AirBnB and zoning

[PMrez]

Does anyone have any experience with AirBnB hosting? We have considered it for a rental home in South Charlotte that is not part of an HOA. Great area and very walkable to dining/entertainment/parks/etc and we know it would be a hit. Some initial digging seems to indicate that AirBnB will collect and remit taxes to NC and Mecklenburg on behalf of the host. However, I also see there could be a gray area as it relates to zoning but having trouble pinning anything down. Seems like there are several different interpretations. Anyone out there with any good insight or experience? Would this be a question for a real estate attorney? Thanks in advance!

[lewy2000]

I use it for one of my rental properties. Good place to start: https://www.airbnb.com/help/article/944/charlotte--nc

[PMrez]

Thanks for the reply! That's where I started and realized I was getting in the 'grey'. Did you go the Bed and Breakfast route? How long have you been active? 

[Matthew.Brendan]

We have been very happy with hosting at our South Charlotte property. 

[KJHburg]

I host at the beach but it is fully zoned and approved for vacation rentals. I would say many in Charlotte hosting are in violations of their HOA documents or rental leases from the properties I have seen here. Will you be the home (just a room or separate apartment rental) or are you renting the whole property out? If you are in the home I would  not imagine it would be a problem. Airbnb collects NC as well as SC sales taxes but does not collect local sales taxes so you would need to check. You will get a 1099 at the end of the year and will have to report on your Federal and state tax returns. Also on your own personal home you might want to check  your homeowners insurance and have the highest coverage available.  It is a different matter when you rent out a room in your home since it could create insurance issues if not properly covered. Best wishes and it really has helped my business at the beach with guests from areas I would never marketed to or thought anyone would come that far for. 

[PMrez]

This would be an entire property for rent. Luckily AirBnB does collect the Meck taxes as well. One of only a handful of local municipalities it does that for. 

[KJHburg]

Okay if renting the whole property be sure to increase your liability insurance. That is great Airbnb does that in Meck for they sure don't in South Carolina. It is a paperwork nightmare for me. Actually NC was one of the first states to collect sales taxes from Airbnb properties but almost every other state has caught on now.

 

[PMrez]

I will def look into increasing liability on the rental policy. Thanks for the info! I can see where the taxes would be a nightmare from a paperwork perspective.

 

• Room Occupancy Tax and Sales Tax. The County of Mecklenburg assesses room occupancy taxes on rents charged for accommodations in hotels, motels, corporate housing, or similar places for less than 90 days. In addition, the State of North Carolina assesses sales tax on the gross receipts received from such rentals. Airbnb collects and remits the Mecklenburg room occupancy tax and the North Carolina sales tax in Charlotte; more information about that process is available here.