Thinking about selling your Black Mountain home that operates as a short-term rental? You are not alone. With steady visitor demand and evolving local rules, it pays to get your details buttoned up before you go to market. In this guide, you will learn exactly what to check, how buyers value STR properties, what to do with future bookings, and the documents to prep so you can sell with confidence. Let’s dive in.
Know the Black Mountain STR rules
Black Mountain is updating its land-use code through a Unified Development Ordinance. Draft materials outline how STRs are treated and the operational standards the town expects. You can review the town’s annotated outline for items like permits, safety checks, guest notices, and parking standards. See the town’s draft materials here: Black Mountain UDO annotated outline.
Town requirements at a glance
- Zoning and permitting: draft guidance treats STRs as a use that requires zoning review and a permit.
- Safety and operations: annual fire-safety inspection, posted emergency contacts, trash and noise rules, and on-site parking guidance.
- Parking: draft language often references one off-street space per bedroom and limits on parking in rights-of-way.
- Tip: verify the final adopted language with town planning before listing.
County and state taxes you should document
- Buncombe County collects a 6% occupancy tax on short-term stays. Keep copies of your filings and remittances. Learn more on the county’s page: Buncombe County occupancy tax.
- STRs also collect North Carolina state and local sales tax. In Black Mountain, the combined rate is about 7.0% (state plus local). See current rates here: NC sales tax rates in Black Mountain.
HOAs, covenants, and deed restrictions
If your property is in an HOA, review the declarations and rules for any rental restrictions. Get the HOA’s position in writing early if you plan to market rental potential with the sale.
Price it like a home and a business
Expect two buyer pools. Some buyers value the home as a residence first. Others are investor-operators who will study income and bookings. Your price can shift depending on which pool you attract and whether continued STR use is allowed.
- Appraisals for financing usually rely on comparable home sales. STR income may be considered, but appraisers focus on the real property value. Learn how appraisers approach this here: Residential appraisals and Airbnb income.
- Investors often use an income approach that capitalizes your net operating income. Reliable P&L, ADR, and occupancy history are key to support value.
What to assemble before you list
Strong documentation builds buyer confidence and can support a higher price. Pull these items together for the last 12 to 24 months:
- Platform payout statements, calendar history by month, and guest review summaries.
- Occupancy tax filings and totals, plus any state sales tax registration or marketplace-collection documentation. See the county’s filing resources: Buncombe County occupancy tax.
- Profit and loss statements, bank deposits for STR income, and seasonal ADR and occupancy trends.
- Town permits, any fire-safety inspection certificates, and posted house rules that address trash, noise, and parking. Refer to the town’s draft outline: Black Mountain UDO annotated outline.
- HOA covenants and any board letters regarding STR use, if applicable.
- Vendor agreements for cleaning, property management, landscaping, and maintenance.
Taxes when you sell an STR
Selling an STR can have unique tax steps. Two items often matter most: depreciation recapture on the rental-use portion and whether you qualify for the primary residence exclusion.
- Rental income, expenses, and depreciation rules are covered in IRS Publication 527. If you used the home partly for personal use, your reporting may be split.
- If you lived in the home for at least 2 of the last 5 years, the Section 121 exclusion may shield part of the gain on the personal-use portion. Depreciation claimed on the rental portion is generally taxable.
- If the property qualifies as investment real estate, a 1031 exchange may defer gains by reinvesting in like-kind real estate within IRS timelines. Learn the basics here: Like-kind 1031 exchanges.
- Work with your CPA early to map out the numbers and prepare a simple tax summary for buyers.
Bookings, reviews, and closing logistics
Most platforms do not let you transfer an existing listing with its reviews to a new owner. Plan how to handle confirmed reservations so guests are not disrupted.
- Common options include honoring stays through closing, canceling and refunding future bookings, or coordinating guest rebookings on the buyer’s new listing. See practical tips here: Transferring Airbnb or Vrbo to a new owner.
- Spell out in the contract how deposits, security holds, and payouts will be handled for stays that overlap closing.
- Create a handover sheet with vendor contacts, lock and access instructions, supply closets, and linen inventories to make the transition smooth.
Buyer due diligence: what they will check
Serious buyers will want to confirm that your STR is legal, safe, and profitable. Be ready with:
- Proof of compliance: permits, any fire-safety inspection, and occupancy tax filings with totals.
- 12 to 24 months of booking history, ADR and occupancy by month, and a clear P&L with cleaning and management costs.
- Copies of vendor contracts and any management agreements.
- Insurance declarations that reflect STR use.
- Evidence of parking guidance and posted house rules aligned with town standards.
A simple game plan
- Week 1: Compliance check and document gathering. Confirm town rules, HOA status, and tax filings.
- Week 2: Prepare financials and a clean, investor-ready data room. Draft contract language for handling bookings.
- Week 3: Pricing strategy that speaks to both buyer pools, with comps and an income summary.
- Week 4: Go live with clear disclosures, a booking plan, and strong visuals that highlight both the home and its proven performance.
Ready to talk strategy for your Black Mountain STR sale or get a property-specific checklist? Reach out to Preston Mayfield for a focused plan tailored to your goals and timeline.
FAQs
What local rules apply when selling a Black Mountain STR?
- Black Mountain’s draft UDO treats STRs as a regulated use with permitting, safety checks, guest notices, and parking standards; verify current requirements with town planning and keep certificates on file.
How do buyers and appraisers value STR properties?
- Appraisals for loans lean on comparable home sales, while investors look at net operating income; provide both comps and a clean P&L to appeal to each buyer pool.
Which taxes should I show proof of before listing?
- Buncombe’s 6% occupancy tax and applicable sales tax collections, plus your federal reporting history with income, expenses, and depreciation schedules.
Can I transfer my Airbnb or Vrbo listing and reviews to the buyer?
- Major platforms generally do not transfer listings or reviews to new owners, so you must plan how to honor or rebook existing reservations and document it in the contract.
Can I use a 1031 exchange when I sell my STR?
- If the property qualifies as investment real estate, a 1031 exchange may defer gains when you reinvest within IRS timelines, but your CPA and a qualified intermediary should guide the process.
