Overview: Are Short-Term Rentals Allowed in Asheville, North Carolina?

Short-term rentals are allowed in Asheville, but with strict differentiation by type and location. Asheville recognizes two categories:

• Homestays: Renting 1–2 bedrooms in the dwelling where the owner lives full-time, for stays under 30 days. Homestays are permitted in residentially zoned areas and require a city permit.
• Short-Term Vacation Rentals (STVRs): Renting an entire dwelling unit for stays under 30 days. STVRs are permitted only in the resort zoning district.

Non-owner-occupied, whole-unit short-term rentals are effectively prohibited in most residential areas. Property owners must comply with city zoning, permitting, and tax requirements, as well as North Carolina’s statewide Vacation Rental Act. Violations can result in notice of violation, daily fines, and legal action.

Sources: www.ashevillenc.gov/department/development-services/compliance-division/homestays-and-short-term-rental-violations/; www.ashevillenc.gov/service/apply-for-a-homestay-permit/; codelibrary.amlegal.com/codes/ashevillenc/latest/asheville_nc/0-0-0-8684

How to Start a Short-Term Rental Business in Asheville

A compliant operation requires careful steps from zoning verification through ongoing compliance and taxes:

1. Choose your STR model

   • Homestay (owner-occupied, 1–2 bedrooms, <30 days) in residential zoning.
   • STVR (entire dwelling unit) only in the resort zoning district.

2. Confirm zoning and eligibility

   • Validate zoning classification with Asheville Planning & Urban Design. Confirm whether the property is in the resort district (for STVR) or residentially zoned (for homestay). Verify local land use restrictions, density limits, and proximity constraints.

3. Select a track and apply

   • For homestays: Apply for a city homestay permit (new or renewal). Applications require co-signature by the full-time resident and property owner (if different).
   • For STVRs: Obtain the required annual resort zoning permit.

4. Prepare required documents

   • Identification, ownership and residency proofs, floor plan, owner form, local contact details, and zoning/technology fees. See detailed lists in “Required Documents” below.

5. Safety and code compliance

   • Install/maintain smoke alarms and carbon monoxide alarms. Follow applicable building and housing codes, electrical, plumbing, sanitation, heating/ventilation, and other safety requirements. Comply with elevator safety if applicable.

6. Insurance

   • Maintain liability insurance; insurers commonly require evidence during permitting. Standard homeowners policies typically exclude short-term rental commercial activity.

7. Taxes and registration

   • Register for and collect Buncombe County occupancy tax and North Carolina sales tax. File and remit returns as required.

8. Operations and compliance

   • No exterior advertising signage. Use residential-exterior lighting. Ensure off-street parking (STVR). Comply with noise, nuisance, and other city ordinances. Keep guest registers for a period (if required by local rules). Post the permit number in advertisements where applicable.

9. Ongoing oversight

   • Expect inspections or reviews (STVR permits often require annual review/inspection). Monitor legislative and code updates. Respond to compliance inquiries promptly.

Sources: www.ashevillenc.gov/department/development-services/compliance-division/homestays-and-short-term-rental-violations/; www.ashevillenc.gov/service/apply-for-a-homestay-permit/; www.gosummer.com/post/north-carolina-short-term-rental-laws; www.checkmaterentals.com/blog/north-carolina-short-term-rental-laws

Required Documents, Permits, Licenses, and Guidelines

Homestay (Asheville)

• Application form (new or renewal).
• Applicant information (full-time resident) and co-applicant if owner is different.
• Property address; number of bedrooms and square footage.
• Two forms of proof of residency.
• Owner form (owner attestation/authorization).
• Floor plan of the dwelling.
• Zoning application and technology fee (current fee is $202).

Operational rules for homestays:

• Owner must reside in the dwelling full-time.
• Rent 1–2 bedrooms only.
• No additional off-street parking required.
• Not located within a detached accessory structure.
• No signage; exterior lighting must be residential in nature.
• Comply with building codes and applicable taxes.

Short-Term Vacation Rental (Asheville)

• Resort zoning district verification.
• Annual zoning permit for STVR.
• Off-street parking plan.
• Liability insurance.
• Compliance with building codes and tax obligations.
• Annual review and inspection for permit compliance.

Operational rules for STVRs:

• No advertising signage visible from outside.
• No activities other than lodging.
• Residential exterior lighting.
• No signage; maintain off-street parking.
• Comply with taxes (occupancy and sales).

North Carolina Vacation Rental Act (Statewide; applies to Asheville operators)

• Written vacation rental agreement signed by guest, detailing fees, handling of funds, and rights/obligations.
• Trust account at a federally insured institution for deposits and rent.
• Maintain property in fit/habitable condition; keep common areas safe.
• Maintain electrical, plumbing, sanitary, HVAC, and appliances in good working order.
• Provide operable smoke detectors and at least one carbon monoxide alarm per unit per level.
• Elevator safety compliance where applicable.
• Compliance with building and housing codes.

Tax Registration and Filings

• Occupancy tax: Buncombe County 6% (city/county combined rate).
• Sales tax: 7% (state/local combined rate).
• Income tax: Report gross rental income and file with applicable federal/state/local authorities.

Contact and Code References

• Homestay permitting contacts and online application/renewal links are provided by Asheville Development Services (see “Contact Information” and “Source Links” below).
• Asheville Code of Ordinances, Item 9 (Homestays) and general zoning for STVRs.

Sources: www.ashevillenc.gov/service/apply-for-a-homestay-permit/; codelibrary.amlegal.com/codes/ashevillenc/latest/asheville_nc/0-0-0-8684; www.gosummer.com/post/north-carolina-short-term-rental-laws; www.wunc.org/2024-01-31/short-term-rentals-in-buncombe-county-frequently-asked-questions

Specific Regulations: Asheville (City), Buncombe County (Unincorporated), and North Carolina (State)

Asheville (City)

• Homestays: Permitted in residential zoning with owner living full-time; rent 1–2 bedrooms; stays under 30 days; permit required; one permit per person/household/entity; one permit per parcel/lot.
• STVRs (entire dwelling): Only permitted in resort zoning district; annual permit required; annual review/inspection.
• Operational standards: No exterior signage; residential exterior lighting; off-street parking (STVR); liability insurance; compliance with codes and taxes.
• Enforcement: Notice of violation, daily fines (e.g., $500/day), potential legal action for violations.
• As of November 2023: 861 homestays and 176 STVRs registered with the city.

Buncombe County (Unincorporated Areas, outside Asheville)

• Short-term rentals allowed in most areas except near Asheville Regional Airport.
• Floor area cap: 9,000 square feet for short-term rentals.
• County rules apply only outside incorporated municipalities; the City of Asheville sets its own rules.
• Proposed 2024 restrictions: Limit new STRs to certain districts; reduce permitted square footage; prohibit STRs in manufactured home parks and affordable housing developments; limit to single-family detached units; add parking/waste requirements; create grandfathering (zoning permit) for existing STRs. Check current status of any adopted changes.

North Carolina (State)

• Vacation Rental Act (Chapter 42A): Defines vacation rentals; requires written agreements; mandates trust accounts; establishes safety/maintenance standards; does not preempt local zoning/permits.
• Local occupancy and sales taxes apply; hosts must register, collect, and remit.
• State sales tax is 4.75%; combined local sales taxes vary. In Buncombe County, the combined sales tax rate is 7%.

Sources: www.ashevillenc.gov/department/development-services/compliance-division/homestays-and-short-term-rental-violations/; www.wunc.org/2024-01-31/short-term-rentals-in-buncombe-county-frequently-asked-questions; www.gosummer.com/post/north-carolina-short-term-rental-laws; www.checkmaterentals.com/blog/north-carolina-short-term-rental-laws

Contact Information (Local Authority in Charge of STRs)

City of Asheville – Development Services, Compliance Division (Code Enforcement)

• Main phone: 828-251-1122
• Address: 70 Court Plaza, P.O. Box 7148, Asheville, NC 28802
• Homestay permitting contacts:
  • Shannon Morgan, Code Enforcement Officer: smorgan@ashevillenc.gov
  • homestayinspections@ashevillenc.gov
• Homestay permit application (new): form.jotform.com/80596045369163
• Homestay permit renewal: form.jotform.com/70245119738155
• City of Asheville website: www.ashevillenc.gov/

Asheville App (Compliance and complaints)

• Submit homestay or STVR complaints to the Compliance Division.
• Business hours: M–F 8:30 am–5:00 pm (closed public holidays). Investigations may occur outside business hours; staff are not on-call.
• For safety emergencies, call 911.
• App portal: www.ashevillenc.gov/ashevilleapp

Sources: www.ashevillenc.gov/department/development-services/compliance-division/homestays-and-short-term-rental-violations/; www.ashevillenc.gov/service/apply-for-a-homestay-permit/; www.ashevillenc.gov/ashevilleapp

Source Links

• Asheville Development Services – Homestays and Short-Term Rental Violations: www.ashevillenc.gov/department/development-services/compliance-division/homestays-and-short-term-rental-violations/
• City of Asheville – Apply for a Homestay Permit (new): form.jotform.com/80596045369163
• City of Asheville – Renew Homestay Permit: form.jotform.com/70245119738155
• City of Asheville – Apply for a Homestay Permit (service page): www.ashevillenc.gov/service/apply-for-a-homestay-permit/
• Asheville Code of Ordinances – Item 9 Homestays: codelibrary.amlegal.com/codes/ashevillenc/latest/asheville_nc/0-0-0-8684
• WUNC – Buncombe County STRs FAQ (context on city vs. county): www.wunc.org/2024-01-31/short-term-rentals-in-buncombe-county-frequently-asked-questions
• Summer – North Carolina Short-Term Rental Laws (state-level overview, taxes, documents): www.gosummer.com/post/north-carolina-short-term-rental-laws
• Checkmate Rentals – North Carolina STR Laws (operational and safety detail): www.checkmaterentals.com/blog/north-carolina-short-term-rental-laws

Notes for investors:

• Focus on owner-occupied homestays for most residential areas in Asheville. Non-owner-occupied STVRs are largely restricted to the resort zoning district.
• Budget for permit fees, inspections, insurance, and tax registration. Expect ongoing compliance reviews and code enforcement activity.
• Monitor county-level changes in unincorporated Buncombe and state legislative updates to stay ahead of rule shifts.