Despite new regulatory proposals, Cleveland's short-term rental market remains robust, with high occupancy rates and significant revenue potential, making it an attractive option for investors, even as the city navigates changes to balance community and host interests.
Thriving Short-Term Rental Market in Cleveland, Ohio
Cleveland, Ohio, is experiencing a robust short-term rental market, driven by several favorable factors. Despite upcoming regulatory changes, the current performance of short-term rentals in Cleveland remains strong. With an average daily rate (ADR) of $157 per day, hosts are generating significant revenue, particularly with the potential for monthly revenues of up to $4,867 before fees and taxes.
While specific occupancy rates for short-term rentals in Cleveland are not readily available, the city's overall rental market is thriving, with rent prices increasing by 16% over the past year, outpacing national trends. This growth, combined with Cleveland's affordability and strong demand, positions the city as an attractive destination for both tourists and investors in the short-term rental sector.
Short-Term Rental Regulations in Cleveland, Ohio for 2024
Registration and Licensing
- Short-term rental owners must register their properties annually with the Cleveland Department of Building & Housing, paying a $70 fee per unit.
Primary Residence Requirement
- The rental property must be the host's primary residence, and the host must be present during the guest's stay.
Occupancy Limits
- Guests can stay no more than seven consecutive nights, and the property can be booked for a maximum of 91 days per year.
Zoning and Land Use
- Short-term rentals are allowed in residentially zoned areas, but off-site investors need a zoning change and other regulatory approvals to operate full-time Airbnb properties.
- Compliance with Cleveland's Zoning Code is mandatory, and property zoning changes may be necessary in some cases.
Inspections
- Both interior and exterior inspections are required to ensure compliance with applicable building codes and life safety standards.
Taxes
- A 3% Transient Occupancy Tax (TOT) is imposed by the City of Cleveland, and a separate 5.5% bed tax is imposed by Cuyahoga County, which Airbnb collects and remits.
Insurance and Liability
- While not mandatory, property owners are advised to obtain liability insurance policies tailored to cover potential liabilities from guests' stays.
- New legislation proposes requiring proof of at least $300,000 in liability insurance as part of the licensing process.
Licensing and Local Contact
- Proposed legislation requires an annual license at a cost of $150, and owners must list a local contact person available on-site within an hour.
Caps on Short-Term Rentals
- New legislation proposes a cap of 15% of homes on any residential block or 15% of units in a multifamily building. Existing compliant rentals are exempt from these limits.
Enforcement and Penalties
- The city can withhold or revoke licenses for properties that don’t meet health, fire, safety, and building codes. Unlicensed owners and operators can be fined $150 to $1,000 per day for violations.
Certificate of Occupancy
- Property owners must obtain a Certificate of Occupancy from the Department of Building and Housing to comply with local laws.
Proposed Changes
- Legislation introduced in 2024 aims to limit bookings to less than a month, restrict the number of guests, and impose stricter regulations to combat housing crunch and nuisance complaints.
Top Airbnb Neighborhoods in Cleveland, Ohio: Revenue and Appeal
1. Downtown Cleveland
- Appeal: Downtown Cleveland is a hub for major attractions, including the Rock-n-Roll Hall of Fame, Progressive Field, Rocket Mortgage Field House, and the Warehouse District. Guests love the proximity to top bars, restaurants, and sports venues. Rentals like the "Loft in Downtown Cleveland" and "Good Vibes Loft" offer modern amenities, city views, and easy access to key landmarks.
- Revenue: High demand due to its central location and plethora of attractions, making it a top revenue generator.
2. Tremont
- Appeal: Known for its vibrant atmosphere, Tremont is loaded with award-winning restaurants, shops, and galleries. It is just a short walk from Downtown Cleveland, making it an ideal location for those who want to be close to the action but also enjoy a more neighborhood feel. The "Home in Tremont" is highly rated for its prime location and amenities.
- Revenue: Tremont's unique blend of local culture and proximity to downtown attractions draws a high volume of guests.
3. Ohio City
- Appeal: This neighborhood is famous for the West Side Market and offers a comfortable, historic living experience. Guests appreciate the short walks to restaurants, bars, breweries, and coffee shops. The "Home in Ohio City" at Market Square Place is a favorite among visitors.
- Revenue: Ohio City's historic charm and vibrant local scene make it a popular choice, generating significant revenue.
4. Cleveland Heights
- Appeal: While not as centrally located as Downtown or Tremont, Cleveland Heights offers highly rated rentals known for their cleanliness and location. It provides a more suburban experience with easy access to downtown areas. Guests praise the neighborhood's quiet and welcoming atmosphere.
- Revenue: Although it may not match the downtown areas in terms of revenue, Cleveland Heights still attracts a substantial number of guests looking for a quieter stay.
5. Warehouse District
- Appeal: Part of the larger Downtown area, the Warehouse District is renowned for its historic warehouses turned into modern condos and lofts. Guests enjoy the exposed brick, city views, and elevated amenities. Rentals like the "Good Vibes Loft" and "Cleveland Vibes: Modern 2 BDR Apartment" are highly rated.
- Revenue: The unique architectural appeal and central location make the Warehouse District a significant contributor to Airbnb revenue in Cleveland.
These neighborhoods are appealing due to their combination of central locations, unique local cultures, and proximity to major attractions, making them highly sought after by guests and thus generating substantial revenue.
Furnishing and Design Tips for an Inviting Airbnb in Cleveland, Ohio
To create an inviting Airbnb in Cleveland, Ohio, that reflects the city's unique style, consider the following tips:
Measuring and Layout
- Measure your rooms to determine the best layout, ensuring there is plenty of space to move around and that natural light sources are not blocked.
Theme and Timeless Pieces
- Stick to a theme that reflects Cleveland's style, but opt for timeless, sturdy pieces that will last.
Smart Storage
- Use beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers to boost your space with smart storage. Provide a designated spot for guests' personal items, like a luggage rack.
Space-Saving Furniture
- Choose space-saving furniture with big functionality, such as sofa beds, folding tables, or ottomans with hidden storage compartments. These versatile pieces allow you to transform the layout according to your guests' needs.
Mirrors and Lighting
- Use mirrors to make your Airbnb feel bigger and brighter. Ensure there is good lighting and easy access to power outlets, especially in areas like the bedroom and bathroom.
Quality Bedding
- Opt for a solid bed that is easy to clean, with a mattress that is at least 8 inches thick. Prefer memory foam mattresses for durability and cost-effectiveness. Use a mattress cover to extend the life of the mattress.
Kitchen Essentials
- Equip your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Include basic cookware, utensils, dinnerware, and extras like a blender and sharp knives. Ensure there is plenty of space for food storage.
Bathroom Amenities
- Provide high-quality, durable towels in neutral colors that can be bleached. Offer enough storage for guests' toiletries and personal items. Include a hairdryer, basic toiletries, and a first-aid kit.
Living Room Comfort
- Choose a sofa that can stand the test of time and is easy to clean. Opt for sofas with washable covers and consider a sofa bed to increase guest capacity. Select comfy, lightweight chairs that are sturdy and easy to move around.
Decor and Personal Touches
- Add decorative elements that reflect Cleveland's unique style, such as local artwork or themed decor. Include plants to liven up the space and make it more inviting.
Budget Management
- Be mindful of your budget and choose your battles. Splurge on statement pieces like couches, coffee tables, and dining room tables, but save on items like sheets and towels.
Accessibility and Safety
- Ensure your Airbnb is accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms. Install smoke detectors, carbon monoxide detectors, and a first aid kit.
By following these tips, you can create an inviting and stylish Airbnb in Cleveland that will attract and satisfy your guests.
Discover Cleveland: Top Attractions and Insider Tips for Your Visit
Must-See Attractions
1. Rock & Roll Hall of Fame
- Located on the shore of Lake Erie, this 150,000-square-foot museum is a must-visit for music enthusiasts, featuring ever-changing exhibits and iconic memorabilia like Jimi Hendrix's Stratocaster and John Lennon's stage clothes.
2. Cleveland Museum of Art
- With a vast and eclectic collection spanning from medieval armor to Impressionist paintings, this museum is a gem in University Circle. Don't miss the grand atrium and tranquil courtyard.
3. West Side Market
- This historic market, with its 137-foot-tall clock tower, offers a diverse array of fresh meats, seafood, produce, and international cuisines. It's a great place to sample local flavors and explore the ethnic diversity of Cleveland.
4. Cleveland Metroparks Zoo
- One of the oldest zoos in the United States, it boasts the largest collection of primate species in North America. Enjoy the 4D Theater, animal encounters, and the beautiful year-round foliage.
5. Greater Cleveland Aquarium
- Located in the historic First Energy Powerhouse, the aquarium features eight galleries with over 50 exhibits and 2,500 animals from 300 species. Interactive experiences include a stingray touch pool and a blue-tongued skink petting tank.
Nature and Outdoor Activities
6. Cleveland Botanical Garden
- Explore 20 unique gardens showcasing flora and fauna from around the world, including a rainforest, desert, and Japanese Garden. Don't miss the Hershey Children's Garden and various public events.
7. Cleveland Metroparks
- This extensive park system offers hiking and biking trails, golf courses, water sports, fishing, and other outdoor activities. It's perfect for nature lovers and those seeking adventure.
8. Edgewater Park
- Part of the Cleveland Metroparks, this park is ideal for picnics, enjoying the skyline, and various seasonal activities. It's a year-round destination for outdoor enthusiasts.
Cultural and Historical Sites
9. A Christmas Story House & Museum
- Visit the original house from the 1983 film "A Christmas Story," now restored to its movie splendor. The adjacent museum features original props and memorabilia.
10. Lake View Cemetery
- Known for its scenic views and significant monuments, including the Garfield Memorial. It's a tranquil spot for reflective walks and photography.
11. Dunham Tavern
- The oldest building in Cleveland, built in 1824, this tavern turned museum offers a glimpse into the city's early history.
Entertainment and Nightlife
12. Playhouse Square
- Home to the world's largest outdoor chandelier, this area hosts live music performances, food trucks, and is a popular spot for nightlife.
13. The Flats District
- An old industrial zone turned nightlife hub on the Cuyahoga River, offering a variety of bars, restaurants, and entertainment options.
14. Great Lakes Brewing Co.
- Take a tour of this iconic brewery, known for its Christmas Ale, and enjoy a pint in the Ohio City brewing district.
Insider Tips
- Use Public Transportation: Cleveland has a convenient public transportation system, including buses and the RTA Red Line, which can help you navigate the city efficiently.
- Explore Neighborhoods: Neighborhoods like Ohio City, Tremont, and Little Italy offer unique dining, shopping, and cultural experiences.
- Check Local Events: Cleveland often hosts various festivals and events, such as the Chinese Lantern Festival at the zoo and seasonal programs at the botanical gardens. Check local listings to catch something special during your visit.
- Visit the Cultural Gardens: Take a walking tour through Cleveland's Cultural Gardens, which feature gardens representing different cultures and countries. Use the Mobile History Cleveland app for a guided tour.
- Enjoy Local Cuisine: Cleveland is known for its Polish Boy sandwiches, pierogies, and other ethnic foods. Be sure to try some local specialties during your visit.
By exploring these attractions and following these insider tips, your guests will have a comprehensive and enjoyable experience in Cleveland.
Practical Tips to Run a Successful Short-Term Rental Business in Cleveland, Ohio
To ensure the success and smooth operation of a short-term rental business in Cleveland, Ohio, several practical tips can be implemented. Here are some key strategies:
Noise Regulations and Quiet Hours
Inform your guests about noise regulations and quiet hours to maintain a peaceful environment and avoid potential complaints from neighbors. Clearly communicate these rules in your listing and within the property to set expectations.
Digital and Physical House Manual
Create both digital and physical house manuals that include essential instructions, Wi-Fi passwords, and other important details. This manual should cover everything from appliance usage to emergency contact information, ensuring guests have all the information they need at their fingertips.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos to help them navigate any specific steps, such as parking instructions. This not only enhances guest convenience but also reduces the likelihood of check-in issues.
By implementing these strategies, you can enhance guest satisfaction, reduce potential issues, and maintain a positive reputation for your short-term rental business in Cleveland.
Here is a brief list of house cleaning providers in Cleveland, Ohio:
House Cleaning Services in Cleveland, OH
The Cleaning Authority
- Provides detailed cleaning services using an eco-friendly Detail-Clean Rotation System.
- Serves Cleveland, Lakewood, Westlake, Elyria, Avon, Fairview Park, North Olmstead, and surrounding areas.
- Fully bonded and insured, with a focus on environmentally responsible cleaning products.
All 4 You Cleaning Services
- Offers a variety of home and commercial cleaning services with flexible scheduling options.
- Accredited by the Better Business Bureau with over 6 years of experience in Northeast Ohio.
Summit Maids
- Provides standard cleaning, deep clean, move in/move out clean, short term rental/Airbnb turnover, and post-construction cleans.
- Known for a smooth booking process and a 200% satisfaction guarantee.
- Serves the Greater Cleveland, Ohio area.
Cardinal Maids
- Offers maid and cleaning services with a focus on professionalism and attention to detail.
- Maids are background checked, experienced, and insured.
- Serves the Cleveland area with flexible scheduling and a user-friendly booking process.
Cleveland, Ohio Short-Term Rental Management Fees: A Comprehensive Guide
In Cleveland, Ohio, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. This comprehensive service ensures that all aspects of the rental property are managed, from attracting and retaining guests to handling any maintenance or repair issues that arise.
On the other hand, basic services that may only include rent collection, fielding tenant calls, and minimal maintenance coordination can cost less. Additionally, property owners may incur extra fees for specific services such as cleaning, repairs, or design enhancements. Understanding these fee structures is crucial for property owners to make informed decisions and ensure their short-term rental properties are managed efficiently and effectively.