Short-term rentals pose problems for some in Black Mountain but a boon for tourism economy

When out-of-town investors bought her building, one Black Mountain woman worried she would be forced to leave her home.

“The folks that bought it were investors and there was this question mark around would they turn it into short-term rentals,” “Jane” said. “That’s exactly what they’re doing.”

Black Mountain News will not be using “Jane’s” real name because she fears possible retaliation from her landlords.

While she is in a lease until early next year, she said she has seen her neighbors be forced to move out after the new landlords declined to renew their lease. Jane said these units are being turned into short-term rentals, which she said she sees as a problem in Black Mountain with the scarcity of long-term rental properties.

"It is definitely easier to buy a house in Black Mountain than it is to find a rental," Beverly Hart, a realtor with Keller Williams, told Black Mountain News in 2022.

According to AirDNA, a company that provides “short-term rental data analytics,” there are 644 active rentals in the 28711 zip code, which includes Black Mountain. There is no data for rentals within town limits specifically.

These rentals average 2.7 bedrooms with an average daily rate of $232. Of the active rentals, 96% are entire home rentals rather than a private room. Currently, the occupancy rate sits at 61%.

In March, Black Mountain Town Council held a special call meeting to discuss potential regulations concerning short-term rentals. At that meeting, the topic was deemed “very popular for a number of years” by Town Manager Josh Harrold, but Planning Director Jessica Trotman said the town has not received many complaints from residents regarding short-term rentals.

More:Are short-term rentals an issue in Black Mountain? Council hears about regulation pitfalls

While no regulations have been passed, the council agreed to hear draft language from the planning department on potential regulations for short-term rentals within town limits.

Jane said she is not against the concept of short-term rentals, but said she believes there needs to be some type of regulation.

“I’m not against short-term rentals,” Jane said. “I think that there’s an appropriate amount. It’s just that there’s no regulation. If someone wants to have an Airbnb on their property because they have a small structure, I’m not opposed to that.”

Chip Craig owns Greybeard Realty, an agency that opened in 1999 and operates offices in Black Mountain, Asheville, Old Fort and Lake James. Of the properties Greybeard Realty manages, 287 are vacation rentals across nine counties, and 427 are long-term rental homes. Of the 287 vacation rentals, 93 are in Black Mountain.

Craig presented data at the Black Mountain Town Council meeting. He told Black Mountain News in June that he does not see the need for regulating short-term rentals.

“I think it would really destroy the downtown businesses and tourism in general,” Craig said. “We don’t have that many hotels in the area, so many of the guests do stay in short-term rentals. The other thing is just the history of short-term rentals in our area. Black Mountain has always had vacation rentals.”

At the March meeting, Trotman said there are 334 hotel rooms in Black Mountain, 35 rooms at bed and breakfasts, and six rooms under construction at a new boutique hotel.

More:'Mission (nearly) Impossible': Long-term rental availability scarce in Black Mountain

While tourism may be a driving factor behind the town’s economy, Jane said another concern she has is with affordable housing. She said when she was looking for places to live in Western North Carolina, Black Mountain was among the cheapest, but service workers are getting pushed out.

“Where are you going to find the people to work these jobs to provide this great tourism experience when they can’t afford to live here?” Jane said.

She said she wants to live in a town where people actually are able to live, rather than somewhere people come to work and have to leave once their shift is done.

“Do you want just entire streets of Airbnbs and people coming and going?” Jane said. “It’s like nobody really lives here.”

Jane also pointed to the fact that her new landlords are not local and use the properties they own in Black Mountain as a means for profit rather than living there themselves.

When asked about a situation like Jane’s, Craig said he feels like, investment wise, it is a mistake on the part of the homeowner.

“In my opinion, long-term rentals are better investments than short-term rentals,” Craig said. “The homeowners, in most cases, are making a mistake.”

Craig said homeowners may read that they could make money by operating a short-term rental, but they do not take into consideration the costs associated with it, including but not limited to furnishing the space, paying to clean after each rental and paying utilities.

He also said the season most people want to visit Black Mountain and Western North Carolina is too short to make any real money.

“If you’re doing a vacation rental, it’s going to be dead from January ‘til April for sure,” Craig said. “The season is too short in our area to have a positive cash flow.”

For Jane, she said her time in Black Mountain could be dependent on whether or not her lease is renewed. She said if her current home is turned into a short-term rental, she will “most likely” have to move out of the town in search of more affordable housing.

She said she hopes to see the town put in at least some regulations in the hopes that it will help stimulate the local economy with people spending money in local businesses all year, instead of just during peak tourist season.

“This is about thinking more long-term,” Jane said. “I get it. People want to make some extra money. … Put some regulation in to where you’re not just letting people with no investment in the local community come in.”

Karrigan Monk is the Swannanoa Valley communities reporter for Black Mountain News, part of the USA TODAY Network. Reach her at kmonk@blackmountainnews.com.