Cleveland Adopts Comprehensive Short-Term Rental Regulations

he Cleveland City Council has approved Ordinance 561-2026, establishing a comprehensive regulatory framework for short-term rentals throughout the city. The legislation creates a new licensing program for properties rented for 30 days or less, while also updating zoning and transient occupancy tax provisions.

Under the new regulations, short-term rental operators must obtain an annual city license, maintain liability insurance, designate a local contact available to respond to issues, and comply with health, safety, and occupancy standards. The ordinance also establishes density limitations in residential neighborhoods and creates enforcement mechanisms, including substantial penalties for operating without a license.

City officials stated that the measure is intended to balance the economic benefits of short-term rentals with neighborhood concerns related to housing availability, parking, noise, and quality of life. The new regulations will take effect 90 days after passage, providing property owners and operators time to come into compliance with the new requirements.