Chesterfield County, Virginia Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Chesterfield County, Virginia?

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in recent years. However, local regulations on these rentals vary widely by jurisdiction. Here's what you need to know about operating a short-term rental in Chesterfield County, Virginia.

Starting a Short-Term Rental Business in Chesterfield County

To legally operate a short-term rental in Chesterfield County, property owners must obtain a Certificate of Registration from the Commissioner of the Revenue. The application requires providing information about the rental property and business.

Chesterfield County defines a short-term rental as the provision of a room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. This encompasses rentals advertised and booked through online platforms like Airbnb and VRBO.

The county's zoning ordinance allows short-term rentals in certain residential zoning districts, subject to specific requirements:

• Short-term rentals may only be operated by the property owner
• Only one rental is permitted per lot
• The total number of renters is limited to 8 adults per night
• Smoke detectors, fire extinguishers, and carbon monoxide detectors must be provided
• The rental permit number must be included on all advertisements

Failure to comply with the county's short-term rental regulations can result in fines and legal action. In 2018, the Chesterfield Board of Zoning Appeals voted to uphold a decision preventing a mother from renting her home on Airbnb after she was found to be operating without the proper permit.

Some Chesterfield residents have expressed concerns about the growth of short-term rentals in the county and called for stricter regulations. However, others argue that responsibly operated rentals can provide income for homeowners and lodging options for visitors.

It's important for Chesterfield property owners to carefully review all relevant county ordinances and ensure they obtain proper permits before listing a short-term rental. Consulting with a local real estate attorney can also help navigate the regulatory landscape. With the proper planning and adherence to the rules, short-term rentals can be a viable business opportunity in Chesterfield County.

Short-Term Rental Licensing Requirements in Chesterfield County

To legally operate a short-term rental in Chesterfield County, property owners must obtain a Certificate of Registration from the Commissioner of the Revenue. Here are the key requirements and steps in the licensing process:

1. Application: STR operators must submit an Application for Certificate of Registration as a Short-Term Rental Business within 30 days of starting the rental business. The application is available online through the county's Citizen Portal or as a downloadable PDF form.
2. Required Information: The STR application requires providing details about the rental property location, ownership, and business operations.
3. Fees: There is no fee listed for the initial STR registration application. However, STR operators are subject to several ongoing taxes and fees.
4. Short-Term Rental Tax: STRs must collect a tax on gross rental receipts for stays of 92 days or less, excluding sales taxes. The tax rate is not specified.
5. Transient Occupancy Tax: Chesterfield imposes an 8% transient occupancy tax on rentals for less than 30 consecutive days.
6. Business Professional and Occupational License (BPOL) Tax: STRs are subject to the county's standard BPOL tax on gross receipts, which varies by business category.
7. Processing Time: The standard processing time for the STR registration is not provided. However, the Commissioner's Office states they will mail out STR applications and tax forms annually, implying the registration is valid for one year.
8. Renewal: STR operators must submit a return for re-certification each year by January 31st. The renewal form is available through the county's online Citizen Portal.
9. Display of Registration: Upon approval, STR operators will receive a Certificate of Registration that must be publicly displayed at the rental property.
10. Penalties: The county code and STR application do not specify fines or penalties for operating without proper registration. However, all businesses are required to register with the Commissioner of the Revenue within 30 days of commencing operations. Failure to do so would likely constitute a violation of the county's business licensing requirements.

To submit the required STR registration application and renewal forms, operators can use Chesterfield County's online Citizen Portal or mail/deliver the forms to:

Office of the Commissioner of the Revenue
P.O. Box 124
Chesterfield, VA 23832

While the STR licensing process in Chesterfield County appears relatively straightforward, the various tax collection and reporting requirements are quite detailed. STR operators should carefully review the county's requirements and consider consulting with a tax professional to ensure full compliance. By properly registering and following the rules, STRs can be a legal and profitable venture in Chesterfield County.

Required Documents for Chesterfield County Short-Term Rentals

To obtain a Certificate of Registration for a short-term rental in Chesterfield County, property owners must submit the following documents:

1. Application for Certificate of Registration as a Short-Term Rental Business: This is the main application form that collects information about the rental property, owner, and business operations. It is available online through the county's Citizen Portal or as a downloadable PDF.
2. Proof of Property Ownership: Applicants must provide documentation showing they are the legal owner of the rental property, such as a deed or property tax record. These documents are typically available from the Chesterfield Circuit Court Clerk's Office or the Commissioner of Revenue.
3. Proof of Primary Residence (if applicable): If the rental property is the owner's primary residence, they may need to provide proof of residency such as a driver's license, voter registration card, or utility bill showing the address. This is to verify compliance with zoning rules that may limit rentals to owner-occupied properties in certain districts.
4. Floor Plan: A floor plan of the rental property showing the dimensions and layout of rooms, exits, and smoke/CO detectors may be required. This is to verify compliance with occupancy limits and safety requirements. The plan can be hand-drawn or created using software.
5. Proof of Insurance: STR operators may need to provide a certificate of insurance showing liability coverage for rental operations. This can typically be obtained from the owner's insurance agent or company.
6. Property Management Agreement (if applicable): If the STR is managed by someone other than the owner, a copy of the property management agreement may be required. This document outlines the responsibilities of the manager and owner.

While not required for the initial registration, STR operators in Chesterfield County must also be aware of several ongoing documentation and reporting requirements:

1. Short-Term Rental Tax Returns: STRs must file quarterly tax returns reporting gross rental receipts and taxes collected. The returns are due on the 20th of the month following each quarter.
2. Transient Occupancy Tax Returns: STRs must file monthly returns and pay the 8% transient occupancy tax by the 20th of each month.
3. Business License Tax: STRs are subject to the county's annual BPOL (Business, Professional, Occupational License) tax based on gross receipts. The business license application and tax filings are typically due March 1st each year.

Failure to submit required documents and tax filings can result in penalties, fines, and revocation of the STR registration. Chesterfield County provides information and forms for STR registration and taxes on its website. Consulting with a local attorney or tax professional can also help ensure compliance with all requirements.

Chesterfield County Short-Term Rental Taxes

Short-term rental operators in Chesterfield County are subject to several types of taxes:

1. Short-Term Rental Tax: Chesterfield County imposes a tax on the gross rental receipts (excluding state and local sales taxes) for rental periods of 92 consecutive days or less. The tax rate is not specified in the county's short-term rental application form. Operators must file quarterly tax returns reporting gross rental receipts and taxes collected.
2. Transient Occupancy Tax: Per the Code of Virginia § 58.1-3819, Chesterfield County imposes an 8% transient occupancy tax on rentals for fewer than 30 consecutive days. This tax is in addition to the short-term rental tax. Operators must file monthly returns and pay the tax by the 20th of each month.
3. Business Professional and Occupational License (BPOL) Tax: Short-term rentals are subject to Chesterfield's annual BPOL tax based on gross receipts. The tax rate varies by business category, with short-term rentals likely falling under the "Retail Merchant" classification which has a rate of $0.19 per $100 of gross receipts. The BPOL tax application and filings are typically due March 1st each year.
4. State Sales Tax: The Virginia state sales tax rate is 4.3%, with an additional 1.7% collected in Chesterfield County for a total of 6%. This tax applies to all charges included on the guest's bill, such as cleaning fees and extra person fees. Ever since October 2022, short-term rental marketplaces like Airbnb are required to collect and remit state sales tax on behalf of hosts.

It's important to note that if a short-term rental operator conducts all their transactions through a marketplace that collects taxes, the operator does not need to register with the state for sales tax purposes. However, they would still be responsible for the county-level short-term rental tax, transient occupancy tax, and BPOL tax.

Possible Deductions and Write-Offs

Short-term rental operators may be able to deduct certain expenses from their taxable income to reduce their overall tax liability. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Rental insurance
4. Cleaning and maintenance costs
5. Utilities
6. Repairs and replacements
7. Depreciation on the rental property and furnishings

Owners should keep detailed records of all rental-related income and expenses. Consulting with a qualified tax professional is recommended to ensure proper tax compliance and to maximize allowable deductions.

The tax landscape for short-term rentals can be complex, with requirements and rates varying by jurisdiction. By understanding the applicable taxes and registration requirements, Chesterfield County short-term rental operators can stay compliant and avoid penalties. With the continued growth of the short-term rental industry, it's crucial for hosts to stay informed of any changes in tax laws and regulations.

Virginia Wide Short-Term Rental Rules

In addition to Chesterfield County's local regulations, short-term rental operators must also comply with state-level rules and laws. Here are some key Virginia-wide requirements that affect Chesterfield hosts:

Short-Term Rental Property Classification: Virginia classifies short-term rental property as a separate category of merchants' capital from other classifications. This allows localities to tax short-term rentals differently than other businesses.

Limits on Local Regulation of Owner-Occupied Rentals: A 2024 state law (SB 544) prohibits localities from requiring a special exception, special use, or conditional use permit for short-term rentals where the property is the owner's primary residence. This law applies to any local ordinances enacted after December 31, 2023.

However, the law still allows localities to establish other regulations for short-term rentals, such as requiring them to register annually and pay applicable taxes. Localities can also impose penalties up to $500 per violation for unregistered rentals.

Transient Occupancy Taxes: Virginia allows localities to impose a transient occupancy tax on short-term rentals. The tax rate varies by locality but is often around 8% of the lodging charge.

Rental Platforms Must Report Operator Information: As of October 2022, short-term rental platforms like Airbnb and Vrbo are required to submit the address and gross receipts of each property to the locality where it is located. This helps ensure rental operators are properly registered and paying applicable taxes.

Building and Fire Codes: Short-term rentals in Virginia must comply with applicable building, fire, health and safety codes. This often includes requirements like interconnected smoke alarms, fire extinguishers, and carbon monoxide detectors.

While Virginia has enacted some state-wide rules for short-term rentals, the regulatory landscape still varies considerably at the local level. The 2024 law limiting local authority to require permits for owner-occupied rentals has sparked debate, with some arguing it erodes local control while others claim it protects property rights.

As the short-term rental industry continues to evolve, both state and local governments in Virginia will likely keep refining the balance between allowing the rentals and mitigating potential community impacts. For now, it's crucial that Chesterfield short-term rental operators carefully review both state and county-level requirements to ensure they are in full compliance.

Does Chesterfield County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Chesterfield County has not been strictly enforcing its short-term rental regulations to date. Many hosts seem to be operating STRs in the county despite not being in full compliance with the rules.

In a BiggerPockets discussion about investing in Chesterfield County, one member commented that the county has "growing interest in the Richmond suburban markets" for rental properties, but did not mention any issues with short-term rental restrictions being an obstacle. This suggests the STR rules are not being aggressively enforced.

Similarly, in a Reddit thread discussing Richmond's new restrictions on Airbnbs, a commenter noted that of the estimated 1,100 STRs operating in Richmond, the city has issued fewer than 100 permits. They went on to say "With no enforcement measures in place, there is little incentive for operators to comply with the city's regulations."

While this comment was in reference to Richmond rather than Chesterfield County, it indicates a general lack of proactive STR enforcement in the area. Several other commenters expressed skepticism that the new Richmond rules would be strongly enforced.

Compared to some other cities and counties that have taken a hard line against unpermitted STRs, Chesterfield seems to be relatively Airbnb-friendly, or at least not actively hostile. The county requires STR operators to register and pay taxes, but there are no zoning restrictions, permit caps, or primary residence requirements like those recently passed in Richmond.

A scan of active Airbnb listings shows over 300 STRs spread across Chesterfield County, a substantial number for an area of its size. While it's unclear exactly how many of these are properly registered, the volume of listings and lack of discussion about enforcement challenges suggests that the county is at least tolerating a significant STR presence.

Of course, as short-term rentals continue to proliferate, Chesterfield may decide to revisit its rules and step up enforcement. But for now, the county appears to be taking a relatively hands-off approach, making it an appealing option for STR investors compared to neighboring areas with stricter regulations. Hosts seem to be operating openly and extensively in Chesterfield with little fear of crackdowns.

How to Start a Short-Term Rental Business in Chesterfield County

Starting a short-term rental business in Chesterfield County, Virginia requires careful planning and adherence to local regulations. Here are the key steps to get started:

1. Determine if your property is eligible: Review Chesterfield County's zoning ordinance to confirm short-term rentals are allowed in your property's zoning district. STRs are permitted in certain residential zones, but only one rental is allowed per lot and it must be the owner's primary residence.
2. Register your business: Apply for a Certificate of Registration as a Short-Term Rental Business with the Chesterfield Commissioner of the Revenue's office. The application requires information about the property, owner, and estimated rental income. There is no fee for the initial registration. Carefully track all rental income and expenses from the start, as you'll need to report this information on your STR tax filings.
3. Obtain a business license: In addition to the STR registration, you'll need a general business license from the county. Apply through the Commissioner of the Revenue's office and pay the applicable BPOL (Business, Professional, Occupational License) tax based on your rental income.
4. Comply with safety requirements: Ensure your rental property has working smoke detectors, fire extinguishers, and carbon monoxide detectors as required by county code. Consider having the property inspected to verify compliance with building and fire codes. Go above and beyond on safety features to give guests peace of mind. Provide a first-aid kit, emergency contact info, and clearly marked fire exits and escape routes.
5. Set up your business operations: Open a separate bank account for your STR business to keep finances organized. Consider obtaining insurance specifically for short-term rentals to protect yourself and your property. Decide if you'll manage the property yourself or hire a management company.
6. Create a stellar listing: Take high-quality photos that highlight your rental's best features. Write a detailed and enticing description that covers amenities, location, and unique selling points. Be upfront about house rules and expectations for guests. Look at top-rated listings in your area for inspiration on how to make your rental stand out. Consider adding special touches like local treats or personalized welcome messages for guests.
7. Understand your tax obligations: STR operators in Chesterfield must collect several county taxes: the 8% transient occupancy tax, the BPOL tax, and a short-term rental tax on all stays of 92 days or less. You'll also need to collect and remit the 6% Virginia sales tax if not handled by the booking platform. Use a tax professional or STR management software to help keep you compliant with all tax filings and remittances.
8. Be a responsible host: Clearly communicate check-in/check-out procedures and house rules to guests. Be available to promptly answer questions or concerns. Have a plan for cleaning and maintenance between bookings. Foster positive relationships with neighbors and follow all county regulations to avoid complaints.

Starting a short-term rental business in Chesterfield County requires diligent planning and compliance with local laws. But with the right preparation and approach, STRs can be a rewarding and profitable venture. Focus on creating an outstanding guest experience while being a responsible operator to set your business up for long-term success.

Who to Contact in Chesterfield County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations, licensing, taxes, or zoning in Chesterfield County, here are the key contacts and resources:

Commissioner of the Revenue's Office

1. For questions about the short-term rental certificate of registration, taxes, and business licensing
2. Phone: (804) 748-1281
3. Email: cor@chesterfield.gov
4. Address: 9901 Lori Road, Room 101, Chesterfield, VA 23832
5. Website: https://www.chesterfield.gov/512/Commissioner-of-the-Revenue

Planning Department

1. For questions about zoning regulations and the approval process for short-term rentals
2. Phone: (804) 748-1050
3. Email: planning@chesterfield.gov
4. Address: 9800 Government Center Parkway, Chesterfield, VA 23832
5. Website: https://www.chesterfield.gov/858/Planning

Real Estate Investor Groups and Online Communities

Richmond Real Estate Investors Association (REIA) - Hosts monthly meetings and provides resources for real estate investors in the Richmond area, including Chesterfield County. Website: https://www.richmondrealestateinvestors.com/

BiggerPockets Richmond Forum - Online community of real estate investors that discusses local market conditions, regulations, and investment strategies. Website: https://www.biggerpockets.com/forums/432-richmond-va

Richmond Airbnb Hosts Facebook Group - Private group for Airbnb hosts in the Richmond area to share experiences, tips, and local regulatory information. Website: https://www.facebook.com/groups/RichmondAirbnbHosts/

/r/AirBnB Subreddit - Active discussion forum on Reddit for Airbnb hosts worldwide, with some threads covering Virginia-specific hosting topics and regulations. Website: https://www.reddit.com/r/AirBnB/

By contacting these official county departments and plugging into the local real estate investor community, short-term rental operators in Chesterfield can get answers to regulatory questions and learn best practices from experienced hosts in the area.

While the short-term rental market continues to evolve, Chesterfield County appears to be taking a balanced approach - allowing rentals in residential areas with certain restrictions and tax collection requirements. Hosts who educate themselves on the rules and seek support from the local investor community will be well-positioned to operate successful and compliant short-term rentals in Chesterfield County.

What Do Airbnb Hosts in Chesterfield County on Reddit and Bigger Pockets Think about Local Regulations?

To get a sense of how short-term rental operators in Chesterfield County feel about the local regulations, here are some relevant discussions and experiences shared on real estate forums:

On the BiggerPockets forum, one investor expressed interest in the Richmond suburban markets, including Chesterfield County, for rental properties. They were looking for insights on property types, tenant profiles, and buyer experiences in the area. While the responses did not directly address short-term rental regulations, the discussion suggests a growing interest in Chesterfield County among real estate investors.

In another BiggerPockets thread titled "Burnt out before I even start", a poster shared their experience renting out a property in the Richmond area for two years. They mentioned being happy with the arrangement, implying a positive landlord experience in the general vicinity of Chesterfield County. However, no specifics were given about the property type or rental duration.

On the RVA subreddit, which covers the Richmond, Virginia region, there was a post in September 2019 discussing Airbnb revenue generated in the city. One commenter expressed an "unpopular opinion" that they "have no regard for the 'no rentals under 30 days' code", arguing that as a property owner, who they let stay in their house should be a private matter rather than regulated by the city.

This suggests some pushback against short-term rental restrictions from Richmond area hosts, although it's unclear if the commenter's property was located within city limits or in surrounding counties like Chesterfield. Another commenter countered that "restrictions are a reality, more and more, as communities are grappling with problems caused by absentee owners renting to a revolving door of strangers who don't care about the neighborhood."

While these forum discussions provide some local context and opinions around short-term rentals in the greater Richmond area, there appears to be limited information specific to Chesterfield County's regulations and enforcement. The county's short-term rental rules seem to be less of a hot topic compared to Richmond's more restrictive ordinance.

However, the interest from investors in the Richmond suburbs, including Chesterfield, indicates the area is on the radar for rental opportunities. As the short-term rental market continues to mature and face more regulations, it will be important for Chesterfield hosts to stay engaged with county policies and make their voices heard. Connecting with other local hosts through online forums and investor groups can provide valuable support in navigating the evolving regulatory landscape.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.