Cleveland, Ohio – Members of the Cleveland City Council are advocating for stricter regulations governing short-term rentals facilitated through platforms such as Airbnb and VRBO. The proposed measures aim to address concerns regarding the proliferation of short-term rental properties, particularly in areas like the Near West Side, represented by council members Kerry McCormack and Jenny Spencer.

New Regulations on the Horizon

McCormack and Spencer have introduced legislation that would introduce several key regulations:

Licensing Requirement

Owners of short-term rental properties would be required to obtain a license from the city, renewable annually at a cost of $150. This licensing process is a new requirement aimed at regulating the industry more effectively.

Enforcement and Fines

Properties without a valid license would be prohibited from being listed on rental platforms. Failure to comply could result in fines of $150 for the first offense and $500 for subsequent violations.

Limit on Rental Units

The proposed regulations include caps on the number of short-term rental units permitted within a given area. Specifically, no more than 15% of units on a residential street block or within a residential building could be licensed for short-term rentals. Exceptions could be granted by the Board of Zoning Appeals on a case-by-case basis.

Key Requirements for Owners

Owners applying for licenses must meet several criteria, including:

• Identifying a local manager or contact person who can respond to issues within one hour.
• Providing proof of $300,000 liability insurance coverage.
• Being up-to-date on property taxes and the city’s 3% transit occupancy tax.

Stipulations on Rental Terms

The proposed regulations also address the duration and occupancy of short-term rentals:

• A maximum stay of 30 consecutive days would be enforced, with rentals lasting less than 24 hours prohibited.
• Occupancy would be limited to two guests per bedroom, plus two additional guests.

Conclusion: Striving for Balanced Regulation

The proposed regulations seek to strike a balance between allowing short-term rentals to thrive while ensuring responsible management and minimizing disruptions to residential neighborhoods. By implementing licensing requirements, caps on rental units, and stringent criteria for owners, the Cleveland City Council aims to address the evolving landscape of short-term rentals in the city.

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