On Monday, May 12, the Cleveland City Council introduced a comprehensive ordinance aimed at regulating short-term rental properties, such as those listed on Airbnb and Vrbo. The proposed policy seeks to address community concerns by implementing the following key measures:
- Density Cap: Limits short-term rentals to no more than 15% of residential properties on a single city block or within multi-unit buildings.
- Licensing Requirements: Mandates annual registration with a $150 fee, provision of a local contact available within an hour, and a minimum of $300,000 in liability insurance.
- Occupancy and Stay Limits: Restricts occupancy to two guests per bedroom plus two additional guests, with a maximum stay of 30 days.
- Taxation: Imposes a 3% transient tax on short-term rental revenue, aligning with hotel tax rates.
- Penalties for Non-Compliance: Establishes fines starting at $1,000 for unregistered operations, escalating to $5,000 for repeated violations.
- Grandfather Clause: Allows existing short-term rentals operating for at least a year without complaints to continue under current operations.
This local initiative may face challenges from pending state legislation—Ohio House Bill 109 and Senate Bill 10—which aim to limit municipalities’ ability to enforce such regulations. Cleveland officials assert that their ordinance is crafted within the bounds of home rule authority and is modeled after best practices from other cities.
NOSTRA is closely monitoring these developments and will keep members informed as the situation evolves. For a detailed overview, please refer to the full article: