term rental operators to register their properties with the Department of Finance. Complete the Short-Term Rental Registration Form, pay the $250 registration fee per unit, and certify that your rental complies with applicable building, zoning, housing, and fire codes. Registration is valid for three years. Gather all necessary documentation before beginning the registration process to streamline the application.
3. Obtain a Transient Occupancy Registration Certificate: Apply for a Transient Occupancy Registration Certificate. This certificate is required to collect and remit the city's 7% excise tax on short-term rental revenue.
4. Register with the Hamilton County Auditor's Office: Per Ohio state law, all rental property owners in Hamilton County must submit a Residential Rental Property Registration Form to the County Auditor's office. This form provides emergency contact information for the owner or their designated agent. There is no fee, but failure to register may result in a $150 penalty on future tax bills. Keep your registration information up to date, notifying the Auditor's office within 60 days of any changes.
5. Prepare your property for guests: Ensure your rental meets all safety requirements, such as working smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish and decorate the space to appeal to your target guests, considering their needs and preferences. Invest in high-quality photos of your rental to showcase its best features and attract potential guests.
6. Choose a pricing strategy: Research comparable short-term rentals in your area to determine competitive nightly rates. Consider factors like seasonality, events, and demand when setting prices. Don't forget to account for cleaning fees, taxes, and other expenses in your pricing.
7. List your property on short-term rental platforms: Create listings on popular platforms like Airbnb and VRBO. Craft compelling descriptions, highlight unique selling points, and use the high-quality photos you took earlier. Be transparent about your rental's amenities, house rules, and any quirks or limitations. Encourage satisfied guests to leave reviews, as positive ratings can help attract future bookings.
8. Manage your bookings and guests: Establish a system for managing reservations, communicating with guests, and coordinating cleanings between stays. Be responsive to guest inquiries and maintain a high level of cleanliness and professionalism. Consider using a property management software or hiring a property manager to streamline operations and provide a seamless guest experience.
9. Stay compliant and keep accurate records: Regularly review short-term rental regulations to ensure ongoing compliance. Keep detailed records of your rental income and expenses for tax purposes, and remit the required excise tax to the city.

By following these steps and prioritizing compliance with local regulations, you'll be well-positioned to launch and grow a successful short-term rental business in Hamilton County.

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

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

City of Cincinnati

For properties within Cincinnati city limits, contact the Department of Finance about registration, permits, and taxes:

Treasury.License@cincinnati-oh.gov
Phone: 513-352-3224
Address: 801 Plum Street, Room 202, Cincinnati, OH 45202

For zoning and building code questions, reach out to the Department of Buildings and Inspections:

1. Phone: 513-352-3313
2. https://www.cincinnati-oh.gov/buildings/

Hamilton County

For unincorporated areas and properties outside Cincinnati, contact Hamilton County Development Services:

1. Phone: 513-946-4550
2. Address: 138 East Court Street, Room 801, Cincinnati, OH 45202
3. https://www.hamiltoncountyohio.gov/government/departments/buildings_and_inspections/contact_us

The Hamilton County Auditor's Office handles rental property registration:

1. Rental.registration@auditor.hamilton-co.org
2. Phone: 513-946-4099
3. https://www.hamiltoncountyauditor.org/tax_rentalregistration.asp

Online Communities for Hosts

Connecting with other short-term rental hosts can be a valuable way to get insights and support. Some active online communities include:

• Airbnb Community Center - Cincinnati & Hamilton County Hosts: https://community.withairbnb.com/t5/Help/AirBnB-Hosts-in-Greater-Cincinnati-NKY-Area/m-p/1099087
• Airhostsforum.com: A global forum for Airbnb hosts to share experiences and tips. https://airhostsforum.com/
• BiggerPockets Forums - Short-Term Rental Discussions: https://www.biggerpockets.com/forums/530-short-term-rental-discussions

While these communities can offer helpful perspectives, always defer to official sources for the most accurate and up-to-date regulatory information.

By staying informed and connected with local officials and host communities, you'll be well-equipped to navigate the evolving short-term rental landscape in Hamilton County.

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

Discussions on Reddit and Bigger Pockets reveal mixed opinions among Airbnb hosts and residents regarding short-term rental regulations in Hamilton County and Cincinnati:

Reddit - Is there an appetite to limit AirBNBs in Cincinnati?

• Some residents express concerns about the impact of Airbnbs on housing availability and affordability. They note the high number of listings and low occupancy rates.
• Others mention the challenges of buying a home due to competition from investors and suggest limiting short-term rentals in single-family housing.

Reddit - Meet the Airbnb host with 71 Cincinnati listings

• Commenters criticize a host with 71 Airbnb listings, arguing they are effectively running hotels without following proper zoning and regulations.
• Residents complain about issues like parties, noise, and parking problems caused by short-term rental guests in their neighborhoods.
• Some suggest that removing "high-end" short-term rentals still impacts housing availability and affordability down the market.

Bigger Pockets - Eviction Experience/Lessons Learned Cincinnati Ohio

• An investor shares their experience evicting a troublesome tenant from a property they planned to turn into a short-term rental.
• They note that Ohio, especially Butler County, is landlord-friendly when it comes to evictions for nonpayment of rent.
• However, collecting money owed after an eviction can be challenging without wage garnishment.

Bigger Pockets - Indianapolis vs Cincinnati vs Cleveland - First time investor

• An investor considering Cincinnati notes that Hamilton County property tax rates are much higher for investors (2.771%) than primary homeowners (1.08%).
• This may impact the profitability and appeal of investing in short-term rentals in the county.

Overall, these discussions highlight tensions between short-term rental operators and residents who worry about the effects on neighborhood character and housing affordability. Hosts seem concerned about increasing regulations and costs, while residents want the city and county to place some limits on Airbnbs to protect their communities. As Hamilton County considers new rules, striking the right balance will be key.

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.