Short-Term Rental Status in Southport, NC

Short-term rentals are PROHIBITED in residential districts of Southport, North Carolina. As of July 8, 2021, the City of Southport adopted a comprehensive Short-Term Vacation Rental Ordinance that effectively bans new short-term rental operations in residential zoning districts (R-10, R-20, MF). Only properties with documented, verifiable bookings prior to July 8, 2021, can continue operating as legal nonconforming uses under strict conditions.

Starting a Short-Term Rental Business in Southport

For Existing Properties (Grandfathered Status)

If your property had verifiable bookings before July 8, 2021, you may qualify to continue operations by:

1. Obtaining a zoning permit from the City of Southport Development Services Department
2. Providing documented proof of bookings received prior to July 8, 2021
3. Submitting applications through the city's online portal before permit expiration dates
4. Maintaining annual permit renewals to preserve nonconforming status

For New Properties

New short-term vacation rentals cannot be established in residential zoning districts after July 8, 2021. However, properties in non-residential zoning districts may still be eligible for short-term rental permits, subject to specific use standards and regulations.

Homestay Alternative

Property owners living full-time in their residence may operate a homestay with up to two guest rooms, provided they meet all regulatory requirements and obtain proper permits.

Required Documents, Permits, and Licenses

Zoning Permit Requirements

• Annual zoning permit through the City of Southport Development Services Department
• Valid period: January 1 through December 31 of the year of issue
• Renewal requirement: Must be renewed annually before expiration
• Application portal: southportnc.viewpointcloud.com/categories/1087
• Alternative portal: southportnc.portal.opengov.com/

Documentation for Grandfathered Properties

• Proof of pre-July 8, 2021 bookings: Documented evidence of verifiable reservations
• Property ownership documentation: Recorded deed showing property ownership
• Completed zoning permit application with all required information
• Compliance documentation showing adherence to Unified Development Ordinance (UDO)

Insurance Requirements

• Short-term vacation rentals: Minimum $1,000,000 general liability insurance coverage
• Homestays: Minimum $500,000 general liability insurance coverage
• Coverage must include: Short-term rental use and guest-related incidents
• Certificate of insurance must be maintained and available for inspection

Tax Compliance

• Occupancy taxes paid to appropriate governmental entities
• Sales taxes paid to appropriate governmental entities
• Documentation of tax payments must be maintained

Specific Regulations for Short-Term Rentals

Operational Standards

1. Lodging only: No activities other than lodging permitted
2. Special events prohibited: Weddings, receptions, and large gatherings expressly forbidden
3. Maximum stay period: Less than 30 days per guest reservation
4. Signage restrictions: No exterior advertising or signage allowed
5. Lighting requirements: Exterior lighting must be residential in nature and comply with UDO standards

Guest Management Requirements

• Designated responsible party available 24/7 during rental periods
• Response time: Must respond to complaints within 45 minutes
• Proximity requirement: Responsible party must reside within 20 miles of property
• Posted information: Contact details must be conspicuously displayed in rental unit
• Rental rules posting: Maximum occupancy, noise ordinance hours, parking, emergency contacts, trash procedures

Parking and Occupancy

• Off-street parking: Must meet residential use requirements per UDO Section 3.14 D
• Guest limits: As specified in posted rental rules and permit conditions
• Vehicle restrictions: All guest vehicles must comply with residential parking requirements

Building and Safety Compliance

• Current building codes: Property must comply with all applicable building codes
• Fire safety: Must meet current fire code requirements
• Smoke and carbon monoxide detection: Required per applicable codes
• Housing code compliance: Must meet all current housing code standards

Enforcement and Violations

• Three-strike rule: Three final violations within any 365-day rolling period results in permit termination
• Ineligibility period: Three years following permit termination due to violations
• Discontinuance penalty: Nonconforming status lost if use discontinued for more than 180 consecutive days
• Permit renewal failure: Failure to renew annual permit results in forfeiture of nonconforming rights

Homestay Regulations (Alternative Option)

Eligibility Requirements

• Full-time residency: Operator must be permanent, year-round resident
• Presence requirement: Operator must be present during entire guest stay
• Primary residence: Property must be operator's primary home
• Maximum rooms: Limited to two guest rooms

Operational Standards

• No exterior advertising: No displays, goods, or services visible outside dwelling
• No food service: Cannot prepare or provide food/beverages to guests
• No special events: Weddings, receptions, large gatherings prohibited
• Maximum stay: 30 days or less per guest
• Insurance requirement: Minimum $500,000 general liability coverage

Contact Information for Local Authority

City of Southport Development Services Department

• Primary contact: City Clerk
• Phone: (910) 457-7900, ext. 1010
• General city information: (910) 457-7900
• Address: Southport City Hall, 1029 N. Howe Street, Southport, NC 28461
• Business hours: 8:30 AM - 5:00 PM (City observes State holidays)
• Website: cityofsouthport.com
• Development Services page: cityofsouthport.com/development-services/

Emergency Contacts

• Emergency: 911
• Non-emergency police: (910) 457-7911
• Non-emergency fire: (910) 457-7915

Source Links and Additional Resources

Official City Documents and Applications

• Short-term rental ordinance information: cityofsouthport.com/short-term-rental-ordinance-information/
• Short-term rental ordinance: cityofsouthport.com/short-term-rental-ordinance/
• Permit application portal: southportnc.viewpointcloud.com/categories/1087
• Alternative permit portal: southportnc.portal.opengov.com/
• Short-Term Vacation Rental Regulations (PDF): cityofsouthport.com/wp-content/uploads/2021/08/2021-0708_Southport-UDO_Article-3_Zoning.pdf#page=52
• Homestay Regulations (PDF): cityofsouthport.com/wp-content/uploads/2021/08/2021-0708_Southport-UDO_Article-3_Zoning.pdf#page=17
• Short-term rental FAQs: cityofsouthport.com/wp-content/uploads/2021/07/ShortTermRentalFAQs.pdf

Additional Resources

• City of Southport official website: cityofsouthport.com
• Development Services department: cityofsouthport.com/development-services/
• Unified Development Ordinance: Referenced on Development Services page

Important Considerations for Investors

Market Entry Challenges

The restrictive nature of Southport's short-term rental regulations presents significant barriers to new market entry. With new short-term rentals prohibited in residential districts, investment opportunities are severely limited to:

• Properties with pre-existing grandfathered status
• Non-residential zoned properties (limited availability)
• Homestay operations (requiring full-time residency)

Compliance Requirements

Existing operators face substantial ongoing compliance obligations, including annual permit renewals, insurance maintenance, tax payments, and strict operational standards. The three-strike violation policy and 180-day discontinuance rule create additional risks for property owners.

Alternative Investment Strategies

Given the regulatory constraints, investors should consider:

• Purchasing grandfathered properties: Acquire properties with existing legal nonconforming status
• Long-term rental strategies: Focus on traditional rental markets in residential areas
• Commercial district opportunities: Explore short-term rental possibilities in commercial zoning districts
• Homestay operations: Consider resident-occupied short-term rental opportunities

This comprehensive regulatory environment requires careful legal review and consultation with local authorities before making any short-term rental investment decisions in Southport, North Carolina.