Charlotte, NC Accessory Structures: ADU Rental Restrictions (2026)

Charlotte distinguishes long-term and short-term ADU rentals. Long-term rentals (30+ days): No city license required. NC Residential Rental Agreements Act (NCGS Ch. 42) governs the lease. Charlotte does not maintain a general rental registry; Proactive Rental Inspection under NCGS 160D-1207 applies only to properties with documented substantial code violations. Short-term rentals (under 30 days): The Charlotte UDO classifies short-term rentals as a use type under Sec. 9.5 (Lodging/Short-Term Lodging). Following the 2019 NC Court of Appeals decision in Schroeder v. City of Wilmington, North Carolina municipalities cannot prohibit short-term rentals outright as zoning violations. Charlotte therefore permits STRs with reasonable regulation. Hosts must collect and remit: (1) NC state sales tax of 4.75%; (2) Mecklenburg County local option sales tax of 2.5%; (3) Mecklenburg County Room Occupancy Tax of 6%; (4) Charlotte Tourism Authority occupancy tax (8%). Total tax burden on STR stays exceeds 13%. Hosts must register with the NC Department of Revenue and Mecklenburg County Tax Collector. ADUs operated as STRs must comply with Charlotte Fire Department inspection requirements and the NC Residential Code occupancy standards. HOA covenants frequently restrict STRs and operate as private restrictions enforceable in NC courts.