GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 291
Short Title: Regulation of Short-Term Rentals. (Public)
Sponsors: Senators Moffitt, McInnis, and Hanig (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 17, 2025
*S291 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO LIMIT THE REGULATION OF SHORT -TERM RENTALS BY CITIES TO 2
PROTECT PRIVATE PROPERTY RIGHTS AND TO ESTABLISH GUIDELINES FOR 3
REGULATING SHORT-TERM RENTALS. 4
Whereas, Section 1 of Article I of the North Carolina Constitution provides that "all 5
persons are created equal; that they are endowed by their Creator with certain inalienable rights; 6
that among these are life, liberty, the enjoyment of the fruits of their own labor, and the pursuit 7
of happiness."; and 8
Whereas, Section 19 of Article I of the North Carolina Constitution provides that 9
"[n]o person shall be taken, imprisoned, or disseized of his freehold, liberties, or privileges, or 10
outlawed, or exiled, or in any manner deprived of his life, liberty, or property, but by the law of 11
the land."; and 12
Whereas, Section 1 of Article VII of the North Carolina Constitution provides that 13
the General Assembly "shall provide for the organization and government and the fixing of 14
boundaries of counties, cities and towns, and other governmental subdivisions, and, except as 15
otherwise prohibited by this Constitution, may give such powers and duties to counties, cities 16
and towns, and other governmental subdivisions as it may deem advisable."; and 17
Whereas, North Carolina has 532 cities; and 18
Whereas, short-term rentals are vital to the tourism and marketability of the State; and 19
Whereas, short-term rentals provide housing options for transitory workers, including 20
nurses, tradespeople, and executives; and 21
Whereas, cities often frustrate tourism and infringe on property owners' private 22
property rights by adopting ordinances that inhibit property owners' right to use their property as 23
they see fit; and 24
Whereas, it is in the best interest of the State to establish uniform guidelines for 25
short-term rentals; Now, therefore, 26
The General Assembly of North Carolina enacts: 27
SECTION 1. Article 21 of Chapter 160A of the General Statutes is amended by 28
adding a new section to read: 29
"§ 160A-499.11. Regulation of short-term rentals. 30
(a) No city may adopt or enforce an ordinance, rule, or regulation that does any of the 31
following: 32
(1) Prohibits the use of residential property as a short-term rental. 33
(2) Prohibits the use of accessory dwelling units as short-term rentals. 34
(3) Limits the number of nights a property can be rented as a short-term rental. 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 291-First Edition
(4) Requires the owner of the short-term rental to occupy the property for any 1
period of time during a rental to an occupant. 2
(5) Classifies short-term rentals as a commercial use. 3
(6) Limits the operation of a short-term rental marketplace. 4
(b) A city may adopt an ordinance, rule, or regulation that regulates short-term rentals 5
by: 6
(1) Requiring a lodging operator to obtain a permit to operate a short-term rental 7
within the city's corporate limits. The city may revoke the permit if the 8
short-term rental incurs five health and safety violations within a 12-month 9
rolling period; provided, however, the city shall, prior to revoking the permit, 10
give the lodging operator an opportunity to contest the alleged violations and, 11
if found to exist, an opportunity to remedy the violations. The city may charge 12
a one-time fee of not more than twenty-five dollars ($25.00) for each permit 13
issued and may charge an additional fee of not more than twenty-five dollars 14
($25.00) to reinstate a permit that has expired or been revoked. 15
(2) As part of the permitting process authorized under subdivision (1) of this 16
subsection, limiting the number of occupants allowed to stay in a short-term 17
rental to two adults per bedroom. 18
(3) As part of the permitting process authorized under subdivision (1) of this 19
subsection, requiring the lodging operator, or his or her authorized agent, to 20
provide a parking plan indicating designated parking to accommodate one 21
space per bedroom. The violation of a parking restriction is not a health and 22
safety violation under subdivision (1) of this subsection. 23
(4) Restricting the location of short-term rentals to areas of the city that have been 24
zoned for residential use, and requiring that the property remains in 25
compliance with all applicable residential zoning requirements. 26
(5) Requiring that short-term rentals comply with all applicable city ordinances 27
and codes, including building codes and housing codes. 28
(6) Requiring that all contracts for short-term rentals include a copy of any city 29
ordinances that regulate noise, waste removal, and parking or, in the 30
alternative, that the lodging operator conspicuously post in the rental a written 31
summary of city ordinances that regulate noise, waste removal, and parking. 32
(7) Prohibiting the use of short-term rentals for any purpose other than that which 33
is allowed in hotels, motels, and inns without the property owner's prior 34
approval, which shall be evidenced by a written agreement between the 35
lodging operator and the occupant. 36
(8) Requiring a lodging operator or authorized agent of a lodging operator be 37
within a 50-mile radius of a short-term rental during the time that an occupant 38
is staying in a short-term rental. 39
(c) Unless the context indicates otherwise, the following definitions shall apply in this 40
section: 41
(1) Lodging operator. – A person who rents a short-term rental to an occupant 42
using a short-term rental marketplace. 43
(2) Short-term rental. – All of the following that are offered to the public for a fee 44
and for a period of 90 days or less: (i) an individually or collectively owned 45
single-family house or dwelling unit, (ii) a unit in a condominium, timeshare, 46
townhome, or accessory dwelling unit, and (iii) an owner-occupied residential 47
home. The term does not include any of the following: 48
a. A collective group of units in a complex of condominiums owned by 49
a single owner, corporation, or related owner that is non-owner 50
occupied and is used in a similar manner as a hotel, motel, or an 51 General Assembly Of North Carolina Session 2025
Senate Bill 291-First Edition Page 3
extended stay inn if the complex of condominiums is not required to 1
adhere to the same building standards and regulations as hotels, 2
motels, and extended stay inns. 3
b. A unit that is used for a retail business or as a restaurant, banquet space, 4
event center, or a similar purpose. 5
(3) Short-term rental marketplace. – A platform through which a lodging 6
operator, or the lodging operator's authorized agent, offers a short-term rental 7
to an occupant." 8
SECTION 2. This act is effective when it becomes law. 9