Lake Erie short-term rental rules
Who allows short stays, the permit and fee, the minimum stay, and the lodging taxes, place by place. As of October 2026. Confirm with the village or township.
Quick answer
Can I rent my Lake Erie cottage short term?
It depends on which city, village, or township controls the parcel. Catawba Island Township prohibits overnight rentals of a dwelling, and Danbury Township and the Village of Marblehead prohibit stays under 30 days outside the Lakeside (L) District and the Business District. Port Clinton, the Village of Put-in-Bay, Put-in-Bay Township (including Middle Bass), and Kelleys Island allow short stays with a certificate, license, or zoning approval, and the Put-in-Bay rules set a one-week or 7-night minimum. Confirm the exact parcel with local zoning and the county auditor before you count on rent.
What does a legal short-term rental cost in fees and lodging taxes?
Port Clinton: a $300 operating certificate ($100 renewal) and 6% in lodging taxes (city 3% plus Ottawa County 3%). Village of Put-in-Bay: a $175 business license and 6.5% (village 1.5%, county 3%, resort-area 2%). Kelleys Island: a $600 annual certificate and about 8% (village 2%, which the code also describes as intended to be 3%, plus Erie County 4% and resort-area 2%). Put-in-Bay Township and Middle Bass: county 3% plus resort-area 2% plus a township tax whose rate was not found. The resort-area tax rose from 1.5% to 2% on October 1, 2026.
| Place | Permit or license fee | Lodging and resort taxes, all-in |
|---|---|---|
| City of Port Clinton | $300 new, $100 renewal | 6% (city 3%, county 3%) |
| Village of Marblehead, Business District only | Tax registration; other permit not found | 6% (village 3%, county 3%) |
| Village of Put-in-Bay | $175 business license (2026); Chapter 875 fee not found | 6.5% (village 1.5%, county 3%, resort-area 2%) |
| Put-in-Bay Township and Middle Bass | Zoning certificate; fee not found | 5% plus township tax (rate not found) |
| Village of Kelleys Island | $600 initial, $600 renewal | 8% (village 2%, Erie County 4%, resort-area 2%); confirm village rate |
| Catawba Island Township; Danbury outside Lakeside | Short stays not allowed | Does not apply |
As of October 2026 (sources read October 21, 2026). Sources: Port Clinton Chapter 735; Catawba Island Township Zoning Resolution; Danbury Township zoning; Marblehead Code 154.039; Put-in-Bay 2026 business license; Put-in-Bay Township zoning; Kelleys Island transient rental program; Ottawa County lodging tax; Erie County lodging tax; Ohio resort-area tax. General information, not legal or tax advice.
As of October 2026
This page reflects local codes, county pages, and state sources read in October 2026. Rules change, and some local text could not be found. Before you buy with rental income in mind, confirm the exact parcel with the village, city, or township, and with the county auditor. This is general information, not legal advice.
Here, a short-term rental means a stay of under 30 days, which is how the county lodging taxes define a transient guest. Where this page says not found, the item was looked for in a primary source and not located. That does not mean there is no rule. Ask the local office.
Quick comparison
| Place | County | Short stays allowed? | Permit and fee | Minimum stay | Occupancy | Lodging taxes |
|---|---|---|---|---|---|---|
| City of Port Clinton | Ottawa | Yes, with a certificate | Operating certificate: $300 new, $100 renewal | Not found | 2 per sleeping room, plus 2 | City 3% and county 3% |
| Catawba Island Township | Ottawa | No. Overnight rental of a dwelling is prohibited | Does not apply | Does not apply | Does not apply | County 3% on any lawful transient lodging |
| Village of Marblehead | Ottawa | Only in the Business District, plus a conditional bed and breakfast use in R-1 | Tax registration within 30 days; any other permit not found | 30 days outside the Business District | Not found | Village 3% and county 3% |
| Danbury Township | Ottawa | No, except in the "L" (Lakeside) District | Not found | 30 days outside the L District | Not found | County 3%; township tax not found |
| Village of Put-in-Bay | Ottawa | Yes, as a special use | Business license $175 (2026); permit chapter text not found | 1 week | One family (zoning) | Village 1.5%, county 3%, resort-area 2% |
| Put-in-Bay Township and Middle Bass | Ottawa | Yes, as a conditional use | Zoning certificate; fee not found | 7 nights | Not found | Township tax (rate not found), county 3%, resort-area 2% |
| Village of Kelleys Island | Erie | Yes, with an annual certificate | $600 initial, $600 renewal | Not found | 4 per premises, plus 2 per bedroom | Village 2% (see note), Erie County 4%, resort-area 2% |
City of Port Clinton
- Permit: a short-term rental operating certificate from the City Auditor, plus registration for the lodging tax. The permit year runs March 1 through the end of February, renewal is November 1 to February 28, and a certificate does not transfer on sale. A rental cannot be advertised without one.
- Fees: $300 new, $100 renewal, $300 reinstatement after a suspension. No proration.
- Occupancy: 2 people per sleeping room plus 2 (a studio is 2). A bedroom needs at least 70 square feet and a window.
- Safety and insurance: photos of smoke detectors, carbon monoxide detectors, and fire extinguishers, and $300,000 of short-term rental insurance. No city inspection is stated.
- Local contact: a responsible local person who can respond within 60 minutes, 24 hours a day, and a posted guest advisory.
- Nuisance and penalty: three or more violations in 12 months (noise, over-occupancy, parking, calls for service, trash) create a nuisance presumption. A violation is a first-degree misdemeanor, up to $500 per day.
- Taxes: city 3% transient occupancy tax to the City Treasurer, plus the Ottawa County 3%.
- Not found: a cap on permits, zoning district limits, or a pending change.
Sources: Port Clinton Codified Ordinances, Chapter 735; Ordinance 24-23, second amendment (PDF).
Catawba Island Township
Township zoning says overnight rental and occupancy of a dwelling is prohibited, using a 30-day definition. An owner-occupied bed and breakfast inn is a separate use. The township has sent inspector letters and discussed fines, and its zoning board discussed rental and employee housing text in 2025, but no adopted change was found. A township lodging tax was not found. The Village of Catawba Island is a separate municipality; its rules were not found.
Sources: Catawba Island Township Zoning Resolution (PDF); trustee minutes, November 11, 2025; zoning minutes, May 28, 2025.
Village of Marblehead
Village code prohibits stays under 30 days in every zone except the Business District. A conditional bed and breakfast use is allowed in R-1: owner-occupied, up to 4 rooms, with one parking space per room plus 2 for the owner. Operators register with the Village Fiscal Officer for the village 3% transient occupancy tax within 30 days, and the county 3% also applies. A separate rental permit, occupancy limits, noise rules, inspections, and a local contact rule were not found.
Sources: Marblehead Code 154.039; Marblehead Code Chapter 37.
Danbury Township
Township zoning prohibits stays under 30 days in one-family, two-family, and multi-family dwellings and condominiums, except in the "L" District, which is Lakeside. Lakeside is a private association with its own rules, which were not found. A township permit, fee, or lodging tax was not found; the county 3% applies. 2026 zoning amendments did not change the rental rule. Zoning verification: (419) 734-6120.
Sources: Danbury Township Zoning Resolution (PDF); Danbury Township zoning resolution and map.
Village of Put-in-Bay (South Bass Island)
- Zoning: a one-family dwelling for temporary use is a special use with a one-week minimum rental, one family, orderly parking, and annual reapproval (notice before March 1). It can be revoked. A single rental room is a separate special use, also one week minimum, up to 2 people. Which districts allow it was not found.
- License: the 2026 village business license lists a short-term home or cottage rental category at $175.
- Permit chapter: Chapter 875, "Transient Rental Property," was enacted by Ordinance 1485-25 and amended by Ordinance 1504-25 (third reading Oct 17, 2025, per council minutes). The online codified ordinances at American Legal Publishing are complete only to April 8, 2025, so the chapter text is not posted there yet. Its fee, inspection, insurance, and occupancy terms are not stated here; ask the Village Fiscal Officer for the adopted text. Ask the village.
- Taxes: village lodging excise tax of 1.5% to the Village Fiscal Officer, plus the county 3% and the resort-area tax.
Sources: Put-in-Bay zoning code 1288.04; 2026 business license application (PDF); council minutes, April 1, 2025 (PDF); special meeting minutes, October 17, 2025 (PDF); Put-in-Bay Code 280.03, lodging tax.
Put-in-Bay Township and Middle Bass
Outside the village, a short-term rental needs a current zoning certificate. A one-family dwelling for temporary use, meaning non-owner stays of 7 to 90 consecutive days, is a conditional use decided by the Board of Zoning Appeals, so the minimum stay is 7 nights. Middle Bass follows the same township rules; no separate Middle Bass rule was found. The township says to remit its township lodging excise tax to the Ottawa County Auditor, but the township rate was not found. The fee amount, occupancy, parking, noise, and inspection rules were not found in the text read. Contact the zoning inspector at [email protected] or (419) 285-2292.
Sources: Put-in-Bay Township Zoning Resolution (PDF); Put-in-Bay Township zoning page.
Village of Kelleys Island (Erie County)
- County: Kelleys Island is in Erie County, not Ottawa County. The Ottawa County lodging tax does not apply there; the Erie County tax does.
- Permit: an annual transient rental registration certificate. The 2026 deadline was May 30, 2026. The 2026 packet mentions an amendment to the ordinance whose text was not found.
- Fees: $600 initial and $600 annual renewal. A new owner pays the initial fee.
- Occupancy: 4 per premises plus 2 per bedroom. Bedrooms need two means of egress.
- Inspections: a safety inspection by an Ohio certified home inspector every 3 years, and a septic inspection valid for 36 months. Problems must be corrected within 45 days.
- Insurance: $300,000 personal liability.
- Taxes: village transient occupancy tax to the Clerk/Treasurer, with monthly returns. One code section sets it at 2% and another says the intent is 3%, so confirm the current rate with the village. Erie County charges a 4% lodging tax, with a free one-time registration. The resort-area tax also applies.
- Not found: a cap, zoning district limits, parking and noise rules, and a 24-hour local contact rule.
Sources: Kelleys Island Code Chapter 117; Ordinance 2024-O-23 (PDF); village transient rental program; 2026 program packet (PDF); Kelleys Island Code, transient occupancy tax; Erie County Auditor, lodging tax.
Taxes across the area
- Ottawa County lodging tax: 3% on stays under 30 days, including cottages, condominiums, and vacation homes. Register with the County Auditor within 30 days of starting, post the transient occupancy registration certificate, and file online. Late returns carry a 10% penalty. Sources: Ottawa County Auditor, lodging tax; county lodging tax regulations (PDF).
- Erie County lodging tax: 4%, which covers Kelleys Island. Source: Erie County Auditor.
- Resort-area gross receipts tax: in Kelleys Island, the Village of Put-in-Bay, and Put-in-Bay Township, this state-administered tax rose from 1.5% to 2% on October 1, 2026. It is filed with the Ohio Department of Taxation. Sources: Ohio Department of Taxation; Ohio Revised Code 5739.101.
- State sales tax: Ohio sales tax on lodging applies to a hotel, defined as 5 or more rooms, for transient guests. A typical 1 to 4 bedroom vacation house is not a hotel under that definition. Local lodging taxes are authorized separately. Sources: Ohio Revised Code 5739.01; Ohio Revised Code 5739.09.
- Septic: no Ottawa County health rule written for short-term rentals was found. General sewage permits and the county's 2025 operation and maintenance program apply to all systems. Source: Ottawa County program fact sheet.
Pending state bills
Two bills in the 136th General Assembly would change the picture if passed. As of October 2026 neither has left committee.
- Senate Bill 104 would limit local short-term rental regulation, extend local lodging taxes to short-term rentals, and have platforms collect them. Status: Senate Local Government Committee. Source: Ohio Senate, SB 104.
- House Bill 109 is the House companion. It had hearings on March 26, 2025, October 22, 2025, and March 18, 2026, and is still in the House Development Committee. Source: Ohio House, HB 109.
Questions to ask before you buy
- Which government controls this parcel: a city, a village, or a township? A mailing city does not answer that.
- Is a short-term rental allowed in this zoning district, and what is the minimum stay?
- Does the current owner hold a permit, and does it transfer on sale? In Port Clinton it does not.
- Which county is it in, and which lodging taxes apply?
- Is there a pending change at the village, township, or state level?
- For a condominium or a Lakeside property, what do the association rules say?
Area overview: Port Clinton and Catawba lake homes. Place pages: Catawba Island, Marblehead, Put-in-Bay, Middle Bass, Kelleys Island. Buying from a distance: summer home guide.
More guides: all guides. Questions: FAQ.