Forsyth County, North Carolina Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Forsyth County, North Carolina?

Forsyth County, which includes the city of Winston-Salem, has become an increasingly popular destination for travelers looking to book short-term rentals on platforms like Airbnb and VRBO. However, hosts need to be aware of the specific regulations governing STRs in the county to operate legally and avoid potential issues.

The good news is that compared to many other cities and counties, Forsyth County currently has relatively Airbnb-friendly rules. There are no specific ordinances or zoning codes that explicitly restrict or prohibit STRs. This means that in general, both owner-occupied and non-owner occupied short-term rentals are allowed across the county without needing special permits or licenses that are required in other markets.

Other Rules and Best Practices

While Forsyth County's STR regulations are not as comprehensive as some other markets, hosts still need to follow general rules and best practices:

• Owners must designate a local contact person, such as a co-host or property manager who can quickly respond to any issues at the property
• Hosts should provide guests with information on noise regulations, occupancy limits, parking rules, pet policies, etc.
• It's critical to maintain detailed records of rental income and expenses for tax purposes
• Using STR-specific tax compliance software can help ensure you stay on top of all obligations
• Communicating with neighbors proactively can prevent potential complaints or conflicts

One Forsyth County STR host on the BiggerPockets forums noted that finding an experienced local property manager who understands all the applicable rules can make compliance much easier.

Another host on the Winston-Salem subreddit shared a cautionary tale about a negligent out-of-state landlord who ignored maintenance requests, leading to mold and other hazardous conditions. This underscores the importance of responsibly managing STRs to ensure the safety of guests and the property.

In summary, while Forsyth County is relatively welcoming to Airbnb and VRBO rentals compared to some markets, hosts still need to carefully research and comply with the relevant tax, zoning, and other regulatory requirements. Responsible management is key to running a successful and compliant STR business.

Short-Term Rental Licensing Requirement in Forsyth County

While Forsyth County does not require a specific short-term rental license, hosts still need to comply with certain zoning restrictions and business requirements to operate legally.

According to the Forsyth County website, short-term rentals are only permissible in properties zoned A1 (agricultural) or Ag-Res (agricultural residential). Hosts in these applicable zones must obtain a conditional use permit (CUP) from the county.

To apply for a CUP, hosts need to submit a completed Short-term Rental License Application to the Forsyth County Department of Business License. The application requires details such as:

1. Property owner information
2. Rental property address and details
3. Designated local contact person
4. Parking plan
5. Proof of insurance
6. Health department or water department verification of sewer capacity
7. Signed acknowledgments of compliance with noise, occupancy, and other regulations

The application fee is $250 and should be included with the submission. The typical processing time for a CUP is not specified.

In addition to the CUP, STR operators need to register their rental properties with the Forsyth County Tax Administration for occupancy tax collection purposes. While Airbnb collects and remits the state sales tax, hosts are still responsible for registering with the county, filing regular occupancy tax returns, and remitting the 6% occupancy tax themselves. Failure to comply can result in penalties.

STRs operating without proper permits and tax registration may be subject to fines and legal penalties. The Forsyth County Sheriff and Code Compliance departments have the authority to enforce the STR regulations.

Hosts with specific questions about permitting and tax requirements can contact:

1. Forsyth County Department of Business License: 678-455-9888 or alcohol@forsythco.com
2. Forsyth County Tax Administration: 336-703-2300 or taxadmin@forsyth.cc

By carefully following the zoning, permitting, and tax rules, hosts can ensure they are operating their Forsyth County short-term rentals in full compliance with county regulations. Consulting with local officials and connecting with other area hosts can provide additional guidance in navigating the process.

Required Documents for Forsyth County Short-Term Rentals

To operate a short-term rental in Forsyth County, hosts need to submit certain required documents as part of the licensing and permitting process. According to the Forsyth County website and short-term rental ordinance, the key required documents include:

Short-term Rental License Application: This is the main application form that all STR hosts must submit to the Forsyth County Department of Business License. It collects key information about the property, owner, and local contact person. The application fee is $250 and should be included with the submission.

Conditional Use Permit (CUP): STRs are only allowed in properties zoned A1 (agricultural) or Ag-Res (agricultural residential) in Forsyth County. Hosts in these applicable zones must obtain a CUP before applying for a STR license. The CUP application requires details on the property, parking plan, and other items to ensure the STR complies with zoning rules.

Proof of Insurance: Applicants must provide proof that the short-term rental is covered by an appropriate insurance policy. This helps protect both hosts and guests in case of accidents or damages.

Parking Plan: A parking plan must be submitted showing that sufficient off-street parking is available for STR guests, in compliance with the zoning code.

Sewer/Septic Verification: For STRs served by sewer, documentation from the applicable county or city department verifying adequate sewer capacity is required. Properties with septic tanks need documentation from a licensed professional that the system is functioning properly and sized for the STR occupancy.

Designated Local Contact Person Form: Every STR must have a designated local contact person who is available 24/7 to respond to any issues at the property within 3 hours. The contact's information and signed acknowledgments must be provided on the required form.

Responsible Person Acknowledgment: STR operators must provide guests with information on the rules and regulations and require them to sign an acknowledgment form agreeing to comply with all applicable laws, noise rules, occupancy limits, etc.

State-Required Affidavits: The state requires notarized affidavits verifying the lawful presence of the STR owner/operator. These affidavits must be completed and submitted with the STR business license application.

In addition to these STR-specific documents, hosts may also need to provide general business license application items like a federal tax ID number, state sales tax number, and any required corporate or LLC paperwork.

By carefully compiling and submitting all the required documents, STR operators can navigate the Forsyth County licensing and permitting process and ensure they are in full compliance with the rules. The county's Business License Department is available to answer any questions and assist with the application process.

Forsyth County Short-Term Rental Taxes

Short-term rental hosts in Forsyth County need to be aware of and comply with several state and local tax obligations. Properly collecting and remitting these taxes is a key responsibility for operating a legal and successful STR business.

Sales and Use Tax

The first tax that applies to Forsyth County STRs is the North Carolina sales and use tax. The state imposes a 4.75% tax, while Forsyth County levies an additional 2-2.75% local tax, for a total sales tax rate of 6.75-7.5%. This tax applies to the listing price, including any cleaning fees and guest charges, for reservations less than 90 nights.

Platforms like Airbnb and Vrbo collect and remit these taxes on behalf of hosts, so in most cases, hosts do not need to file them separately unless they book guests outside these platforms.

Occupancy Tax

Forsyth County also assesses a local occupancy tax on STRs. This tax is 6% of the listing price, including any fees, for stays less than 90 nights. Like the sales tax, this occupancy tax is collected and paid by the STR platforms in most cases.

However, it's still the ultimate responsibility of the host to ensure these taxes are properly collected and remitted. Failure to comply can result in fines and legal issues.

Income Tax

STR rental income is subject to both federal and state income taxes. Hosts must report their STR earnings on their annual tax returns and pay the applicable tax rates. The income tax is based on the net profit (income minus expenses) from the STR business.

Possible Deductions

STR hosts can deduct many of the expenses of running their rental business to reduce their taxable income. Some common deductible STR expenses include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies
7. Platform fees
8. Advertising and marketing costs
9. Depreciation

It's critical for hosts to keep detailed records and receipts for all STR expenses in order to support these deductions if audited. Consulting a tax professional with STR experience can help hosts maximize their write-offs and ensure proper tax compliance.

By understanding and abiding by all applicable tax laws, Forsyth County STR operators can avoid problems and successfully run their rental businesses. The key is to stay informed, keep good records, and get professional help when needed.

North Carolina Wide Short-Term Rental Rules

While many short-term rental regulations in North Carolina are set at the city and county level, there are some important state laws that Forsyth County hosts need to be aware of.

The primary state-level mechanism governing STRs is the North Carolina Vacation Rental Act (VRA). With some exceptions, the VRA generally applies to any person or entity that is involved in the rental or management of residential properties for vacation, leisure, or recreation purposes for less than 90 days.

The VRA requires a written rental agreement between the host and guest that includes a specific notice provision and several key terms related to the rights and obligations of each party. It also sets out requirements for the handling of security deposits, advance payments, and accounting of funds.

Under the VRA, the host is obligated to maintain the property in a fit and habitable condition. The tenant has a duty to maintain the cleanliness and safety of the property and to comply with the rental agreement.

Importantly for hosts, the VRA establishes the grounds and process for evicting a tenant from a vacation rental property, which can differ from long-term rental evictions.

In addition to the VRA, STR operators in North Carolina must comply with state tax laws. The North Carolina Department of Revenue mandates that STR hosts collect both state and local sales and use tax. The state sales tax rate is 4.75%, while the local rates vary by county and city. Forsyth County's current local sales tax rate is 2.00-2.25%, for a total of 6.75-7.25%.

Many cities and counties also impose their own occupancy taxes on STRs. Forsyth County assesses a 6% occupancy tax in addition to the sales tax. While platforms like Airbnb collect and remit some of these taxes on behalf of hosts, it's ultimately the responsibility of the STR operator to ensure proper compliance with all tax obligations.

The state also requires STR operators to maintain detailed records of all rental transactions and lodgers for at least three years. This documentation may need to be provided to state or local authorities upon request.

While not a state law per se, a key North Carolina court decision in 2022, Schroeder v. City of Wilmington, struck down a local ordinance requiring STR permits and registration. The court held this violated a state law prohibiting rental property registrations. This case limits the ability of cities and counties to mandate certain STR licenses.

However, many local governments are still enacting other types of STR regulations allowed under state law, such as zoning restrictions and operational rules. Forsyth County STR hosts need to carefully review any applicable ordinances in their specific municipality.

By understanding both the state-level VRA and tax requirements, as well as their local STR ordinances, Forsyth County vacation rental operators can ensure they are in full legal compliance. Consulting with a local attorney or tax professional experienced in STR matters is advisable to navigate this complex regulatory landscape.

Does Forsyth County Strictly Enforce STR Rules?

While Forsyth County has some zoning restrictions and permitting requirements for short-term rentals, the general consensus among local hosts is that the county is relatively Airbnb-friendly compared to other jurisdictions in North Carolina and across the country.

According to discussions on forums like BiggerPockets and Reddit, many STR operators report being able to run multiple properties in Forsyth County without facing significant pushback or enforcement actions from the county. As long as hosts are responsible and their rentals are not generating repeated complaints, the county tends to take a hands-off approach.

One host on the Airbnb subreddit shared their experience: "I've been operating STRs in Winston-Salem for several years now and have had no issues with the county. As long as you're paying your taxes and being a good neighbor, they pretty much leave you alone. It's a lot easier here than in some other cities I've invested in."

Another investor on BiggerPockets echoed this sentiment, noting that Forsyth County's enforcement environment is a key reason why the area is attractive for STR operators: "The county has reasonable rules in place, but they're not out there actively hunting down Airbnb hosts. This allows you to focus on running a great rental business without constantly worrying about compliance."

This is not to say that Forsyth County never enforces its STR ordinances. If a property is consistently causing problems or violating zoning rules, the county can and will take action. But in practice, this seems to be the exception rather than the norm.

It's also important to recognize that just because enforcement is relatively lax today doesn't mean it will stay that way forever. As the STR industry continues to grow and evolve, Forsyth County may decide to revisit its rules and step up enforcement like many other jurisdictions have in recent years.

However, for now, the clear consensus among local hosts is that Forsyth County remains one of the more welcoming and Airbnb-friendly places to operate in North Carolina. The relaxed regulatory environment allows STR entrepreneurs to thrive without some of the onerous restrictions and aggressive enforcement seen in other markets.

How to Start a Short-Term Rental Business in Forsyth County

Starting a short-term rental business in Forsyth County can be a great way to generate income from your property. However, it's important to follow the proper steps to ensure you are operating legally and setting yourself up for success. Here is a comprehensive guide on how to get started:

1. Research zoning and permitting requirements: In Forsyth County, STRs are only allowed in properties zoned A1 (agricultural) or Ag-Res (agricultural residential). If your property is in one of these zones, you'll need to obtain a conditional use permit (CUP) from the county before applying for a STR license. Review the county's Unified Development Code and contact the Planning and Development Services Department for guidance on the CUP process.
2. Prepare your property: Once you've confirmed your property is eligible for STR use, make any necessary repairs, upgrades, and furnishings to create an attractive and comfortable space for guests. Consider the amenities and features that will make your rental stand out, such as high-speed Wi-Fi, well-equipped kitchens, and cozy bedding.
3. Obtain required licenses and permits: After securing your CUP, submit a completed Short-term Rental License Application to the Forsyth County Department of Business License. The application fee is $250. You'll need to provide details about the property, parking, occupancy, and more. If on septic, you'll also need a performance evaluation from the Health Department verifying adequate capacity.
4. Register with tax authorities: STR operators in Forsyth County must register their properties with the County Tax Administration for occupancy tax collection. You'll need to file regular returns and remit the 6% occupancy tax on your rental income. Platforms like Airbnb will collect and pay the state sales tax, but the occupancy tax is still your responsibility.
5. Set up your business operations: Decide on your business structure (sole proprietorship, LLC, etc.), obtain an EIN from the IRS, open a business bank account, and set up bookkeeping to track your income and expenses. Consider using STR-specific software to automate reservations, payments, and tax compliance.
6. Create a compelling listing: To attract guests, you'll need to create an eye-catching and informative listing on popular STR platforms like Airbnb and Vrbo. Use high-quality photos, write a detailed and engaging description, and highlight your property's best features and amenities. Be transparent about your rates, policies, and any rules or restrictions.
7. Develop a guest communication strategy: Providing excellent customer service is key to success in the STR business. Establish clear and friendly communication with guests from the moment they book to after they check out. Provide detailed check-in instructions, promptly answer questions and concerns, and consider leaving a welcome guide with local recommendations and important info about the property.
8. Implement a cleaning and maintenance plan: Cleanliness is critical for STRs, especially in the COVID era. Develop a thorough cleaning protocol (or hire a professional service) to ensure the property is spotless and sanitized between each guest. Have a plan for regular maintenance, repairs, and restocking of essentials to keep your rental in top shape.
9. Promote and market your listing: In addition to creating a strong listing on STR platforms, look for other ways to market your property to potential guests. Leverage social media, create a direct booking website, and consider partnering with local businesses or tourism organizations to cross-promote. Encourage satisfied guests to leave reviews to build your reputation over time.
10. Monitor your performance and adjust as needed: Once your STR is up and running, keep a close eye on your bookings, revenue, and expenses. Pay attention to guest feedback and make improvements based on their suggestions. Stay up-to-date on any changes to local regulations or tax requirements, and adjust your business practices as needed to stay compliant and competitive in the market.

By following these steps and continually working to provide an excellent guest experience, you can build a successful short-term rental business in Forsyth County. While it takes effort and attention to detail, STRs can be a rewarding way to earn income from your property in this Airbnb-friendly market.

Who to Contact in Forsyth County about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance with short-term rental regulations and zoning in Forsyth County, there are several key departments and resources you can contact:

Forsyth County Department of Business License

This department handles all aspects of STR licensing and permitting. They can assist with the application process, tax registration, and general compliance questions.

Contact:

1. Phone: (678) 455-9888 (Option 2)
2. Email: businesslicense@forsythco.com
3. Address: 110 East Main Street, Suite 130, Cumming, GA 30040
4. Website: https://www.forsythco.com/Departments-Offices/Business-Licenses

Forsyth County Department of Planning & Community Development

The Planning & Community Development Department oversees zoning and land use regulations in the county. They can provide guidance on whether a property is eligible for STR use based on its zoning classification and the conditional use permit (CUP) process.

Contact:

1. Phone: (770) 781-2115 main, (770) 205-4568 direct
2. Address: 110 E. Main Street, Suite 100, Cumming, GA 30040
3. Website: https://www.forsythco.com/Departments-Offices/Planning-Community-Development

Forsyth County Tax Commissioner's Office

The Tax Commissioner's Office administers the occupancy tax that STR operators must collect and remit. They can assist with tax registration, filing requirements, and payment procedures.

Contact:

1. Phone: (770) 781-2110
2. Email: tag@forsythco.com
3. Address: 1092 Tribble Gap Road, Cumming, GA 30040
4. Website: https://www.forsythco.com/Elected-Officials/Tax-Commissioner

In addition to these official county resources, connecting with other local STR hosts can provide valuable insights and support. Some helpful online communities include:

1. Forsyth County Short-Term Rental Alliance Facebook Group: https://www.facebook.com/groups/forsythcountystr/
2. North Georgia Airbnb Hosts Forum on BiggerPockets: https://www.biggerpockets.com/forums/530-north-georgia-airbnb-hosts
3. Atlanta Area Short-Term Rental Operators Subreddit: https://www.reddit.com/r/AtlantaSTRHosts/

These groups allow hosts to share experiences, ask questions, and stay up-to-date on regulatory changes and best practices specific to Forsyth County and the surrounding region.

By utilizing these official county contacts and tapping into the knowledge of the local host community, STR operators can ensure they are running their rentals in compliance with all applicable rules and setting themselves up for success in Forsyth County.

What Do Airbnb Hosts in Forsyth County on Reddit and Bigger Pockets Think about Local Regulations?

To get a sense of how local Airbnb hosts feel about short-term rental regulations in Forsyth County, I searched through relevant threads and forums on Reddit, BiggerPockets, and other online communities. Here are a few key insights and experiences shared by hosts:

On the Forsyth County subreddit, one host expressed frustration with the county's zoning restrictions that limit STRs to agricultural areas only:

"As an Airbnb host in Forsyth, the new rules passed last year have made it nearly impossible to operate. My property is in a residential zone, so I'm no longer allowed to do short-term rentals at all. It's really disappointing because I had a great setup and my guests loved staying in a neighborhood setting. I get that the county wants to address concerns, but a complete ban in most areas feels extreme."

Another Redditor shared their experience trying to navigate the permitting process:

"I've been jumping through hoops for months trying to get my conditional use permit to run an Airbnb on my ag-zoned property in Forsyth. The application is complex and the fees add up quick. I wish the county would streamline the process and make it easier for responsible hosts to comply with the rules."

On BiggerPockets, an investor asked about Forsyth County's STR ordinances and got this response from a local host:

"Forsyth County has some of the strictest short-term rental rules in the region. In most of the county, STRs are banned completely in residential zones. You can only operate them in agricultural areas, and even then, you need a conditional use permit which is a real hassle to get. As an Airbnb host here, it's frustrating because I feel like the county is treating us like a nuisance instead of small businesses contributing to the local economy."

Another BiggerPockets member shared their strategy for dealing with the regulations:

"I've found the key to running a successful Airbnb in Forsyth is working with a local property manager who knows all the ins and outs of the permitting process. It's expensive and time-consuming to handle on your own, so having a pro who can navigate the system is crucial. It's also important to be a good neighbor and make sure your guests aren't causing issues that could lead to complaints or enforcement."

While these anecdotes don't necessarily represent the views of all hosts, they provide a glimpse into some of the challenges and frustrations of operating STRs under Forsyth County's current rules. It seems many hosts feel the regulations are overly restrictive and burdensome, making it difficult for responsible operators to comply.

At the same time, hosts recognize the need to be proactive in addressing neighborhood concerns and maintaining positive relationships with the county and community. Partnering with experienced local property managers and being diligent about guest screening and communication are seen as important strategies for success.

As Forsyth County and other local governments continue to grapple with how to best regulate the growing short-term rental industry, listening to the perspectives of hosts will be crucial in crafting balanced and effective policies. Online forums offer a valuable window into these experiences and opinions.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.