Thinking about selling a short-term rental in Raleigh and not sure where to start? You are not alone. STRs come with permits, tax records, platform rules, and contract details that can surprise even seasoned sellers and buyers. In this guide, you will learn what Raleigh expects, what documents to gather, how to keep ads compliant, and which contract protections to negotiate so your sale closes smoothly and on time. Let’s dive in.
Raleigh STR basics
Raleigh treats most short-term rentals as a permitted use that requires a city-issued STR permit or license. The program sets application standards, renewal timelines, occupancy and safety expectations, and how you post your permit number in ads and listings. Wake County and the State of North Carolina may also require you to collect and remit taxes on stays. Because rules evolve, confirm the latest details with the City of Raleigh before you list or close.
- Start with the City’s official guidance on the Short-Term Rental Program for current rules and forms.
- Review county and state tax obligations if you collected guest stays.
- Check HOA covenants and deed restrictions, which can limit STRs even if the City issues a permit.
For current program information, review the City of Raleigh Short-Term Rental Program page on the city’s website. For county and state tax guidance, start with Wake County Tax Administration and the North Carolina Department of Revenue.
Permits and eligibility in Raleigh
Raleigh’s STR framework sets eligibility by zoning and property type. Some properties may face limits on the number of unrelated guests or bedrooms, and certain permit types may require owner occupancy. Categories can differ by use, so make sure you understand whether your property is treated as an owner-occupied rental or a non-owner-occupied rental.
What to verify before you list:
- The STR permit number, issuance date, and expiration date.
- Renewal status and any conditions the City placed on the permit.
- Any recorded complaints or enforcement actions and how they were resolved.
Apply, renew, and keep records
If you are still operating the property as an STR while it is listed, make sure you are current on all City requirements. Typical application and renewal files include proof of ownership and address, a government ID, a floor plan or bedroom description, a local emergency contact, and fees. Ongoing obligations usually include annual renewal, basic safety standards like smoke and CO detectors and fire extinguishers, cooperation with inspections, and maintaining insurance suitable for STR use.
Keep a tidy file that includes:
- Permit certificate and renewal confirmations.
- Safety and maintenance records tied to STR use.
- Insurance endorsements showing STR coverage.
- A contact sheet for the local manager or emergency contact on file with the City.
Required postings in every ad
Raleigh requires you to display the STR permit number in every advertisement and listing. That includes platforms like Airbnb and VRBO, any direct-booking site, social media posts, and print materials. Match the format exactly as the City requires. If you change or remove the number while the listing remains live, you risk noncompliance.
Best practices while you market and sell:
- Keep the permit number visible in all active ads until the City confirms surrender, cancellation, or transfer per City rules.
- If the City requires specific language, a maximum occupancy notice, or a local contact line in ads, keep those elements in place.
- Document screenshots of ads showing the permit number and required statements.
Taxes sellers and buyers must verify
Operating an STR usually triggers occupancy or hotel taxes at the county level and state sales and use taxes. In Wake County, owners typically remit occupancy taxes through county processes. At the state level, short-term stays may be subject to sales and related taxes. Tie out your records before you go live on the market.
What sellers should assemble:
- Evidence of timely occupancy and sales tax filings for all periods of STR operation.
- Account numbers or correspondence that confirm the accounts are in good standing.
- A reconciliation of gross bookings to taxes filed.
What buyers should request:
- Copies of occupancy and sales tax returns and payment confirmations for at least the last 12 to 36 months, or for the seller’s entire period of operation.
- An allocation plan for taxes on reservations that occur around the closing date.
Common enforcement issues
Cities can issue warnings, fines, or revocations for noncompliance. Frequent issues include missing permit numbers in ads, noise or parking complaints, exceeding occupancy limits, and lapsed renewals. If a permit is suspended or revoked before closing, your deal could be delayed or fall apart. Address items early and disclose the history so buyers can underwrite the property accurately.
Pre-list checklist for STR sellers
Get ahead of diligence requests with a clean, organized packet. You will save time and strengthen buyer confidence.
Administrative and compliance
- Verify the permit is active and in good standing. Pull the certificate and renewals.
- Compile records of any complaints, violations, and how you cured them.
- Confirm the City’s local contact or manager information is current.
- Check all ads and listings to ensure the permit number and any required statements are displayed exactly as the City requires.
- Confirm STR insurance coverage or endorsements were in place.
- Gather HOA covenants and any written confirmation about STR allowances.
- Assemble proof of county and state tax filings and payments.
Operations and financials
- Reservation history with dates, occupancy, gross revenue, and fees for 12 to 36 months.
- Cancellation and refund history, plus a summary of guest complaints and resolutions.
- Maintenance and safety inspection records relevant to STR standards.
- Platform transfer notes, including what can and cannot be assigned to a new owner.
Marketing and disclosures
- If you market STR income, present accurate figures and be ready to document them.
- Use clear, neutral language about the STR’s history and present permit status.
- Coordinate with your attorney and CPA on tax treatment and proceeds.
Buyer due diligence essentials
If you plan to continue STR operations after closing, verify everything that affects your ability to do so.
- Confirm the permit status directly with the City using the seller’s permit number.
- Request all tax remittance records and proof of payment.
- Check for open code enforcement actions, recent fines, or pending hearings.
- Review HOA documents and obtain written statements on STR allowances or restrictions.
- Evaluate transferability of bookings and whether platform rules allow assignment.
- Analyze revenue and expenses and calculate a credible net operating view.
- Price STR insurance coverage and requirements for your intended use.
Contract protections to discuss with your attorney
Your purchase agreement can allocate risk and keep the deal on track if issues surface. Work with your attorney to tailor language to your transaction.
Key concepts to consider:
- Representations and warranties that the City permit is valid and in compliance at closing, with disclosure of pending enforcement or fines.
- A condition precedent that allows you to terminate or delay closing if you cannot verify or obtain the necessary STR permit.
- An escrow holdback to cover unresolved violations or suspected unpaid taxes discovered before closing.
- Clear rules for existing bookings, including who honors or cancels them, who holds guest funds, and how revenue is allocated.
- A tax indemnity that protects the buyer from unpaid occupancy and sales taxes for periods before closing.
- Advertising and permit-number obligations through closing, plus a certification of removal or transfer steps after closing per City rules.
Example clauses to discuss with counsel:
- “Seller represents that, to Seller’s knowledge, the Property’s short-term rental permit (Permit No. _____) issued by the City of Raleigh is valid, unexpired, and in compliance with applicable City requirements, and that Seller has no unpaid STR-related fines or penalties.”
- “Seller shall indemnify and hold Buyer harmless for any occupancy, sales, or similar taxes or penalties assessed for rental activity prior to Closing, including interest and fines.”
- “If, prior to Closing, Buyer discovers a material defect in Seller’s STR compliance, Seller shall have [X] days to cure. If Seller does not cure, Buyer may terminate or receive an escrow holdback of $[amount].”
Bookings, accounts, and guest communications
City permits and platform accounts are separate. Even if the City allows a permit transfer or a new application, platforms may not let you transfer an owner account or past reviews. Decide early how to handle upcoming reservations.
- Clarify whether bookings will be honored after closing and who will host them.
- Decide who holds and disburses guest funds for future stays.
If bookings will not transfer, outline a cancellation plan, guest communications, and any credits or refunds to protect your reputation and keep the transition smooth.
Who to contact and how to verify
- City of Raleigh Short-Term Rental Program: Use the City website to verify permit status, renewal rules, posting requirements, and enforcement procedures.
- Wake County Tax Administration: Confirm occupancy tax account setup and remittance records.
- North Carolina Department of Revenue: Review sales and use tax guidance for short-term accommodations.
- HOA or property management: Request written statements on STR restrictions or allowances.
Helpful starting points:
- Review the City’s Short-Term Rental Program pages for application, renewal, and advertising requirements. City of Raleigh Short-Term Rental Program
- Verify county-level occupancy tax processes and accounts. Wake County Tax Administration
- Check state sales and use tax rules for STRs. North Carolina Department of Revenue
Ready to sell your STR in Raleigh?
With the right preparation, you can present a clean compliance package, minimize surprises, and negotiate strong contract protections. If you are a buyer, targeted diligence and clear language around permits, taxes, and bookings will help you close confidently and hit the ground running.
If you would like a tailored plan for your property, schedule a quick consult. We will review your permit status, ad postings, tax records, and contract options so you can move forward with clarity and confidence. Reach out to Unknown Company to get started.
FAQs
What permit do I need to run a short-term rental in Raleigh?
- Raleigh requires most STRs to hold a City-issued permit or license. Confirm eligibility, occupancy limits, and renewal terms with the City’s Short-Term Rental Program before operating or selling.
Do I have to show my STR permit number in ads and listings?
- Yes. Raleigh requires the permit number in every advertisement, including platform listings, direct sites, and social posts. Match the City’s format exactly until the City confirms surrender, cancellation, or transfer.
How should buyers verify a seller’s STR compliance in Raleigh?
- Verify the City permit status, check for outstanding violations, review tax remittance records, confirm HOA allowances, analyze revenue and expenses, and assess whether bookings and platform accounts can transfer.
Who pays occupancy and sales taxes on bookings near the closing date?
- Contracts should allocate taxes by stay dates. Sellers typically remit for nights before closing and buyers for nights after, but your agreement should spell out the exact allocation and process.
Can a buyer operate the STR immediately after closing?
- Only if the City permit remains valid or the buyer obtains any required permit under current rules. Confirm whether the City allows transfer, requires notice, or requires a new application.
What if the STR permit lapses or is revoked before closing?
- Build in a condition that allows time to cure or terminate if the permit cannot be restored. An escrow holdback can also protect against unresolved violations or unpaid taxes.
