Known for its bustling cities, scenic state parks, and vibrant college towns, Ohio increasingly draws travelers using short-term rental services like Airbnb and Vrbo. From Cleveland’s cultural scene to Columbus’s booming tech sector and Cincinnati’s historic charm, the Buckeye State provides hosts with a variety of opportunities.
However, Ohio does not have a single, statewide rule that governs all short-term rentals. Instead, property owners must comply with state tax obligations and often complex local ordinances. This guide outlines the main requirements for operating a short-term rental in Ohio, including licensing details, lodging taxes, and popular city-specific regulations.
Ohio’s Definition of a Short-Term Rental
Ohio does not apply one uniform definition of “short-term rental” across the entire state. Many local governments consider stays of fewer than 30 days to be transient lodging, but various municipalities refine that further through zoning or lodging ordinances. Because each city can interpret and regulate short-term stays differently, owners should check local codes or consult city officials to confirm how their jurisdiction defines and categorizes rentals under 30 days.
Starting a Short-Term Rental Business in Ohio
Property owners looking to host in Ohio generally contend with two sets of obligations: state-level tax responsibilities and locally enforced guidelines. At the state level, operators may need to register with the Ohio Department of Taxation to collect and remit sales or lodging taxes if the hosting platform does not manage them automatically. If you form a legal business entity, such as an LLC, you must also register with the Ohio Secretary of State.
At the municipal level, regulations can range from minimal oversight in suburban or rural areas to more stringent permit or safety inspection processes in urban centers. Some cities or neighborhoods may enforce maximum occupancy limits, require annual fire or building inspections, or limit the total number of days a property can be rented out. Additionally, homeowners association (HOA) covenants can restrict rentals under certain timeframes, so verifying these rules is essential.
Short-Term Rental Licensing Requirement in Ohio
Ohio does not issue a dedicated statewide short-term rental license. Instead, local jurisdictions decide whether property owners must obtain a special permit. Larger cities, particularly those with high tourism or significant student populations, often have more structured approaches to regulating short-term rentals. Missing local permit deadlines or ignoring specific zoning or safety rules can lead to fines or forced shutdowns. Hosts should visit city or county websites or contact local clerks to confirm current requirements—especially since rules can evolve as communities respond to housing or neighborhood concerns.
Ohio Short-Term Rental Taxes
Ohio generally imposes a state sales tax of 5.75%, which may apply to short-term lodging unless a booking platform handles it for you. Local governments can also levy additional sales tax or lodging taxes, potentially adding several percentage points in certain cities or counties. Some areas with convention centers or prominent tourism industries may apply an extra excise or hotel tax to fund local projects.
If you must remit these taxes yourself, you should register with the Ohio Department of Taxation. Filing frequencies vary based on your total revenue, so keeping detailed records of nightly rates, fees, and guest charges is crucial for accurate reporting. Late or underpayment can result in penalties and interest charges.
Vacation Rental Tax Deductions
Hosts renting out a property in Ohio for more than 14 days a year may be eligible for federal tax deductions under IRS rules, provided they separate personal use from rental use. Deductible expenses often include mortgage interest, property taxes, homeowner’s insurance, maintenance, utilities, and depreciation. Since these deductions can be complicated if the owner also occupies the home, thorough recordkeeping is essential to ensure compliance. Consulting a tax professional helps clarify which expenses are permissible and how to allocate them.
Short-Term Rental Regulations by Major Locations in Ohio
Columbus
Ohio’s capital has experienced a surge in short-term rental demand due to conventions, business travel, and university-related visits. While Columbus does not ban whole-home short-term rentals outright, operators may need to follow local noise, parking, and occupancy rules—particularly in neighborhoods near Ohio State University. State and local sales taxes apply to nightly bookings. As city housing debates progress, officials could propose new legislation impacting short-term rental activity, so hosts should stay informed via city council updates.
Cleveland
Cleveland’s rising tourism scene centers on sports events, cultural institutions, and the waterfront, making short-term rentals popular near Downtown, University Circle, and other trending neighborhoods. The city imposes a bed tax in addition to the state sales tax, which hosts must collect if not handled by the platform. Some areas require property inspections or permits for transient lodging. Violations of local ordinances can lead to fines or license revocations, so verifying your property’s zoning and licensing requirements is key.
Cincinnati
Cincinnati, home to professional sports teams, a vibrant arts district, and major universities, draws a steady flow of visitors. Although the city does not enforce a specific short-term rental ban, neighborhoods near popular attractions can have heightened regulation around occupancy limits or the frequency of rentals. Hosts must charge state sales tax plus any local add-ons. City council discussions sometimes address concerns about noise and parking in residential zones, so prospective hosts should track any local policy shifts.
Dayton
Dayton, known for aviation history and a growing tech sector, does not heavily restrict short-term rentals. However, standard business regulations and lodging taxes still apply. If your platform does not collect taxes automatically, you must remit them through the Ohio Department of Taxation. Zoning or building code compliance in older neighborhoods may require property inspections. HOAs in certain Dayton suburbs can also limit short-term lodging, so confirming relevant subdivision rules is advisable.
Toledo
Toledo’s location near Lake Erie and its cultural offerings attract visitors for sporting events and leisure trips. The city follows statewide tax rules on short-term lodging and can add a local transient occupancy tax. While a specialized short-term rental permit is not typically required, owners should keep abreast of city council or county board discussions that might affect how often or how long you can rent out your home. Maintaining good relations with neighbors by addressing noise or parking complaints can help avoid stricter city regulations in the future.
Takeaway
From urban areas like Columbus and Cleveland to popular smaller towns, Ohio presents short-term rental hosts with numerous possibilities for generating income. However, the Buckeye State’s decentralized regulatory climate means operators must piece together state tax responsibilities and local rules on licensing or occupancy. Collecting and remitting the 5.75% state sales tax—along with any county or city lodging taxes—remains essential unless the listing platform fully handles these payments.
Policy changes at the local level can emerge in response to housing affordability debates, neighborhood concerns, or tourism growth. Staying updated on city council agendas, planning board proposals, and HOA changes is pivotal for legal compliance. By properly remitting taxes, respecting community guidelines, and following all relevant permit or inspection processes, Ohio hosts can build a successful short-term rental operation while delivering quality guest experiences.
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