This page is only designed to give you an overview of the local requirements, but it is your duty to know and comply with the local laws. misterb&b is not a legal adviser : you should read carefully the relevant laws and contact a local adviser or the local authorities for further understanding.
The City of Asheville has modified its Unified Development Ordinance (Chapter 7 of Code of Ordinances) in order to regulate short-term rentals, by the adoption of Homestay Ordinance November 17, 2015 and Ordinance 4505 May 17, 2016.
Definition and zoning restrictions
The City of Asheville allows 2 types of paid overnight lodging accommodations within a home or apartment, for no more than 30 days :
- Homestay (section 7-2-5 of the Code of Ordinances): homestays are private, resident occupied dwellings, with up to two guest rooms where overnight lodging accommodations are provided to transients for compensation and where the use is subordinate and incidental to the main residential use of the building. Homestays are allowed in every residentially-zoned areas, if they meet the regulatory requirements for homestays and obtain a homestay permit (section 7-8-1(d) of the Code of Ordinances).
- Short-term rentals : short-term rentals correspond to the renting of property for overnight stays less than 30 days, while the Owner does not reside in the home. Short-term rentals of an entire dwelling unit are only permitted in nonresidential zoning districts that allow “lodging facilities” (see Lodging > Lodging facilities at section 7-8-1(d) of the Code of Ordinances).
- Homestay permit: operating a homestay in Asheville requires to apply, before beginning of activity, for a permit. It requires some supporting documents, as proof of residency. See the homestay application form for more details.
- Short-term rental permit: operating a short-term rental may require a change of use permit (from residential to commercial use). You can find here more informations and relevant forms for permit in Asheville on this page.
Requirements / Standards
All current city codes applies over those 2 types of short-term rentals, including without limitation, buildings (Chapter 4 of the Asheville City Code), fire prevention (Chapter 6), noise disturbance (Chapter 10). See the Code of Ordinances of the City of Asheville to check out compliance with those regulations and others.
- Homestay (see section 7-16-1 c.9.) : must be operated out of your primary residence and the Owner must be residing in the dwelling unit during Guests’ stay. A maximum of two bedrooms can be used, and no other activities or services than lodging should be provided. The homestay owner or operator shall maintain liability insurance on the property, which covers the homestay use and homestay guests.
- Short-term rental : the short-term rental Owner or operator shall maintain liability insurance on the property, which covers the lodging use and short-term rental Guests. No activities other than lodging shall be provided.
Different tax may be levied on your rental activity :
- Buncombe County Occupancy tax : the County levies an Occupancy Tax of 6% on gross receipts derived from the rental of any lodging. It is paid by the Guests, but collected and remitted by the Hosts. You can find informations about the remittance procedure (including remittance forms) on this page.
- State of North Carolina and Buncombe County Sales tax : the gross receipts derived from the rental of any lodging are subjected to sales tax (7% in total). Hosts can use the online business registration system to register to report and remit tax due. You can find informations about the remittance procedure (including remittance forms) on this page.