This month, the Raleigh City Council voted 7–1 to approve new homestay rental regulations through services such as Airbnb, VRBO + Homeaway. Did you know? Whole-house listings were banned beginning January 1, 2020, but the current city council under Mayor Mary Ann Baldwin voted early last year to postpone enforcement + rewrite the rules.
A new text change approved Feb. 2 adopts the following and will take effect March 2 —
- The term “homestay” has been replaced with “short-term rentals”
- The ban on whole-house rentals has been revoked
Here’s what hasn’t changed: The new rules still require homeowners to apply for a permit, renewed annually, to rent rooms for short-term stays. Violations of the rule can incur fines up to $500. Additionally, the rules prohibit exterior advertising, special events + large gatherings.
So what should you know if you’re trying to rent a room or home on Airbnb?
- Hosts are responsible for assessing local taxes. The state of NC imposes a statewide room occupancy tax of 4.75% + Wake County levies an additional 6% tax. Note: the Airbnb platform typically charges occupancy tax to the booking guest and that gets paid out on the host’s behalf.
- In 2018, an average Triangle-area host earned about $6,000 after taxes.
- Homeowners may be limited to how many guests they can host in their home, based on requirements in their homeowners’ association charter or mortgage lender agreement. It is the responsibility of the host to be aware of any restrictions.
- Enforcement of current laws is subject to change and fines can be incurred if hosts violate (or are unaware of) local rules. Stay tuned: we’re following this story closely + will let you know of any changes as soon as we hear about them.
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This story was originally published Feb. 13, 2020 and was updated Feb. 9, 2021.