Thinking about buying in Asheville with short-term rental potential? The rules can feel like a maze, and what works on one side of the road may not work on the other. If you want to host guests for fewer than 30 days at a time, you need a clear plan before you write an offer. In this guide, you’ll learn how Asheville and Buncombe County treat short-term rentals, what permits and taxes to expect, and a step-by-step due-diligence checklist to protect your investment. Let’s dive in.
Asheville vs. Buncombe County: Know your jurisdiction
Your first step is confirming whether a property sits inside Asheville city limits or in unincorporated Buncombe County. City and county rules are different, and private restrictions like HOAs can override both.
- City of Asheville: A formal short-term rental framework typically requires registration or a permit, sets operating standards, and enforces violations with fines and possible permit suspension.
- Buncombe County: Unincorporated areas often have fewer land-use limits but still require tax registration and compliance with health and building standards.
- HOAs and covenants: Private rules can prohibit or restrict short-term rentals even if the city or county allows them.
Why boundaries matter
Two homes near each other can be regulated very differently. City ordinances often vary by zone and rental type, while county areas may be more flexible but still require taxes and safety compliance. Always confirm the official boundary and zoning for each address.
What counts as a short-term rental
Most local rules treat a stay of fewer than 30 consecutive days as a short-term rental. This triggers permits, taxes, and operating standards. Local definitions and thresholds can vary, so verify the exact definition for the property you’re considering.
Permit and registration basics
If the property is inside Asheville city limits, expect a structured process. County properties may have different requirements, but both jurisdictions focus on safety and nuisance prevention.
- Application and renewal: Many cities require a short-term rental certificate or business permit with renewal.
- Local contact: A local contact or manager must be available to respond to issues within a set time.
- Safety and building compliance: Smoke and CO detectors, proper egress, and fire extinguishers are common requirements. Inspections may be required.
- Occupancy and parking: Occupancy is often tied to bedroom count or square footage. Parking limits or minimums are typical.
- Noise, trash, and nuisance: Expect specific rules with fines for noncompliance.
Taxes and fees you should plan for
Short-term rentals are subject to taxes and possible local fees. Build these into your budget early.
- Sales and occupancy taxes: Register with the North Carolina Department of Revenue and local tax authorities for sales and occupancy taxes. Some platforms may collect certain taxes, but you remain responsible for proper registration and remittance.
- Local fees: Cities may charge permit, inspection, or renewal fees.
- Business registration: Some jurisdictions require a business license.
- Insurance: Standard homeowner policies often exclude short-term rental use. Price out a vacation-rental or host liability policy.
Where STRs are typically allowed
Rules are mapped by zoning and can change over time. Do a parcel-specific check for every property.
- Confirm the municipal boundary: City of Asheville vs. unincorporated Buncombe County.
- Check zoning uses: Identify whether short-term rentals are allowed, limited, conditional, or prohibited in that zone.
- Look for overlays and special districts: Historic or neighborhood overlays may add restrictions.
- Review permit and enforcement history: Ask about past complaints, permits, and code cases.
Typical patterns to verify locally:
- Core urban or commercial zones are often more permissive.
- Residential neighborhoods may carry stricter limits or prohibitions.
- Unincorporated county areas can be less restrictive on land use but still require tax and safety compliance.
Step-by-step due diligence for buyers
Follow these steps before you go under contract and again during your due-diligence period.
Pre-offer checks
- Confirm jurisdiction and parcel boundaries.
- Verify zoning and whether short-term rentals are allowed. Request written confirmation when available.
- Ask the seller for current permits, inspection reports, tax remittance receipts, and any enforcement history.
- Request HOA covenants, bylaws, and recent communications related to rentals.
- Pull property tax history and confirm any assessments tied to rental use.
- Order a title search to catch deed restrictions or easements that affect rental potential.
Financial and market validation
- Gather short-term rental comps: nightly rate ranges, seasonality, and occupancy estimates.
- Build a full pro forma: application and renewal fees, inspections, occupancy taxes, insurance premiums, management, utilities, and compliance costs for parking, trash, and noise controls.
- Confirm platform fee structures and how taxes are collected in this jurisdiction.
Operational and physical inspections
- Home inspection with guest safety in mind: railings, stairs, smoke and CO detectors, egress, HVAC performance, roof, and deck stability.
- Septic and well checks for properties off municipal systems. Confirm health department records and capacity.
- Parking confirmation: onsite capacity and any street restrictions.
Compliance and risk checks
- Confirm whether an existing permit is transferable on sale or if you must apply anew.
- Request any history of complaints or code enforcement for the address.
- Get quotes for STR-appropriate insurance with host liability coverage.
- Talk to local managers about cleaner, maintenance, and emergency vendor availability for the neighborhood.
Closing and post-closing
- Ensure closing includes any required transfer documentation.
- If continuing operations, plan timelines for a new application or permit transfer, inspections, and listing activation.
- Secure local contact and management agreements before you list.
Documents to request from the seller
- Current short-term rental permit or certificate and renewals
- Sales and occupancy tax filings and receipts
- HOA covenants, bylaws, STR rules, and recent meeting minutes
- Home inspection reports, maintenance records, and invoices for major systems
- Complaint or enforcement notices and any city or county correspondence
- Current platform listings and recent booking history
How Rebecca helps you buy with confidence
You do not have to navigate this alone. A local, hands-on agent makes a real difference in a market where rules vary block by block.
- Preliminary zoning and jurisdiction check: Confirm city vs. county status and zoning designation.
- Document review: Collect seller records for permits, taxes, and HOA rules and flag missing items for your follow-up.
- Vendor coordination: Line up inspectors, maintenance pros, septic and well evaluators, and safety-equipment installers.
- Market comps and revenue context: Pull nightly rate and occupancy estimates and coordinate with local property managers.
- Professional introductions: Refer you to closing attorneys, CPAs, and insurance brokers familiar with short-term rentals.
- Transition planning: Build a practical timeline for applications, inspections, local contact setup, and vendor scheduling.
Rebecca provides operational guidance and coordination. She does not provide legal or tax advice and cannot guarantee permit outcomes.
Common pitfalls to avoid
- Operating without the proper permit or registration
- Assuming an existing permit will transfer automatically
- Overlooking HOA and deed restrictions
- Underestimating taxes, insurance, and management costs
- Ignoring septic capacity or parking limits in rural or mountain areas
Your next steps
- Identify your target neighborhoods and property types.
- Verify city vs. county boundaries early in your search.
- Run the due-diligence checklist before you write an offer.
- Get local contacts in place for management, safety, and maintenance.
If you want a practical, step-by-step plan tailored to your goals, connect with Rebecca Lafunor for a quick strategy call.
FAQs
Are short-term rentals allowed everywhere in Asheville?
- No. Rules vary by zoning and jurisdiction. Commercial or tourist areas tend to be more permissive, and many residential areas have limits. Always verify zoning for the specific parcel.
Do I need a permit to run a short-term rental?
- Likely yes inside Asheville city limits. County areas may require registration, and both city and county require tax registration. Confirm with the appropriate offices before listing.
Do I have to collect and remit taxes for short-term stays?
- Yes. STRs are subject to state sales tax and local occupancy taxes. Register with state and local tax authorities and confirm how any platform-collected taxes are handled.
Can an HOA block my short-term rental plans?
- Yes. HOA covenants can prohibit or restrict short-term rentals and may be enforced by the association even if the city or county allows STRs.
Will an existing STR permit transfer when I buy the property?
- Not always. Many permits are owner-specific. Confirm transfer rules and the process to apply for a new permit if needed.
What are the risks if I operate without proper compliance?
- You could face fines, permit revocation, injunctions, and orders to stop operating, especially for repeat noncompliance or nuisance issues.
