Airbnb Rules in Watauga County, North Carolina ?

[Tristan S.]

Hi,

I wanted to know what were the rules associated with Airbnb or Vrbo in the Watauga County in North Carolina, more specifically in areas including Boone, Blowing rock or Banner Elk or other places in the High Country of NC.

Is there a maximum days per month limit that you can rent a place ? Does it have to be your primary residence ? Is there any HOA that might prevent any of this ?

I am really looking to get more local knowledge on this area, any help would be greatly appreciated !

Thanks

[Daniel Jones]

Hi @Christi Mercer, I'm glad @Tristan S. tagged me and I'm happy to connect. I'll also add my two cents for anyone else reading this thread.

I started short-term renting a house outside of Boone town limits back in August. As far as regulations go, I would definitely recommend talking to a local official about it before making any major decisions. I would also recommend reading this article from the Watauga Democrat about STRs in the county and town. https://www.wataugademocrat.co...

The article gave me a much better understanding of the operations of STRs in Boone when I was trying to make decisions. There are quotes from the town attorney about how "short-term rentals are “technically illegal,” but that the town’s planning department has not been enforcing it." Also from Watauga County Tourism Development Authority notes that "online rental companies now account for 30 to 31 percent of occupancy tax revenue". To me that says that the town greatly benefits from "technically illegal" STRs so I would be surprised to see any enforcement made to STRs in town limits. Again, it's ultimately up to you and I would recommend talking to a local lawyer to better understand the risks before making any decisions.

There are a few surprises that I discovered after I started. For one, the county and state taxes account for 12.5% of your rental revenue and I also use a management company (Evolve Vacation Rentals) that takes another 10% and that really eats into my potential income.

Another thing I want to note is that it takes a lot of leg work to make a STR worthwhile compared to a long-term rental. I had a buddy that did STR in Banner Elk and got burned out in just a few months because he took on everything on his own. He communicated with guests, cleaned, maintained, managed the listing, everything. Some people are cut out for that but I personally am not so that's why I use a management company and a cleaner which, again, eats into potential revenue but greatly put my mind to rest. Being on Queen St, you will likely have same-day turnovers and that's a lot of pressure if you try to clean on your own without having the extra hands that a cleaning company has.

On the other hand, since the pandemic, STRs in Watauga have been doing really well and I'm personally very grateful that I started when I did. I read another Watauga Democrat article a few months ago that stated 2020's third quarter (July-Sept.) provided the county with as much occupancy tax as entire years in the past. So obviously STRs around Boone/Blowing Rock are in high demand. I imagine this trend will continue as long as people are trying to find respite from cities during the pandemic. 

I also agree with Tristan that you seem to have a solid long-term rental as a backup if STR doesn't work out. I was in a similar situation and decided that it would be easier to pivot from STR to long-term but not so much vise-versa. I say, if you have the opportunity to do STR, then you should try it to see if it is a good fit.