Chapter 1

A Host’s Guide to North Carolina Vacation Rental Laws

Last updated: June 2025

Planning to rent out your property as a vacation rental in the beautiful state of North Carolina?

Whether you’re hosting a mountain getaway in the Blue Ridge Mountains or a charming seaside retreat, understanding the ins and outs of North Carolina vacation rental laws is an absolute must. These laws are here to ensure smooth sailing for both hosts and guests and make your rental experience a hassle-free success.

This guide will break everything down in a way that’s clear, practical, and maybe even a little fun. Let’s dive in and explore what it takes to be a rockstar host in the Old North State.

Don’t see the form to download our vacation rental agreement? Click here.

Is North Carolina a good place to open an Airbnb?

Yes! North Carolina is filled with world-class cities and towns that are extremely profitable for short-term rental hosts.

According to AirDNA, for example, hosts in Charlotte, NC earn an average of $32,400 per year. Furthermore, those operating a vacation rental in Asheville bring in an average annual income of $25,300. An extra perk is that North Carolina has a relatively low income tax with a flat rate of 4.25%.

General North Carolina vacation rental laws

North Carolina has specific regulations governing vacation rentals, which property owners and guests should know. These regulations protect both parties and ensure fair practices and safety. Below is an overview of the key vacation rental laws in North Carolina.

North Carolina Vacation Rental Act

The North Carolina Vacation Rental Act, also known as the VRA, was implemented in 1999. Its goal is to establish guidelines for both owners and guests that will promote responsible behavior and protect their rights. The NC Vacation Rental Act covers single-family homes, condominiums, and townhouses.

Key aspects of the act include:

Written agreements: All vacation rental agreements must be in writing and signed by both parties for stays of less than 90 days.
Tenant rights: Tenants are entitled to refunds or alternative accommodations if the property becomes uninhabitable during the stay due to unforeseen circumstances, such as natural disasters.
Property standards: Property owners are expected to maintain reasonable safety and cleanliness standards to ensure renters’ well-being.
Advance payments: If advance payments are collected, they must be held in a trust account until the stay begins.

North Carolina Senate Bill 667

North Carolina Senate Bill 667 was introduced in 2023 as a way to limit the government from banning short-term rentals. As of June 2025, the bill is classified as “Introduced-Dead,” which means the bill will need to be reintroduced to move forward. However, the items in the bill demonstrate that the state government recognizes the importance of vacation rentals to the North Carolina economy.

Additional Airbnb rules in North Carolina

Property owners in North Carolina should also consider these general rules and guidelines when managing short-term or vacation rentals:

Occupancy tax: Many North Carolina counties impose an occupancy tax on short-term rentals. Owners are responsible for collecting and remitting these taxes to the appropriate authority.
Insurance requirements: Property owners are strongly encouraged to maintain adequate insurance coverage to protect against liabilities arising during guests’ stays.
HOA restrictions: Homeowners’ associations may have specific rules governing short-term rentals, which property owners must abide by to avoid potential violations.
Noise and nuisance ordinances: Many local jurisdictions enforce strict noise restrictions to maintain community peace. Owners should inform guests of these rules to prevent complaints.

North Carolina Airbnb laws by city

It’s important to pay attention to the local North Carolina Airbnb laws and regulations of the specific city you’re operating in. We’ve pulled a few of the biggest cities in North Carolina to highlight some key laws and regulations.

Charlotte

Hosts in the Queen City must abide by the following Charlotte vacation rental rules:

Disorder risk: Hosts must register their vacation rental with the Charlotte-Mecklenburg Police Department if their rental presents a “disorder risk.” However, all hosts are encouraged to register their listings.
Code of ordinances: All listings must meet minimum standards of construction, safety, health, and maintenance.
Room occupancy tax: The county requires an 8% room occupancy tax to be paid monthly.

Raleigh

Raleigh Airbnb rules include regulations related to zoning, applications, development fees, and registration numbers:

Zoning: Short-term rentals are permitted in Raleigh within certain zones. Check out the zoning districts by using this map.
Short-term rental application: You must complete an application to operate a vacation home, including an owner’s affidavit.
Development fee: Pay the appropriate development fee.
Registration number: Display your city-issued registration number in your listing.

Asheville

Asheville has some vacation rental rules of its own, including the following:

Homestay permit: Homestay permits are required if you’re renting one- or two-bedroom units in an owner-occupied space for less than 30 days.
Resort zones: As of 2018, new entire home rentals are only allowed in areas that are classified as “resort zones.”
Buncombe County occupancy tax: Hosts must collect a 6% Buncombe County occupancy tax.

North Carolina short-term rental tax rules

Understanding the North Carolina short-term rental tax rules is important for all hosts. Here’s what you need to know:

Statewide sales tax: Hosts are required to charge a 4.75% statewide sales tax on all short-term rental bookings.
Local county taxes: Additionally, there may be varying local sales tax rates, which usually range between 2-2.75%, depending on the county where the rental is located.
Occupancy taxes: Most counties in North Carolina impose an occupancy or tourism tax on short-term rentals, which can vary but commonly range between 3-6%.
Income tax: As mentioned above, North Carolina has a flat income tax rate of 4.25%, with additional local taxes for some cities and counties.
Tax remittance: Hosts are responsible for collecting taxes from guests and remitting them to the North Carolina Department of Revenue (NCDOR) or applicable local tax authorities. Some online booking platforms, such as Airbnb, may collect and remit North Carolina vacation rental taxes on behalf of hosts.

FAQs about North Carolina vacation rental laws

Let’s discuss some of the most frequently asked questions about North Carolina short-term rental laws.

Do you need a permit for Airbnb in NC?

While there is no state-issued permit for Airbnbs in NC, many cities and counties require hosts to obtain a permit or register their rental property with the local government. Some cities even have specific zoning regulations for short-term rentals, so it’s important to check with your local government before listing your property.

What are the vacation rental laws in North Carolina?

The NC Airbnb laws can vary depending on the city or county where the rental is located. In general, short-term rentals (less than 90 days) are allowed, but there may be restrictions regarding zoning and whether or not the host lives onsite.

Which types of properties are covered under the North Carolina Vacation Rental Act?

The North Carolina Vacation Rental Act covers single-family homes, condominiums, and townhouses that are used as vacation rentals for less than 90 days. This includes both primary residences and second homes. However, the NC Vacation Rental Act does not cover hotels, motels, or bed and breakfasts.

Manage your NC Airbnb with Lodgify

Navigating NC vacation rental laws is a key step toward running a successful Airbnb. From vacation rental agreements and property standards to tax requirements, staying up to date with local rules will help you remain compliant and ahead of the curve. Responsible hosting not only supports your business—it also strengthens North Carolina’s growing vacation rental community.

Need a hand managing your North Carolina Airbnb? Lodgify has you covered. Start your free 7-day trial today and discover how easy it is to create a direct booking website, connect all your listings, and automate your day-to-day operations.

Don’t see the form to download our vacation rental agreement? Click here.