Turning a Home Into Income: A Clayton Short-Term Rental Success Story
Turning a Home Into Income: A Clayton Short-Term Rental Success Story
When Maria and Thomas bought a charming 3-bedroom house just east of Clayton, they intended it as their primary home. But after relocating temporarily for work, they listed it on Airbnb for a few months. The property fetched $225/night on busy weekends, and even midweek, it averaged $120/night. Over six months, occupancy averaged 55%. After costs (cleaning, utilities, marketing, repairs), the net income exceeded $8,000 — more than what a long-term lease would have produced that same period.
They decided to keep the property in their portfolio as a short-term rental whenever they weren’t occupying it. That flexibility, plus higher per-night yield, turned a transitional arrangement into a viable income stream.
Their story shows the potential. But success in short-term rentals in Clayton, NC isn’t just about posting your home on Airbnb. It means careful property selection, compliance, guest operations, marketing, and risk control.
Demand & Market Potential for Short-Term Rentals in Clayton
Proximity & Traveler Flows
Clayton’s location—roughly 15 miles southeast of Raleigh—is a major advantage. Many travelers and business visitors want quieter places outside the city but within easy reach of Triangle job centers, hospitals, research parks, and conventions. A well-located short-term stay makes sense for corporate guests, relocating professionals, and people visiting family.
North Carolina’s tourism is booming: in 2024, visitor spending across the state topped $36.7 billion, breaking records. That momentum helps support demand for lodging alternatives outside major city cores.
Local Listings & Price Ranges
On RentCafe, there are 48 short-term rentals listed in Clayton, in a range between $1,388 and $1,880 (monthly equivalent, for furnished or lease-term units). That suggests there’s already a market appetite for furnished, flexible stays.
In Johnston County, Airbnb listings in areas around Clayton include guest houses, cottages, and homes with attractive features for travelers.
Thus, the potential is real—but success requires more than luck.
Regulatory Environment & Short-Term Rental Rules in Clayton & NC
State-Level Framework: North Carolina Vacation Rental Act
North Carolina has a statewide statute known as the Vacation Rental Act (Chapter 42A) that governs rentals of residential properties for fewer than 90 days. It requires:
A written vacation rental agreement between the host and guest, spelling out rights, obligations, fees, deposits, refunds, and other terms.
Hosts and agents must hold a trust account for rent, security deposits, and guest fees.
The property must be maintained in habitable condition, and general requirements of building code, plumbing, electrical, fire safety must be met.
A number of local regulations (zoning, occupancy, parking, noise, permitting) may be layered on top by municipalities or counties.
Crucially, North Carolina law currently limits the extent to which local governments can require registration or permits for vacation rentals, especially when those local rules conflict with the state statute. However, local zoning controls or homeowner association (HOA) covenants may still restrict short-term use in certain neighborhoods. Clayton’s Specific Short-Term Rental Ordinance
Clayton has adopted a short-term rental ordinance (Article II, Divisions of the Code) that regulates how short-term rentals are operated within city limits. Key provisions include:
The property must comply with all zoning, building, residential, health, water/sewer, and life safety codes, verified via a code compliance verification form by the Zoning Administrator.
The ordinance defines bedroom occupancy standards (minimum square footage per occupant, emergency egress, etc.).
A “designated responsible person” (age 18 or older) must be assigned to ensure compliance and manage guest issues.
Evacuation diagrams showing exit paths and extinguishers must be posted.
The ordinance also covers revocation of licenses, safety compliance, and penalties for violations.
Since Clayton adopted a new Unified Development Ordinance (UDO) in 2024 (amended as of July 2025), the rules governing allowable land use, accessory uses, zoning in ETJ, etc., got updated. your property is in a zone that doesn’t permit short-term lodging, you may need rezoning or special permits.
Zoning & County-Level Zoning
Outside Clayton town limits, properties fall under Johnston County zoning, which follows a 1992 county-wide zoning ordinance. Each parcel has a zoning designation that determines allowable uses. Some zones may not allow operations like short-term rentals, or may impose minimum lot size or residential-only use. You’ll need to verify your lot’s zoning and possibly request a conditional use permit or variance.
In neighborhoods with HOAs or restrictive covenants, there may be clauses forbidding commercial use or short-term rental. Those are private restrictions, not municipal, but legally enforceable. Because local rules are evolving and sometimes conflicting, it’s essential to check with both Clayton planning and Johnston County zoning, as well as HOA covenants, before launching a short-term rental.
Property Types & Location Strategy for Short-Term Rentals in Clayton
Not every home or location is ideal for STR use. The best candidates tend to share certain traits:
Single-family homes with 2–4 bedrooms: Attractive for families or groups seeking privacy.
Guest houses / accessory dwelling units (ADUs): If allowed under zoning, a separate guest house or cottage on your property can serve as an STR while your primary home remains private.
Smaller homes near amenities: Being near downtown Clayton, shopping, parks, or major roads improves guest appeal.
Cottages or renovated homes with character: A well-styled, charming property can command premium rates.
Properties with easy access & parking: Good drive access, off-street parking, fewer internal stairs help guest satisfaction.
Properties in zones that allow or tolerate STR use: Avoid areas strictly zoned for long-term residential use or where covenants forbid short-term use.
Your property must be not only attractive to guests but also legally viable under zoning, HOA, and municipal rules.
Revenue Modeling & Cost Considerations
Here’s how to approach the financial side of a short-term rental:
Revenue Assumptions
Nightly rate: Research comparable listings in Clayton & Johnston County for similar properties. Adjust for seasonality and special events.
Occupancy rate: Realistically expect 50%–70% occupancy over a full year, with higher rates in peak season, lower in off-season.
Additional fees: Cleaning fees, extra guest fees, pet fees etc. These can boost revenue but also raise guest expectations.
Platform commissions: Airbnb/Vrbo generally take 3–15% fees; factor that in.
Cost & Expense Breakdown
Utilities: Water, electric, gas, trash, sewer, internet, and cable. STRs often include utilities in the price.
Cleaning & turnover costs: Each guest departure generally requires full cleaning, linens, restocking supplies.
Maintenance & repairs: Wear and tear is higher with frequent guest turnover.
Insurance & liability: Regular homeowners insurance may not cover commercial guest activity; you’ll need STR-specific or commercial liability insurance.
Taxes & licensing: In NC, hosts collect sales tax, occupancy taxes, and report short-term income. gosummer.com+3awning.com+3gosummer.com+3
Supplies & furnishings: You must furnish the property to a high standard: appliances, furniture, decor, safety equipment, consumables (soap, linens).
Platform fees & credit card fees
Marketing & advertising
Vacancy & buffer reserve: Allocate 10–20% of revenue for vacancy, refurbishing, unexpected expenses.
Sample Pro Forma
Suppose you own a 3-bed, 2-bath in Clayton, set nightly rate at $180, occupancy 55%, and direct costs estimated.
Gross revenue: $180 × 365 × 0.55 = $36,135
Platform commission @ 10% = –$3,613
Utilities, cleaning, supplies, upkeep = $10,000
Insurance, taxes, licensing = $3,500
Net before capital reserves = $19,022
If mortgage or financing exists, subtract debt service to find net cash flow.
You can compute ROI, cash-on-cash, and capital recovery to compare with alternatives (long-term rent or resale).
Operational Best Practices for Short-Term Rentals
Running a high-performing short-term rental means handling many moving parts:
Guest screening & communication
Use screening tools, ask for ID, communicate expectations, house rules, check-in instructions.Furnish & style thoughtfully
Clean, durable, comfortable furnishings. Provide essentials (kitchenware, toiletries, Wi-Fi, smart locks). Aim for design that photographs well—great photos drive bookings.Automated systems
Use channel management, pricing tools (dynamic pricing), booking calendars, keyless entry, guest messaging automation.Turnover logistics
Plan cleaning teams, linen service, maintenance inspections between guests. Tight coordination is vital.Guest experience & reviews
Offer extras (local guides, welcome gifts), keep excellent cleanliness, timely responses—positive reviews compound.Monitoring & adjusting pricing
Use data on occupancy, local events, seasonality, competitor pricing to adjust your rates dynamically.Legal & safety compliance
Smoke detectors, carbon monoxide detectors, fire extinguishers, emergency exit diagrams (especially in Clayton’s ordinance) mcclibraryfunctions.azurewebsites.us
Post clear safety information, house rules, evacuation plans, responsible person contact.Consistent maintenance & refresh cycles
After a certain number of guest turnovers, refresh decor, bedding, paint, appliances to maintain appeal and stay competitive.
Risks & Safeguards
Short-term rentals come with more risk than long-term leases. Key risk mitigations:
Insurance & liability coverage: Get STR-specific policies that cover guest injuries, property damage, lost income, liability.
Neighbor relations & complaints: Noise control, parking enforcement, guest code of conduct.
Regulation changes: Local government might tighten rules or limit permits—always monitor changes.
Over-reliance on one channel: Diversify listings (Airbnb, Vrbo, direct) to reduce channel risk.
Guest damage / vandalism: Use security deposits, damage screens, insurance, guest vetting.
Vacancy & seasonality risk: Build sufficient cash reserves for low occupancy months.
Compliance lapses: Noncompliance with tax, zoning, licensing or HOA rules can lead to fines or shutdown.
Wear & tear / high maintenance load: Frequent cleaning and repair turnover can erode profit quickly if not managed.
Role of a Realtor / Property Manager (Brandy) in STRs
Brandy can bring tremendous value if you're exploring or running short-term rentals:
Property selection & due diligence: She helps identify properties that are legally allowable for STR use, located in high-demand corridors, with good access and appeal.
Zoning & compliance advisory: She interprets the UDO, zoning, and local STR ordinance in Clayton to ensure your property is eligible and compliant.
Positioning & interior / furnishing strategies: She advises on design, amenities, guest appeal, layout optimization, staging, and photography.
Revenue optimization: She helps set nightly rates, occupancy targets, dynamic pricing strategy, and competitor benchmarking.
Marketing & listing strategy: She positions your listing in the best channels, writes optimized descriptions, targets guest demographics, and coordinates professional photography and video assets.
Guest / operations oversight: She can coordinate or manage housekeeping, maintenance, guest communication, key turnover.
Legal & tax support: She helps you understand tax responsibilities, occupancy tax, state and local registration, and can coordinate with accountants and attorneys.
Exit strategy and comparisons: She helps you compare STR vs long-term rent vs resale, assessing when to pivot or reposition.
Because she’s local, Brandy knows Clayton buyer and guest preferences, neighborhood sensitivities, and area event calendars—so your property can be programmed for peaks and leverage high-demand windows.
Short-Term vs Long-Term Rental: Which Strategy Fits?
Many owners adopt a hybrid strategy: use short-term when they don’t occupy the property, and switch to long-term leases when market conditions shift or guest demand is low.
Final Thoughts & Your Move Forward
Short-term rentals in Clayton, NC offer above-average upside—especially in a growing area near Raleigh with increasing tourism and business travel. But they demand vigilance, operational excellence, and legal compliance. A halfhearted effort can lead to low occupancy, high cost, regulatory fines, or reputation damage.
If you're considering converting a property to a short-term rental—or buying with that purpose—partnering with Brandy Nemergut, Best Realtor in Clayton NC, positions you for success. She offers:
Local legal and zoning insight
Guest-targeted property selection
Marketing, listing, and guest experience optimization
Operations oversight and risk management
Revenue strategy and pivot guidance
Let her guide you in choosing, setting up, launching, and scaling your short-term rental—so you reap the rewards, not the headaches.
Ready to discuss your real estate needs? Contact Be Sunshine Realty Group Brokered by EXP, today for a confidential consultation. Call (919) 583-6895 or visit www.livinginraleighnow.com to connect with Raleigh Triangle's most trusted real estate team.
