Land Use & ZoningIntermediateNorth Carolina Exam

Under the NC General Assembly's legislation, local governments may regulate short-term rentals (Airbnb, VRBO) by:

ABanning them completely without restriction

BImposing reasonable licensing, registration, and operational requirements but with limitations on total prohibitionCorrect

CRequiring state-issued permits for all rentals

DOnly regulating noise, not the rental activity itself, though the exact requirements can vary somewhat by jurisdiction

Why Imposing reasonable licensing, registration, and operational requirements but with limitations on total prohibition Is Correct

Answer B: Imposing reasonable licensing, registration, and operational requirements but with limitations on total prohibition

NC has complex legislation on short-term rental regulation. Local governments may impose reasonable regulations but NC law has provisions limiting municipalities from treating short-term rentals differently than other residential uses in some contexts.

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Key Terms to Know

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.