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

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

Short-term rentals like Airbnb and VRBO have become increasingly popular in Buncombe County, North Carolina in recent years. However, the regulations around these rentals can be complex and vary depending on the specific location within the county. Here's what you need to know about short-term rental regulations in Buncombe County.

Starting a Short-Term Rental Business in Buncombe County, North Carolina

If you're considering starting a short-term rental business in Buncombe County, the first step is to determine whether your property is located within the city limits of Asheville or another municipality, or in an unincorporated area of the county.

Properties within the Asheville city limits are subject to the city's short-term rental regulations, which require a permit for whole-unit rentals in most cases. Homestays, where the long-term resident is present during the rental, are allowed in more areas but still require a permit.

For properties outside of Asheville, the rules depend on the specific municipality or whether the property is in an unincorporated area. In unincorporated Buncombe County, there are currently no specific regulations or permit requirements for short-term rentals. However, this may change in the near future as the county considers new restrictions.

Some key contacts for checking on short-term rental regulations in various parts of Buncombe County include:

• Buncombe County (unincorporated areas): 828-250-4856 or nathan.pennington@buncombecounty.org
• Black Mountain: 828-419-9300 (extension 604) or jennifer.tipton@townofblackmountain.org
• Woodfin: 828-253-4887 (ext. 1006) or bendannemiller@woodfin-nc.gov
• Weaverville: 828-645-7116 or jeller@weavervillenc.org
• Biltmore Forest: 828-274-0824 or jkanipe@biltmoreforest.org
• Montreat: 828-669-8002 (ext. 305) or zoning@townofmontreat.org

It's always best to check with your local jurisdiction to confirm the current rules before starting a short-term rental business. Even if permits are not required, there may be other regulations around issues like noise, parking, and safety that you'll need to follow.

Short-Term Rental Licensing Requirements in Buncombe County

To legally operate a short-term rental in unincorporated Buncombe County, property owners must obtain a permit from the county's Permits & Inspections Department. The permitting process ensures that STRs meet health, safety, and zoning requirements.

According to the Buncombe County Permits & Inspections website, the current requirements for obtaining an STR permit are:

1. Submit a completed application form, which can be found on the county's website or obtained at the permit office.
2. Provide proof of ownership of the property, such as a deed or tax record.
3. Submit a site plan showing the location of the STR unit on the property, as well as parking areas and any other relevant features.
4. Provide a floor plan of the STR unit, indicating the number and location of bedrooms, bathrooms, and other living spaces.
5. Obtain a Buncombe County Tourism Development Authority (BCTDA) account number for remitting occupancy taxes.
6. Pay the permit fee, which is currently $150 for a new STR permit.

Applications can be submitted in person at the Buncombe County Permits & Inspections office, located at 30 Valley Street in Asheville, or online through the county's

permit portal. The review process typically takes 7-10 business days, although this may vary depending on the volume of applications and the completeness of the submitted materials.

Once issued, STR permits must be renewed every two years. The renewal fee is also $150. Property owners must also keep their BCTDA account active and continue to remit occupancy taxes as required.

Failure to obtain or renew an STR permit can result in significant penalties. Operating an unlicensed STR is subject to a fine of $500 per day. Additionally, the county may issue a stop-work order and require the STR to cease operations until proper permitting is obtained.

It's important to note that these requirements apply only to unincorporated areas of Buncombe County. The City of Asheville and other municipalities have their own STR regulations and permitting processes, which may differ from the county's rules.

As the county considers changes to its STR ordinance in the coming months, these permitting requirements may evolve. Prospective and current STR operators should stay informed about any updates to the regulations and ensure they remain in compliance to avoid fines and disruptions to their business.

Required Documents for Buncombe County Short-Term Rentals

To apply for a short-term rental permit in unincorporated Buncombe County, property owners must submit several required documents. These documents help the county verify ownership, ensure the STR meets safety and zoning requirements, and facilitate the collection of occupancy taxes.

According to the Buncombe County Permits & Inspections Department, the required documents for an STR permit application include:

1. Completed Application Form: This form collects basic information about the property owner, the STR property, and the planned use of the rental. It serves as the official request for an STR permit. The form can be obtained on the county's website or at the permit office.
2. Proof of Property Ownership: Applicants must provide a copy of the deed or other legal document showing they own the property where the STR will operate. If the applicant is leasing the property, they must submit a copy of the lease agreement along with written permission from the property owner to operate an STR.
3. Site Plan: A detailed site plan is required to show the location of the STR unit on the property, as well as parking areas, driveways, and other relevant features. This helps the county ensure the STR meets zoning and safety requirements, such as setbacks and emergency access.
4. Floor Plan: Applicants must submit a floor plan of the STR unit, clearly labeling the number and location of bedrooms, bathrooms, and other living spaces. This document is used to verify that the STR meets building code and occupancy requirements.
5. BCTDA Account Number: Before applying for an STR permit, property owners must register with the Buncombe County Tourism Development Authority (BCTDA) to obtain an account number. This number is used to remit required occupancy taxes on STR revenue. Proof of a valid BCTDA account is required for permit approval.
6. Shared Access Agreement (if applicable): If the STR is accessed via a shared private driveway or road, the applicant must provide a written agreement from the adjacent property owner(s) granting permission for STR guests to use the shared access.

In addition to these required documents, applicants must also pay a $150 permit fee at the time of submission. All materials can be submitted together in person at the Buncombe County Permits & Inspections office or through the county's online portal.

Gathering these documents is a crucial step in the STR permitting process. Failure to provide all required materials can result in delays or denial of the permit application. Property owners should carefully review the county's requirements and ensure they have all necessary paperwork before beginning the application process.

Buncombe County Short-Term Rental Taxes

Short-term rental operators in Buncombe County are subject to several types of taxes, including state and local sales taxes and county occupancy taxes. Understanding these tax obligations is crucial for running a compliant and profitable STR business.

According to the Buncombe County Tax Department, the following taxes apply to STRs:

1. North Carolina State Sales Tax: The state of North Carolina imposes a 4.75% sales tax on the gross receipts from STR transactions. This tax is administered by the North Carolina Department of Revenue and is remitted along with the county sales tax.
2. Buncombe County Sales Tax: In addition to the state sales tax, Buncombe County levies a 2% local sales tax on STR revenue. This brings the total combined sales tax rate for STRs in the county to 6.75%.
3. Buncombe County Occupancy Tax: On top of the sales taxes, Buncombe County also imposes a 6% occupancy tax on the gross receipts from STR rentals. This tax is administered by the Buncombe County Tax Department and is used to fund tourism promotion and development in the county.

STR operators are responsible for collecting these taxes from their guests and remitting them to the appropriate authorities. However, if all of an operator's bookings are made through a marketplace platform like Airbnb or Vrbo, the marketplace may collect and remit the taxes on the operator's behalf.

It's important to note that even if a marketplace is handling tax collection, STR operators are still required to register with the North Carolina Department of Revenue and may also need to register with the Buncombe County Tax Department.

Deductions and Write-Offs

While STR operators must pay the required taxes on their rental income, they may also be able to claim certain deductions and write-offs to reduce their tax liability. Some common STR tax deductions include:

1. Mortgage interest and property taxes
2. Utilities, such as electricity, water, and internet
3. Cleaning fees and maintenance expenses
4. Supplies and amenities provided to guests
5. Depreciation of furniture and equipment used in the rental
6. Advertising and marketing costs
7. Business insurance premiums

To claim these deductions, STR operators should keep detailed records of their income and expenses and consult with a tax professional to ensure they are following all applicable tax laws and regulations.

By understanding the tax obligations and potential deductions associated with running an STR in Buncombe County, operators can ensure they are in compliance with local and state laws while also maximizing their profitability.

North Carolina Statewide Short-Term Rental Rules

While much of the regulation of short-term rentals in North Carolina happens at the local level, there are some statewide rules and laws that affect Buncombe County hosts. Understanding these regulations is essential for operating a compliant and successful STR business.

The primary statewide law governing STRs is the North Carolina Vacation Rental Act (VRA). This law, which was enacted in 1999, applies to all vacation rental agreements in the state, including those for STRs. The VRA establishes basic requirements for vacation rental agreements, such as the need for a written contract, disclosure of fees, and procedures for handling tenant security deposits.

However, the VRA does not specifically address many of the zoning, permitting, and tax issues that are most relevant to STR hosts. These matters are largely left up to local governments to regulate.

In fact, in 2019, the North Carolina state legislature passed a law (S.483) that prohibits local governments from banning STRs outright. This means that while cities and counties can impose reasonable regulations on STRs, they cannot completely prohibit them.

That said, there are some statewide tax requirements that apply to STRs. In North Carolina, STR hosts must collect and remit state sales tax on their rental income. As of 2024, the statewide sales tax rate is 4.75%, but local governments can levy additional sales taxes on top of this.

STR hosts in North Carolina are also subject to the state's occupancy tax, which is a tax on the rental of accommodations. The statewide occupancy tax rate is currently 6%, but some counties, including Buncombe, have been authorized to levy higher rates.

It's important to note that these statewide rules and taxes are in addition to any local regulations and taxes that may apply. STR hosts in Buncombe County need to be aware of and comply with both state and local requirements.

While North Carolina does not currently require STRs to be registered or licensed at the state level, this could change in the future as the STR industry continues to grow and evolve. Hosts should stay informed about any updates to state laws and regulations that could affect their business.

By understanding and following the statewide rules for STRs, hosts in Buncombe County can ensure they are operating legally and responsibly. Combined with knowledge of local regulations, this sets the stage for a successful and sustainable STR business.

Does Buncombe County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Buncombe County appears to be relatively strict in enforcing its short-term rental regulations compared to some other jurisdictions. Many hosts report that the county actively monitors STR listings and cracks down on those operating without proper permits or in violation of zoning rules.

One Asheville-area host on BiggerPockets shared their experience: "Buncombe County definitely keeps a close eye on STRs. I got a notice from the permit office within a week of listing my property on Airbnb. Had to go through the whole permitting process before I could start hosting again. They don't mess around here."

Another Reddit user commented: "I've heard of several people getting fined for running unpermitted STRs in the county. It's not like some places where enforcement is pretty lax. Buncombe takes its rules seriously and has the staff to back it up."

That said, Buncombe County is not necessarily anti-STR. The county allows STRs in many areas as long as hosts obtain the proper permits and follow all applicable regulations. In fact, the county's

STR permitting process is fairly straightforward compared to some cities that have more complex requirements.

However, with the county considering new restrictions on STRs in 2024, the regulatory landscape may become more challenging for hosts in the future. If adopted, the proposed rules would limit new STRs to certain zoning districts and cap their size, among other requirements.

Despite these potential challenges, many hosts continue to operate STRs in Buncombe County. The lure of tourist demand and rental income is strong, even with the need to navigate permitting and zoning rules. As one BiggerPockets user put it: "It's more work to run an STR here than in some places, but it can still be a good investment if you do your homework and follow the regs."

Overall, while Buncombe County may not be the most STR-friendly market compared to some other vacation destinations, it is still possible to run a successful and compliant STR business there. Hosts need to be proactive about understanding and following the county's rules, and should stay informed about any regulatory changes on the horizon. With proper due diligence and a commitment to compliance, STRs can still be a viable investment strategy in Buncombe County.

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

Starting a short-term rental business in Buncombe County can be a rewarding venture, but it's important to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a step-by-step guide to getting started:

1. Research local regulations: Before investing in an STR property, thoroughly research Buncombe County's current STR regulations, including zoning restrictions, permitting requirements, and tax obligations. Consult the county's Planning Department and Tax Department websites, and consider attending local government meetings to stay informed about any proposed changes to STR rules.
2. Choose a property: Identify a property that meets the county's STR regulations and has strong potential for rental income. Consider factors like location, proximity to tourist attractions, amenities, and local competition. Work with a real estate agent experienced in STRs to find the right property for your investment goals.
3. Obtain necessary permits: Apply for a Buncombe County STR permit through the county's Permits & Inspections Department. The application requires proof of ownership, a site plan, a floor plan, and a $150 permit fee. Allow 7-10 business days for processing. If your property is within Asheville city limits, you'll need to apply for a separate city permit.
4. Register for taxes: Register with the North Carolina Department of Revenue and the Buncombe County Tax Department to obtain a sales tax ID and an occupancy tax account. You'll need to collect and remit state and local sales taxes (6.75% total) and county occupancy taxes (6%) on your STR income.
5. Prepare your property: Furnish and equip your STR to create an inviting and comfortable space for guests. Invest in quality furniture, linens, and amenities that match your target market. Consider hiring a professional photographer to showcase your property's best features in your listing photos.
6. Create a listing:List your STR on popular platforms like Airbnb and VRBO. Craft a compelling listing title and description that highlights your property's unique selling points. Be transparent about your rental's amenities, house rules, and cancellation policy. Set competitive rates based on local market research and your investment goals.
7. Manage your bookings: Establish a system for managing bookings, guest communication, and turnover cleanings. Consider using STR management software or hiring a professional property manager to streamline operations and provide a seamless guest experience. Be responsive to guest inquiries and maintain a high level of cleanliness and maintenance.
8. Promote your listing: Leverage social media, targeted advertising, and cross-promotion with local businesses to attract bookings. Encourage satisfied guests to leave reviews on your listing to build trust and credibility with future guests. Continuously monitor and adjust your pricing and marketing strategies based on performance data and market trends.
9. Stay compliant and informed: Keep accurate records of your STR income and expenses for tax purposes. Stay up-to-date on any changes to Buncombe County's STR regulations, and renew your permits as required. Consider joining local STR host groups or attending industry events to network with other hosts and stay informed about best practices.

By following these steps and staying proactive about compliance and guest satisfaction, you can build a successful STR business in Buncombe County. While the regulatory landscape may evolve in the coming years, a well-run STR can still be a lucrative investment in this popular tourist destination.

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

If you have questions or concerns about short-term rental regulations and zoning in Buncombe County, there are several key contacts and resources available to help you navigate the process.

The primary county department responsible for STR regulations is the Buncombe County Planning & Development Department. This department develops and enforces ordinances, policies, and procedures related to land use in the county.

To contact the Planning & Development Department directly, you can:

1. Email: planninginfo@buncombecounty.org
2. Phone: (828) 250-4830
3. Visit in person: 46 Valley Street, Asheville, NC 28801

For specific questions about STR permits and inspections, reach out to the county's Permits & Inspections Department:

1. Email: permits@buncombecounty.org
2. Phone: (828) 250-5360

In addition to these county contacts, there are several other resources and communities that STR hosts in Buncombe County may find helpful:

• The Buncombe County Planning Board holds regular meetings to discuss land use issues, including STR regulations. To submit a public comment to the board for consideration, email planninginfo@buncombecounty.org.
• The county has created an STR advisory committee to provide input on potential changes to STR rules. While this committee is not a decision-making body, it can be a valuable source of information and discussion for hosts.
• Local host groups on platforms like Airbnb and VRBO can provide peer support and advice for navigating STR regulations. Search for Buncombe County or Asheville host groups on these platforms to connect with other local hosts.
• Real estate investing forums like BiggerPockets often have discussions and resources related to STR investing and regulations. Search these forums for Buncombe County-specific threads or start a new discussion to get input from experienced investors.

By engaging with these county contacts and community resources, STR hosts in Buncombe County can stay informed about current regulations and proposed changes, and get support for running a compliant and successful rental business. Building relationships with local officials and other hosts can also help create a more collaborative and productive dialogue around STR policy in the county.

What Do Airbnb Hosts in Buncombe County on Reddit and BiggerPockets Think about Local Regulations?

Buncombe County's short-term rental regulations are a hot topic of discussion among local hosts on forums like Reddit and BiggerPockets. Many hosts are concerned about the impact of current and proposed rules on their businesses, while others see the need for some level of regulation to balance the interests of residents and investors.

Here are a few notable examples of what Buncombe County hosts are saying about STR regulations:

On Reddit, a recent thread titled "Will Airbnb and VRBO take a hit in Buncombe County?" sparked a lively debate about the county's proposed restrictions on STRs. One host commented, "I'm all for reasonable regulations, but some of these proposals go too far. Limiting the size of STRs and banning them in certain districts could really hurt a lot of small business owners who rely on this income."

Another Reddit user shared their experience with the county's enforcement of existing rules: "I got reported for operating an 'illegal' Airbnb in Asheville city limits. Had to jump through a lot of hoops to get permitted and back in business. The county doesn't mess around with enforcement, so hosts need to make sure they're following all the regs."

On BiggerPockets, a host asked for advice on navigating Buncombe County's STR regulations: "I'm considering buying a property in Buncombe County for short-term rentals, but I'm worried about the regulatory uncertainty. Does anyone have experience working with the county's permitting process and staying compliant?"

Another BiggerPockets user expressed frustration with the county's proposed restrictions: "I've been investing in Asheville STRs for a while, and these new rules could really throw a wrench in my plans. I get the need for some oversight, but limiting the size and location of STRs seems like an overreach. It's going to hurt a lot of small investors who are just trying to earn a living."

Overall, the sentiment among Buncombe County hosts seems to be a mix of understanding the need for some regulation and concern about the impact of overly restrictive rules on their businesses. Many hosts are actively engaging with local officials and advocacy groups to make their voices heard as the county considers changes to its STR ordinances.

By staying informed and involved in these policy discussions, hosts can help shape the future of STR regulation in Buncombe County and find a balance that works for all stakeholders.

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.