Cleveland short-term rental operators face new rules

After six years of debate, short-term rental (STR) operators in Cleveland, Ohio, must become licensed and follow other new rules under an ordinance passed by the City Council on June 1, 2026.

STRs have long been controversial, with concerns over neighborhood disruption and safety. In November 2025, one person was killed and several injured in a shooting at a party held at an STR.

Key takeaways

1. Cleveland will require licenses for STR operators. After the law goes into effect in late November 2026, operators must obtain an annual license, pay a $150 application fee, and display their license number on all listings and advertisements. 
2. STR hosts face new operational requirements. Operators must maintain at least $500,000 in liability insurance, designate a local contact available during guest stays, and comply with health, safety, building, noise, and waste disposal regulations.
3. The ordinance imposes occupancy and density limits. STRs are limited to two guests per bedroom plus two additional guests, while new STRs in residential areas are generally capped at 10% of residential units on a block or in a building. Violations can result in fines of up to $5,000 and criminal penalties.

The new law, which goes into effect at the end of November, defines STRs as rentals of 30 consecutive days or less. Operators are required to get an annual license, pay an application fee of $150, and post the license number on any advertisements. Licenses aren’t transferable between people or units, and tenants must prove they are allowed to sublease their unit to get an STR license.

Operators must also designate a local contact who can respond to complaints whenever guests are staying in the STR. They must be able to arrive at the STR within one hour of receiving a call. The owner must provide neighbors with contact information they can use for complaints.

Operators must also:

• Have at least $500,000 in liability insurance for the STR.

• Observe health, fire, safety, and building code standards.

• Follow rules on noise and garbage disposal.

The new law also regulates the density of STRs within neighborhoods and occupancy limits for guest stays. STRs in residential districts are limited to a maximum of 10% of the total residential units on the block or in a multi-unit building, whichever is greater. Only two guests per bedroom, plus two additional guests, are allowed in an STR at one time.

STRs that started operating for at least a year before the law was passed and have been in full compliance with the rules, with no recorded complaints, are exempt from the density requirements.

STR operators who break the rules can be subject to fines of up to $5,000 and criminal prosecution.

In 2016, Cleveland passed an STR ordinance ahead of the Republican National Convention. Under that law, STRs were required to be occupied by owners and could only be rented out for less than 90 days per year. According to city legal experts, similar regulations have been struck down in federal courts and the ordinance is unenforceable.

Cleveland STRs are also subject to city transient occupancy tax on reservations of less than 30 consecutive days. The tax is paid by guests, but STR operators are responsible for collecting and remitting it to the city monthly. Airbnb collects these taxes when the booking is paid through its platform, but Vrbo doesn’t collect the tax for its listings. STR operators are responsible for any lodging taxes not collected on their behalf.

Avalara helps simplify tax and compliance for the hospitality industry through automation. With Avalara MyLodgeTax, STR owners and property managers can register with tax authorities, calculate lodging taxes, prepare and file returns, and remit payment. Avalara is trusted by 200,000+ direct and indirect customers in 75+ countries. 

For more on lodging taxes in Ohio, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.

FAQs

When do Cleveland’s new STR rules take effect?

The ordinance goes into effect at the end of November 2026.

What is considered an STR under the new regulations?

The law defines a short-term rental as a property rented for 30 consecutive days or less.

Do STR operators need to collect lodging taxes in Cleveland?

Yes. STR stays are generally subject to Cleveland’s transient occupancy tax, which operators are required to collect and remit.