Cary Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Cary, North Carolina?

Cary, North Carolina, does not have specific regulations for short-term rentals (STRs) like Airbnb or VRBO. However, the town has minimum housing standards that must be met by all dwelling units3.

Additionally, the state of North Carolina imposes only minimal regulations on the vacation rental industry, which include signing a written rental agreement between the landlord and tenant, providing fit premises, and adhering to safety standards2.

Starting a Short Term Rental Business in Cary

Starting a Short Term Rental Business in Cary, North Carolina is a straightforward process due to the absence of specific town regulations. Unlike some cities in North Carolina, Cary does not require a permit or zoning permit to operate a short-term rental2.

This means that individuals looking to venture into the short-term rental market in Cary are not burdened by excessive red tape or bureaucratic hurdles. However, it is important to note that while the town of Cary itself does not have regulations, potential hosts should check with their Homeowners Association (HOA) when considering a specific property, as some neighborhoods may have their own restrictions2.

In contrast to cities like Brevard and Raleigh, where specific zoning permits or regulations are required, Cary offers a more streamlined process for individuals looking to start a short-term rental business. This leniency, coupled with the town's appeal to business and leisure travelers, makes Cary an attractive location for those interested in entering the short-term rental market4.

The absence of stringent regulations in Cary provides an opportunity for individuals to capitalize on the growing demand for short-term rentals in the area. With the convenience of not needing a permit or zoning permit, coupled with the town's popularity among travelers, starting a short-term rental business in Cary presents an appealing prospect for potential hosts.

Short Term Rental Licensing Requirement in Cary

The town of Cary, North Carolina, does not require properties to be registered or licensed for short-term rentals (STRs) at the state level1. While the state laws prevent local governments from requiring licenses and permits for vacation rentals, they can still regulate them through zoning ordinances1. Cary, specifically, has no regulations on short-term rentals, but hosts are advised to check with their Homeowners Association (HOA) when considering a specific property2.

Additionally, the town has minimum housing standards that must be met by all dwelling units23.Given the lack of specific regulations, starting a short-term rental business in Cary is relatively straightforward. However, hosts should ensure that their property complies with the town's minimum housing standards and any applicable HOA rules23.

It's also important to adhere to safety standards, maintain smoke and carbon monoxide detecting equipment, and pay occupancy taxes to the appropriate governmental entities3.In terms of taxation, while Cary does not have specific taxes for short-term rentals, hosts are required to pay occupancy taxes to the relevant governmental entities1.

As for enforcement, Cary is considered Airbnb-friendly, and hosts operate in the area despite the absence of specific STR regulations4.For those interested in starting a short-term rental business in Cary, it's essential to ensure compliance with the town's minimum housing standards, HOA regulations, and safety requirements.

Additionally, hosts should be prepared to fulfill their tax obligations by paying occupancy taxes to the appropriate governmental entities23.

Required Documents for Cary Short Term Rentals

Cary, North Carolina, does not have specific regulations for short-term rentals (STRs) like Airbnb or VRBO. However, hosts must ensure that their property meets the minimum housing standards set by the town12.

Additionally, some Homeowners Associations (HOAs) may have language in their governing documents that only allow "non-transient" use, which would prohibit rentals shorter than 30 days5.Since Cary does not have specific regulations for STRs, there are no required documents for short-term rentals12.

However, hosts must ensure that their property meets the minimum housing standards set by the town12.To ensure that your property meets the minimum housing standards set by the town, contact the Minimum Housing Inspector at 311 within Cary or (919) 469-4000 outside of Cary or email 311@carync.gov1.It is important to note that while Cary does not have specific regulations for STRs, hosts must still comply with other contracts or rules that bind them, such as leases or condo agreements2.

Cary Short Term Rental Taxes

Cary, North Carolina, does not have specific regulations for short-term rentals (STRs) like Airbnb or VRBO. However, the town has minimum housing standards that must be met by all dwelling units1. Additionally, the state of North Carolina imposes taxes on short-term rentals.

Occupancy Tax

The occupancy tax is collected by Airbnb, Vrbo, and other major short-term rental platforms3. This tax is paid to local tax authorities and is based on the rental income from the property4.

Income Tax

As a North Carolina vacation rental host, you need to pay income tax on all taxable income, which includes rental income after applicable deductions3. The income tax is reported and paid once a year to the federal and state government4.

Location and Tax Jurisdictions

The location of your rental is crucial for short-term rental tax compliance. Your address determines which tax jurisdictions you're required to report to, which taxes you need to collect, and the appropriate tax rates4.

Voluntary Disclosure Agreement (VDA)

Short-term rental hosts in North Carolina may be able to take advantage of a voluntary disclosure agreement (VDA) to proactively disclose prior period tax liabilities4. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalties being waived4.

In summary, Cary does not have specific regulations for short-term rentals, but the state of North Carolina imposes taxes on short-term rentals. Hosts must pay occupancy taxes to local tax authorities and income tax on all taxable income3.

The location of the rental property determines the tax jurisdictions and rates4. Hosts can also take advantage of a VDA to proactively disclose prior period tax liabilities4.

North Carolina Wide Short Term Rental Rules

North Carolina imposes only minimal regulations on the vacation rental industry, and the state does not generally set short-term rental industry regulations. Instead, the responsibility of regulating short-term rentals falls on local governments. Short-term rentals are defined as reservations of fewer than 90 continuous days, and they are subject to state and local sales tax, administered by the North Carolina Department of Revenue, as well as local lodging taxes, administered by local tax jurisdictions12.

Short-term rentals of private residences, cottages, or similar accommodations for fewer than 15 days in a calendar year are tax-exempt unless they go through a rental marketplace2.

Short-term rentals are allowed in most zoning districts, subject to special requirements. As a general rule, overnight occupancy cannot exceed two people per bedroom plus two additional people per dwelling unit4.North Carolina STR operators are legally required to register with the North Carolina Department of Revenue and obtain a state Sales and Use Tax Certificate of Registration. Depending on the jurisdiction, hosts may also be required to register with their local tax authority and file local lodging tax returns1.

The state laws prevent local governments from requiring owners or managers of rental properties to register or license their short-term rentals at the state level. However, local governments can still regulate the industry through zoning rules. For example, in Raleigh, short-term rentals are permitted as a Limited Use in certain zoning districts, and hosts must apply for and procure a zoning permit from the city. Cooking facilities are not permitted in any bedroom, and hosts must maintain smoke detecting and carbon monoxide detecting equipment, adhere to housing codes, and pay taxes to appropriate governmental entities, including occupancy taxes3.

In April 2022, the North Carolina Court of Appeals ruled in Schroeder v. City of Wilmington that local governments cannot require licenses or permits from vacation rental owners or managers. However, local governments can still regulate the industry through zoning ordinances4.

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling for more than 15 days a year, you’re likely responsible for collecting, filing, and remitting short-term rental taxes to North Carolina tax authorities2.

Does Cary Strictly Enforce STR Rules?

Cary, North Carolina, is a favorable location for short-term rental (STR) hosts, as the town does not have specific regulations for such properties. According to HostScouts, the town of Cary has no regulations on short-term rentals, and it is advised to check with the homeowners' association (HOA) when considering a specific property.

Additionally, the town does not require a business license for registering short-term rentals. However, hosts should ensure that their properties meet the town's minimum housing standards, which specify design, maintenance, habitability, health, and safety requirements for residential and non-residential properties1.

The lack of specific regulations in Cary makes it an attractive market for potential investors and hosts. The town's STR regulations rating is 10.0 out of 10, indicating a highly favorable environment for STR activities. Moreover, the town's population size and growth, real estate prices and trends, and seasonality make it an appealing market for STR investments12.While the town of Cary does not strictly enforce specific STR rules, hosts should be aware of and comply with the minimum housing standards to ensure the habitability and safety of their properties. These standards are essential for maintaining a positive STR business in the area1.

In summary, Cary, North Carolina, presents a welcoming environment for individuals interested in starting a short-term rental business, with no specific town regulations on such properties. Hosts are encouraged to adhere to the town's minimum housing standards and consult with the HOA when considering a potential STR property.

How to Start a Short Term Rental Business in Cary?

Starting a short-term rental business in Cary, North Carolina, is relatively straightforward due to the town's lack of specific regulations for STRs. However, hosts must ensure that their property meets the minimum housing standards set by the town3. To get started, follow these steps:

• Check with your Homeowners Association (HOA): If you are considering a specific property, it is advisable to check with your HOA to ensure compliance with their rules and regulations1.
• Ensure minimum housing standards: Make sure your property meets the minimum housing standards set by the town of Cary3.
• Apply for state and county licenses: If applicable, apply for all state and county licenses required for your short-term rental business1.
• Adhere to safety standards: Ensure that your property adheres to safety standards, as required by the state of North Carolina2.
• Pay occupancy taxes: Pay occupancy taxes to appropriate governmental entities1.
• Market your property: Promote your short-term rental property through platforms like Airbnb, VRBO, and local listings to attract guests.
• Maintain compliance: Stay updated on any changes in local regulations and ensure compliance with all rules and guidelines.
• Consider professional management: If managing your short-term rental business becomes challenging, consider hiring a professional Airbnb management company to handle guest communication, cleaning, maintenance, and marketing4.

Who to Contact About Short Term Rental Regulations and Zoning?

Contact the Cary Planning Department at 919-469-4046 or planning@townofcary.org with questions.

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

Based on the information gathered, it is clear that the town of Cary, North Carolina, has specific regulations for short-term rentals (STRs) such as Airbnb. These regulations are outlined in the Town of Cary's Code of Ordinances, Section 4-4-4, which requires hosts to obtain a permit and adhere to guidelines related to occupancy limits, parking, noise, and safety1. While the state of North Carolina has minimal regulations for the vacation rental industry, Cary has its own set of rules that hosts must follow.

The regulations in Cary can make managing an Airbnb challenging due to the need to comply with the guidelines, competition, and guest expectations. However, the town is a popular destination for both business and leisure travelers, with a variety of accommodations available, from cozy apartments to spacious homes with pool access1.

The peak season for Airbnb stays and tourism in Cary is from May to October, with the highest demand during the summer months, attributed to the warm weather and outdoor activities1.Despite the regulations, hosts can benefit from the services offered by professional Airbnb management companies, which can assist with guest communication, cleaning, maintenance, and marketing, as well as ensuring compliance with local regulations1.

The most sought-after amenities in Cary include a convenient location near restaurants, shopping, and entertainment, high-speed internet, air conditioning, and parking. Popular locations for short-term rentals include neighborhoods near downtown Cary, Research Triangle Park, and the nearby cities of Raleigh and Durham1.

In summary, while Cary, North Carolina, has specific regulations for short-term rentals, it remains an attractive location for Airbnb hosts due to its popularity among travelers. Hosts can navigate the regulatory requirements with the help of professional management services and by offering the amenities and experiences that are in high demand among guests.