Raleigh, North Carolina Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Raleigh, North Carolina?

Raleigh's short-term rental landscape underwent a significant transformation when the city adopted new regulations on February 2, 2021, which went into effect on March 4, 2021. These regulations replaced the previous Homestay rules and established a clearer framework for property owners looking to enter the lucrative short-term rental market. As the capital city of North Carolina continues to attract tourists and business travelers, understanding these regulations is crucial for anyone considering operating a short-term rental in Raleigh.

Short-term rentals in Raleigh are defined as dwelling units used for overnight lodging accommodations provided to renters for no longer than 30 days for compensation. This can include an entire dwelling unit or just a portion of it, including accessory structures like garage apartments or backyard cottages. However, this definition specifically excludes hotels, motels, inns, bed and breakfasts, hostels, and hospitality houses.

Starting a Short-Term Rental Business in Raleigh, North Carolina

If you're considering entering the short-term rental market in Raleigh, you'll need to navigate several regulatory requirements before listing your property.

Zoning Permit Requirement

The first step in establishing a legal short-term rental in Raleigh is obtaining a zoning permit. Every short-term rental operator must apply for and secure this permit from the city before beginning operations. The initial permit fee is approximately $194, with an annual renewal fee of around $86.

The zoning permit application process requires detailed documentation, including:

• A completed application form
• Your name, address, phone number, and email
• Property owner's information
• Short-term rental address and details
• A signed owner's affidavit
• Building layout plan (for multi-unit dwellings)
• Floor plan/layout for detached accessory dwelling units

The application process may take up to 4 weeks to complete, assuming all requirements are met.

Zoning District Restrictions

Short-term rentals are only permitted as a Limited Use in specific zoning districts: R-1, R-2, R-4, R-6, R-10, RX, OX, NX, CX, and DX. Before proceeding with your application, you should verify your property's zoning designation using Raleigh's iMaps tool.

Multi-Unit Building Limitations

If you own units in a multi-unit building, be aware that no more than 25% of the units (or a minimum of two units, whichever is greater) in any single building may be used for short-term rentals. This restriction aims to preserve the residential character of apartment and condominium buildings.

Occupancy Limitations

Raleigh regulations limit the number of guests to two people per bedroom plus two additional adults. This occupancy restriction is strictly enforced, and exceeding these limits could result in fines or penalties.

Operational Requirements

Once your short-term rental is up and running, you must comply with several ongoing operational requirements:

1. Guest Records: Maintain a list of all lodgers staying on the premises for a period of three years. This requirement supports transparency and accountability.
2. Permit Display: The zoning permit number must be conspicuously posted on all advertisements for your short-term rental and on the property itself.
3. No Special Events: In residential zoning districts, short-term renters are prohibited from using the premises for special events or gatherings.
4. No Exterior Advertising: The regulations prohibit exterior advertising for your short-term rental.
5. Cooking Facilities Restrictions: Cooking facilities are not permitted in any bedroom. This includes refrigerators larger than seven cubic feet, 220-volt stovetops, natural gas appliances, or cooktops with more than two cooking surfaces or burners.
6. Code Compliance: All short-term rental operators must comply with applicable state and local laws, including fire and building codes, smoke and carbon monoxide detection equipment requirements, housing codes, and tax obligations.

Tax Obligations

Short-term rental operators in Raleigh are responsible for collecting and remitting several taxes:

1. Room occupancy tax in Wake County (6%)
2. Combined sales tax (7.25%)

Hosts must maintain records of rental income, tax obligations, and other financial documentation for at least three years.

Restrictions and Prohibitions

It's important to note that whole-house rentals are prohibited in most residential areas of Raleigh, except in five mixed-use districts (mostly downtown) where hotels are already allowed. In residential areas, homeowners can only rent a maximum of two rooms to a maximum of two adults at a time, and the homeowner must be living onsite.

Additionally, short-term rental properties cannot be used for "Live-Work" or "Day Care, Home" purposes.

The penalties for non-compliance can be severe, with fines of up to $500 per day for violations.

The short-term rental market in Raleigh continues to evolve, with regulations balancing homeowners' ability to earn income with maintaining neighborhood character and safety. By understanding and adhering to these regulations, you can establish a successful and compliant short-term rental business in North Carolina's capital city.

For those considering entering this market, it's advisable to consult with a real estate attorney familiar with Raleigh's short-term rental regulations to ensure full compliance with all requirements.

Short-Term Rental Licensing Requirement in Raleigh, North Carolina

Raleigh's short-term rental regulations, which went into effect on March 4, 2021, established a comprehensive licensing framework that all operators must follow. Understanding these requirements is essential for anyone looking to enter the short-term rental market in North Carolina's capital city.

The cornerstone of Raleigh's short-term rental regulatory framework is the zoning permit requirement. Every short-term rental operator must obtain this permit before listing or operating their property. This requirement applies to all types of short-term rentals, whether you're renting a single room, an entire home, or an accessory dwelling unit.

Zoning Permit Application Requirements

To obtain a zoning permit for a short-term rental in Raleigh, you must submit the following documentation:

1. A completed Short-Term Rental Application form with detailed information about:

1. Your name, address, phone number, and email
2. Property owner information (if different from the applicant)
3. Short-term rental property address and details
4. A signed owner's affidavit

2. Building layout plan (for multi-unit dwellings) showing the location of your unit within the building

3. Floor plan clearly labeling all rooms in the short-term rental property

4. For detached accessory dwelling units, a detailed floor plan/layout

5. If the applicant is not the property owner, a notarized Owner's Affidavit must be provided

6. Designated Responsible Party Form identifying a local contact person who can be reached 24/7 and who must be a resident of Wake County with access to the property

Submission Process

All application materials must be submitted as a complete PDF packet via Raleigh's Permit and Development Portal. The city has streamlined this process to make it accessible online, eliminating the need for in-person submissions. First-time users will need to register for an account on the portal before submitting their application.

Fee Structure

As of April 2025, the initial zoning permit fee is approximately $194, which is due when the permit is issued. Annual renewal fees are around $86. These fees are subject to change, so it's advisable to check the current Development Fee Guide on the city's website before applying.

Processing Timeline

The typical processing time for a short-term rental zoning permit application is 1-4 weeks from submission to approval, assuming all required documents are provided correctly. Incomplete applications will significantly extend this timeline. The city recommends applying well in advance of your intended start date to account for any potential delays in the approval process.

Permit Renewal

Short-term rental zoning permits must be renewed annually. The renewal process requires submission of updated information and payment of the renewal fee. Operators should maintain accurate records throughout the year to facilitate this process.

Operational Requirements After Licensing

Once licensed, short-term rental operators must:

1. Conspicuously display the zoning permit number on all advertisements for the short-term rental, including online listings
2. Post the zoning permit number visibly on the property itself
3. Maintain a list of all lodgers staying on the premises for a period of three years
4. Comply with all applicable state and local laws, including fire and building codes, smoke and carbon monoxide detector requirements, and housing codes
5. Collect and remit all required taxes, including the 6% room occupancy tax in Wake County and the 7.25% combined sales tax

Occupancy Limitations

The city enforces strict occupancy limits for short-term rentals. While the exact formula isn't specified in the search results, typical restrictions limit occupancy to two persons per bedroom plus two additional adults. Exceeding these limits could result in violations and penalties.

Penalties for Non-Compliance

Operating a short-term rental without the required zoning permit in Raleigh can result in significant penalties. While the exact fine structure isn't detailed in the search results, similar jurisdictions in North Carolina impose fines of up to $500 per day for operating without proper permits. Additionally, continued non-compliance could lead to injunctions preventing the operation of the short-term rental altogether.

The city actively enforces these regulations through various means, including monitoring online listings, responding to neighbor complaints, and conducting periodic inspections. Property owners who fail to comply with the licensing requirements risk not only financial penalties but also potential legal action that could prohibit future short-term rental operations.

By understanding and adhering to Raleigh's licensing requirements, short-term rental operators can ensure their business remains in good standing with the city while providing safe and legal accommodations for visitors to North Carolina's capital.

Required Documents for Raleigh, North Carolina Short-Term Rentals

Successfully operating a legal short-term rental in Raleigh requires meticulous documentation. The City of Raleigh has established specific documentation requirements to ensure all short-term rentals meet safety standards, zoning requirements, and tax obligations. Here's a comprehensive breakdown of all documents required for your Raleigh short-term rental operation:

Short-Term Rental Application Form

This is the primary document required to initiate the permitting process. The application collects essential information about the property owner, the rental unit, and operational details. You must provide your name, address, phone number, email address, property identification number (PIN), and a detailed description of your proposed short-term rental. This form serves as the foundation of your permit application and must be completed accurately and thoroughly. The application form can be obtained through Raleigh's Permit and Development Portal.

Owner's Affidavit

A signed Owner's Affidavit is mandatory for all short-term rental applications in Raleigh. This document verifies that you are the legal owner of the property or have the owner's permission to operate a short-term rental. If you're not the property owner, you must submit a notarized Owner's Affidavit giving you explicit permission to operate the STR. This document helps the city ensure that all short-term rentals have proper authorization from property owners, particularly important in cases where property management companies or tenants are applying for permits.

Floor Plan/Building Layout

A detailed floor plan clearly labeling all rooms in the short-term rental property is required. For multi-unit dwellings, you must provide a complete building layout of all floors/units of the entire building, identifying all units and specifically labeling which units are designated for short-term rental use. This document helps city officials verify that your property meets building code requirements, has no illegal cooking facilities in bedrooms, and complies with occupancy limitations. The floor plan should be professionally drawn or clearly hand-drawn with accurate measurements and room designations.

Proof of Property Ownership

You must demonstrate that you are the legal property owner by providing documentation such as a property deed, tax record, or utility bill in the owner's name. This requirement ensures that only authorized individuals are operating short-term rentals and helps prevent fraudulent applications. These documents can be obtained from the Wake County Register of Deeds, Wake County Tax Administration, or your utility provider.

Designated Responsible Party Form

Short-term rental operators must designate a Responsible Party who can be contacted 24 hours a day, 7 days a week to respond to any issues that arise with the rental. This person must be a resident of Wake County and have access to the property. The form collects their contact information, which must be kept current at all times. This requirement ensures that there's always someone available to address emergencies, complaints, or other issues that might arise during a guest's stay.

Multi-Unit Building Documentation

If your short-term rental is in a multi-unit building, you must provide additional documentation detailing the layout of the building, identifying all units, and labeling units designated for short-term rental. This is necessary because Raleigh regulations stipulate that no more than 25% of units (or a minimum of two units, whichever is greater) in any single building may be used for short-term rentals. This documentation helps city officials verify compliance with this limitation.

Detached Accessory Dwelling Unit Documentation

For short-term rentals in detached accessory dwelling units (such as garage apartments or backyard cottages), you must provide a detailed floor plan/layout of the unit with all rooms clearly labeled. This documentation helps ensure that the accessory dwelling unit meets all building code requirements and is suitable for short-term rental use.

Tax Registration Documentation

While not explicitly required for the permit application, short-term rental operators in Raleigh must register with the North Carolina Department of Revenue for sales tax collection and with Wake County for occupancy tax collection. Documentation of these registrations may be requested during inspections or audits. These registrations ensure that you're properly collecting and remitting the required 6% room occupancy tax in Wake County and the 7.25% combined sales tax.

Acknowledgment of Standards

As part of the application process, you must sign an acknowledgment that the proposed short-term rental will be maintained in accordance with the specifications submitted and in accordance with the provisions and regulations of the City of Raleigh Unified Development Ordinance. This document serves as your formal agreement to comply with all applicable regulations.

All these documents must be submitted as a complete PDF packet via Raleigh's Permit and Development Portal. The city has streamlined this process to make it accessible online, eliminating the need for in-person submissions. First-time users will need to register for an account on the portal before submitting their application.

By ensuring all documentation is complete, accurate, and submitted properly, you'll streamline the approval process for your short-term rental permit and establish a solid foundation for a compliant and successful operation in Raleigh.

Raleigh, North Carolina Short-Term Rental Taxes

Operating a short-term rental in Raleigh involves navigating a complex tax landscape that includes multiple tax obligations at both state and local levels. Understanding these tax requirements is essential for maintaining compliance and avoiding penalties. Here's a comprehensive breakdown of the tax obligations for short-term rental operators in Raleigh.

North Carolina State Sales Tax

Short-term rental hosts in Raleigh must collect and remit North Carolina state sales tax from their guests. As of April 2025, the state-imposed sales tax rate is 4.75%. This tax applies to the total amount charged for the accommodation, including any cleaning fees or other service charges related to the rental.

The state sales tax must be collected for each booking and remitted to the North Carolina Department of Revenue. While platforms like Airbnb and VRBO may collect and remit this tax on behalf of hosts in some cases, hosts remain ultimately responsible for ensuring proper tax compliance.

Wake County Local Sales Tax

In addition to the state sales tax, Raleigh short-term rental operators must also collect local sales tax. The local sales tax rate in Wake County typically ranges from 2% to 2.75%. This additional tax is applied on top of the state sales tax, bringing the total combined sales tax to approximately 6.75% to 7.5%.

Like the state sales tax, the local sales tax must be collected from guests and remitted to the appropriate tax authority. This tax helps fund local government services and infrastructure improvements throughout Wake County.

Wake County Room Occupancy Tax

Perhaps the most significant tax obligation for short-term rental operators in Raleigh is the Room Occupancy Tax. This tax is collected by the City of Raleigh and Wake County and is specifically earmarked for tourism-related projects and programs. The Room Occupancy Tax in Wake County is 6%.

This tax is applied to the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within Wake County that is subject to sales tax under state law. Short-term rentals fall within this definition and are therefore subject to the Room Occupancy Tax.

The Room Occupancy Tax is particularly important for the local tourism industry as it funds marketing efforts to attract visitors to Raleigh and Wake County, as well as infrastructure and amenities that enhance the visitor experience.

Income Tax Obligations

Short-term rental income is also subject to federal and state income taxes. Hosts must report their rental income on their annual tax returns and pay the appropriate amount of income tax based on their tax bracket.

It's worth noting that if a host rents their property for fewer than 15 days per year, the rental income is generally not subject to income tax under what's commonly known as the "14-day rule" or "Masters exemption." However, if you exceed this threshold, all rental income becomes taxable.

Tax Collection Responsibilities

While some booking platforms like Airbnb and VRBO may collect and remit certain taxes on behalf of hosts, it's important to understand that hosts remain ultimately responsible for tax compliance. This means:

1. Verifying which taxes are being collected by the platform
2. Collecting any taxes not handled by the platform directly from guests
3. Maintaining accurate records of all tax collections and remittances
4. Filing all required tax returns on time

Hosts should maintain detailed records for at least three years, as required by Raleigh's short-term rental regulations. These records should include guest information, rental dates, amounts charged, and taxes collected.

Tax Deductions and Write-offs for Short-Term Rentals

The good news for short-term rental operators is that numerous expenses related to your rental business can be deducted from your taxable income. These deductions can significantly reduce your tax liability and improve your overall profitability.

Key deductions available to short-term rental hosts in Raleigh include:

1. Depreciation: This allows you to spread the cost of your property and significant improvements over several years (typically 27.5 years for residential properties). While you can't depreciate the land, you can depreciate the building structure and items like appliances and furnishings, sometimes over just a few years.
2. Property Taxes: The property taxes you pay on your short-term rental can be deducted from your rental income. This can be especially valuable in desirable areas where property taxes tend to be higher.
3. Mortgage Interest: If you have a mortgage on your short-term rental property, the interest portion of your payments is generally deductible as a business expense.
4. Cleaning and Supplies: The frequent turnover in short-term rentals means regular cleaning is essential. All cleaning services, supplies, and restocking of essentials like toiletries and kitchen supplies are tax-deductible.
5. Repairs and Maintenance: Costs for keeping your property in good working order or restoring it to its original condition are fully deductible in the year they are incurred. This includes plumbing repairs, electrical work, appliance repairs, and general maintenance.
6. Utilities: Expenses for electricity, gas, water, internet, cable TV, and other utilities provided for your guests are deductible business expenses.
7. Insurance Premiums: The cost of insuring your short-term rental property, including landlord insurance and any additional short-term rental coverage, is tax-deductible.
8. Platform Fees and Commissions: The service fees charged by platforms like Airbnb and VRBO, as well as any commissions paid to property managers, are deductible business expenses.
9. Travel Expenses: If you travel to your rental property for business purposes (such as maintenance, meeting contractors, or addressing issues), these travel expenses may be deductible.
10. Professional Services: Fees paid to accountants, attorneys, property managers, and other professionals related to your rental business are deductible.
11. Marketing and Advertising: Costs associated with promoting your rental, including professional photography, listing optimization services, and direct advertising expenses.

To maximize these deductions, short-term rental hosts should maintain meticulous records of all business-related expenses, including receipts, invoices, and payment records. Working with a tax professional who specializes in real estate investments can also help ensure you're taking advantage of all available deductions while remaining compliant with tax laws.

By understanding and properly managing your tax obligations and deductions, you can operate your Raleigh short-term rental business more efficiently and profitably while avoiding potential issues with tax authorities.

North Carolina Wide Short-Term Rental Rules

While Raleigh has established its own specific short-term rental regulations, hosts must also be aware of state-level rules that apply across North Carolina. These statewide regulations provide the foundation upon which local municipalities like Raleigh build their own specific requirements. Understanding this broader regulatory landscape is essential for anyone operating a short-term rental in North Carolina's capital city.

North Carolina Vacation Rental Act (NCVRA)

The cornerstone of short-term rental regulation at the state level is the North Carolina Vacation Rental Act. This legislation defines short-term rentals as properties rented for vacation, leisure, or recreational purposes for fewer than 90 days. The NCVRA establishes the fundamental rights and responsibilities of both landlords and tenants engaged in short-term rental arrangements throughout the state.

The NCVRA requires hosts to provide written rental agreements containing specific provisions and notices. These agreements must clearly outline the terms of the rental, including fees, cancellation policies, and other important details. This requirement ensures transparency between hosts and guests and provides legal protection for both parties.

It's worth noting that while the NCVRA establishes a framework for vacation rentals, it does not impose state-level registration or licensing requirements. Instead, it leaves those decisions to local governments, which is why cities like Raleigh have developed their own specific permitting systems.

State Tax Requirements

All short-term rental operators in North Carolina must comply with state tax laws. This includes collecting and remitting the state-imposed sales tax of 4.75% on all rental income. This obligation exists regardless of which platform you use to list your property, though some platforms like Airbnb and VRBO may collect and remit certain taxes on behalf of hosts.

To comply with state tax laws, short-term rental operators must register with the North Carolina Department of Revenue. This registration is mandatory for all hosts, even if a booking platform handles tax collection on your behalf. Failure to properly register and remit taxes can result in penalties and interest charges.

Proposed State Legislation - Senate Bill 291 (2025)

As of April 2025, North Carolina is considering significant new legislation that would impact short-term rental regulations statewide. Senate Bill 291, introduced in March 2025, aims to limit the regulation of short-term rentals by cities to protect private property rights and establish consistent guidelines for regulating short-term rentals across the state.

This proposed legislation explicitly prohibits local governments from:

1. Banning short-term rentals outright
2. Limiting the number of nights a property can be rented
3. Requiring property owners to occupy the property during rentals
4. Classifying short-term rentals as commercial use
5. Limiting the operation of short-term rental marketplaces
6. The bill does allow municipalities to implement certain regulations, including:
7. Requiring operators to obtain permits (with a one-time fee not exceeding $25)
8. Limiting occupancy to two adults per bedroom
9. Requiring a parking plan with one space per bedroom
10. Restricting short-term rentals to residential zones
11. Requiring hosts or their agents to be within a 50-mile radius while the property is being rented

If passed, this legislation would significantly impact Raleigh's existing short-term rental regulations, potentially invalidating some of the city's current requirements. The bill is currently under consideration in the North Carolina General Assembly, and its final form and passage remain uncertain.

State Building and Safety Codes

All short-term rentals in North Carolina must comply with state building and safety codes. These codes establish minimum standards for structural integrity, electrical systems, plumbing, fire safety, and other critical aspects of residential properties. While enforcement typically occurs at the local level, the standards themselves are established by the state.

Key safety requirements include:

1. Working smoke detectors in all sleeping areas and on each level of the property
2. Carbon monoxide detectors in properties with fuel-burning appliances or attached garages
3. Proper egress windows in all bedrooms
4. Functioning fire extinguishers
5. Compliance with electrical and plumbing codes

Non-Discrimination Laws

North Carolina's state-level anti-discrimination laws apply to short-term rental operations. These laws prohibit discrimination based on race, color, religion, national origin, and other protected characteristics. While North Carolina's state-level protections may be less comprehensive than federal protections or those in some other states, hosts must still ensure they do not engage in discriminatory practices when screening or accommodating guests.

Insurance Considerations

While not a regulatory requirement per se, short-term rental hosts in North Carolina should be aware that standard homeowner's insurance policies typically do not cover commercial activities like short-term rentals. Hosts should consult with insurance professionals to ensure they have appropriate coverage, which may include:

• Short-term rental insurance
• Business owner's policies
• Landlord insurance
• Umbrella liability coverage

Some booking platforms offer limited liability coverage, but these policies often have significant gaps and exclusions that leave hosts vulnerable to certain types of claims.

The Relationship Between State and Local Regulations

It's important to understand that North Carolina operates under a system where local governments derive their authority from the state. This means that state laws can preempt or override local ordinances. Currently, North Carolina has not enacted comprehensive statewide preemption of short-term rental regulations, which is why cities like Raleigh have been able to establish their own regulatory frameworks.

However, the proposed Senate Bill 291 represents a potential shift toward greater state control over short-term rental regulations. If passed, this legislation would significantly limit the ability of local governments to regulate short-term rentals beyond the parameters established in the bill.

For Raleigh hosts, this complex regulatory environment means staying informed about developments at both the state and local levels. While Raleigh's specific regulations currently govern day-to-day operations, changes at the state level could dramatically alter the regulatory landscape in the near future.

By understanding and complying with both state and local requirements, short-term rental operators in Raleigh can ensure they remain in good standing with all relevant authorities while providing safe, legal accommodations for their guests.

Does Raleigh, North Carolina Strictly Enforce STR Rules?

Raleigh's approach to short-term rental enforcement can best be described as passive, making it relatively Airbnb-friendly compared to many other major cities across the United States. Despite having formal regulations on the books since March 2021, when the city replaced its previous "Homestay" rules with a more comprehensive short-term rental ordinance, enforcement has been notably lax.

Based on discussions from local hosts on forums like BiggerPockets and Reddit, it's clear that Raleigh operates with a complaint-driven enforcement model rather than proactively seeking out non-compliant properties. This hands-off approach has created an environment where many short-term rental operators continue to list their properties without obtaining the required permits or fully adhering to the established regulations.

The statistics support this lax enforcement narrative. As of 2022, Raleigh had only 291 registered short-term rentals, with 83% of those registering that year after the new law took effect. Given that Airbnb and VRBO listings in Raleigh increased by 81% over a two-year period, with active listings growing from 2,248 in 2022 to 2,762 in 2023, it's evident that a significant number of properties are operating without proper registration.

This discrepancy between registered properties and active listings clearly indicates that many hosts are operating in a gray area, accepting some risk of future enforcement while benefiting from the current hands-off approach. The city government has essentially acknowledged this situation, with officials reportedly telling hosts that they are not proactively enforcing the regulations at this time.

It's worth noting that this relaxed enforcement stance may be influenced by ongoing legal challenges to short-term rental regulations across North Carolina. In April 2022, the NC Appeals Court ruled that Wilmington's annual registration process for short-term rentals violated a state law prohibiting registration requirements for renting real property. This ruling has caused several cities, including Charlotte, to pause or reconsider their short-term rental regulations, and may be contributing to Raleigh's hesitancy to aggressively enforce its own rules.

For prospective hosts considering entering the Raleigh short-term rental market, this environment presents both opportunities and risks. While the current lack of enforcement allows for easier entry into the market without immediate compliance concerns, hosts should be aware that this situation could change, particularly if there's a shift in local politics or if neighbor complaints increase.

The consensus among current Raleigh hosts is clear: the city is currently Airbnb-friendly in practice, if not in policy. Hosts are operating widely throughout Raleigh despite the rules, with minimal interference from city officials. However, responsible hosting practices remain essential to avoid drawing complaints that might trigger enforcement action.

How to Start a Short-Term Rental Business in Raleigh, North Carolina

Launching a short-term rental business in Raleigh requires careful planning, attention to regulatory details, and a strategic approach to property management. The following comprehensive step-by-step guide will help you navigate the process from initial concept to successful operation.

Research Raleigh's Short-Term Rental Regulations

Begin by thoroughly familiarizing yourself with Raleigh's short-term rental ordinances that went into effect on March 4, 2021. These regulations define short-term rentals as dwelling units used for overnight lodging for periods not exceeding 30 days. Understand that Raleigh permits short-term rentals as a Limited Use in specific zoning districts: R-1, R-2, R-4, R-6, R-10, RX, OX, NX, CX, and DX. This foundational knowledge will help you determine if your property (or potential property) is eligible for short-term rental use.

Tip: Consider scheduling a consultation with Raleigh's planning department (919-996-2492) to get clarity on any regulatory questions before investing significant time or money.

Verify Your Property's Zoning Classification

Use Raleigh's iMAPS tool to confirm your property's zoning designation. This interactive mapping service provides precise information about zoning classifications throughout the city. If your property isn't in one of the permitted zoning districts, you'll need to consider a different location for your short-term rental business.

Tip: When using iMAPS, look beyond just the zoning classification and check for any overlay districts or special conditions that might affect your ability to operate a short-term rental.

Assess Multi-Unit Building Limitations

If your property is in a multi-unit building, be aware that Raleigh limits short-term rentals to no more than 25% of the units (or a minimum of two units, whichever is greater) in any single building. This restriction aims to preserve the residential character of apartment and condominium buildings.

Tip: If you're considering purchasing a unit in a multi-unit building specifically for short-term rental use, contact the building management or HOA to determine how many units are already operating as short-term rentals to ensure you won't exceed the 25% threshold.

Prepare Required Documentation

Gather all necessary documentation for your zoning permit application. This includes:

• Completed application form with your name, address, phone number, and email
• Property owner information (if different from the applicant)
• Short-term rental property address and details
• Property Identification Number (PIN)
• Signed owner's affidavit
• Building layout plan for multi-unit dwellings
• Floor plan clearly labeling all rooms in the rental property
• Detailed floor plan/layout for detached accessory dwelling units

Tip: Create a digital folder to organize all these documents, and make multiple copies of everything. Having backup copies can save time if any documents are lost or damaged during the application process.

Designate a Local Responsible Party

Identify and designate a local contact person who can be reached 24/7 and who must be a resident of Wake County with access to the property. This person will be responsible for addressing any issues or concerns that arise during guest stays.

Tip: If you don't live in Wake County yourself, consider hiring a professional property manager who specializes in short-term rentals. They can serve as your designated responsible party while also handling guest communications, cleaning, and maintenance.

Apply for a Zoning Permit

Submit your complete application packet through Raleigh's Permit and Development Portal. The initial permit fee is approximately $194, with an annual renewal fee of around $86. Be prepared for the application process to take up to 4 weeks for approval, assuming all requirements are met.

Tip: Submit your application well in advance of when you plan to start hosting guests. The 1-4 week processing time is for complete applications; if there are any issues or missing information, the timeline could be extended significantly.

Register for Tax Collection

Register with the North Carolina Department of Revenue for sales tax collection and with Wake County for occupancy tax collection. Short-term rental operators in Raleigh are responsible for collecting and remitting:

• 6% room occupancy tax in Wake County
• 7.25% combined sales tax

Tip: Set up a separate bank account specifically for your rental business to make tax accounting easier. Consider using short-term rental management software that can automatically calculate and track tax obligations.

Ensure Property Compliance with Safety Codes

Make sure your property complies with all applicable state and local laws, including fire and building codes, smoke and carbon monoxide detection equipment requirements, and housing codes. This may involve scheduling inspections or making necessary upgrades to your property.

Tip: Invest in high-quality smoke detectors, carbon monoxide detectors, and fire extinguishers. Consider hiring a professional home inspector to identify any potential safety issues before you begin hosting guests.

Set Up Your Property for Guests

Prepare your property for guests by furnishing it appropriately, stocking essential supplies, and creating house rules and emergency information. Remember that cooking facilities are not permitted in any bedroom, and there are specific restrictions on refrigerator size and cooking appliances in bedrooms.

Tip: Create a comprehensive house manual that includes not only rules and instructions for using amenities but also recommendations for local restaurants, attractions, and services. This enhances the guest experience and can lead to better reviews.

Create Listings on Booking Platforms

Develop compelling listings on platforms like Airbnb and VRBO. Take high-quality photos, write detailed descriptions, and set competitive pricing based on market research. Remember to prominently display your zoning permit number on all advertisements, including your online listings.

Tip: Consider hiring a professional photographer to capture your property in the best light. Quality photos can significantly increase booking rates and allow you to charge premium prices.

Establish a Record-Keeping System

Develop a system for maintaining records of all lodgers staying on the premises. Raleigh regulations require you to keep these records for a period of three years. This should include guest names, contact information, dates of stay, and payment details.

Tip: Use a dedicated short-term rental management software to automate record-keeping. Many platforms offer features specifically designed to help hosts comply with local regulations while streamlining the management process.

Set Up a Cleaning and Maintenance Schedule

Establish reliable cleaning and maintenance protocols to ensure your property remains in excellent condition. This includes regular deep cleaning between guests, routine maintenance checks, and a system for addressing emergency repairs.

Tip: Build relationships with multiple service providers (cleaners, plumbers, electricians, etc.) so you have backup options if your primary provider is unavailable during an emergency.

Purchase Appropriate Insurance Coverage

Obtain comprehensive insurance coverage specifically designed for short-term rentals. Standard homeowner's insurance typically doesn't cover commercial activities like short-term rentals, so you'll need specialized coverage to protect your investment.

Tip: Look for policies that include not only property damage but also liability coverage, loss of income protection, and coverage for theft of personal property.

Develop a Marketing Strategy

Create a marketing plan to promote your rental beyond just listing it on booking platforms. This might include creating a dedicated website, utilizing social media, or developing relationships with local businesses and tourism organizations.

Tip: Consider targeting specific niches that align with Raleigh's attractions. For example, if your property is near universities, you might market specifically to visiting professors or parents of students.

Monitor and Adapt to Regulatory Changes

Stay informed about any changes to Raleigh's short-term rental regulations. The regulatory landscape for short-term rentals continues to evolve, and it's essential to remain compliant with all current requirements.

Tip: Join local host associations or online forums where Raleigh hosts share information about regulatory changes and best practices. These communities can be invaluable sources of up-to-date information.

By following these comprehensive steps, you'll be well-positioned to establish and operate a successful, compliant short-term rental business in Raleigh. Remember that success in this industry requires not only adherence to regulations but also a commitment to providing exceptional guest experiences and maintaining your property to high standards.

Who to Contact in Raleigh, North Carolina about Short-Term Rental Regulations and Zoning?

Navigating Raleigh's short-term rental regulations can be complex, but several official resources and community groups are available to help hosts understand and comply with local requirements. Whether you're just starting your short-term rental business or need clarification on existing regulations, knowing who to contact can save you time and potential compliance issues.

Official City Contacts

The primary point of contact for short-term rental regulations in Raleigh is the Planning and Development Department. This department oversees zoning permits and can answer questions about application requirements, permitted zoning districts, and compliance issues. You can reach them at:

• Phone: (919) 996-2500
• Email: planning@raleighnc.gov

For specific zoning-related questions, the City of Raleigh Zoning Division offers more specialized assistance:

• Phone: (919) 996-2626
• Email: zoning@raleighnc.gov

When contacting these departments, be prepared with your property address and specific questions about short-term rental regulations. Having this information ready will help staff provide you with the most accurate and relevant information for your situation.

Permit Application Process

Questions about the permit application process, including submission requirements and status updates, should be directed to the permit office. All short-term rental applications must be submitted via the Permit and Development Portal, but if you encounter issues or have questions about the process, you can contact:

• Phone: (919) 996-2500
• Email: planning@raleighnc.gov

The typical processing time for short-term rental permit applications is 1-4 weeks, so plan accordingly if you're preparing to launch your rental business.

Tax Registration and Compliance

For questions about tax obligations related to short-term rentals in Raleigh, including sales tax and occupancy tax, contact:

Wake County Revenue Department (for occupancy tax):

Phone: (919) 856-5400

North Carolina Department of Revenue (for sales tax):

Phone: (877) 252-3052

For complex regulatory questions or if you're facing compliance issues, consulting with a local attorney who specializes in real estate or short-term rental regulations may be advisable. While the city can provide information about current regulations, a legal professional can offer personalized advice for your specific situation.

Similarly, tax professionals familiar with short-term rental operations can provide guidance on tax compliance and potential deductions related to your rental business.

By utilizing these official contacts and community resources, you'll be better equipped to navigate Raleigh's short-term rental regulations successfully. Remember that regulations can change over time, so maintaining connections with both official sources and community groups will help you stay informed about any updates that might affect your short-term rental business.