New Regulations Set for Cleveland Short-Term Rentals

Cleveland City Council has passed new rules to regulate short-term rentals (STRs) within residential neighborhoods. Ordinance No. 561-2026 introduces a formal licensing process for property owners or tenants who wish to rent out dwelling units for fewer than 30 consecutive days. According to the 561-2026 Legislative Summary FINAL, the legislation aims to address resident concerns regarding noise, parking, safety, and the impact of transient visitors on neighborhood character and housing affordability.

Under the new ordinance, all short-term rentals must obtain a license, which requires a $150 application fee, a $150 yearly renewal fee, and $500,000 in liability insurance. The 561-2026 new STR ordinance 2026 notes that these regulations were prompted by an increase in transient rental uses in areas originally planned for permanent residential use. To manage these rentals, operators must designate a local contact person who is available at all times while the unit is occupied and can arrive at the property within one hour of a call. In one-family residential districts, the number of short-term rentals is subject to a density limit of at least one or no more than 15% of the total residential units on a block or in a multi-unit building, whichever is greater; exceeding this limit requires a variance. Additionally, the ordinance prohibits these units from being eligible for tax abatements and requires the license to be displayed inside the main entrance of the rental.

The ordinance has officially passed, and the new sections of the Codified Ordinances are now in effect. Residents can watch for how these licensing standards and density limits are applied as the Commissioner of Assessment & Licenses coordinates with City Planning, Health, and Safety departments to verify applications.

Source record

File
561-2026
Type
Ordinance
Status
Passed
Committee
City Council
Introduced
April 23, 2026

View on Cleveland Legistar

Official documents

Sources