The Attack on Short Term Rentals: Moratoriums and Bans Are Not the Answer

Short term rentals have become an easy target in local debates about housing, neighborhood quality and public safety. When concerns arise, communities are increasingly turning to moratoriums, restrictions and outright bans.

The Akron Cleveland Association of REALTORS® (ACAR) believes there is a better approach: regulate the problems, not the property use.

Private property rights are a foundational principle in Ohio law. Property ownership encompasses more than simply holding title. It includes important rights to use, enjoy and derive value from property.

Those rights are not absolute. Communities have legitimate authority to adopt reasonable regulations that protect public health, safety and welfare. But restrictions on property use should have a clear connection to an identifiable community problem and should be no broader than necessary to address it.

That is particularly important when considering short term rentals.

Short Term Rentals Serve a Purpose

When we talk about short term rentals, it is easy to picture a vacation home or a weekend party house. That is only one part of the market.

A family may need a furnished home while visiting relatives. A traveling medical professional or corporate employee may need temporary housing. Someone relocating to Northeast Ohio may need a place to live while searching for a permanent home. A homeowner between properties or a renter between leases may need somewhere to stay for a few weeks.

These are legitimate needs, and short term rentals can help fill them.

Tourism is another important part of the equation. Northeast Ohio welcomes millions of visitors each year for business and leisure, including conventions, sporting events, concerts, cultural attractions and other special events. Cuyahoga County alone welcomed 18.6 million business and leisure visits in 2024, generating $6.9 billion in direct visitor spending. Summit County’s tourism economy generated $1.65 billion in direct visitor spending in 2025 and supported more than 21,000 jobs.

Visitors need places to stay. Hotels are an important part of that infrastructure, but they are not the only option, and they do not meet every traveler’s needs. Short term rentals provide another lodging option, particularly for families, groups and visitors staying for extended periods.

That does not mean every property should become a short term rental. It does mean we should recognize that short term rentals serve a legitimate purpose in our housing and tourism ecosystem.

Property Rights and Property Value Matter

For some owners, renting a home on a short term basis provides supplemental income. For others, it can help offset the cost of a property, provide a future retirement asset or create an opportunity to build wealth that can eventually be passed to the next generation.

The ability to use and derive value from property is an important component of ownership.

That is why moratoriums and outright bans deserve scrutiny. When government prohibits an otherwise lawful use of property, including the ability to rent it, it affects one of the fundamental benefits of ownership. It can also affect the property’s value and the owner’s future options.

This does not mean property owners should be free from reasonable regulation. It means restrictions should be considered carefully and connected to a specific public purpose.

If the concern is noise, parking, safety or nuisance activity, public policy should begin by asking whether those problems can be addressed directly rather than prohibiting the use altogether.

Reasonable Regulation Makes Sense

Communities can require short term rentals to register or obtain a permit. They can establish reasonable occupancy, parking, noise, trash and nuisance standards. They can require appropriate insurance, inspections and compliance with building and safety codes.

And when an owner violates those rules, the community should enforce them.

These are common-sense tools that focus on the actual problem rather than assuming every short term rental is a problem.

Parma provides a good example. The city already requires short term rentals to obtain permits and inspections, carry liability insurance and comply with safety and tax requirements. Short term rentals account for less than 0.5% of the housing in the city. However, City Council is currently considering a six-month moratorium on registering additional properties.

The question should be whether the existing regulations are working and, if not, what specific changes are needed.

Recent Ohio case law also highlights the property-rights considerations involved in regulating short term rentals. In Rudy v. Apple Valley Property Owners Association, an Ohio appellate court held that short term rentals did not constitute prohibited commercial activity under the property’s restrictive covenants. While the case was not specific to Parma or municipal regulation, it is relevant to the broader discussion of property rights and short term rental restrictions in Ohio.

Regulate the Problem, Not the Property Use

The bottom line is simple: regulate bad behavior, not an entire category of property owners.

If a short term rental creates a nuisance, address the nuisance. If a property violates safety requirements, enforce the requirements. If parking is the problem, establish and enforce reasonable parking standards.

But if the proposed solution is to prohibit an otherwise lawful property use, the community should be able to clearly identify the problem the prohibition is intended to solve and demonstrate why less restrictive measures are not sufficient.

Property rights and community standards do not have to be competing principles. Good public policy can protect neighborhoods, address legitimate public safety concerns and preserve the ability of property owners to use and derive value from their property.

Short term rentals should be part of that balanced conversation—not automatically excluded from it.