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4. Running a short-term rental for the U.S. Open in Pinehurst? Here’s what you should know

Maureen Salahshoor Denver, CO

May 1, 2024

If you’re operating a short-term rental for the 2024 U.S. Open Golf Championship, you need to know the local regulations.

Major sporting events often create opportunities for short-term rental (STR) hosts as thousands of fans converge to catch the excitement. The U.S. Open, held in June every year by the United States Golf Association, is no exception. This year’s event happens June 13–16 at the historic Pinehurst Resort in Pinehurst, North Carolina. Between 35,000 and 40,000 people are expected to attend for each day of the tournament — and many of those will need a place to sleep. 

Short-term rental operators are eager to cater to the thousands of visitors who’ll be in town to attend the tournament. But hosts do need to do their homework first to understand the laws that affect STRs in the area.

Short-term rental rules are largely determined by governments at the local rather than state level. Municipalities near Pinehurst Resort are no exception. Each community sets its own STR regulations that apply to properties within its borders.

In 2022, the Pinehurst Village Council passed a law banning new short-term rentals outside of mixed use and hotel districts. Properties that were established before the new law went into effect on October 27, 2022, are allowed to continue operating, but they must apply for nonconforming certification from the village. STRs must also follow rules on large gatherings, noise, and occupancy limits. However, the STR ordinance does allow property owners in any zoning district to rent out their home or accessory dwelling for a period of 14 days or less in a calendar year without having to obtain a development permit — a concession to those who want to rent their homes out just for the tournament. 

In nearby Southern Pines, STRs are called “tourist homes,” and are defined as dwelling units used for periods of less than 30 days. As in Pinehurst, tourist homes are limited to certain zoning districts outside of residential areas.

All STRs in North Carolina are subject to state lodging taxes. For state tax purposes, STRs in North Carolina are defined as reservations of less than 90 continuous days. Short-term rental operators are required to register with the North Carolina Department of Revenue, collect lodging taxes from guests, file lodging tax returns, and remit the lodging taxes to the state.

There are a few exceptions to this rule, however. Short-term rentals of a private residence for less than 15 days in a calendar year are exempt from lodging taxes unless operators go through a short-term rental marketplace such as Airbnb or Vrbo. If all an operator’s rental transactions go through a short-term rental marketplace, the host doesn’t need to register with the state, collect taxes, or file lodging tax returns. 

North Carolina requires all marketplace facilitators whose gross sales exceed $100,000 or 200 transactions yearly sourced to North Carolina to collect and remit state sales tax on behalf of all sellers (hosts). When guests book and pay directly with an operator rather than through a marketplace, the host is responsible for lodging tax compliance.

Short-term rentals in Moore County, North Carolina, that are rented for 90 days or less are also subject to local occupancy tax, which is administered by the county.