State of Ohio Short-Term Rental Regulations

Ohio, known for its rich history, diverse landscapes, and bustling cities, has seen a surge in travelers seeking unique accommodations. As short-term rentals become increasingly popular, hosts need to be well-versed in the state's regulations. Let's delve into the specifics:

What is Considered a Short-term Rental in Ohio?

In Ohio, short-term rentals are typically residential properties rented out for short durations, often less than 30 days. It's crucial to understand the nuances of these regulations to operate within the law.

Definition of Short-term Rental

In Ohio, a short-term rental is any residential property, such as a house or apartment, rented out for a brief period, usually less than a month. This differentiates it from long-term leases or traditional hotel stays.

Number of Nights Rented Per Year

While Ohio doesn't set a strict cap on the number of nights a property can be rented out annually, specific cities might have their own limitations. Always check local ordinances.

Laws at the State vs. Local Level

Ohio provides a general framework for short-term rentals, but local municipalities might have additional or more stringent rules. Hosts should always consult both state and local guidelines.

Starting a Short-term Rental Business in Ohio

Launching a short-term rental business in Ohio requires careful planning and adherence to specific steps:

License Requirements at State Level

Ohio doesn't mandate a specific state-level license for short-term rentals. However, depending on the city or county, local licensing requirements might exist.

How to Apply

Begin by checking with local city or county offices. Some areas might require a business license, special permit, or both.

Steps to Get Started

• Research local regulations and state guidelines.
• Secure any necessary permits or licenses.
• Ensure the property adheres to safety and health standards.
• Set up a system for collecting and remitting taxes.
• List the property on desired platforms.

License Fees

Fees can differ based on the municipality. Always consult local regulations for precise fee structures.

Building and Housing Requirements for Short-term Rentals

Ensuring guest safety is paramount. Here's what hosts should consider:

• Safety - Equip the property with functional smoke detectors, carbon monoxide detectors, and fire extinguishers. Regular safety checks can help maintain a secure environment.
• Wiring - All electrical systems should meet local codes. Any modifications or renovations should involve licensed professionals and the necessary permits.
• Signage - Clear signage, especially for exits and emergency contacts, can enhance guest safety and experience.
• Insurance - Consider obtaining liability insurance tailored for short-term rentals. This can offer protection against potential legal and financial challenges.

Ohio Short-Term Rental Taxes

Understanding the tax landscape is crucial for hosts in Ohio. While the state provides a general framework, individual cities have their nuances. Here's a breakdown:

Transient Tax

Ohio imposes a state lodging tax on short-term rentals. However, individual cities might have their own specific rates, which can differ from the state's general rate.

Lodging Taxes by City

• In addition to the state's lodging tax, Columbus imposes a city-specific hotel/motel tax. As of now, this rate stands at 5.1%. Hosts operating in Columbus need to ensure they collect and remit this tax on top of the state's levy.
• Cincinnati has a 7% lodging tax for short-term rentals. This is in addition to the state's tax, and hosts in Cincinnati should be aware of this added responsibility.
• Cleveland hosts are subject to a 5.5% city lodging tax. This is separate from the state's tax, and hosts should ensure they're collecting and remitting both.
• Dayton imposes a 3% lodging tax on short-term rentals. If you're using platforms like Airbnb, they might handle this collection and remittance for you. However, always verify and ensure you comply.

State Sales Taxes on Airbnbs

Sales tax in Ohio applies to short-term rentals. While some platforms might handle tax collection and remittance for hosts, verifying and ensuring compliance is essential. For instance, while Airbnb collects the Dayton lodging tax on behalf of hosts, hosts are still responsible for the state sales tax and any other local taxes not collected by the platform.