(a) Definitions. The following terms as used in this section shall have the meanings given herein.
(1) "Commissioner" means the Building Commissioner or the Commissioner's authorized designee.
(2) "Dwelling" shall be synonymous with the definition provided in Section 1403.04.
(3) "Guestroom" means a room offered to the public for a fee that contains, at a minimum, provisions for sleeping.
(4) "Hosting platform" means a person or entity in whatever form or format that facilitates, through advertising or any other means, a short-term rental booking transaction for accommodations between a short-term rental host and short-term rental guest, including, but not limited to, reservations and/or collection of payment for such accommodations on behalf of the short-term rental host.
(5) "Owner" means an individual(s), corporation or partnership that has legal title to and control of a dwelling.
(6) "Permanent occupant" means any person(s) who resides in a dwelling more than fifty-one percent of the time during a calendar year, and the dwelling in which person(s) reside shall be referred to as their primary residence.
(7) "Primary residence" means a residence which is the usual place of return for housing as documented by at least two of the following: motor vehicle registration, driver’s license, tax documents, lease or a utility bill. An owner or permanent occupant can only have one primary residence.
(8) "Short-term rental" means any dwelling that is rented wholly or partly for a fee and for less than thirty consecutive days by persons other than the permanent occupant or owner from which the permanent occupant or owner receive monetary compensation.
(9) "Short-term rental guest'' means any person who rents temporary lodging from a short-term rental host, or through a hosting platform on behalf of the short-term rental host, for less than thirty consecutive days.
(10) "Short-term rental host" ("host") means the owner or permanent occupant of a short-term rental who offers the short-term rental for temporary lodging.
(11) "Short-term rental operation" means the occupancy of any room or dwelling of any short-term rental.
(12) "Transient guest" means a person who occupies a room or rooms for sleeping accommodations for less than thirty consecutive days.
(b) Certificate of Occupancy Required.
(1) No person, including but not limited to an owner, permanent occupant operator, manager or employee shall engage in, conduct, or carry on, or permit to be engaged in, conducted or carried on, in or upon any dwelling in the City of South Euclid the operation of a short-term rental without obtaining a certificate of occupancy in accordance with this section. It shall be prima facie evidence of a short-term rental operation if a short-term rental guest is found to be occupying or using a short-term rental.
(2) An application for a new certificate of occupancy may be submitted at any time to the Commissioner or his/her designee. If the application is approved and a certificate of occupancy is issued, the certificate of occupancy shall take effect on the day of issuance, and shall expire on December 31 of the year in which it was issued.
(3) A certificate of occupancy to operate a short-term rental shall be renewed by the applicant before the end of each calendar year. Failure to renew shall result in expiration on December 31. If a certificate of occupancy is successfully renewed, it shall be in effect for one calendar year, beginning on January 1 and expiring on December 31 of the same year.
(c) Application for Short-Term Rental Certificate of Occupancy, New and Renewal.
(1) Application for a new short-term rental certificate of occupancy, and/or for renewal of a certificate of occupancy, shall be made to the Commissioner or his/her designee, upon approved forms, for the fee set forth in Section 1409.05 of the Housing Code.
(2) The application for a certificate of occupancy to operate a short-term rental shall contain the following information:
A. Name of the applicant, including mailing address, telephone number, and email address. If the applicant is a corporation or partnership, the applicant shall provide the name of the entity and set forth exactly as shown on its articles of incorporation, mailing address, telephone number, and email address of the individual who is the statutory agent, president, or managing individual, the state in which the company is incorporated or registered, and the entity or corporation number. If said applicant is not a resident of Cuyahoga County, an agent shall be designated as defined in Section 1411.04(d). For an owner-occupied short-term rental application, the permanent occupant shall provide sufficient information to demonstrate compliance with the primary residency requirement as outlined in division (a)(7) of this section;
B. The legal owner or owners of the property, including mailing address, telephone number, and email address. If the property owner is a corporation or partnership, the applicant shall provide the name of the entity set forth exactly as shown in articles of incorporation as well as the mailing address, telephone number, and email address of an individual who is the statutory agent, president, or managing individual, the state in which the company is incorporated or registered, and the entity or corporation number. If said applicant is not a resident of Cuyahoga County, an agent shall be designated as defined in Section 1411.04(d);
C. The names and addresses of any other short-term rental located in City of South Euclid that the applicant or property owner has any interest in, including, but not limited to, ownership, licensure, or management;
D. Name of the short-term rental host, including mailing address, telephone number, and email address;
E. The number of guestrooms in service at the short-term rental;
F. The names of all hosting platforms that are used by any short-term rental host and proof of liability insurance for the rental unit;
G. Set forth any known, non-obvious or concealed condition, whether man made or artificial, which may present a danger to the short-term rental guest(s);
H. The contact information, including a telephone phone number, of a local person with the responsibility to resolve any complaints regarding the condition, operation or maintenance of the dwelling unit.
(3) The applicant must notify the Commissioner, or his/her designee, of any change in information contained in the certificate of occupancy application within ten days of the change.
(4) Any change in ownership of the building, the dwelling or the business, or change in name of the short-term rental host shall void the current certificate of occupancy and shall require submission of a new application and the issuance of a new certificate of occupancy.
(5) A short-term rental shall be issued a certificate of occupancy that must be prominently displayed within the unit. The certificate of occupancy shall be displayed but removed upon expiration. The short-term host failing to display the certificate of occupancy is in violation of Section 1409.04.
(6) At least monthly, the short-term rental host or his/her designated agent or custodian shall inspect the dwelling. The short-term rental host or his/her designated agent or custodian shall immediately notify the owner of any condition existing thereupon which is in violation of any housing, building, health or sanitation provision of these Codified Ordinances.
(7) The Commissioner, or his/her designee, shall direct or cause each short-term rental, or any part thereof, to be inspected in accordance with the inspection schedule established in Section 1411.03.
(d) Short-Term Rental Host Requirements.
(1) A short-term rental host shall be the owner and/or the permanent occupant of the dwelling. The short-term rental host must provide one form of proof of identity, and two pieces of evidence that the dwelling is the host's primary residence or two pieces of evidence the host is the owner of the dwelling.
(2) One short-term rental certificate of occupancy per short-term rental dwelling may be issued.
(3) The short-term rental host must provide written notice to the short-term rental guest of:
A. Any known, non-obvious or concealed condition, whether man made or artificial, which may present a danger to the short-term rental guest(s);
B. The contact information, including a telephone number, of a local person with responsibility to resolve any complaints regarding the condition, operation or maintenance of the dwelling unit;
C. Set forth the trash and recycle collection days for the property and any applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property. The owner shall provide proper trash and recycling containers for the transient guest(s).
(4) Smoke detectors shall be provided and maintained adjacent to each sleeping area in each dwelling unit as required in Section 1405.27.
(5) One or more carbon monoxide detection devices shall be installed and maintained as close to the center of the dwelling unit and within close proximity to the living and sleeping areas of the dwelling unit.
(6) Occupancy shall be limited to two individuals per bedroom within the dwelling unit.
(7) The City of South Euclid prohibits on-street overnight parking. Thus, off-street parking must be provided to accommodate the maximum number of transient guests the unit can host.
(8) Rentals for thirty or more consecutive days by the same guest(s) will not be subject to short-term rental regulations and shall be regulated in accordance with the rental regulations contained within this chapter.
(9) Compliance with all other applicable provisions of the City of South Euclid Codified Ordinances related to residential housing.
(10) All short-term rental hosts must obtain liability insurance for the short-term rental or provide proof that the short-term rental and short-term rental host are named insured under the hosting platform’s liability of insurance in the amounts set forth below. Each short-term rental shall at all times maintain the following insurance coverage meeting all of the following requirements: A general liability insurance policy or certificate that shall provide the minimum coverage:
A. Not less than three hundred thousand dollars ($300,000). Such policy or certificate must be issued by an insurance company that is admitted to do business in the State of Ohio or by an eligible surplus lines company or risk retention group.
B. The policy or certificate shall provide notice of cancellation of insurance to the Commissioner at least ten days prior to cancellation.
C. Any cancellation of insurance required by this section shall result in an automatic revocation of the respective short-term rental permit.
(11) Records required.
A. A short-term rental host that offers a short-term rental shall retain records to demonstrate compliance with this section, including, but not limited to, primary residency, the name of the short-term rental guest responsible for the reservation and/or who rented the unit on each night, dates and duration of stay in a short-term rental, and the rate charged for each short-term rental on each night.
B. A short-term rental host that provides units for short-term rental use shall retain records for a period of at least four years.
C. If a request from any department or division of the City of South Euclid to inspect said required records is denied, any officer or employee of the Police Department, Fire Department, or Building Department may seek an administrative search warrant from a court of competent jurisdiction authorizing said inspection of records.
(e) Grounds for Denial.
(1) The Commissioner, or his/her designee, shall issue a new certificate of occupancy, or grant the renewal of an existing certificate of occupancy except as provided in divisions (e)(1)A. through (e)(1)C. of this section.
A. The Commissioner, or his/her designee, shall deny any application for a new permit, or renewal of permit, if any of the following are shown to have occurred at the short-term rental property:
1. The applicant makes a material misrepresentation of fact on the application;
2. The applicant or any owner of the short-term rental has been convicted of violating division (b)(1) of this section.
B. Any owner, applicant, operator, or manager of the short-term rental is shown to have been convicted of the act of prostitution or soliciting for prostitution, or an act that would constitute a violation of R.C. Chapters 2925 (Drug Offenses) or 3719 (Controlled Substances), in or on the dwelling of the short-term rental in question, or any short-term rental in which the owner has any interest in, including, but not limited to, ownership, licensure, or management.
C. The property owner is not in good standing with Cuyahoga County concerning the payment of property taxes, as defined in Section 1409.01(c).
(2) The Commissioner, or his/her designee, may deny any application for a new certificate of occupancy, or renewal of a certificate of occupancy, if any of the following are shown to have occurred at the short-term rental property:
A. The occurrence of any of the activities set forth in Section 531.10, Abatement of Criminal Activity Nuisances of the Codified Ordinances of the City of South Euclid;
B. The short-term rental has outstanding violations from the South Euclid Fire Department and/or Building Department that have not been corrected;
C. Pattern of felony drug related activity as defined in R.C. § 2923.31 (Corrupt Activities);
D. Pattern of prostitution related activity or evidence of human trafficking as defined in R.C. § 2923.31;
E. Pattern of gang related activity as defined in R.C. § 2923.41;
F. The short-term rental or short-term rental host has a documented history of repeated acts that are offenses of violence as defined in R.C. § 2901.01;
G. The owner, applicant, operator, manager, or the short-term rental host has not made a good faith effort to correct violations of divisions (d) or (k) of this section, or has obstructed or interfered with correction of the violations;
H. The applicant or short-term rental host of the short-term rental has hindered or prevented any inspection of the short-term rental authorized by division (c)(7) of this section and Section 1411.03.
(3) Evidence of conduct under divisions (e)(1) and (e)(2) of this section need only be that of de facto violation of law, evidence of conviction is not a prerequisite for denial unless specifically indicated.
(f) Revocation and Suspension of Short-Term Rental Certificate of Occupancy, At any time during the calendar year, the Commissioner, or his/her designee, may revoke and/or suspend a short-term rental certificate of occupancy if it is determined that activities set forth in divisions (e)(1) or (e)(2) of this section are shown to have occurred at the short-term rental.
(g) Hearing, Appeals, and Remedy Process.
(1) Any person who has been denied, suspended, refused a certificate of occupancy or renewal of a certificate of occupancy or had their certificate of occupancy revoked under this section may appeal such decision as provided in Section 1411.07.
(2) Action to issue, revoke, suspend or renew a certificate of occupancy may be stayed should the short-term rental host take specific steps to remediate problems outlined in the notice of revocation and suspension that include but are not limited to some of the following actions:
A. Completion of approved safety and security training, and/or training to identify criminal activity such as human trafficking;
B. Installation of safety and security measures such as fencing, lighting, public space surveillance, etc.;
C. Voluntary participation in right-of-entry programs with law enforcement agencies;
D. Implementation of minimum age of twenty-one for check-in for lodging properties;
E. Requirement of use of valid credit card at check in; and/or
F. Additional remediation actions as approved by the Commissioner, or his/her designee.
(3) All potential remedies outlined in division (g)(2) of this section must be approved by the Commissioner, or his/her designee.
(h) Transfer of Short-Term Rental Certificate of Occupancy Not Permitted.
(1) No certificate of occupancy under this section shall be transferable to another individual, corporation, firm, partnership, association, organization or other group acting as a unit.
(2) No certificate of occupancy under this chapter shall be transferable to another short-term rental operation.
(i) Discrimination Prohibited. An owner, permanent occupant, short-term rental host, or operator shall not:
(1) Decline a transient guest or short-term rental guest based on race, sex, sexual orientation, gender identity or expression, color, religion, ancestry, national origin, age, disability, familial status or military status; impose any different terms or conditions based on race, sex, sexual orientation, gender identity or expression, color, religion, ancestry, national origin, age, disability, familial status or military status;
(2) Post any listing or make any statement that discourages or indicates a preference for or against any transient guest or short-term rental guest on account of race, sex, sexual orientation, gender identity or expression, color, religion, ancestry, national origin, age, disability, familial status or military status.
(3) At any time, be out of compliance with the provisions of Chapter 552, Discrimination Prohibited of the City of South Euclid Codified Ordinances.
(j) Rules and Regulations. The Commissioner, or his/her designee may promulgate and enforce reasonable rules and regulations to carry out the intent of this section in accordance with this chapter.
(k) Short-Term Rental Certificate of Occupancy Display. The short-term rental host shall maintain the certificate of occupancy and prominently display it in the dwelling,
(l) Severability. In the event any section or provision of this chapter shall be declared by a court of competent jurisdiction to be invalid or unconstitutional such decision shall not affect the validity of this chapter as a whole or any part thereof other than the part so declared to be invalid or unconstitutional.
(m) Exemption. An owner-occupant who resides at a residence 365 days a year, has not relinquished occupancy of the dwelling unit and resides in the dwelling during the time of rental shall be exempt from this section.
(n) Penalty. Any violation of this section shall be subject to the penalty as defined in Part Fourteen, Housing Code, of the Codified Ordinances of the City of South Euclid.
(Ord. 17-23. Passed 7-22-24.)