Asheville has taken a pretty firm stance on vacation rentals. A lot of folks that were doing it for years have been shut down as the city enforces the rules firmly. Home stays are okay in the city limits, but strongly suggest getting educated on the definition of "home stay". A number of people have been burned thinking they had a "home stay" when the city had a different definition (the city does not want potential long-term rentals diverted to STR's, so they are interpreting "home stay" very narrowly).
CREIA (Carolina Real Estate Investors Association) had a specialized sub group that met monthly just to discuss the short term rental business in the Asheville area. I attended one of their meetings about a year ago and there were a bunch of people there that had figured out how to work within the rules. I decided not to go the STR route with my properties as they were not a good fit. Suggest you check in with them to see if the group still meets.
FWIW, I spent some time chatting with the folks in city government down in Fletcher (just south of Asheville) about converting a property to STR. Fletcher is pretty much copying Asheville's approach. Definitely do your due diligence on this one. A bunch of people have figured it out - if you want to go down the STR path, I would definitely piggyback on the work they have already done.
Research the local rules and regulations. Asheville is VERY strict about short-term rentals. I don't know the particulars of their rules, but I recommend you look at them very carefully and ensure you can comply before you go any further with your plan.
@Evan Morales. I’m pretty sure it is illegal in city limits with $500 per night fines. I’ve been told they recently hired additional full time staff with the City to monitor short term rentals. I personally don’t have experience, just relaying what I’ve heard.
From what I'm reading it says that Asheville allows "Homestays" which is what I intend on doing anyways. If that changes then I will probably apply for something called a "conditional zoning".
Unless you are zoned for it, its a big nono. Some homeowner just lost a court case with a crazy amount in fines apparently for having an airbnb in an unzoned area. It was in USA today I think a few months back. I was speaking to a friend tonight that said that homeowner just recently lost his lawsuit against the city. If you are outside of the city limits and in Buncombe County, short term rentals are allowed. I would say the competition is stiff to say the least. They keep changing the rules and some have been grandfathered in I think under the new regs. Of course, you can call the city and check your address and see if it qualifies, and if it does, then you get an inspection and pay a fee. But honestly, the only ones zoned are downtown in a special use district. Basically downtown condos .
Asheville has taken a pretty firm stance on vacation rentals. A lot of folks that were doing it for years have been shut down as the city enforces the rules firmly. Home stays are okay in the city limits, but strongly suggest getting educated on the definition of "home stay". A number of people have been burned thinking they had a "home stay" when the city had a different definition (the city does not want potential long-term rentals diverted to STR's, so they are interpreting "home stay" very narrowly).
CREIA (Carolina Real Estate Investors Association) had a specialized sub group that met monthly just to discuss the short term rental business in the Asheville area. I attended one of their meetings about a year ago and there were a bunch of people there that had figured out how to work within the rules. I decided not to go the STR route with my properties as they were not a good fit. Suggest you check in with them to see if the group still meets.
FWIW, I spent some time chatting with the folks in city government down in Fletcher (just south of Asheville) about converting a property to STR. Fletcher is pretty much copying Asheville's approach. Definitely do your due diligence on this one. A bunch of people have figured it out - if you want to go down the STR path, I would definitely piggyback on the work they have already done.
As a local who got burned by this prior to becoming a real estate agent, I'd recommend looking elsewhere. Plenty of great opportunity outside AVL city limits and people still consistently book outside city limits.
Homestays, in my experience and from those who discuss them with me, are difficult to aquire at this point. Those who are involved with the process of allowing the permits are horrible with communication, not responsive, terribly inefficient, and seemingly do everything possible to deny or delay.
In the meantime, there are more attractive places outside AVL city limits, in my opinion.
Best of luck with your search and purchase. Pop in here for help. Lots of successful people here who are willing to help and give advice.
I cannot speak directly to STRs in the city of Asheville but I can tell you we have several astonishing properties listed on our site just outside of Asheville.
This has been a great discussion to follow. I too have been looking for a second home for myself to turn into a STR and I just assumed it would be outside of AVL due to that city's strict policy against STRs. I'm glad you mentioned Fletcher was going the route of AVL since that was an area high on my list. Guess not any more. I'd love to hear what areas are worth looking at. Don't worry, I'm a very small time investor and I'm only looking for one or maybe two properties if things go well. Just want a second home in the Asheville area where my family lives.
For what it's worth, I've been looking at Hendersonville, Brevard and Arden. They all seem to have promise for reasonable STR income. Guess I'm mostly leaning towards Hendersonville because I just like the town. Love Brevard but it may be too off the beaten path. Anyone with STRs in these areas?
Hey Nick ~ Fairview is a very nice community, close to Asheville (less than 15mins to downtown via I-40) but definitely off the beaten path. In the past few years 74A has seen some growth but it is still a rural area IMO. I do not have a STR but I do have a LTR in that area that does extremely well.
Thanks, Shirley, I'll definitely check it out. My realtor lives in Fairview and loves it there. Are there any points of interest - breweries, cafes, shopping - that would be good to be located near?
I checked out your vacation rentals in Clyde and they look fantastic. Can you tell me what you think of that area? It can be a little off the beaten path but I wonder if that's part of the appeal or if it matters. Are your rentals doing well year round? Are you profitable, if you don't mind me asking?