Ohio STR Law Alert: New Bills Threaten Local Control Over Airbnb Regulations

If you own or manage a short-term rental in Ohio, you’ll want to keep your eyes on two bills making their way through the state legislature: House Bill 109 and Senate Bill 104.

These twin bills would put strict limits on how much local governments can regulate STRs (think Airbnb, Vrbo, or vacation homes). At a recent Logan City Council meeting, Mayor Greg Fraunfelter sounded the alarm, warning that the legislation would seriously undermine the city’s ability to manage short-term rentals within its borders.

What’s in the Proposed Law?

The bills would:

• Allow cities to require registration or licensing but cap the fee at $20 per property.
  
  
• Prevent cities from:
  
  
  
  • Prohibiting STRs entirely
    
    
  • Using zoning laws to block STRs in residential areas
    
    
  • Limiting how many STRs a person can operate
    
    
  • Requiring that owners live on-site
    
    
  • Creating a lottery or cap system for STR licenses
    
    

While they may sound like pro-business reforms, local leaders say they would gut community control.

Why Logan is Pushing Back

Logan passed its own STR ordinance in October 2023, banning STRs in single-family (R-1) zones and requiring:

• Minimum spacing between STRs
  
  
• Parking requirements
  
  
• A $50 application fee
  
  
• A $500 annual operating license
  
  

These rules, tailored to preserve the city’s character and minimize nuisances, would be overridden if HB 109 and SB 104 pass.

Mayor Fraunfelter says Logan is being "singled out" for having a "too solid" ordinance. He also noted that although STRs make up a small number of properties, they accounted for 20% of code enforcement complaints last year.

What This Means for STR Hosts and Investors

If passed, these bills would:

• Create a more predictable, uniform STR policy statewide
  
  
• Limit costly or burdensome local restrictions
  
  
• Reduce registration fees
  
  

But...

• It would also remove local governments’ power to respond to community-specific issues like overcrowding, noise, and parking
  
  
• It could invite legal challenges over Ohio's "home rule" protections
  
  

For hosts and investors, this could mean:

• Fewer regulatory hurdles in the short term
  
  
• Greater risk of lawsuits, backlash, or policy reversals later
  
  

Final Word

Whether you're for or against these changes, understanding the shifting legal landscape is key. If you operate an STR in Ohio, now is the time to review your compliance setup and prepare for possible policy shifts.

Need help staying compliant or understanding what this means for your properties? Lodge Compliance can guide you through local licensing, tax registration, and STR law changes. Click here to get compliant. Stay informed. Stay legal. Stay profitable.

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