Asheville Short-Term Rental Rules Explained

Thinking about buying a home or acreage in Asheville and turning part of it into a short-term rental? The rules can feel confusing, especially if you are comparing homestays with whole-home rentals across different neighborhoods. You want clarity before you invest, so you can plan with confidence and avoid costly mistakes. This guide breaks down the essentials and gives you a simple due-diligence checklist you can use on any property in Asheville or Buncombe County. Let’s dive in.

What counts as a short-term rental

Short-term rentals are furnished stays for short periods, typically under 30 days. Asheville looks at two main categories that drive your path to approval and operations.

• Homestay (owner-occupied): You live in the home as your principal residence and rent out a room or part of the dwelling, often while you are on-site. These are usually treated more leniently, but you still need to register and follow local rules.
• Whole-home (non-owner-occupied): You rent the entire home when you are not present. These rentals face stricter zoning limits and may need special approvals or may not be allowed in certain residential zones.

To qualify for a homestay, you will likely need to show that the property is your principal residence. Cities often require proof such as a driver’s license, voter registration, or utility bills at that address. Always confirm Asheville’s exact standards before you apply.

Homestay vs whole-home rules

Asheville generally treats homestays more flexibly than whole-home STRs. Whole-home rentals are often limited by zoning or may require a conditional or special use approval. Some locations allow them by right, some allow them with conditions, and others do not allow them at all.

Your first decision point is whether you plan to live in the home as your principal residence. If yes, the homestay pathway may be available with a shorter approval process. If no, plan for a deeper review of the property’s zoning and a possible hearing or permit process for whole-home use.

Zoning and overlays in Asheville

Location is everything with STRs. Zoning, overlay districts, and historic protections can all affect your options.

• Start by finding the parcel on the City of Asheville’s GIS and zoning resources. Identify the zoning district and any overlays, such as historic or conservation districts.
• Check how the zoning treats STRs. Look for whether homestays and whole-home rentals are allowed by right, allowed with a permit, or not allowed.
• If the property is in a historic district, expect added review and potential design or parking conditions.
• Do not forget private rules. HOA covenants, condo bylaws, or deed restrictions can prohibit STRs even if the city allows them.

Permits, registration, and inspections

Most STRs require a city registration or permit before you can list or host guests.

• Expect to provide contact information for a local 24/7 agent or manager who can respond to issues.
• Be ready for safety checks and conditions, such as smoke and CO detectors, safe egress, posted occupancy limits, and a parking plan.
• Some programs use self-certification with spot checks. Others require an inspection prior to approval.
• Permits are often annual. Fees, renewals, and revocation rules apply for repeat violations. Confirm current requirements on the City of Asheville’s website.

Taxes and financial compliance

Short-term rentals trigger taxes at both the county and state levels.

• Register for and collect the local room occupancy tax through Buncombe County. Filing schedules and rates are set locally.
• Register with the North Carolina Department of Revenue for applicable state sales and lodging taxes.
• Some booking platforms collect certain taxes on your behalf, but you are still responsible for correct registration, filings, and any taxes the platform does not remit.

You can begin with the City of Asheville’s website, the Buncombe County Tax Administration, and the NC Department of Revenue for registration steps and current rates.

• Visit the City of Asheville’s website for program and permitting guidance: City of Asheville
• Explore county tax registration for room occupancy tax: Buncombe County Tax Administration
• Learn about state registration and remittance: NC Department of Revenue

Enforcement and penalties

Cities typically enforce STR rules through registration checks and complaints. Common triggers include operating without a permit, advertising before approval, exceeding occupancy limits, inadequate parking, nuisance or noise complaints, and failure to remit taxes. Penalties can include fines, permit suspension or revocation, and forced de-listings. Repeat violations usually lead to stiffer penalties.

Step-by-step due diligence

Use this checklist to evaluate any Asheville or Buncombe County property for STR potential.

1. Confirm zoning and overlays

• Look up the parcel’s zoning and any overlays. Note whether whole-home STRs are allowed by right, allowed with conditions, or not allowed. Homestays may be more broadly allowed but still require registration.

2. Decide your pathway

• Will this be your principal residence? If yes, plan for a homestay path. If no, prepare for whole-home requirements and possible conditional approvals.

3. Map your permit steps

• Identify your permit type, application forms, required documents, and whether a plan review or inspection is needed. Typical items include floor plans, parking plan, and proof of principal residence for homestays.

4. Verify taxes

• Register with Buncombe County for room occupancy tax and with the NC Department of Revenue for state taxes. Learn filing schedules and set up systems to collect and remit.

5. Check private restrictions

• Review HOA rules, condo bylaws, and deed restrictions for any STR limitations or bans.

6. Budget for operations

• Account for a local manager or 24/7 contact, cleaning, maintenance, noise monitoring if needed, and waste service. Confirm any parking and signage rules.

7. Insurance and risk

• Talk to your insurer. Standard homeowner policies often exclude STR activity. Ask about an STR endorsement or a commercial policy.

8. Deal review for acquisitions

• If you are buying an existing STR, confirm any current permit status, whether the permit is transferable, enforcement history, tax filings, and actual performance data.

Costs and timelines to expect

Processing times vary by permit type and whether hearings or conditional approvals are required. Plan for a range from days to months. Budget for annual permit fees, taxes, insurance premiums, property management, safety equipment, and possible parking or site upgrades. Build a reserve for compliance updates if ordinance changes occur.

Common pitfalls to avoid

• Assuming a property can operate as an STR without verifying zoning and overlays.
• Treating a second home as a homestay without meeting principal residence proof.
• Overlooking HOA or condo bans that override city allowances.
• Listing before permits are issued or taxes are registered.
• Relying on booking platforms to handle all taxes and compliance.
• Underestimating parking, noise, or neighbor impacts that can lead to complaints.

How to verify official guidance

Policies can change, so always verify details directly with city and county sources.

• Use the City of Asheville website to find Short-Term Rental resources, the Planning and Development pages, and the zoning code.
• Access Buncombe County’s tax pages for room occupancy tax registration and filing schedules.
• Register with the NC Department of Revenue for sales and lodging taxes.
• For parcels in historic districts, contact local preservation staff for additional requirements.
• When in doubt, speak with city planning or permitting staff before you commit to a purchase or renovation plan.

Local insights for investors

Asheville’s STR landscape is shaped by neighborhood context, parking supply, and community sentiment. A strong management plan and responsive local contact help prevent complaints. If you are building a pro forma, consider using third-party analytics services for occupancy and average daily rate estimates, then cross-check with on-the-ground conditions and seasonality. Keep an eye on City Council agendas for potential ordinance updates.

Work with a local expert

You deserve a clear roadmap, not guesswork. Whether you are exploring a North Asheville homestay, a Biltmore-area pied-à-terre, or acreage with guest quarters, a tailored property review can save time and reduce risk. If you want a parcel-specific due-diligence checklist with zoning notes and a likely permit pathway, reach out and share the address.

For curated guidance on Asheville homes and land, connect with Kim Gentry Justus at Christie's International Real Estate for a private consultation.

FAQs

What is the difference between homestay and whole-home STR in Asheville?

• A homestay is owner-occupied and tied to your principal residence, while a whole-home STR is rented when you are not present and faces stricter zoning limits and possible special approvals.

Are whole-home STRs allowed in Asheville residential zones?

• It depends on zoning and overlays, and some areas may require conditional approvals or not allow whole-home STRs at all, so confirm the parcel’s zoning and permitted uses before you proceed.

How do I check zoning for a specific Asheville address?

• Use the City of Asheville’s GIS and zoning resources to look up the parcel’s district and overlays, then confirm whether STRs are allowed by right, by permit, or not allowed in that zone.

What proof is needed for a homestay in Asheville?

• Cities commonly ask for proof of principal residence such as a driver’s license, voter registration, or utility bills at that address, and you should confirm Asheville’s current documentation standards before applying.

Do I need to collect taxes on my Asheville STR?

• Yes, expect to register for Buncombe County’s room occupancy tax and with the NC Department of Revenue for state sales and lodging taxes, and make sure your filing system matches required schedules.

Can my HOA or condo prohibit short-term rentals?

• Yes, private covenants and bylaws can prohibit or restrict STRs even if the city allows them, so review those documents early in your due diligence.

How long does it take to get an STR permit in Asheville?

• Timelines vary by permit type and whether hearings or inspections are required, so plan for a range from days to months and confirm current processing times with city staff.

Are existing STR permits transferable when buying a property?

• Transfer rules vary, and you should verify permit status and transferability with the city during due diligence, along with any enforcement history or tax records.