Short-Term Rentals in Lima, OH

If you live in Lima or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Lima has 3 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Short-Term Rental Permits

Lima requires every owner of a non-owner-occupied housing unit inside the city to obtain and maintain a Rental Housing Unit Registration Certificate under Codified Ordinances Chapter 872, whether or not the unit is currently rented. Registration is free and was phased in during 2024-2025. This is the closest thing to

Key details: Governing law: Lima Codified Ordinances Ch. 872 (adopted Jan 2024). Who must register: Owners of non-owner-occupied housing units. Fee: No fee charged for registration. Phase-in deadlines: 10+ units 6/30/24; 5-9 12/31/24; 1-4 6/30/25. Update window: Within 30 days of any change.

Failing to register a non-owner-occupied unit, or failing to keep the registration current, violates Chapter 872 and is enforceable by the City's Department of Community Development / Code Enforcement, which can pursue code-enforcement remedies.

Night Caps

Lima sets NO annual night cap or maximum number of rental days for short-term rentals. Because the City has no STR ordinance, a registered rental may operate year-round. The only durational line comes from Ohio's lodging-tax definition of a transient guest as a stay under thirty consecutive days.

Key details: Annual night cap: None - Lima has no STR ordinance. Hosted vs unhosted caps: No distinction; no day limits. Year-round operation: Allowed if registered and zoning-compliant. Transient-stay line: Under 30 consecutive days (ORC 5739.01(N)). State mandate: None - left to cities.

There is no night-cap violation because Lima sets no annual limit. Enforcement risk comes instead from operating without registering the unit (Chapter 872), from a zoning-use violation, or from unpaid lodging tax on transient stays.

Lima is more permissive than most cities when it comes to night caps. That said, there are still limits.

Taxes & Fees

Short-term stays in Lima are taxed as lodging. The City levies a Hotel-Motel Tax under Codified Ordinances Chapter 890 (authorized by Ohio R.C. 5739.02(C)), and Allen County levies a lodging excise tax of about 4.75%. An STR that meets Ohio's 'hotel' definition or serves transient guests (stays under 30 days)

Key details: City tax: Lima Hotel-Motel Tax, Codified Ord. Ch. 890. City authority: Ohio R.C. 5739.02(C). County lodging tax: Allen County ~4.75% (incl. 3% memorial). County authority: Ohio R.C. 5739.09. Taxable stay: Transient guest, under 30 days (ORC 5739.01(N)).

Failure to collect and remit the required Hotel-Motel Tax is enforceable by the City under Chapter 890, and unpaid county lodging tax is collectible by Allen County; both may add interest and penalties.

The Bottom Line

Lima's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Lima is broadly strict or permissive.

This guide is based on Lima's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.