Asheville, North Carolina Short Term Rental Regulations

City Code of Ordinances

In Asheville, North Carolina, two types of paid overnight lodging accommodations are permitted for less than 30 days: homestays and short-term rentals (STRs). A homestay involves renting a room or rooms in a private home, with the condition that a permanent resident must be present in the home during the homestay. These can be permitted in residentially-zoned areas if they meet the regulatory requirements of the zone district. STRs, on the other hand, involve the rental of an entire dwelling unit and are prohibited in all residential districts. STRs can only be permitted in commercially zoned areas and require a change of use permit.

At the end of 2021, Asheville City Council voted to pass the homestay ordinance, introducing various changes to the established rules governing homestays such as Airbnbs. The new homestay ordinance clarified that the homestay host can live in any part of the home and rent any portion of the home to overnight guests, either as a shared or separate space, but still limited to 2 pre-designated bedrooms. It also clarified that the homestay space can be rented for overnight guests or a long-term (greater than 30 days) tenant while still maintaining the validity of the homestay permit. It introduced a new rule that homestay applicants must affirm that they live at the property and that they have only one primary, full-time residence. It also introduced a restriction banning homestays in accessory structures unless a valid homestay permit exists and is maintained​.

Business License Requirements

According to the City of Asheville, the homestay operation must be managed and carried on by a person who is a full-time resident of the property and who is present during the homestay term. The person must reside on the property permanently and it must be their primary home. For this purpose, a person can only have one primary, full-time residence, and the homestay must be operated from that primary, full-time residence. A minimum of two documents establishing proof of residency shall be supplied from an approved list of documents. The length of stay of guests may not exceed 30 days. If stay exceeds 30 days, separate permits are required for change into an apartment or other non-transient use. Manager/Operator of the Homestay must provide proof of liability insurance. Manager/Operator of the Homestay must pay all applicable taxes. Only one Homestay permit may be issued per parcel AND only one Homestay permit may be issued per person

Building and Housing Standards

The new ordinance now allows Asheville homestays to have a full kitchen. If there is an internal connection between your homestay space and the rest of the house (e.g., internal staircase), you can have a full-size stove in your homestay space. If the homestay space is attached and can only be accessed by an external entrance, you can’t have a stove for short-term rentals. If a homestay exists in an accessory structure, it can continue to operate but must maintain a continuously valid homestay permit.

Tourist and Local Taxes

All property owners who are operating a homestay in Asheville are required to pay all applicable taxes. This would include local property taxes, sales taxes, and any other taxes related to running a business or owning property in the city.

Other Rules

The City of Asheville has active enforcement for homestays and STRs. Violators can face $500 a day fines.