Is Airbnb Legal in Cleveland? 2026 Rules, Permits & Taxes

License required

Yes

Taxes on a stay

9.5%

Yearly night cap

91 nights

Fine for hosting without a permit

$5,000

Active Airbnb listings

1,840

Next rule change

Nov 28, 2026

The rules in brief

Who needs it

Every owner or operator who rents a dwelling unit for stays of 30 consecutive days or fewer, from November 28, 2026. An owner, or a tenant with written authorization, may hold it.^4,6,11,15

Issued by

City of Cleveland, Commissioner of Assessments and Licenses (Department of Finance)

Valid for

Each license runs from December 1 to November 30; renewal applications are filed between September 1 and November 1, and a license cannot be transferred to another person or home.

Processing

The ordinance sets no processing time; the application is verified by Building and Housing, City Planning, Public Health and Public Safety before the Commissioner issues the license.

On listings

No number needed on listings

Platform checks

Booking platforms must register with the city, may not complete a reservation for an unlicensed rental and must comply with the city's lodging tax chapter; the license itself is posted inside the home.

Fees

Who qualifies

• Within the density limit: at least one home or 10% of the units on the block or in a multi-unit building, unless the Board of Zoning Appeals grants a variance
• Held by the owner, or by a tenant whose lease allows subleasing, or by a designated local responsible party
• The dwelling meets all health, fire, safety and building code standards and has a certificate of occupancy and lead-safe certification
• Real estate taxes and transient occupancy taxes are paid as of the application date
• Liability insurance of at least $500,000, a floor plan, a parking plan and a local contact reachable within one hour

How to apply

1. 1 Count the short-term rentals on the block or in the building to confirm the home fits the 10% density limit, or plan a Board of Zoning Appeals variance.
2. 2 Gather the floor plan, parking plan, proof of $500,000 liability insurance, certificate of occupancy, lead-safe certification, proof that taxes are paid and the local contact's details.
3. 3 Apply on the form the Commissioner of Assessments and Licenses supplies; the Division's licenses office is at (216) 664-2264 or dallicenses@clevelandohio.gov.
4. 4 After the license issues, post it inside the main entrance, give guests the local contact's name and number and notify neighboring properties in writing.

Permit rules

License required from Nov 28, 2026

From November 28, 2026 every short-term rental in Cleveland must hold a city license issued by the Commissioner of Assessments and Licenses; renting a dwelling for stays of 30 consecutive days or fewer without one is a violation.^4,6,15 Takes effect November 28, 2026

New chapter starts November 28, 2026

Ordinance 561-2026 passed on June 1, 2026, and its short-term rental chapter (Chapter 686B) takes effect 180 days after passage, on November 28, 2026.^1,4,5 Takes effect November 28, 2026

License year runs December 1 to November 30

A license is valid for one year from December 1 to November 30, the fee for the first licensing year is prorated from the month of issuance, renewals are filed between September 1 and November 1, and a license cannot be transferred to another person or home.^6,15 Takes effect November 28, 2026

Application proofs: taxes, occupancy and lead safety

An application includes proof that real estate taxes and transient occupancy taxes are paid, a certificate of occupancy for the home, proof the dwelling is certified lead safe, a floor plan and a parking plan.^6,15 Takes effect November 28, 2026

Four city departments review each application

The Commissioner sends each application to Building and Housing, City Planning, Public Health and Public Safety and notifies the ward's council member; no license issues unless the home meets health, fire, safety and building code standards, and a denial can be appealed to the Board of Zoning Appeals within 10 days.^4,6,15 Takes effect November 28, 2026

License posted at the main entrance

The license is displayed inside the main entrance of the rental, and no one may advertise, offer or complete a reservation for a rental without a license.^4,6,15 Takes effect November 28, 2026

Booking platforms must register with the city

Booking agents, such as Airbnb, register with the Commissioner and name a person who accepts legal notices, handles lodging tax remittance and acts on violations; no booking agent may complete a reservation for an unlicensed rental.^4,6,15 Takes effect November 28, 2026

Until Nov 28, 2026: primary residences only

Until the new chapter starts, limited lodging in a residence district must be accessory to the home's use as a primary residence: the host is the titled owner, or a tenant authorized by the owner, who lives in the home more than 51% of the year. A home nobody lives in does not qualify; while it remains the owner's primary residence it needs no rental registration certificate.³

Owner, or tenant with written authorization

An owner may operate a short-term rental, and so may a tenant who has written authorization through a lease; the license holder may be the owner or a designated local responsible party who manages the rental.⁴ Takes effect November 28, 2026

Tenants need a lease that allows subleasing

A tenant applying for a license shows a valid lease that allows subleasing, and a lease that prohibits subleasing is grounds for denial.^6,15 Takes effect November 28, 2026

Allowed in one-family districts, within a density limit

Short-term rentals are allowed in one-family residential districts, subject to the density limitation.⁴ Takes effect November 28, 2026

10% of homes per block or building

In a residential district, short-term rentals are limited to at least one home or 10% of the residential units on the block or in a multi-unit building (a building with three or more dwelling units), whichever is greater.^4,6,15 Takes effect November 28, 2026

Variance to exceed the cap

A host who would exceed the density limit applies to the Board of Zoning Appeals for a variance, and the rental still needs a license; operating over the limit without a variance carries a $5,000 civil fine.⁴ Takes effect November 28, 2026

Existing compliant rentals skip the density cap

A home operated as limited lodging for at least one year before the effective date, always in full compliance with Section 337.251 (fewer than 91 days a year, no guest over 30 consecutive days and the section's standards, including use as a primary residence) and with no recorded complaints, is not subject to the density limit, but it must still be licensed.^4,15 Takes effect November 28, 2026

Stays of 30 nights or fewer count

A short-term rental is the temporary rental of a dwelling unit, by the owner, an operator or through a booking agent, where no guest stays more than 30 consecutive days; a dwelling rented for longer is a long-term rental.⁴ Takes effect November 28, 2026

Until Nov 28, 2026: fewer than 91 days a year

Until the new chapter starts, limited lodging in a residence district (Code section 337.251) is allowed for fewer than 91 days a calendar year and no more than 30 consecutive days to any guest. Ordinance 561-2026 repeals that section on November 28, 2026.^3,4,15

$500,000 liability insurance

The license application includes proof of liability insurance of at least $500,000, either for the rental itself or under a booking agent's policy that names the owner or operator.^4,6,15 Takes effect November 28, 2026

Local contact within one hour

Every rental has a local contact who answers complaints, is reachable at all times while guests are staying and can be at the property within one hour; guests receive the contact's name and number.⁴ Takes effect November 28, 2026

Written notice to neighbors

After the license is issued and before the first guests arrive, the host gives adjacent residential properties written notice of the local contact's name and phone number.⁴ Takes effect November 28, 2026

Two guests per bedroom plus two

The maximum number of people allowed overnight is two per bedroom plus two more.⁴ Takes effect November 28, 2026

Smoke alarms, CO detector and fire extinguisher

Every short-term rental must have working smoke alarms by each sleeping area, a carbon monoxide detector and an A/B/C fire extinguisher in the kitchen, all maintained to code.^6,15 Takes effect November 28, 2026

Three nuisance events in 12 months revoke the license

A license is revoked after three nuisance activities within 12 months or after one serious incident, including an offense of violence, without a conviction or arrest; the owner can re-apply for the same property one year after a sustained revocation.⁴ Takes effect November 28, 2026

Rental registration and tax abatement

A home operating as a short-term rental does not need the city's rental registration certificate (otherwise $70 per unit for non-owner-occupied homes) but is not eligible for tax abatement.^4,10 Takes effect November 28, 2026

Discrimination is prohibited

Hosts may not decline a guest, set different terms or advertise a preference based on race, religion, color, sex, sexual orientation, gender identity, national origin, age, disability, ethnic group or veteran status.^6,15 Takes effect November 28, 2026

Lodging tax applies to short-term rentals

Since July 1, 2026, Chapter 193 as amended by Ordinance 561-2026 states that short-term rentals owe the city's 3% transient occupancy tax, and Airbnb collects it from guests.^4,15,16 In force since July 1, 2026

State sales tax reaches hotels of five or more rooms

Ohio's 5.75% sales tax applies to lodging at a hotel, which the statute defines as an establishment with five or more guest rooms, so a typical single-home rental does not owe it.^2,9

Median nightly rate, booked nights

$140

Taxes on that night (9.5%)

$13

Guest pays, before Airbnb and cleaning fees

$153

What the host still handles

• Cleveland transient occupancy tax returns filed with the Division of Assessments and Licenses for bookings made outside Airbnb, due on or before the last day of the month after the stay
• Registration through Cuyahoga County's online lodging-tax portal before filing bed tax returns for bookings Airbnb does not collect
• The Cleveland short-term rental license from November 28, 2026
• State sales tax registration only if the property has five or more guest rooms and so counts as a hotel under the Ohio Revised Code^2,7,8,9,16

• From November 28, 2026, operating a short-term rental without a license carries a $5,000 civil fine; advertising without a license is $1,000 per violation, and each day of advertising counts separately.^4,6,15
• Operating over the density limit without a variance carries a $5,000 civil fine.⁴
• Breaking the operating standards, such as the guest limit, costs $1,000 for a first offense and $3,000 for a second or later offense.⁴
• Failing to display the license inside the main entrance is $1,000 per violation, and each day is a separate violation.^4,6,15
• A booking platform that fails to register with the city is fined $1,500 for each year of non-compliance.⁴
• Operating without a license or without a variance is also a first-degree misdemeanor, with a fine of up to $1,000, up to six months in jail, or both.^4,6,15
• A license is revoked after three nuisance activities in 12 months, or after one occurrence of a listed disorderly, weapons or violent offense; the city may revoke the owner's other short-term rental licenses too.⁴

1. December 1, 2026 Upcoming
   First licensing year begins

   Licenses run from December 1 to November 30, and renewal applications are filed between September 1 and November 1 each year.^6,15

2. November 28, 2026 Upcoming
   License, density limit and standards take effect

   Chapter 686B takes effect on November 28, 2026: a $150 annual license, $500,000 of liability insurance, a local contact, a 10% density limit and fines up to $5,000. Section 337.251 (fewer than 91 days a year) is repealed the same day.^1,4,6,15

3. June 1, 2026
   Cleveland passes Ordinance 561-2026

   City Council passed Ordinance 561-2026 on June 1, 2026. A May 19 committee amendment had set the density limit at 10% of units rather than 15% and delayed the start from 90 to 180 days after passage.^5,6,15

4. April 27, 2026 Lapsed
   Ordinance 588-2024 tabled; Ordinance 561-2026 introduced

   City Council tabled Ordinance 588-2024 on April 27, 2026, the day Ordinance 561-2026 was read for the first time with a similar short-term rental chapter.^6,12,15

5. February 18, 2025 Not in force
   Ohio bills would limit local short-term rental rules

   House Bill 109 and Senate Bill 104 would bar Ohio cities from banning short-term rentals or setting owner-occupancy rules and would limit registration fees; both were referred to committee in February 2025 and neither has passed.^13,14

6. May 20, 2024 Not in force
   First short-term rental ordinance proposed

   Ordinance 588-2024, the first version of a short-term rental chapter for Cleveland, was read and referred to administrative review on May 20, 2024.¹²

Estimate what a Cleveland home could earn

1. 1. Chapter 686B - Short-Term Rentals · Cleveland Code of Ordinances (American Legal Publishing)
2. 2. Ohio Revised Code Section 5739.01 - Definitions · Ohio Laws and Administrative Rules
3. 3. Section 337.251 - Limited Lodging in Residence Districts · Cleveland Code of Ordinances (American Legal Publishing)
4. 4. Ordinance 561-2026 Legislative Summary · Cleveland City Council
5. 5. Ordinance 561-2026 - Short-Term Rentals (legislation details) · Cleveland City Council
6. 6. Ordinance 561-2026 as amended (desk copy) · Cleveland City Council
7. 7. Excise Tax Administration · City of Cleveland Division of Assessments and Licenses
8. 8. Lodging Occupancy Tax · Cuyahoga County Fiscal Office
9. 9. Sales and Use - General Information · Ohio Department of Taxation
10. 10. Rental Registration · City of Cleveland Division of Records Administration
11. 11. Licenses & Permits · City of Cleveland Division of Assessments and Licenses
12. 12. Ordinance 588-2024 - Short-Term Rentals (legislation details) · Cleveland City Council
13. 13. Senate Bill 104, 136th General Assembly · Ohio Legislature
14. 14. House Bill 109, 136th General Assembly · Ohio Legislature
15. 15. The City Record, June 12, 2026 (passed text of Ordinance 561-2026, pages 56 to 73) · Cleveland City Council
16. 16. Occupancy tax collection and remittance by Airbnb in Ohio · Airbnb Help Center