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US: Cleveland has approved a new set of regulations for short-term rentals, introducing licensing requirements and density limits that could force some properties to stop operating.
The bill, which was debated over several years by city council, mandates an annual licence for the short-term rental owners, hotel tax and new operating guidelines. The regulations will go into effect in 180 days until the city can create its enforcement system.
Under the new rules, short-term rentals cannot make up more than 10 per cent of homes on a single block or within one building. Unlicensed properties and those that continue to advertise unlicensed rentals may be fined from US$1,000 to US$5,000.
City officials estimate there are between 900 and 1,500 short-term rentals operating across Cleveland, although only a small number have previously registered with the city.
Some complaints have been made about noise and rubbish problems, as well as larger safety concerns associated with some rental homes, due to the lack of regulation, said Councilman Austin Davis.
“We want bad hosts shut down because they create a bad name for us, and they hurt Cleveland’s reputation,” said Dave Stokley, who leads the Northern Ohio Short-Term Rental Association. Stokley added that owners support “95 per cent of the rules” but remain concerned about the impact of density caps.
The new rules will likely have an impact on Cleveland’s short-term rental scene as the city works to better regulate the industry.
Highlights:
• Cleveland City Council approved new short-term rental regulations that introduce licensing requirements, density limits and enforcement measures for Airbnb-style properties
• Under the new rules, short-term rentals cannot exceed 10 per cent of homes on a block or within a residential building
• Property owners operating unlicensed short-term rentals could face fines ranging from US$1,000 to US$5,000 once the regulations take effect
• City officials estimate Cleveland has between 900 and 1,500 short-term rentals, though only a small number have previously registered with the city
• While short-term rental operators said they support most of the legislation, industry representatives warned the density caps could force some properties to stop operating
