Cleveland City Council enacts licensing for short term rentals to preserve neighborhood integrity

The Cleveland City Council's Development, Planning & Sustainability Committee convened on May 13, 2025, to discuss a significant ordinance aimed at regulating short-term rentals in residential neighborhoods. This new legislation seeks to establish a licensing process for short-term rentals, addressing concerns about their impact on community stability and quality of life.

The proposed ordinance mandates that all short-term rentals must be licensed, providing a structured approach to their operation. This move comes in response to the growing number of short-term rentals, which are estimated to number between 900 and 1,500 across the city. Currently, many of these rentals operate without oversight, leading to complaints from residents about noise and safety issues.

Key features of the ordinance include a density limitation that restricts short-term rentals to no more than 15% of the total residential units on a block. Property owners or tenants with authorization can operate these rentals, but they must designate a local contact available to respond to complaints within one hour. The ordinance also stipulates that short-term rentals can only accommodate guests for a maximum of 30 consecutive days.

To ensure compliance, the ordinance outlines strict penalties for violations, including fines for operating without a license or failing to display a license. The application process will involve multiple city departments, including building and housing, health, and fire services, to verify compliance with safety and zoning regulations.

Council members emphasized the importance of this legislation in preserving the residential character of neighborhoods while allowing for responsible short-term rental operations. The ordinance is expected to take effect 60 days after passage, giving property owners time to prepare for the new licensing requirements.

This initiative reflects the city's commitment to balancing economic opportunities with the needs and concerns of its residents, aiming to create a safer and more regulated environment for both property owners and guests. As the city moves forward, the implementation of this ordinance will be closely monitored to assess its effectiveness in managing short-term rentals and maintaining community integrity.