Want to list your Charlotte property on Airbnb or VRBO? Here is what you should know.
COVID-related mask mandates are dropping, demand for travel is up, and summer is quickly approaching. These conditions are optimal for vacation home rental platforms like Airbnb and VRBO.
There are currently 3,170 active rental properties in Charlotte, according to AirDNA, a vacation rental research firm. Of these properties, 64% are listed on Airbnb, 12% are featured on VRBO and 24% can be found on both platforms.
The data from AirDNA also shows that rental listings of Charlotte properties grew by 9% in the first quarter of 2022.
Listing your home -- or part of it -- can prove to be lucrative for those with the extra space. However, even if you think you have it all figured out, there are some things you should consider before listing a property.
Check with building, complex or HOA first
Just because you think a property that you own or rent would create income on Airbnb or VRBO doesn’t mean the decision is entirely yours to make. Check with your apartment building or homeowners association to make sure what rules, policies and regulations are in place before leasing a property.
Know how to define a property
Depending on what type of property you are listing on Airbnb or VRBO, you may be subject to certain regulations. This is where “use definitions” come into play.
For example, boarding houses and bed and breakfasts have a set of rules that may be different from other types of properties. Before exploring whether or not your space meets code standards, find out what use definition best applies to your property.
Familiarize yourself with local property and building codes
In Charlotte, standards relating to the construction, maintenance, and health safety of a property must be met before you can rent it out. Chapters 5 and 12 of the Charlotte Code of Ordinances outline crucial information that may be relevant to the listing of a property.
Register your rental with the CMPD
Even though Airbnb and VRBO rentals are considered “short-term rentals,” it is still mandatory for hosts of properties that meet “disorder risks” to register the listing with the Charlotte-Mecklenburg Police Department.
Even if you don’t meet the required threshold, it’s still a good idea to register your property through the police department. That way you can be notified if an emergency related to your listing comes up.
Don’t forget the taxes
Although a host on Airbnb and VRBO for some owners can result in a financial windfall, the profit is not made without the appropriate taxes being assessed. There are a few tax rates to be aware of before deciding what your listing price should be:
Mecklenburg County Occupancy Tax: 8%
Mecklenburg County Sales Tax: 2%
North Carolina Sales Tax: 4.75%
Luckily for hosts, these three taxes are calculated, collected and remitted by rental platforms, according to Airbnb which compiled the rates from the North Carolina Department of Revenue. All other tax obligations are the responsibility of the host. Keep in mind that the taxes remitted by Airbnb are based on the price of your listing plus any applicable cleaning and guest fees.
