New bill restricts local governments' control over short-term rental regulations

On February 26, 2025, Ohio lawmakers introduced House Bill 109, a significant piece of legislation aimed at regulating short-term rental properties across the state. This bill seeks to standardize the approach local governments can take regarding short-term rentals, which have become increasingly popular in recent years, particularly through platforms like Airbnb and Vrbo.

The primary purpose of House Bill 109 is to prevent local governments from imposing restrictive regulations on short-term rental properties. Key provisions of the bill explicitly prohibit local authorities from enacting measures that would ban short-term rentals, create lottery systems for property registration, impose zoning restrictions in residential areas, limit the number of properties an individual can operate, or require owners to occupy their rental properties. This legislative move is designed to foster a more favorable environment for short-term rental operators, ensuring that they can operate without excessive local interference.

However, the bill has sparked notable debates among stakeholders. Proponents argue that it will enhance economic opportunities for property owners and boost local tourism by making short-term rentals more accessible. They contend that overly restrictive local regulations can stifle business growth and limit consumer choices. Conversely, opponents express concerns about the potential negative impacts on housing availability and neighborhood dynamics. Critics argue that unrestricted short-term rentals can lead to increased housing costs and disrupt community cohesion, as transient guests may not contribute to the local community in the same way permanent residents do.

The bill also allows local governments to require registration or licensing of short-term rental properties, with a cap on associated fees set at twenty dollars. This provision aims to ensure some level of oversight while still maintaining a low barrier to entry for property owners.

The implications of House Bill 109 are significant, as it reflects a broader trend in state-level legislation that seeks to preempt local control over housing and rental markets. Experts suggest that if passed, the bill could lead to a surge in short-term rental operations, potentially reshaping the housing landscape in Ohio. The ongoing discussions surrounding the bill highlight the tension between economic interests and community concerns, a dynamic that is likely to play a crucial role in its future.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential impact on Ohio's housing market and local communities. The outcome of House Bill 109 could set a precedent for how short-term rentals are managed not only in Ohio but also in other states grappling with similar issues.