Guilford County, North Carolina Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Guilford County, North Carolina?

Short-term rentals like Airbnb and VRBO have become increasingly popular in Guilford County, North Carolina. However, with this growth has come the need for regulations to ensure neighborhood harmony and safety. The City of Greensboro, located within Guilford County, recently adopted a new ordinance governing STRs that went into effect on January 1, 2024.

Starting a Short-Term Rental Business in Guilford County

To legally operate a short-term rental in Greensboro, hosts must apply for a zoning permit through the City's online system. The application requires detailed information about the property, a $200 fee, and the permit must be prominently displayed on the premises and in any listings.

There are two types of STRs defined in the ordinance:

• Homestay Short Term Rentals: Rental of a portion of available bedrooms where the host uses the property as their primary residence and is on-site during the rental.
• Whole House Short Term Rentals: Rental of an entire residence for a minimum of two nights. If not the host's primary residence, they must identify a local operator and live in Guilford County or an adjacent county.

The ordinance places limitations on STR density, requiring them to be at least 750 feet apart and making up no more than 25% of units in a multi-family building. Occupancy is limited to two adults per rented bedroom, with a maximum of one car allowed to park per bedroom.

Hosts on real estate investing forums have shared positive experiences with STRs in tourist-friendly areas of Guilford County, like beach towns, where rentals have been allowed for decades. However, some HOAs and neighborhoods in Greensboro have pushed back against unlimited STRs, citing issues with noise and parking. The city aims to balance the benefits of STRs with neighborhood livability through its new regulations.

Enforcement of Short-Term Rental Laws in Greensboro

Guilford County actively monitors STRs for compliance with registration and zoning laws. Enforcement actions can include:

1. Notices of Violation issued to non-compliant property owners
2. Required hearings to discuss violations
3. Civil penalties and fines that escalate with repeated offenses
4. Remediation plans outlining steps to rectify violations

The city may revoke an STR zoning permit if there are two or more verified ordinance violations within a 365-day period or if the owner/operator is charged with a criminal offense on the premises.

As Greensboro resident Edgar Paras, who has reported issues with the Airbnb next door, stated: "In a perfect world, what these regulations would do for me in this neighborhood is to basically not have it be a nuisance or intrusive to the neighborhood." The new rules aim to address community concerns while allowing STRs to operate under clear guidelines.

Ultimately, the long-term outlook for STRs in Guilford County will depend on hosts' compliance with regulations and their ability to be good neighbors. As one Airbnb Superhost noted, "You should run your Airbnb as if you live in that area, and you also should be very involved in the community."

Short-Term Rental Licensing Requirement in Guilford County

To legally operate a short-term rental in Guilford County, hosts must obtain a zoning permit through the City's online permitting system. The application requires:

1. Detailed information about the property, including address, owner contact info, and number of bedrooms
2. Identification of a local operator, such as a co-host or property manager, if the rental is not the host's primary residence
3. A non-refundable $200 application fee paid online

Once the application is submitted, the City reviews it to ensure the proposed STR complies with zoning regulations and does not pose safety or health hazards. The review process typically takes 7-10 business days.

If approved, the City issues a zoning permit that must be prominently displayed inside the rental unit and in any online listings. The permit does not need to be renewed unless the property owner or local operator changes, in which case a new permit must be obtained within 30 days.

Failure to obtain a permit or adhere to STR regulations can result in enforcement actions, including:

1. Notices of Violation
2. Required hearings
3. Civil penalties up to $500 per instance of non-compliance
4. Potential revocation of the zoning permit if there are 2+ verified violations within 365 days or the owner/operator is charged with a criminal offense on the premises

STR owners may seek a regulation variance from the City's Board of Adjustment. However, operating without a valid permit puts hosts at risk of significant fines and losing the ability to rent their property short-term in Guilford County.

Required Documents for Guilford County Short-Term Rentals

To legally operate a short-term rental in Guilford County hosts must obtain and display specific documentation. The primary required document is a zoning permit, which serves as proof of compliance with local regulations.

1. Zoning Permit

Purpose: A zoning permit is evidence that the short-term rental complies with Greensboro's Land Development Ordinance and is authorized to operate. Without this permit, the rental is not considered legitimate.

How to Obtain: Hosts must apply for a zoning permit through the online permitting system. The application requires:

1. Detailed property information (address, owner contact, number of bedrooms, etc.)
2. Designation of a local operator if not the host's primary residence
3. Payment of a $200 non-refundable application fee

They review applications to ensure compliance with zoning regulations and that no health or safety hazards exist. If approved, the permit is issued and must be prominently displayed inside the rental unit and on any online listings.

2. Room Occupancy Tax Forms

Purpose: Short-term rentals in Guilford are subject to Guilford County (3%) room occupancy taxes. While rental booking platforms like Airbnb and Vrbo collect and remit these taxes on hosts' behalf, hosts may need to file occupancy tax returns for direct bookings.

How to Obtain: If required to self-file, hosts can obtain the necessary forms from the Guilford County Tax Department.

Note: As of 2024, North Carolina requires short-term rental platforms to collect and remit state and local sales and occupancy taxes for all bookings, so most hosts will not need to file separately unless accepting direct reservations.

Failure to obtain and display a valid zoning permit can result in fines up to $500 per instance of non-compliance. The county may also revoke permits if a rental accrues two or more verified ordinance violations within a year.

By carefully adhering to documentation requirements, short-term rental operators can ensure compliance with Guilford County regulations and avoid penalties that could jeopardize their business.

Guilford County Short-Term Rental Taxes

Short-term rental operators in Guilford County, North Carolina are subject to several types of taxes, including state sales tax and local occupancy taxes. It's important for hosts to understand their tax obligations to ensure compliance and avoid penalties.

State Sales Tax

The State of North Carolina imposes a sales tax on the total revenue received from short-term rentals. The current state sales tax rate is 4.75%, which is part of the combined state and local sales tax rate that ranges from 6.75% to 7.5%, depending on the county. This tax applies to the listing price, including any cleaning fees and guest fees, for reservations less than 90 nights.

Local Occupancy Tax

In addition to the state sales tax, Guilford County and the City of Greensboro impose local occupancy taxes on short-term rentals. The combined city and county occupancy tax rate typically ranges from 1% to 8% of the listing price, including cleaning and guest fees, for reservations less than 90 nights. The exact rate may vary depending on the specific location within Guilford County.

Airbnb and other short-term rental platforms are required by North Carolina law to collect and remit both state and local taxes on behalf of hosts. This means that if all bookings are made through these platforms, hosts do not need to register with the state or file lodging tax returns separately. However, if guests book directly with the host, the operator is responsible for collecting and remitting the applicable taxes.

Potential Write-Offs and Deductions

Short-term rental operators in Guilford County may be eligible for various write-offs and deductions that can help reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Repairs and maintenance costs
6. Cleaning fees
7. Property management fees
8. Advertising expenses
9. Depreciation of the rental property

Hosts should keep accurate records of all expenses related to their short-term rental business and consult with a tax professional to ensure they are claiming all eligible deductions.

By understanding the applicable taxes and potential deductions, short-term rental operators in Guilford County can ensure they are complying with local regulations while maximizing their tax benefits.

North Carolina Wide Short-Term Rental Rules

The State of North Carolina has enacted the Vacation Rental Act to regulate the short-term rental industry and balance the interests of landlords, real estate brokers, and tenants. This Act applies to any person or entity acting as a landlord or real estate broker engaged in the rental or management of residential property for vacation purposes.

Under the Act, a vacation rental is defined as "the rental of residential property for vacation, leisure, or recreation purposes for fewer than 90 days by a person who has a place of permanent residence to which they intend to return". The Act requires that all vacation rentals be accomplished through a written agreement containing a statutorily prescribed notice and provisions governing the rights and obligations of involved parties.

Some key requirements of the Vacation Rental Act that Guilford County hosts must adhere to include:

1. Executing a written rental agreement with the tenant that includes specific language notifying them of their rights under the Act
2. Properly handling and accounting for all rent payments, fees, and security deposits as specified in the Act
3. Providing a fit and habitable premises that complies with building and housing codes, and making necessary repairs
4. Maintaining smoke detectors, carbon monoxide alarms, and other safety equipment in proper operating condition

In addition to the Vacation Rental Act, short-term rental operators in North Carolina must register with the Department of Revenue for a sales and use tax permit, and collect and remit the appropriate state and local sales and occupancy taxes. As of 2024, the combined state and local sales tax ranges from 6.75% to 7.5% depending on the county, and local occupancy taxes can add an additional 1-8%.

It's important to note that while the Vacation Rental Act provides a baseline for regulation, cities, and counties are allowed to adopt their own short-term rental ordinances that may be more restrictive. For example, the City of Greensboro recently implemented a detailed ordinance requiring permits, setting occupancy limits, and restricting the density and location of rentals.

Therefore, Guilford County hosts must ensure compliance with both state law and any applicable local regulations in order to legally operate. Failure to do so can result in fines, permit revocation, and other penalties.

Does Guilford County Strictly Enforce STR Rules?

Guilford County has taken a proactive approach to regulating short-term rentals like Airbnb and Vrbo. While the county aims to balance the benefits of STRs with neighborhood livability, enforcement of the new rules has been a topic of discussion among hosts and residents.

According to posts on real estate investing forums like Bigger Pockets, Guilford County is not considered particularly Airbnb-friendly compared to other cities. One host shared, "The new ordinance in Greensboro has made it much harder to operate an STR legally. The 750-foot separation rule and density limits in multi-family buildings are quite restrictive."

Despite the regulations, some hosts continue to operate under the radar. A Reddit user commented, "I know several people who are still renting out their properties on Airbnb without the required permit. They're willing to take the risk of getting caught because the income is too good to pass up."

However, this approach is not without consequences. The county has made it clear that non-compliance will result in escalating fines and potential permit revocation. An Airbnb Superhost warned, "Guilford County is serious about enforcement. They actively monitor listings and have issued violations to those operating illegally. It's not worth the risk in my opinion."

Overall, while Guilford County may not be the most Airbnb-friendly destination, hosts who follow the rules and obtain the necessary permits can still operate successfully. As one host put it, "You have to do your due diligence and make sure you're in compliance with all the regulations. It's more work upfront, but it gives you peace of mind in the long run."

The county's strict enforcement, while frustrating for some hosts, aims to strike a balance between allowing STRs and maintaining neighborhood character. As the short-term rental landscape continues to evolve, hosts in Guilford County will need to stay informed and adapt to any changes in regulations to ensure compliance and avoid penalties.

How to Start a Short-Term Rental Business in Guilford County

Starting a short-term rental business in Guilford County, North Carolina requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR venture:

1. Research local regulations: Familiarize yourself with Guilford County's short-term rental ordinance, which went into effect on January 1, 2024. Understand the differences between Homestay and Whole House rentals, occupancy limits, and other key requirements.
2. Obtain a zoning permit: Apply for a zoning permit through the online system. Submit detailed property information, designate a local operator if necessary, and pay the $200 application fee. Prominently display the approved permit on your property and in all listings. Gather all necessary documentation before beginning the application process to ensure a smooth experience.
3. Prepare your property: Ensure your rental property is safe, clean, and well-maintained. Install smoke detectors, carbon monoxide alarms, and other required safety equipment. Consider hiring a professional cleaning service between guest stays to maintain a high standard of cleanliness.
4. Set competitive rates: Research similar STR properties in your area to determine competitive nightly rates. Factor in your expenses, such as mortgage payments, utilities, and cleaning fees, to ensure profitability. Use dynamic pricing tools to automatically adjust rates based on demand, seasonality, and other factors.
5. Create a compelling listing: Craft an attractive and informative listing on popular STR platforms like Airbnb and Vrbo. Use high-quality photos, write a detailed description highlighting your property's unique features, and clearly outline house rules and expectations.
6. Understand tax obligations: Register with the North Carolina Department of Revenue for a sales and use tax permit. Collect and remit the appropriate state and local sales and occupancy taxes, which range from 6.75% to 7.5% depending on the county, plus an additional 1-8% for local occupancy taxes. Many STR platforms, like Airbnb, collect and remit taxes on your behalf for bookings made through their site.
7. Develop a guest communication strategy: Establish clear communication channels with your guests before, during, and after their stay. Provide detailed check-in instructions, promptly respond to inquiries, and address any concerns or issues that may arise.
8. Comply with ongoing requirements: Regularly review Guilford County's STR regulations to ensure ongoing compliance. Maintain accurate records of all bookings and expenses for tax purposes, and renew your zoning permit if the property owner or local operator changes. Consider hiring a property management company to handle day-to-day operations and ensure compliance with local laws.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Guilford County. Remember to prioritize guest satisfaction, maintain open communication with neighbors, and adapt to any changes in the regulatory landscape to ensure long-term success.

Who to Contact in Guilford County about Short-Term Rental Regulations and Zoning?

For inquiries about short-term rental regulations and zoning in Guilford County hosts can contact:

City of Greensboro Planning Department

1. Phone: (336) 373-2144
2. Email: planning@greensboro-nc.gov
3. Address: 300 W. Washington St., Greensboro, NC 27401

The Planning Department is responsible for enforcing the city's zoning regulations and can provide guidance on the permit application process and compliance with local ordinances.

Additionally, hosts may find the following Guilford County contacts helpful:

Guilford County Tax Department (for occupancy tax questions)

• Phone: (336) 641-4188
• Email: taxadmin@guilfordcountync.gov

Guilford County Environmental Health Division (for health and safety inspections)

• Phone: (336) 641-7777
• Email: EHSCustomerService@guilfordcountync.gov

Online communities and forums can also be valuable resources for Guilford County short-term rental hosts looking to connect with others and share experiences:

• Greensboro Airbnb Hosts Facebook Group: https://www.facebook.com/groups/gsoshosts/
• Triad Area Short Term Rental Alliance (TASTRA): https://www.tastra.org/
  Email: info@tastra.org
• Bigger Pockets Guilford County Short-Term Rental Forum: https://www.biggerpockets.com/forums/530/topics/guilford-county-str

By reaching out to the appropriate local government departments and engaging with online host communities, short-term rental operators in Guilford County can stay informed about regulations, seek guidance when needed, and learn from the experiences of fellow hosts in the area.

What Do Airbnb Hosts in Guilford County on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Guilford County have shared their experiences and opinions about local short-term rental regulations on various online forums. Here are some insights from real-life stories found on Reddit and Bigger Pockets:

Reddit - r/Charlotte thread: "I saw this sign in a neighborhood in NODA where half the houses are Airbnbs"

One user shared their friend's experience with a problematic Airbnb next door in Charlotte, where guests were constantly coming in, trashing the place, throwing huge parties, and harassing neighbors. The friend had tried to work with the Airbnb owner for two years to address the issues, but the owner was unresponsive.

Several commenters expressed concerns about the impact of short-term rentals on neighborhoods, with one stating, "There needs to be a limit of how many can actually be in Charlotte or per neighborhood or something."

Bigger Pockets Forum: "ADU or guest house in Connecticut shoreline areas"

While this thread is not specific to Guilford County, it highlights the importance of understanding local zoning ordinances and regulations when considering adding an accessory dwelling unit (ADU) or guest house for short-term rental income.

One user emphasized that regulations can vary depending on the specific community, even within the same county.

Bigger Pockets Forum: "Real Estate Market in Greensboro NC"

In a discussion about the Greensboro real estate market, one user mentioned that the city is considered "Mini-Charlotte" and is growing, albeit slowly. They suggest that investors looking into North Carolina should consider Greensboro as it aligns with various investment strategies.

While not directly addressing regulations, this thread indicates that some investors view Greensboro as a viable market despite regulatory challenges.

These forum discussions reveal that Airbnb hosts in Guilford County and surrounding areas have mixed experiences with local regulations. Some have faced difficulties with problematic guests and unresponsive owners, leading to calls for stricter limits on short-term rentals. Others emphasize the importance of understanding and complying with local zoning laws when operating an Airbnb.

Overall, hosts seem aware of the regulatory landscape and the potential impact on their businesses and communities. As Guilford County continues to refine its short-term rental policies, it will be crucial for hosts to stay informed and adapt to changes to ensure compliance and maintain positive relationships with neighbors.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.