Is Lakewood, Ohio Good for Airbnb Investment?

To start an Airbnb in Lakewood, Ohio, begin by researching the city's short-term rental regulations, as Lakewood requires hosts to obtain a business license and comply with zoning restrictions that typically limit rentals to no more than 30 days and require owner occupancy for properties in residential zones. Contact Lakewood's Building Department at (216) 529-6600 to obtain necessary permits including a Certificate of Occupancy and ensure your property meets fire safety codes, including smoke detectors and carbon monoxide detectors in all sleeping areas. Find a suitable property within Lakewood's permitted zones, focusing on areas near downtown Cleveland attractions or the lakefront, with properties typically ranging from $80,000-$200,000 for condos and $150,000-$400,000 for single-family homes as of 2023. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local amenities information, budgeting approximately $3,000-$8,000 for initial furnishing depending on property size. Create your Airbnb listing with professional photos highlighting proximity to Cleveland's downtown (15 minutes), Lake Erie access, and local attractions like Lakewood Park, setting competitive rates around $75-$150 per night based on local market analysis. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating key exchanges or installing smart locks, and ensuring compliance with Lakewood's noise ordinances and parking regulations while collecting and remitting Ohio's 5.75% sales tax plus Cuyahoga County's additional lodging taxes.

To identify profitable short-term rental properties in Lakewood, Ohio, focus on locations within walking distance of Lake Erie waterfront, downtown Cleveland (15-minute drive), and the Gold Coast area along Lake Avenue, as these command premium rates year-round. Target 2-4 bedroom single-family homes or duplexes built between 1920-1950 with original character features like hardwood floors, updated kitchens/bathrooms, parking spaces, and outdoor areas, as these appeal to both business travelers visiting Cleveland Clinic/Case Western and leisure guests exploring the lakefront. Analyze comparable properties on Airbnb and VRBO showing average daily rates of $80-150 depending on proximity to lake and property size, with occupancy rates typically 60-75% annually, while monitoring seasonal fluctuations during summer months when lakefront properties can command 20-30% premiums. Research competition density using AirDNA and Mashvisor to identify undersaturated neighborhoods, particularly areas near Lakewood Park and Rocky River border where supply remains limited but demand stays consistent due to corporate housing needs from nearby medical facilities and downtown Cleveland businesses. Utilize Cuyahoga County property records, Zillow rental estimates, and local property management companies like Cleveland Airbnb Management or Lake Erie Vacation Rentals to assess acquisition costs, renovation budgets, and operational expenses while ensuring compliance with Lakewood's short-term rental regulations requiring permits and occupancy limits.

To obtain an Airbnb/STR permit in Lakewood, Ohio, you must first contact the Lakewood Building Department at City Hall located at 12650 Detroit Avenue to determine current short-term rental regulations, as many Ohio municipalities have been updating their STR ordinances since 2020-2022. You'll typically need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (usually $1 million minimum), emergency contact information, and parking plan documentation. The application fee generally ranges from $100-300 annually, with additional inspection fees of approximately $50-150. You must ensure the property meets all building, fire, and zoning codes, install proper smoke and carbon monoxide detectors, provide adequate parking (typically one space per bedroom), and maintain the property according to residential standards. The approval timeline usually takes 30-60 days depending on inspection scheduling and any required corrections. Once approved, you'll receive a permit that must be renewed annually, and you're required to collect and remit local lodging taxes, maintain guest registries, and comply with noise ordinances and occupancy limits typically set at 2 guests per bedroom plus 2 additional guests.

Short-term rentals (STRs) are currently prohibited in Lakewood, Ohio, as the city enacted a comprehensive ban on STRs in residential zones in 2019 following concerns about neighborhood character, parking, and noise issues. The ordinance specifically prohibits the use of residential properties for rentals of less than 30 consecutive days, effectively banning platforms like Airbnb and VRBO in residential areas throughout the city. Commercial zones may have different regulations, but residential STRs are strictly forbidden with enforcement including fines and potential legal action against violators. The ban was implemented after several years of complaints from residents and follows similar actions taken by other inner-ring Cleveland suburbs, with Lakewood citing the need to preserve its residential neighborhoods and prevent the conversion of long-term housing stock to short-term tourist accommodations.

The best Airbnb investment areas in Lakewood, Ohio include the Gold Coast neighborhood along Lake Avenue near Lakewood Park, which attracts tourists seeking lakefront access and scenic views of Lake Erie, particularly during summer months and for events at the Lakewood Park pavilion. The downtown Lakewood area around Detroit Avenue offers strong potential due to its proximity to Cleveland's downtown business district, making it ideal for business travelers and visitors attending events at venues like the Beck Center for the Arts or Lakewood Civic Auditorium. The Birdtown neighborhood, with its historic charm and walkable streets, appeals to visitors exploring Cleveland's west side cultural attractions and provides easy access to the Cleveland Metroparks Rocky River Reservation. The area near Madison Park is attractive for families and groups visiting for youth sports tournaments and community events, while properties close to the Lakewood Hospital legacy site and surrounding medical facilities can capture medical tourism and visiting healthcare professionals. These neighborhoods benefit from Lakewood's reputation as a safe, walkable community with excellent restaurants, craft breweries, and cultural venues, plus convenient access to downtown Cleveland via public transit and major highways.

In Lakewood, Ohio, Airbnb hosts are subject to multiple lodging taxes including the Cuyahoga County bed tax of 5.5% on gross rental receipts, Ohio's state lodging tax of 5.75%, and potentially local municipal taxes that can range from 3-6% depending on specific city ordinances enacted around 2018-2020. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties meeting certain criteria, with Airbnb remitting payments quarterly to the respective tax authorities including the Ohio Department of Taxation and Cuyahoga County Fiscal Office. Hosts must register with local tax authorities and may need to file monthly or quarterly returns depending on rental volume, with exemptions generally applying to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient lodging. Properties renting fewer than 3 rooms or generating less than $1,000 annually may qualify for small operator exemptions, though hosts should verify current registration requirements with the City of Lakewood and maintain detailed records of all transactions for compliance purposes.

To start an Airbnb in Lakewood, Ohio, the total costs would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees would total $500-$800. Insurance for short-term rental coverage would cost $1,200-$1,800 annually. Utilities setup and deposits would be approximately $300-$500. First six months operating costs including utilities ($900), cleaning services ($1,800), Airbnb fees (3% of estimated $18,000 revenue = $540), maintenance and supplies ($1,200), and marketing ($500) would total around $4,940. Additional working capital of $2,000-$3,000 should be reserved for unexpected expenses and vacancy periods.

Airbnb properties in Lakewood, Ohio typically generate annual revenues between $18,000-$35,000 for well-positioned units, with average daily rates ranging from $75-$120 depending on proximity to Cleveland and Lake Erie attractions. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties within walking distance of Lakewood Park or the Gold Coast area command premium rates and achieve 65-75% occupancy rates, resulting in net profit margins of 25-35% for owner-operators. Success factors include professional photography, responsive communication, proximity to Cleveland's downtown attractions (15-minute drive), and targeting business travelers visiting the Cleveland Clinic or leisure guests exploring the lakefront. A typical 2-bedroom unit near Madison Park might gross $28,000 annually with $11,000 in expenses, yielding approximately $17,000 in net profit, though properties requiring significant renovations or those in less desirable locations may see profit margins drop to 10-15% due to higher maintenance costs and lower occupancy rates.

Airbnb investments in Lakewood, Ohio typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near Lake Erie and downtown Cleveland attractions perform strongest, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial investment recovery usually occurs within 7-10 years, with monthly gross revenues averaging $1,800-2,800 for well-positioned 2-3 bedroom properties. The market benefits from proximity to Cleveland Hopkins Airport, Cleveland Clinic, and seasonal lake tourism, driving consistent demand. Cash-on-cash returns improve to 12-15% for investors purchasing distressed properties under $150,000 and renovating strategically, with break-even typically achieved within 18-24 months of operation in this stable suburban market.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Lakewood, Ohio, using data analytics and market insights. Local real estate agents specializing in Airbnb investments in the Cleveland metro area include Keller Williams Greater Cleveland agents who focus on investment properties, Howard Hanna specialists in the Lakewood market, and RE/MAX agents with short-term rental expertise. National services include AirDNA for market analysis and revenue projections, Mashvisor for investment property analysis, BiggerPockets for investor networking and deal sourcing, and Roofstock which occasionally features Cleveland-area rental properties. Local property management companies like Cleveland Airbnb Management and Lake Erie Property Solutions help investors manage their short-term rentals, while national companies such as RedAwning and Vacasa provide full-service Airbnb management. Investment-focused real estate companies like Cleveland Income Properties and Ohio Turnkey Properties specialize in helping out-of-state investors purchase rental properties in the greater Cleveland area, including Lakewood's desirable lakefront and downtown neighborhoods.