Matthews, North Carolina Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Matthews, NC?

Yes, short-term rentals are explicitly allowed in Matthews, North Carolina as of November 14, 2024. However, the town has implemented comprehensive regulations that significantly restrict whole-house rental operations in single-family residential districts. Matthews now distinguishes between two primary types of short-term rentals: homestays and whole-house rentals, with each category subject to different zoning requirements and operational standards.

Key Restriction: Whole-house short-term rentals are prohibited in the following zoning districts: R-9, R-12, R-15, R-20, R-VS, R-MH, and CRC. This means investors cannot operate whole-house STRs in single-family residential zones, significantly limiting investment opportunities in predominantly residential areas.

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How to Start a Short-Term Rental Business in Matthews

Starting a compliant STR business in Matthews requires careful navigation of the town's regulatory framework. The process involves several critical steps:

1. Property Type and Zoning Assessment

First, determine whether your property qualifies for a homestay or whole-house rental based on its zoning district. Homestays can operate in most zoning districts, including single-family zones, but whole-house rentals are restricted to multi-family districts or mixed-use areas only.

2. Application for Zoning Permit

Every STR operator must apply for and procure a zoning permit from the Town of Matthews. The permit application process requires:

Completion of the official zoning permit application
Payment of the initial $250 application fee
Demonstration of compliance with all operational standards
Verification of manager/operator location requirements

3. Annual Renewal Process

Zoning permits must be renewed annually, with renewal fees equal to the original permit fee. The permit is transferable when the property is sold, but the new owner must renew the permit according to town requirements.

4. Tax Compliance

Operators must register for and pay applicable taxes, including occupancy and sales taxes, to the appropriate governmental entities.

5. Manager/Operator Verification

Ensure your local manager or operator is located in or adjacent to Mecklenburg County, as this will be verified during the permitting process.

Required Documents, Permits, Licenses, and Guidelines

Zoning Permit

Type: Annual zoning permit (required for all STRs)
Initial Fee: $250.00 (subject to adjustment by Planning Director)
Renewal Fee: Equal to original permit fee
Application Process: Contact Planning & Development Department
Duration: Annual, with transferable provisions for property sales

Tax Registration

Occupancy Tax Registration: Required with state/local authorities
Sales Tax Registration: Required with North Carolina Department of Revenue
Business License: May be required depending on operational structure

Operational Documentation

Parking Plan: Required for Bed & Breakfast establishments
Site Plan: May be required to demonstrate compliance with separation requirements
Manager Contact Information: Must provide local manager details

Permitted Activity Documentation

Primary Residence Verification: Required for homestay operations
Zoning Compliance Verification: Must demonstrate allowable use for property location

Specific Regulations for Short-Term Rentals in Matthews

Property Separation Requirements

Minimum Separation: 800 feet between any two short-term rentals, measured from property lines
Application: Applies to both homestay and whole-house rentals

Guest and Occupancy Limits

Maximum Guests: No more than 2 guests per bedroom
Separate Entry Restrictions: No more than two separate entry doors to individual guest rooms permitted

Operational Prohibitions

Cooking Facilities: Not permitted in any bedroom
Special Events: Short-term renters shall not utilize premises for holding special events or gatherings
Exterior Signage: Prohibited on STR properties

Bed and Breakfast Specific Regulations

Guest Room Limits: Maximum of 8 guest rooms
Meal Service: Must serve meals only to overnight guests; breakfast must be included in room rate
Owner Occupancy: Must be permanent residence of owner or manager
Employee Restrictions: Only resident family members permitted as employees
Architectural Requirements: Separate exterior doorways for guest rooms only permitted if part of original house architecture
Parking Requirements: One additional space per guest room, specific placement restrictions

Zoning District Restrictions

Whole-House Rentals PROHIBITED in:

R-9 (Single-Family Residential)
R-12 (Single-Family Residential)
R-15 (Single-Family Residential)
R-20 (Single-Family Residential)
R-VS (Village Single-Family)
R-MH (Manufactured Housing)
CRC (Commercial Residential)

Allowed Districts: Whole-house rentals permitted in multi-family districts and mixed-use areas.

Homestay Rentals: Can operate in most zoning districts, including single-family zones, subject to all other operational requirements.

Violations and Enforcement

Civil Penalties

Subject to penalties outlined in Section 155.214 of the Unified Development Ordinance
Includes civil penalties for zoning violations

Permit Revocation Triggers

Criminal Law Violations: Conviction of any of the following on STR premises within 365 days:

Article 27 of Chapter 14 of North Carolina General Statutes
Article 3 of Chapter 18B of North Carolina General Statutes
N.C. Gen. Stat. § 14-71.1
N.C. Gen. Stat. § 14-292

Verified Violations: Two or more verified violations within 365 days of:

Any town zoning regulation on STR premises
Any noise ordinance regulation on STR premises
Any public nuisance violation in Chapter 94 of town code

Verified Violation Definition

A determination made by a Town code enforcement official, police officer, or judge, with:

Notice of violation of Town Code
Opportunity to respond to noticed alleged offenses
Order or mandate issued to owner or other person imposing sanctions or requiring corrective actions

Revocation Period: Once revoked, new permit cannot be issued for 365 days.

Legal Context and State-Level Considerations

North Carolina Legal Framework

Matthews' regulations operate within North Carolina state law limitations. The 2022 North Carolina Court of Appeals ruling against Wilmington established that municipalities cannot require short-term rental property registration. However, local governments can regulate where these rentals operate and how they conduct business.

Existing Operations

Existing short-term rentals will be allowed to operate in their current locations, even if not in compliant zones, but must apply for permits under the new regulations.

Contact Information for Local Authority

Primary Contact

Town of Matthews Planning & Development Department

Physical Address: 232 Matthews Station Street, Matthews, NC 28105
Phone: 704-847-4411
Fax: 704-845-1964

Department-Specific Contacts

Planning & Development:

Address: Planning & Development Department (specific contact information available through main directory)
Services: Zoning permits, application processing, code enforcement

Code Enforcement:

Services: Violation investigations, compliance verification
Reporting: Use "Report a Concern" feature on town website

Digital Resources

Website: www.matthewsnc.gov Report Concerns: Online form available through town website Staff Directory: Available through town website main navigation

Links to Source Pages

Important Note for Investors: Matthews' regulatory environment for short-term rentals is restrictive, particularly regarding whole-house operations in residential zones. The 800-foot separation requirement, combined with zoning restrictions, significantly limits potential STR sites. Homestay operations offer more flexibility but require owner occupancy and on-site presence. Prospective investors should conduct thorough due diligence on specific properties and zoning compliance before acquisition.

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