Asheville, North Carolina, boasts a thriving short-term rental market, characterized by a strong market score, high occupancy rates of around 65%, and an average daily rate of $236, making it a highly profitable and stable investment opportunity.
Thriving Short-Term Rental Market in Asheville, North Carolina
Asheville, North Carolina, continues to excel as a vibrant and lucrative market for short-term rentals. The city boasts a robust performance, highlighted by a strong occupancy rate and attractive daily rates. As of recent data, short-term rental listings in Asheville achieve a median occupancy rate of 65%, indicating a high demand for these accommodations.
The average daily rate for these rentals stands at around $236, according to some sources, although other data points to an average of $131, reflecting the market's versatility and appeal to a wide range of travelers. This combination of high occupancy and competitive daily rates makes Asheville an ideal destination for both visitors and investors in the short-term rental market. The city's unique charm, vibrant arts scene, and natural beauty continue to drive its popularity, ensuring a stable and profitable environment for short-term rental operations.
Short-Term Rental Regulations in Asheville, North Carolina for 2024
General Regulations
- Prohibition on Non-Owner-Occupied STRs: As of 2018, short-term rentals of entire dwellings are banned in most residential areas, except for properties zoned as "resort".
- Homestays: Allowed in owner-occupied homes where the homeowner rents out one or two bedrooms for less than 30 days, provided the homestay was operating before the 2018 ban.
Permit Requirements
- Homestay Permit: Required for homestays. The application must include:
- Completed homestay permit application form
- Proof of property ownership or a lease agreement
- Floor plan of the property indicating the rooms to be rented
- Proof of insurance covering short-term rentals
- Self-inspection checklist verifying safety requirements are met
- Application fee ($200).
- Vacation Rental Permit: Required for properties in resort zoning districts. The application includes similar documentation as the homestay permit, plus:
- Site plan of the property
- Designated parking spaces for guests
- Neighborhood notification letter.
Operational Requirements
- Zoning Compliance: Short-term rentals must comply with the zoning regulations of the area. Only properties in "resort" zoned areas can operate as whole-unit rentals.
- Parking and Safety: Provide the required number of parking spaces and ensure compliance with health and safety regulations, including fire and safety equipment such as smoke alarms and carbon dioxide detectors.
- Liability Insurance: Maintain liability insurance for the short-term rental.
- Taxes: Pay applicable taxes, including occupancy and sales taxes (6% occupancy tax and 7% combined sales tax in Buncombe County).
Enforcement
- Complaint-Based Enforcement: The city primarily relies on complaints from residents to identify and investigate illegally operating STRs. Violations can result in a notice of violation, daily fines of $500, and potential legal action.
- Annual Inspections: Annual review and inspection are required for compliance with the annual zoning permit.
Proposed Changes
- Potential Lifting of Ban: A proposed bill from 2023 aims to lift the ban on non-owner-occupied short-term rentals in residential zones, though this remains a topic of ongoing debate and community discussion.
Top Neighborhoods Generating Airbnb Revenue in Asheville, North Carolina
1. Downtown Asheville
- Appeal: Downtown Asheville is a hub of vibrant culture, with guests being steps away from award-winning restaurants, bakeries, local breweries, and an energetic nightlife. The convenience of being within walking distance to Pack Square, Biltmore Avenue, and the Grove Arcade makes it an ideal location for those who want to experience the city's full spectrum.
- Amenities: Many rentals offer modern amenities, fully equipped kitchens, high-speed internet, and secure access. Despite the potential for noise, many listings provide white noise machines and earplugs to ensure a comfortable stay.
2. West Asheville
- Appeal: West Asheville is known for its walkability and proximity to local favorites like Izzy’s, Odds Coffee, Biscuit Head, and Sunny Point Café. It offers a tranquil garden setting and modern living spaces, making it perfect for those who want to balance city life with a relaxed atmosphere.
- Amenities: Rentals often feature open-plan living spaces, modern kitchens, luxurious master suites, and beautifully tiled bathrooms.
3. Montford Historic District
- Appeal: The Montford neighborhood is renowned for its Arts and Crafts-style homes, huge porches, and charming gardens. It is just a few blocks from downtown Asheville, making it an excellent choice for families and those who appreciate historic charm.
- Amenities: Guests can enjoy local snacks and drinks upon arrival, comfortable and well-equipped vacation rentals, and a welcoming neighborhood vibe.
4. River Arts District (RAD)
- Appeal: The RAD is home to over 200 art studios, galleries, cafes, restaurants, breweries, and parks along the French Broad River. It offers a unique blend of artistic and industrial charm, with easy access to downtown via a free trolley.
- Amenities: Rentals in this area often feature historic homes with decorative fireplaces, original claw-foot tubs, and modern amenities like fully equipped kitchens.
5. Bent Creek Area
- Appeal: Located near hiking and biking trails and the NC Arboretum, this area is perfect for families and outdoor enthusiasts. It offers a mix of natural beauty and easy access to downtown Asheville.
- Amenities: Rentals here often include play spaces for kids, game rooms with foosball and ping-pong tables, and fully equipped kitchens.
6. Woodfin
- Appeal: Woodfin is a quiet and welcoming neighborhood on the north side of Asheville, close to the River Arts District, the Blue Ridge Parkway, and downtown. It offers a restful vibe with historic homes and modern amenities.
- Amenities: Guests can enjoy pet-friendly homes, fully equipped kitchens, and proximity to local parks and attractions.
Each of these neighborhoods offers a unique blend of Asheville's natural beauty, cultural richness, and modern conveniences, making them highly appealing to a wide range of guests.
Furnishing and Design Tips for an Inviting Airbnb in Asheville, North Carolina
1. Embrace the Local Aesthetic
Incorporate elements that reflect Asheville's unique style, such as using natural materials like wood and stone, and incorporating local artwork and handcrafted furniture to give your space a sense of place and authenticity.
2. Opt for a Moody yet Inviting Color Scheme
Consider a color palette that includes muted, organic colors and dark elements to create a moody yet inviting atmosphere. This can include black accents, matte black marble, and earthy tones to bring the outdoors in.
3. Maximize Natural Light and Openness
Use large windows, skylights, or French doors to maximize natural light and create an open floor plan to make the space feel bright, airy, and larger. This enhances the overall ambiance and makes the space more inviting.
4. Focus on Comfort and Amenities
Invest in high-quality mattresses, soft bedding, and plush seating. Provide amenities such as high-speed internet, streaming services, and well-equipped kitchens to enhance the guest experience and ensure positive reviews.
5. Create Instagram-Worthy Spaces
Identify the most photogenic areas of your Airbnb and enhance them. Consider creating a cozy reading nook, a stunning outdoor seating area, or a unique "selfie wall" using wallpaper or a mural. Add stylish accessories like plants, candles, and artwork to make the space visually captivating.
6. Pay Attention to Details
Ensure everything is clean, tidy, and well-maintained. Remove tags from decor and furniture, and use cord covers to keep the space looking neat. Small details such as statement mirrors, quirky art pieces, or a witty doormat can add personality and make a lasting impression on guests.
7. Balance Modern and Vintage Elements
Use a mix of modern and vintage pieces to create a balanced and unique interior design. This blend can add character to your space and make it stand out from other rentals.
8. Incorporate Sustainable Practices
Show your guests that you care about the environment by incorporating eco-friendly practices and sustainable materials. This can include recycling bins, energy-saving habits, and the use of eco-friendly products.
9. Curate an Enchanting Ambiance
Play with textures and colors to add pizzazz to your space. Use accent walls, interesting wallpapers, and bring nature inside with plants to create an enchanting atmosphere that guests will love.
10. Splurge on Statement Pieces
Invest in statement pieces such as couches, coffee tables, and dining room tables that define your space. These pieces can make a significant impact on the overall design and guest experience, even if they are more expensive.
Practical Tips to Run a Successful Short Term Rental Business in Asheville, North Carolina
To operate a successful short-term rental business in Asheville, North Carolina, several practical tips can help you navigate the city's stringent regulations and enhance the guest experience.
Noise Regulations and Guest Communication
Ensure you inform your guests about the city's noise regulations and quiet hours to avoid any potential issues. Include this information in both your digital and physical house manual to set clear expectations.
Comprehensive House Manual
Create a detailed house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should be both digital, accessible through a guest portal or email, and physical, placed prominently in the rental property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos to help them locate the smart lock and any other important features.
Parking Instructions
Include detailed parking instructions with photos in your house manual to help guests understand where they can park and any specific rules or restrictions. This can help prevent parking-related issues and ensure a smooth stay.
By following these tips, you can not only comply with Asheville's regulations but also provide a seamless and enjoyable experience for your guests, which is crucial for maintaining positive reviews and repeat business.
Here is a brief list of house cleaning providers in Asheville, North Carolina:
House Cleaning Services in Asheville, NC
You've Got Maids® of Asheville
- Located at 7 Glenn Bridge Rd Ste D, Arden, NC 28704
- Offers 52-Point Deep Clean™, regular cleaning services, and move-in cleaning
- 100% satisfaction guarantee, licensed, bonded, and insured.
Molly Maid® of Asheville and Hendersonville
- Provides customized cleaning plans with no contracts
- 24-hour warranty and free estimates available
- Focuses on thorough cleaning to suit individual needs.
Merry Maids® of Asheville
- Over 40 years of experience in comprehensive cleaning services
- Serves Asheville and Hendersonville areas
- Offers free estimates and aims to restore balance to your home.
Nice & Fresh Cleaners
- Locally owned and operated in Asheville, NC
- Provides residential and commercial cleaning services
- Satisfaction guaranteed with a return policy for unsatisfied customers.
Various Independent Cleaners
- Listed on Care.com, including individuals such as Lorna B., Cory V., Judy W., and others
- Average rate of $20/hr, with an average of 3 years of experience
- Rated 4.7 out of 5 stars based on customer reviews.
Asheville, North Carolina: Understanding Short-Term Rental Management Fees
In Asheville, North Carolina, managing short-term rentals involves a range of services that can significantly impact your bottom line. Management fees for short-term rentals typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often ranging from 20% to 30% of the revenue.
Basic services, which may only include listing and booking management, can be less expensive, starting at around 10% of the rental income. Additionally, property owners may incur extra fees for services like cleaning, repairs, or design enhancements, which can further affect the overall cost. It is crucial to carefully evaluate the services included and the specific costs involved to ensure that the management fees align with your investment goals and provide value for money.