Posted: February 21, 2024

Short Term Rentals Guide: Asheville, North Carolina

Rentals

Short Term Rentals

Welcome to the ultimate guide to investing in short-term rentals in the beautiful western Carolina city of Asheville! Nestled in the heart of the Blue Ridge Mountains, this Buncombe County destination boasts a breathtaking and bountiful natural beauty as well as thriving arts and culinary scene. Whether you’re planning a weekend getaway or an extended stay, our comprehensive guide will help you find the perfect vacation rental property.

This guide will cover recommended investment locations, how to finance these STRs with Easy Street Capital’s industry leading STR Loans and the latest updates on the rules and regulations for short term rentals in Asheville, North Carolina! One of the hottest and most popular travel destination markets in the United States, it is also home to a complicated and constantly changing regulatory environment for STR investors. We’ve got you covered with a comprehensive Asheville STR Guide as well as up to date info on the latest developments in Asheville STR rules and requirements.

Why is Asheville So Popular for Short Term Rentals?

When it comes to choosing where to invest in short term rentals – market matters – a lot! And the most important thing in choosing a market is “demand drivers.” What are demand drivers? These are things in the area that drive people to come to visit for short stays. These are the people that are going to be booking your short term rental, paying the rents and providing the real estate returns. So its very important to choose a market with many diverse demand drivers.

Asheville is a great market for Vacation Rentals primarily because it has hip and popular demand drivers for a variety of visitors. The combination of the Blue Ridge Mountains and French Broad and Swannanoa rivers make Asheville a Nature Lovers paradise! With overflowing options of nature-based activities, such as fishing, birding, hiking, ziplining and all sorts of water sports – demand for short term rentals located near these activities is consistently strong. However, Asheville also combines proximity to these natural attractions with the offerings of a medium-sized city with many urban offerings too.

Top Things To Do in Asheville, North Carolina (STR Demand Drivers)

Brewery, Winery & Distillery Tours

Asheville, North Carolina, has earned a stellar reputation for its vibrant and diverse craft beer scene. Often referred to as “Beer City USA,” the city boasts an impressive number of breweries per capita, making it a top destination for beer enthusiasts. The city’s breweries are known for their innovative and high-quality brews, ranging from classic IPAs to unique sours and barrel-aged stouts. Some of the top breweries in Asheville include Burial Beer Co., Wicked Weed Brewing, and Highland Brewing Company. Each offer a distinct atmosphere and a wide range of beers. With its thriving beer culture and top-notch offerings, Asheville is a must-visit destination for anyone looking to explore the world of craft beer.

Check out Asheville Brewery Tours to book one of the city’s best and most comprehensive beer tours!

Asheville’s thriving wine scene also drives a significant amount of tourism. The city’s impressive array of wineries and vineyards attract visitors from far and wide. The region’s unique terroir and dedicated winemakers produce a diverse range of high-quality wines, from crisp whites to robust reds. Top offerings include the Biltmore Estate Winery, the most visited winery in the United States. Biltmore features a variety of award-winning wines and a memorable tasting experience. Other notable wineries in the area include the family-owned Addison Farms Vineyard, known for its stunning views and handcrafted wines, and the charming Saint Paul Mountain Vineyards, which features a variety of estate-grown wines and a relaxed, welcoming atmosphere. With its picturesque landscapes and world-class wines, Asheville is a must-visit destination for wine enthusiasts.

In addition to breweries and wineries, Asheville has begin to develop a burgeoning reputation for its thriving distillery scene. Top destinations include the award-winning whiskeys of Cultivated Cocktails, the unique gin and brandy creations of The Chemist, and the small-batch spirits of Eda Rhyne Distilling Co., which sources local heirloom corn and grains to create a uniquely North Carolina flavor.

Nature Lover Options in Asheville

Asheville is a nature lover’s paradise, offering an array of outdoor activities that showcase the region’s stunning natural beauty. Here are some of the best nature-based activities for visitors to Asheville:

With the Blue Ridge Mountains as its backdrop, Asheville boasts a plethora of hiking trails for all skill levels. Popular trails include the Craggy Pinnacle hike, which offers breathtaking panoramic views, and the scenic trails at the North Carolina Arboretum, where visitors can explore a variety of native flora and fauna.

The French Broad River, the third-oldest river in the world, flows through Asheville. Visitors have ample opportunities for kayaking, tubing, and stand-up paddleboarding. Visitors can also take a guided rafting trip on the nearby Nantahala River for a thrilling whitewater experience. The stunningly beautiful broad river offers more than just boating. There are numerous options to satisfy every visitor. This includes awesome ziplining, canyoneering and offroad e-biking to name a few! Many of these adventures have starting points at locations within 30 minutes of downtown. No need to choose between a nature getaway and a city trip!

Check out French Broad Adventures for plenty of Nature Activities near Asheville!

Asheville = “Foodtopia”?

Asheville is also known for its vibrant culinary scene, earning it the nickname “Foodtopia.” The city has a remarkable array of award-winning restaurants and talented chefs who create innovative dishes using locally sourced ingredients. Asheville’s top offerings include farm-to-table dining experiences, a thriving craft beer and beverage scene, and unique food tours that showcase the city’s diverse flavors. A rich history of Southern comfort food paired with a fusion of global cuisine makes Asheville a must-visit destination for foodies.

Check Out Eaters Top 18 Essential Restaurants in the City!

Historic Attractions

Asheville also has rich history that attracts visitors year-round. Founded in 1797, Asheville has a long-standing history of being a popular destination for its natural beauty and unique architecture. The charming downtown area features a blend of Art Deco, Beaux Arts, and Neoclassical architecture, with famous places such as the Basilica of Saint Lawrence and the Grove Arcade. Indeed, it is sometimes referred to as the “Paris of the South.”

The Thomas Wolfe Memorial, a historic house museum, is a must-visit for history enthusiasts. The museum features a collection of artifacts, photographs, and documents that tell the story of the famous American author Thomas Wolfe and the history of Asheville. The Smith-McDowell House Museum is another popular attraction. This institution showcases the history of the region through its well-preserved 19th-century mansion and exhibits.

Asheville is also home to the Black Mountain College Museum + Arts Center, which celebrates the history of the influential experimental liberal arts college, Black Mountain College. This institution played a significant role in shaping American art, literature, and music during the mid-20th century.

Check out this article from ExploreAsheville.com on 5 Awesome Ways to Explore Asheville’s Rich History

STR Rules and Regulations in Asheville, North Carolina

As one of the hottest and hippest cities in the last decade, experiencing tremendous growth, Asheville has also been on the forefront of cities finding the balance of STR rules and regulations. Asheville passed a somewhat strict law regulating short term vacation rentals that went into effect in January 2018.

In response, everybody wanted to know Is Airbnb legal in Asheville NC?

The answer, is as is usually the case with new and developing industries: it depends.

Three of the major changes included:

Zoning

For new short term rentals, the property has to be located in an area with zoning of “Resort.” How to find out if your property is in an Asheville resort zoning area? The map can be located here: Asheville Zoning Map. However, properties in areas that already had a permit for STVR (Short Term Vacation Rental), these were “grandfathered in,” meaning they could still be STRs in non-resort zoned areas post new law.

Homestays

Asheville also created a new category of “Homestay” properties distinct from STVR. These properties had more lenient restrictions on use as a short term rental, however are only an option for homeowners who also reside at the property.

Conditional Permitting

For investors hoping to utilize a property as a short term rental purely for business purposes, and have a property neither in a resort zoning area nor grandfathered in, there is still an option. Owners can get special permission from the City Council called “conditional zoning” if applied for an approved.

Change and Developments in Asheville Vacation Rental Rules

Despite the somewhat overbearing rules passed in 2018, the STR regulatory environment continues to develop and change in Asheville like in many similar cities. In 2023, a bill was proposed in the North Carolina Senate aimed at overruling STR-related restrictions enacted by certain cities. The bill would grant more rights to property owners, allowing greater freedom for short term rental operators. Additionally, the bill would also broaden vacation rental options for visitors, important in a climate of high inflation and increased travel costs.

An overview of the proposed changes can be found here, with a thorough article published by the Citizen Times. Byron Greiner, a top realtor and short term rental expert is quoted in the article. He argues for a “common-sense” approach that would balance restrictions with freedoms, suggesting that the idea of a “cap” would be considered and welcomed by most. Many believe it is likely that in the future, a balance in this direction could be found and chart a long-term climate of certainty and sustainable growth for short term rentals in Asheville.

To track the status of North Carolina Senate Bill 667 “Regulation of Short-Term Rentals” – the public can follow along at this page.

Investing in Short Term Rentals in Asheville, North Carolina

While Asheville and the surrounding area is a great market for vacation rentals – when it comes to investing, the numbers and data is of utmost importance. Investing in and operating a STR is a whole different ballgame than enjoying a vacation at an STR! As every successful short term rental investor knows – underwriting and running the numbers on an investment is key to success.

Two of the most important aspects of evaluating vacation rental investment are understanding and projecting both revenue (income) and expenses. The majority of an investor’s expenses is often the cost of a short term rental loan. Below, we’ll provide recommendations on how to think through each to be a short term rental investing pro!

Revenue Projections

One of the most exciting developments in the STR investing sector is the explosive growth of accessible data for investors. Companies such as AirDNA and Rabbu continue to make great strides in high-level actionable data for investors evaluating short term rental markets.

Key Metrics for every short term rental investor in evaluating revenue (earnings) from STRs include:

Occupancy Rate:

The percentage of days per year the STR will have guests (generally assuming market rates are charged)

Average Daily Rate:

The average price of a days’ stay at the property

RevPAR (Revenue per Available Room):

This is a common metric for hotels. RevPAR is calculated by multiplying occupancy rate and ADR to get total expected earnings over a year (per room).

Utilizing these metrics are key to evaluate the revenue potential of short term rentals. For short term rental projections in Asheville, North Carolina – AirDNA (as of February 2024) provides great information. AirDNA is a great resource for this since it directly connects to actual performance data, giving estimates and tracking changes in near real-time.

As of February 2024, AirDNA gives the following metrics for Asheville Short Term Rentals:

Market Score: 82 – this is determined to be a “great” rating and balances all of the overall market factors

Occupancy Rate: 58% – while this is generally a bit higher than average, it reflects the seasonality of the market. The winter months such as January and February can be challenging to book stays. However, Asheville reports very strong occupancy in the summer months. Its mountainous temperate climate is irresistible for close-by residents of southern states dealing with oppressive temperatures in the summer. A combination of good summer weather and proximity to those without such blessings make Asheville a super strong summer market.

Average Daily Rate: $236 – a strong number when paired with a strong occupancy rate. Affordable without being too low – Asheville STRs can serve a large middle-class market.

A well-located market near many population centers in the fast-growing state of North Carolina, as well as similarly growing states such as Virginia, Tennessee and Georgia – Asheville is a great “drivable market” that vacation rentals can serve a large addressable market.

Expense Projections

The largest and most consequential expense for many STR investors is the financing cost. This is typically the monthly payment of principal and interest to the lender financing the property. Many investors in vacation rentals cover the vast majority of the investment with a loan. Down payments on these loans are only around 20%-30%. Thus, its very important to get the best rates and terms on financing the short term rental to make sure the returns are worth it.

When financing a short term rental in Asheville, there are several options. These can include loans from traditional lenders, such as banks, credit unions and “conventional” (i.e. Fannie Mae / Freddie Mac) lenders. However, counting on traditional loans can be a big mistake for STR investors. Because short term rentals are still a new and rapidly changing asset class, lenders that are flexible around STRs can be very valuable. Utilizing a lender that understands and embraces short term rentals is often key.

Unlike most lenders who offer loans on short term rentals, Easy Street Capital embraces the unique aspects of STR investing. Options to qualify based on projected short term rental revenue, from cutting-edge data sources such as AirDNA – can make or break success in STR. For more information, FAQs and free projected numbers for any potential STR address in Asheville, North Carolina, check out our short term rental lending program resource page here!

In addition to making sure your lender understands and qualifies the loan based short term rental realities, utilization of advanced strategies to get the best rates and terms can be key to minimizing your monthly expenses.

Property Management for Asheville, North Carolina Short Term Rentals

One major decision many short term rental managers face is self-managing their properties or hiring a vacation rental management company. There are many pros and cons for each option.

Pros of managing your own short term rental include saving management fee expense, more control of the guest experience and obtaining valuable expertise through experience. However, there are downsides. By not hiring a short term rental management company, you are committing significant time to ownership. This can prevent scaling a portfolio and cause a lot of stress and excess workload. Additionally, top management companies know the ins and outs of the market, adding value and revenue from their local expertise. Finally, if you are not located in western North Carolina, near Asheville, you would miss out on this market if needing to manage yourself!

Luckily, Asheville is home to several property management companies well equipped to successfully manage short term rentals. According to AirDNA, here are a few of the top options for investors looking to utilize STR property management:

Yonder Vacation Rentals is a large short term rental management company based in Asheville. They boast an extensive expertise and track record of STR management in Western North Carolina! With a local focus and a large, dedicated team – Yonder is a solid choice for vacation rental management in Asheville. With a track record since 2008 – Yonder has over 13,000 5+ star reviews and an excellent reputation.

Check out this Yonder Guide to the Best Things to Do in Downtown Asheville

Towns Property Management is a dedicated vacation rental management company headquartered in Asheville. The company boasts a highly experienced team and a professional approach to vacation rentals. Going above and beyond simple listings on the big platforms, Towns focuses on pricing, customer service and technology. AirDNA reports as of February 2024 they have over 100 listings in Asheville. Their listings have a terrific average review of 4.81 stars (over 7,500 reviews track record).

Carolina Mornings is a smaller vacation rental management company based in Asheville. Its focus is more towards cabins and mountain houses versus standard residential short term rentals. If your vacation rental investment strategy is more focused on secluded Blue Ridge mountain areas or cabin adventures, Carolina Mornings could be the ideal management partner.

Check Out this Top Rooftop Bars in Asheville Guide by Carolina Mornings

Investor-Friendly Agents for Asheville, North Carolina Short Term Rentals

When purchasing a short-term rental (STR) in the Western North Carolina region, which has lucrative opportunities for STR investors, it’s crucial to utilize a locally-based real estate agent to help navigate the process. Many STR buyers owe their success to partnering with an agent who knows the market and the local nuances. Savvy STR Agents is a real estate team based in Asheville, NC that focuses exclusively on STR investment properties.

Led by CEO and Founder, Tyler Coon, they know the market well and have a bevy of listings and STR-focused content available for free on their website. “It’s super important to not be an average host in this STR market. To do that, you must invest in creating unforgettable guest experiences by infusing your property with distinctive designs, unique amenities, and local charm,” said Tyler Coon. “From personalized touches to top-quality photos, every detail counts in setting your listing apart and maximizing bookings.” If looking to invest in a Western Carolina vacation rental, it’s worth checking out Savvy STR Agents.

Check out this video from Savvy Realty on tips for designing 5-bedroom STR properties and maximizing bookings!

Start investing in Asheville today!

Have your eye on purchasing a short term rental investment property in Asheville? Easy Street Capital is America’s best lender for short term rentals – see options below to explore financing options!

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Disclaimer: The information provided in this article is not intended as financial or legal advice of any kind. Regulations regarding short-term rentals are subject to change and all investments are subject to risk. Information included in this article may contain information that has not been verified by licensed attorneys and should be subject to independent verification. Readers are advised to consult with qualified legal or financial professionals prior to investing in real estate investment properties.

Robin Simon

Partner at Easy Street Capital

Mr. Simon is a Partner of Easy Street Capital, overseeing the EasyRent division, which provides long-term financing on business-purpose 1-10 unit residential mortgage loans. He is responsible for managing all aspects of the EasyRent line, including the marketing, business development, operations and secondary/capital markets.