Asheville Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Asheville,California?

Asheville, a city located in the Blue Ridge Mountains of North Carolina, has implemented strict regulations on short-term rentals (STRs) such as those listed on Airbnb and VRBO. In 2018, the Asheville City Council banned STRs of entire dwellings in most areas of the city, with the exception of properties zoned as "resort".

However, "homestays" – rentals of one or two bedrooms for fewer than 30 days in owner-occupied homes – are still permitted if they were operating as vacation rentals before the ban took effect in 2018. Properties located in residential zones are subject to additional regulations that limit the number of guests and length of stay for STRs.

The city primarily relies on complaints from residents to identify and investigate illegally operating STRs. In 2022, code enforcement officers investigated 93 complaints and issued at least 4 citations and 6 notices of violation to STR operators.

Despite the strict regulations, it is estimated that over 5,000 STRs continue to operate in Buncombe County, where Asheville is located. Many hosts seem to operate STRs regardless of the rules, particularly in areas outside of the city limits where regulations are less restrictive.

In summary, while Asheville has implemented a ban on most STRs within the city, enforcement appears to be limited, and many hosts continue to operate, especially in the surrounding county. Compared to other cities, Asheville is less STR-friendly, but the practice remains prevalent in the area.

Starting a Short Term Rental Business in Asheville

Starting a short-term rental (STR) business in Asheville, North Carolina requires careful planning and adherence to local regulations. As of 2018, the Asheville City Council banned STRs of entire dwellings in most areas of the city, with the exception of properties zoned as "resort".

However, "homestays" – rentals of one or two bedrooms for fewer than 30 days in owner-occupied homes – are still permitted if they were operating as vacation rentals before the ban took effect in 2018. Properties located in residential zones are subject to additional restrictions on the number of guests and length of stay.

Despite these limitations, many hosts continue to operate STRs in Asheville, particularly in the surrounding Buncombe County where regulations are less restrictive. If you're considering starting an STR business in Asheville, it's essential to research the specific zoning and permitting requirements for your property.

One strategy some hosts have used is applying for STR permits before new restrictions take effect, in order to be grandfathered in under the previous rules. However, it's important to note that the city does investigate complaints about illegally operating STRs and has issued citations and notices of violation in some cases.

Before launching your STR business in Asheville, make sure to:

• Determine your property's zoning and whether STRs are allowed
• Apply for any necessary permits or licenses
• Ensure your property meets all safety and occupancy requirements
• Understand your tax obligations as an STR operator
• Develop a plan for marketing and managing your rental

By doing your due diligence and complying with local regulations, you can successfully start and operate a short-term rental business in Asheville. Just be aware that the regulatory environment is more challenging than in some other cities, and be prepared to adapt to any changes in the rules over time.

Short Term Rental Licensing Requirement in Asheville

Asheville has strict regulations for short-term rentals (STRs) that vary depending on the property's location and type. In most residential zones within the city limits, STRs of entire dwellings are prohibited. The only exception is for properties in areas specifically zoned as "resort".

However, "homestays" – where the owner rents out one or two bedrooms in their primary residence for less than 30 days at a time – may be allowed if the property was already operating as a short-term rental prior to 2018 when the city's ban took effect.

To legally operate a homestay STR in Asheville, hosts must obtain a permit from the city. The application requires proof of residency, a floor plan sketch, a fire safety inspection, and payment of a $200 permit fee. Homestay permits must be renewed annually.

Properties located in the county outside of Asheville's city limits are not subject to the same restrictions. STRs are generally allowed in unincorporated areas of Buncombe County, but hosts may still need to obtain permits and follow certain rules set by the county.

It's important for prospective STR hosts to carefully research the specific regulations that apply to their property's location and type. Failure to obtain required permits or follow applicable rules can result in fines and legal issues. The city relies primarily on complaints to identify illegally operating STRs and has issued citations and violation notices to non-compliant hosts in recent years.

Required Documents for Asheville Short Term Rentals

To legally operate a short-term rental (STR) in Asheville, North Carolina, you will need to obtain the necessary permits and licenses from the city. The specific requirements depend on the type of STR you plan to run and its location.

For "homestays" – rentals of one or two bedrooms in an owner-occupied home – you must apply for a homestay permit from the City of Asheville Development Services Department. The application requires:

• A completed homestay permit application form
• Proof of property ownership or a lease agreement
• A floor plan of the property indicating the rooms to be rented
• Proof of insurance covering short-term rentals
• A self-inspection checklist verifying safety requirements are met
• The application fee

If your property is located in a resort zoning district and qualifies as a "vacation rental", you will instead need to apply for a vacation rental permit. This application requires similar documentation as the homestay permit, plus:

• A site plan of the property
• Designated parking spaces for guests
• A neighborhood notification letter

It's important to note that obtaining a permit does not exempt you from other applicable regulations, such as building codes, fire safety requirements, and taxes. Be sure to research and comply with all relevant local, state, and federal laws before beginning to operate your STR.

To get started, contact the City of Asheville Development Services Department at (828) 259-5846 or permits@ashevillenc.gov. They can provide guidance on the specific permits and documents required for your unique situation.

Asheville Short Term Rental Taxes

As an Airbnb or VRBO host in Asheville, it's important to understand your tax obligations. Short-term rentals in Asheville are subject to several taxes, including:

North Carolina Sales Tax: The state sales tax rate is 4.75%, which applies to all short-term rentals.

Buncombe County Occupancy Tax: Asheville is located in Buncombe County, which levies a 6% occupancy tax on all short-term rentals. This tax is in addition to the state sales tax.

Asheville City Taxes: If your short-term rental is located within the Asheville city limits and you have a valid permit, you must also collect and remit the 6% Asheville Occupancy Tax.

In total, the combined tax rate for short-term rentals in Asheville is 16.75% (4.75% state sales tax + 6% county occupancy tax + 6% city occupancy tax).

As a host, it's your responsibility to collect these taxes from your guests and remit them to the appropriate authorities.Airbnb and VRBO offer some assistance with tax collection and remittance. Airbnb automatically collects and remits the North Carolina sales tax and Buncombe County occupancy tax on behalf of hosts. However, hosts are still responsible for registering with the city and remitting the Asheville occupancy tax themselves.

Failure to comply with Asheville's short-term rental tax laws can result in penalties and fines. It's essential to maintain accurate records of your rental income and taxes collected. Consult with a tax professional to ensure you are meeting all your tax obligations as a short-term rental host in Asheville.

Asheville wide Short Term Rental Rules

Asheville, North Carolina has implemented strict regulations on short-term rentals (STRs) citywide. In 2018, the Asheville City Council banned STRs of entire homes in all areas of the city zoned as residential. The only exception is for properties located in areas specifically zoned as "resort".

However, the city does allow "homestays" – rentals of one or two bedrooms for less than 30 days in owner-occupied homes. To operate legally, these homestays must have been in operation as vacation rentals prior to the 2018 ban.

For properties situated in residential zones, Asheville enforces stringent rules that cap the maximum number of guests allowed and restrict the length of stay for STRs.The city primarily relies on complaints from neighbors or community members to identify and investigate STRs operating illegally. In 2022, Asheville's code enforcement officers followed up on 93 STR-related complaints, ultimately issuing a minimum of 4 citations and 6 violation notices to non-compliant operators.

So in summary, Asheville has established clear, strict, and comprehensive rules severely limiting STRs across the city. Whole-home vacation rentals are prohibited in residential areas, with only narrow exceptions for owner-occupied homestays and properties in resort zones. The city can issue fines and violations to illegal STRs, but primarily acts based on complaints rather than proactive enforcement.

Does Asheville strictly enforce STR rules?” Is Asheville Airbnb friendly?

Asheville, North Carolina has taken a firm stance against short-term rentals (STRs) within city limits, enacting a ban on whole-house rentals in residential areas in 2018. However, the question remains: does the city strictly enforce these regulations, and is Asheville truly Airbnb friendly? Based on discussions among hosts on platforms like Reddit and BiggerPockets, the general consensus is that while Asheville has stringent rules on the books, enforcement is inconsistent at best. Despite the city's ban, there are an estimated 5,000 STRs operating in Buncombe County, where Asheville is located. This suggests that many hosts continue to operate STRs, particularly in areas outside of the city's jurisdiction.

Compared to other cities, Asheville is certainly less accommodating to STRs. The city's regulations are among the most restrictive in the country, and the 2018 ban sent a clear message that STRs are not welcome in residential neighborhoods. However, the lack of consistent enforcement has created a gray area where many hosts continue to operate, albeit with a degree of risk.

Anecdotally, hosts on Reddit and BiggerPockets report operating STRs in Asheville despite the rules, with one user noting that while banned in the city, "Airbnbs are unrestricted in the county." Others advise prospective hosts to apply for permits before new restrictions take effect, in order to be grandfathered in.

In conclusion, while Asheville has taken a hard line against STRs on paper, the reality on the ground is more complex. The city's enforcement of its ban appears to be limited, and many hosts continue to operate, particularly in the surrounding county. Compared to other destinations, Asheville is less Airbnb friendly, but the presence of thousands of active listings suggests that hosts are finding ways to navigate the challenging regulatory landscape.

How to Start a Short Term Rental Business in Asheville

Starting a short-term rental (STR) business in Asheville can be a lucrative venture, but it's important to navigate the local regulations carefully. Here's a step-by-step guide to get you started:

Research zoning laws and regulations: Familiarize yourself with Asheville's STR ordinances, which ban rentals of entire homes in most residential areas. Determine if your property is eligible for an STR permit.

Obtain necessary permits and licenses: If your property qualifies for an STR, apply for a permit from the city. You may need to provide proof of ownership, a floor plan, and other documentation.

Prepare your property: Ensure your rental is safe, clean, and well-maintained. Consider hiring a professional cleaning service and investing in quality furnishings and amenities to attract guests.

Set competitive rates: Research similar listings in your area to determine a competitive nightly rate. Factor in your expenses, such as utilities, cleaning fees, and taxes.

Create a compelling listing: Take high-quality photos of your property and write an engaging description highlighting its unique features and location. Be transparent about any rules or restrictions.

Choose a booking platform: List your property on popular STR platforms like Airbnb and VRBO. Familiarize yourself with each platform's policies and fees.

Manage bookings and communication: Respond promptly to guest inquiries and maintain a clear communication style. Consider using a property management software to streamline bookings and automate tasks.

Comply with tax obligations: STR operators in Asheville must collect and remit sales tax and occupancy taxes. Consult with a tax professional to ensure compliance.

Provide excellent guest experience: Offer a seamless check-in process, clear instructions, and thoughtful touches to ensure a positive guest experience. Respond quickly to any issues or concerns.

Adapt to changes in regulations: Stay informed about any updates to Asheville's STR laws and be prepared to adapt your business accordingly.

By following these steps and staying compliant with local regulations, you can build a successful STR business in Asheville. Remember to prioritize guest satisfaction and maintain open communication with the city to ensure the long-term viability of your venture.

Who to contact in Asheville about Short Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Asheville, North Carolina, the best place to start is by contacting the city's Development Services Department. They handle all matters related to zoning, permits, and land use.

You can reach the Development Services Department by:
Phone: (828) 259-5846
Email: developmentservices@ashevillenc.gov
In Person: 161 S. Charlotte St., Asheville, NC 28801 (Mon-Fri, 8:30am - 5:00pm)

What do Airbnb hosts in Asheville on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Asheville have mixed feelings about the city's strict short-term rental regulations, according to discussions on Reddit and BiggerPockets forums.

On Reddit's r/Asheville subreddit, one host pointed out the discrepancy between the city and county rules: "While banned in Asheville, Airbnbs are unrestricted in the county. This has led to a proliferation of STRs just outside city limits."

Another Redditor expressed frustration with the city's ban: "As a responsible host, it's disappointing that Asheville has taken such a hardline stance against STRs. I understand the need for regulation, but an outright ban seems extreme."

On BiggerPockets, a popular real estate investing forum, opinions were more pragmatic. One member advised fellow investors to act quickly: "If you're considering an STR in Asheville, apply for permits ASAP before new restrictions take effect. Getting grandfathered in is key."

Another BiggerPockets user shared their experience: "I've been operating an STR in Asheville for years without issue. The key is to be a responsible host and maintain good relationships with neighbors."

Overall, while many hosts disagree with Asheville's strict STR regulations, they seem to have found ways to adapt and continue operating, particularly in the surrounding county where rules are more lenient. The general consensus is that prospective hosts should act quickly to secure permits and be proactive about compliance to avoid issues down the line.