New Regulations Set for Cleveland Short-Term Rentals

August 2, 2026

Cleveland City Council has passed Ordinance No. 561-2026, establishing a new regulatory framework for short-term rentals (STRs) within the city's residential neighborhoods. The legislation introduces a formal licensing process for any dwelling unit rented for fewer than 30 consecutive days, aiming to protect residential character and address community concerns regarding noise, parking, and safety.

What's in the file

The ordinance supplements the Codified Ordinances of Cleveland by enacting several new sections specifically for short-term rentals. According to the 561-2026 Legislative Summary FINAL, the primary changes include:

Mandatory Licensing: All short-term rentals must obtain a license from the Commissioner of Assessments and Licenses. The license must be displayed inside the main entrance of the rental unit.
Density Limits: In residential districts, STRs are limited to 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 density requires a variance.
Local Contact Requirements: Operators must designate a local contact person to handle complaints. This individual must be available by phone or in person while guests are on-site and must be able to arrive at the premises within one hour of being called.
Occupancy Standards: The number of guests is limited to two people per bedroom plus two additional people.
Tax and Abatement Rules: The ordinance clarifies that STRs are subject to the transient occupancy tax. Additionally, dwelling units operated as STRs are not eligible for tax abatements.
Booking Agent Registration: Entities that facilitate reservations or collect payments (booking agents) must register with the city and provide contact information for a person authorized to accept legal service and manage tax remittal.

The following table outlines the specific financial and insurance requirements for obtaining and maintaining an STR license:

Requirement	Amount
Application Fee	$150
Yearly Renewal Fee	$150
Liability Insurance	$500,000

The ordinance also establishes civil penalties for various violations, such as $5,000 for operating without a license or variance, and $1,000 for advertising without a license.

Who may be affected

Property Owners and Tenants: Individuals or entities owning property or tenants with written lease authorization to operate STRs.
Short-Term Rental Operators: The owners or designated local responsible parties managing the properties.
Booking Agents: Entities facilitating reservations through websites or mobile applications.
Neighborhood Residents: Those living in residential districts who may experience changes in density, noise, or traffic.
City Departments: The Commissioner of Assessments and Licenses, City Planning, and the Building, Housing, and Safety (B&H) departments, which coordinate the verification and approval of license applications.

Status and timeline

The ordinance has officially passed. The new regulations and code sections are scheduled to take effect 180 days after passage.

Residents can verify the details of these regulations and the specific requirements for licensing by reviewing the official Ordinance No. 561-2026 and its accompanying summary.

Key facts

Max guest occupancy: 2 per bedroom plus 2
Local contact response time: 1 hour

Source record

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

View on Cleveland Legistar