Overview: Are short-term rentals (STRs) allowed in Lima, Ohio?

• Yes. Short-term rentals are allowed in Lima, Ohio. However, they are subject to municipal oversight. Specifically, every owner of a rental housing unit in Lima must obtain and maintain a valid Rental Housing Unit Registration Certificate—regardless of whether the unit is currently being rented or offered for rent. This requirement applies to short-term rentals operated on platforms such as Airbnb and Vrbo and is tied to compliance with local building, safety, and fire codes, as well as health/safety protocols. The city’s registration is administered online via a CivicPlus account, and the city does not charge fees for registration or updates. City rules include guest limits, occupancy limits, and other operational constraints to maintain neighborhood harmony. State-level short-term rental excise taxes (often called the lodging tax) also apply to Ohio STRs and must be remitted as required.

How to start a short-term rental business in this market

• Step 1 — Structure and entity setup
  • Decide on an ownership/entity structure that aligns with your tax and insurance strategy. Consult a CPA and an attorney for entity selection and tax elections.
• Step 2 — Property selection and feasibility
  • Assess neighborhood demand: West Lima, Downtown Lima, and areas near parks and major highways are typically attractive for guests due to convenience, family-friendly amenities, and central access. Consider proximity to hospitals, universities, and industrial employers, which can support travel-professional stays and weekend demand.
• Step 3 — Financing and insurance
  • Secure appropriate short-term rental insurance with robust liability, property, and business income coverage; standard homeowners or landlord policies are not adequate for the unique exposures of STRs.
• Step 4 — Registration with the City of Lima
  • Register each rental unit as a Rental Housing Unit Registration Certificate through the city’s CivicPlus portal. Update registrations and data within required timeframes, including after a property sale.
• Step 5 — Taxes and compliance
  • Collect and remit lodging/excise taxes as required by state and local rules. Keep detailed records of all income and expenses for accurate filings.
• Step 6 — Compliance with building/safety codes
  • Ensure the property complies with building, safety, and fire codes. If required, complete health/safety inspections or certifications.
• Step 7 — Guest rules and operations
  • Establish quiet hours, guest limits, and house rules; include these in your listing, digital guidebook, and physical house manual to maintain neighborhood relations.
• Step 8 — Marketing and distribution
  • List on mainstream channels (Airbnb, Vrbo, Booking.com). Consider professional distribution for better reach; benchmark performance using industry tools and local comps.
• Step 9 — Check-in, guest communications, and maintenance
  • Use smart locks for self check-in to simplify operations. Provide Wi‑Fi, parking instructions (with photos), and emergency contacts. Maintain turn-ready cleanliness and respond quickly to guest needs.
• Step 10 — Monitoring and renewal
  • Track regulatory changes; renew/confirm registration requirements as needed. Monitor occupancy and average daily rates (ADR), adjust pricing and operations to sustain revenue while staying compliant.

Required documents, permits, licenses, and guidelines

• City of Lima Rental Housing Unit Registration Certificate
  • Required for every rental housing unit, irrespective of whether it is offered or rented.
  • Registration is online via CivicPlus; no fees are charged for registration or updates.
  • Owners of 10+ rental housing units must register by June 30, 2024; owners of 5–9 units had specific deadlines (varying by unit count).
  • New owners must update the registration within 30 days after closing.
  • Evidence of compliance with building, safety, and fire codes is required, along with adherence to health protocols.
• Guest limits and occupancy
  • City rules include restrictions on the number of guests and maximum rental days per year (apply your specific city limits once confirmed).
• Taxes
  • Income from hosting is taxable; short-term rental excise taxes/lodging taxes must be collected and remitted according to Ohio and local rules.
• Insurance
  • Comprehensive STR insurance (property, liability, business income) is strongly recommended and often expected by platforms, lenders, and community standards.
• House rules and emergency readiness
  • Provide quiet hours, guest limits, emergency contact information, and clear operating procedures; these help avoid fines and protect community relations.
• Operating documentation
  • Maintain digital and physical guides with Wi‑Fi details, parking instructions, local tips, and rules. Keep logs for cleaning, maintenance, and guest communications.

Specific regulations for short-term rentals in Lima (city), Allen County (county), and Ohio (state)

• City of Lima (municipal)
  • Registration requirement: Every owner of a rental housing unit must obtain and maintain a valid Rental Housing Unit Registration Certificate; no fee for registration/updates.
  • Registration deadlines: Owners of 10+ units by June 30, 2024; 5–9 units had specific dates.
  • Update obligations: New owners must update the registration within 30 days after sale closing.
  • Compliance: Must comply with building, safety, and fire codes; follow health/safety protocols.
  • Guest limits and occupancy: City imposes restrictions on the number of guests and maximum rental days per year.
  • City platform: Registration via the city’s CivicPlus account.
• Allen County (county level)
  • No separate county-level STR ordinances were identified in the provided sources. County-level contacts and services exist for housing, fair housing, and tenant/landlord assistance, but those materials do not regulate STRs directly.
• State of Ohio
  • Statewide short-term rental excise tax/lodging taxes apply to STR income and must be collected and remitted per Ohio law and local rules.
  • General landlord/tenant provisions (Ohio Revised Code) guide residential tenancies; STRs are distinct from long-term tenancies but still must comply with state health and safety codes.
  • Municipal overlays in other Ohio cities (e.g., Cincinnati, Columbus) have separate permitting and compliance frameworks;Lima has its own registration rules as noted above. Confirm details via the city’s CivicPlus portal and any official building/safety guidance.

Local authority and contact information

• City of Lima
  • Registration/portal: Register and update via the city’s CivicPlus online account (the official portal for rental registration).
  • Building/Safety Department (city): For questions on building, safety, and fire code compliance, contact the City of Lima Building Department by phone or email through the city website.
  • City website: www.limaohio.gov/
• Allen County (regional assistance, not STR-specific)
  • Allen County Fair Housing/Housing Office: Kelli Singhaus, 419‑228‑3700 ext. 8725.
• State and regional fair housing and tenant assistance
  • Ohio Civil Rights Commission – Dayton Regional Office: 937‑285‑6500.
  • Legal Aid of Western Ohio: 1‑888‑534‑1432.
  • HUD Fair Housing & Equal Opportunity (FHEO): 1‑800‑765‑9372; TTY 312‑353‑7143.
  • U.S. Department of Housing & Urban Development (Columbus Field Office): 614‑469‑5737.
  • West Ohio Community Action Partnership (Tenant/Landlord Rights): 419‑227‑2586; additional resources at www.wocap.org/ and Facebook.com/WestOhioCAP.

Links to source pages

• City of Lima – Tenant/Landlord Rights & Responsibilities: www.limaohio.gov/DocumentCenter/View/7475/Tenant-Landlord-Rights-Responsibilities
• Central Ohio Real Estate Investment – Short-Term Rentals in Lima, Ohio: www.centralohrealestateinvestment.com/short-term-rentals-in-lima-ohio/
• RedAwning – Lima, Ohio STR Market Overview and Regulations (2024): www.redawning.com/pm/market-overview/lima-ohio
• Proper Insurance – Ohio Airbnb Laws & Regulations (state context): www.proper.insure/regulations/ohio-airbnb-laws/

Notes and action items for investors

• Registration and compliance come first: Obtain the Rental Housing Unit Registration Certificate for each unit and confirm building/safety compliance before listing.
• Establish guest limits and quiet hours: Proactively include these rules in all listings and house manuals to prevent violations.
• Tax compliance is mandatory: Set up systems to collect and remit Ohio lodging/excise taxes and any local taxes.
• Insurance matters: Replace homeowners or landlord policies with comprehensive STR coverage to address property, liability, and business interruption risks.
• Use the CivicPlus portal for updates: Keep your registration current and make required updates within 30 days after any sale or ownership changes.
• Track city guidance: Regulations evolve; monitor the city website and portal for updates to deadlines, forms, and requirements.