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

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

Short-term rental regulations in Virginia vary by locality, with rules typically outlined in zoning codes, planning codes, and local ordinances. As the popularity of platforms like Airbnb and VRBO has grown, many cities and counties in Virginia have established specific guidelines for hosts to follow. Here's an overview of some key short-term rental regulations across the state.

Starting a Short-Term Rental Business in Virginia

Launching a short-term rental business in Virginia requires careful planning and adherence to local regulations. As an Airbnb or VRBO host, you'll need to navigate a set of rules designed to ensure the safety and well-being of guests and the surrounding community.

In many localities, the zoning code serves as the foundation for short-term rental operations. These comprehensive documents outline specific requirements and restrictions that hosts must follow, covering everything from licensing and permitting to occupancy limits and noise ordinances. Thoroughly reviewing and understanding the zoning code's provisions is crucial to avoid costly fines, legal consequences, and potential shuttering of your rental business.

For example, in Richmond, property owners interested in entering the short-term rental market must comply with a specialized permit system. Only property owners who spend at least 185 days per year in residence may operate short-term rentals. This policy aims to control the industry's impact on the local housing market.

Short-Term Rental Licensing Requirements in Virginia

The licensing requirements for short-term rentals in Virginia vary by locality. Here are some examples of the specific requirements in Virginia Beach and Richmond based on their official city websites:

Virginia Beach:

• Owners of eligible STRs must obtain an annual zoning permit and pay a $200 fee.
• A completed sworn statement form certifying the property's address, ownership, and intent to operate an STR is required.
• An annual life-safety inspection report must be submitted, unless the property is managed by a city-certified property management company, which can submit the report every 3 years.
• A structural safety inspection report is required with the initial permit request and every 3 years thereafter. Photos must be submitted for stairways, decks, porches, and balconies under 30 inches.
• Proof of $1 million liability insurance from a city-acceptable insurer is required, with the STR address listed on the policy.

Permit applications can be submitted online through Accela Citizen Access or mailed/delivered in-person to the Zoning Administration office. STR permits must be renewed annually.

Richmond:

1. A biennial Short-Term Rental Permit must be obtained at a cost of $600 to cover administration and monitoring.
2. Required documentation includes a Short-Term Rental Owner Affidavit acknowledging compliance with operating rules, a detailed floor plan, and proof of primary residency.
3. An inspection is required prior to permit issuance to verify conformance with regulations.

Permit applications are submitted through the City's Online Permit Portal starting July 1, 2020.

Localities may issue fines and penalties for operating an STR without the required permits. For example, in Richmond, complaints about unpermitted STRs can be submitted to the Zoning Administration office or via RVA311. Specific fine amounts are determined by local ordinances.

The permit application process timeline varies but generally takes a few weeks, depending on inspection scheduling and application volume. Hosts should apply well in advance of their planned STR launch to avoid delays or penalties for unpermitted operation.

Required Documents for Virginia Short-Term Rentals

Operating a short-term rental business in Virginia requires adhering to specific documentation requirements set forth by the state and local governments. Failure to provide the necessary paperwork can result in fines, penalties, or even the revocation of your short-term rental permit. While exact requirements vary by locality, here are some common documents you'll likely need to provide based on official city and county websites:

Zoning Permit or Certificate of Occupancy: Many localities, such as Virginia Beach and Norfolk, require obtaining a zoning permit or certificate of occupancy specific to short-term rentals. This certifies that the property adheres to local zoning laws and is approved for short-term rental use. Applications are typically submitted through the local zoning administration or planning department.

Business License: Cities like Richmond and Suffolk mandate that all short-term rental operators obtain a valid business license from the local Commissioner of the Revenue's Office or similar agency. This license legitimizes your short-term rental as a business operating within the locality.

Proof of Primary Residency: Some localities have different requirements for "homestay" rentals where the operator lives on-site. For example, Virginia Beach requires a photo of your driver's license to confirm the rental address matches your primary residence for homestay permits.5

Property Inspections: Many cities and counties require short-term rentals to pass various inspections for building code, fire safety, and property maintenance. These may include a life-safety inspection report and structural safety inspection report submitted on a recurring basis, as seen in Virginia Beach.

Proof of Insurance: Localities often require short-term rental operators to carry a minimum amount of liability insurance. For instance, Norfolk requires proof of at least $300,000 in liability coverage, while Virginia Beach requires $1 million. The specific rental property address must be listed on the policy.

Parking Plan: Depending on the locality's zoning laws, you may need to submit a detailed parking plan that shows your property can accommodate the required number of off-street parking spaces for your rental occupancy. Virginia Beach, for example, requires one 9'x18' off-street spot per bedroom rented.

Owner Affidavit: Some cities, like Richmond, require an affidavit where the owner acknowledges and agrees to comply with all local short-term rental regulations.

Floor Plan: As part of the permitting process, some localities may require a detailed floor plan that shows room dimensions, occupancy, emergency exits, and the location of fire extinguishers, smoke detectors, and carbon monoxide detectors.

Neighbor Notifications: In certain situations, like when a rental has a shared driveway, cities like Norfolk require written permission from the adjacent property owners to be submitted with the permit application.

Be sure to check with your specific city or county to verify their exact documentation requirements, as this list provides just a general overview. Consulting official government websites and contacting local planning/zoning departments can help ensure you have all the necessary paperwork to legally operate your short-term rental business in Virginia.

Virginia Short-Term Rental Taxes

When operating a short-term rental business in Virginia, it's crucial to understand the various taxes that apply to your rental income. Failing to collect and remit these taxes can lead to penalties and legal consequences. Here's a breakdown of the key taxes short-term rental operators need to be aware of in Virginia:

State Sales and Use Tax: The Virginia state sales tax rate is 5.3%, which applies to all short-term rental transactions. This tax is collected by either the accommodations provider (you) or the accommodations intermediary (such as Airbnb or Vrbo), depending on how the reservation was made. If the booking was made through an intermediary, they will collect and remit the tax on your behalf. However, if guests book directly with you, it's your responsibility to collect and pay this tax to the Virginia Department of Taxation.

Local Sales and Use Tax: In addition to the state sales tax, certain localities in Virginia impose their own local sales tax on short-term rentals. These rates vary by city and county but generally range from 1% to 2%. Like the state sales tax, the local tax is collected by either the accommodations provider or intermediary and remitted to the Virginia Department of Taxation.

Transient Occupancy Tax (TOT): Many Virginia localities also levy a transient occupancy tax on short-term rentals, sometimes referred to as a lodging tax or hotel tax. TOT rates and rules vary widely by jurisdiction. For example:

1. Virginia Beach imposes a 9.5% TOT on short-term rentals, which is collected by the accommodations provider and remitted to the Commissioner of the Revenue's Office on a monthly basis.
2. York County charges a 5% TOT on the nightly rental fee, collected by the operator and submitted to the Commissioner of the Revenue.

It's essential to check with your specific city or county to determine the applicable TOT rate and filing requirements, as they can differ significantly across the state.

Possible Deductions and Write-Offs

While short-term rental operators in Virginia are subject to various taxes, there are also several deductions and write-offs available to help reduce your taxable income. Some common deductions include:

1. Mortgage Interest: If you have a mortgage on your rental property, you can deduct the interest paid on your tax return.
2. Property Taxes: Any state, local, or real estate taxes paid on your rental property are generally deductible.
3. Utilities: If you cover certain utilities for your guests, such as water, electricity, or gas, these expenses can be deducted from your taxable rental income.
4. Repairs and Maintenance: Costs incurred for fixing issues, repainting, and general upkeep of your rental property are typically deductible. However, major improvements or renovations may need to be depreciated over time.
5. Cleaning and Supplies: Expenses related to cleaning your rental between guests and restocking essential supplies are deductible.
6. Insurance Premiums: Premiums paid for insurance policies specifically covering your short-term rental business can be written off.
7. Depreciation: The cost of your rental property itself can be depreciated over time, providing a significant deduction.

To maximize your deductions and ensure compliance with tax laws, it's advisable to consult with a tax professional well-versed in short-term rental regulations. Keeping detailed records of all your rental expenses throughout the year is also crucial for claiming these deductions come tax time.

By understanding the applicable taxes and available deductions, Virginia short-term rental operators can optimize their tax strategy, minimize their liability, and ultimately enhance the profitability of their rental business.

Does Virginia Strictly Enforce STR Rules? Is Virginia Airbnb Friendly?

Virginia's approach to enforcing short-term rental regulations varies significantly by locality, with some cities and counties taking a stricter stance than others. However, based on discussions among hosts on popular real estate forums like Bigger Pockets and Reddit, Virginia as a whole is not considered particularly Airbnb-friendly compared to other states.

Hosts on the r/VirginiaAirbnb subreddit frequently discuss the challenges of operating STRs in compliance with local laws. One host shared their experience in Suffolk, describing the city as having a "no-nonsense approach" to enforcement and warning others about the potential for hefty fines and legal consequences for operating without proper permits.

Similarly, a thread on Bigger Pockets highlights the strict enforcement practices in certain Virginia localities. Several hosts mentioned receiving cease-and-desist orders and facing threats of fines for failing to adhere to local STR ordinances. The general consensus among hosts is that attempting to operate under the radar is inadvisable given the rigorous enforcement in many areas.

That said, enforcement levels do vary across the state. Some hosts report more leniency in certain cities and counties, particularly those with a strong tourism industry. However, even in these areas, the advice from experienced hosts is consistently to ensure full compliance with all applicable rules and regulations to avoid legal issues.

While some hosts undoubtedly continue to operate STRs in Virginia despite the rules, the prevailing opinion on real estate forums is that the risks outweigh the rewards. The potential consequences of non-compliance, such as substantial fines and the possibility of being shut down, deter many hosts from attempting to skirt the regulations.

In conclusion, Virginia's strict enforcement of STR rules in many localities, combined with the challenges and risks of non-compliance discussed extensively on Bigger Pockets and Reddit, indicate that the state is generally not considered Airbnb-friendly compared to other markets. Hosts operating in Virginia are strongly advised to thoroughly research and adhere to all local regulations to avoid legal repercussions.

How to Start a Short-Term Rental Business in Virginia

Starting a short-term rental business in Virginia requires careful planning and adherence to various state and local regulations. Follow these steps to launch your STR venture on a solid foundation:

Research local regulations: Thoroughly review the zoning codes, ordinances, and specific STR rules for your city or county. Understand the permitting requirements, occupancy limits, safety standards, and any restrictions on the type or location of STRs allowed. Consult with local zoning officials or a knowledgeable attorney to ensure compliance.

Obtain necessary permits and licenses: Apply for and secure all mandatory permits and licenses before operating your STR. This may include a specific STR permit, business license, and/or a certificate of occupancy. Prepare to provide documentation such as proof of residency, liability insurance, property inspections, and a detailed parking plan.

Register with tax authorities: Contact your local Commissioner of the Revenue or similar agency to register your STR business for tax purposes. Understand the applicable state and local sales taxes, transient occupancy taxes, and any other taxes you'll need to collect and remit.

Prepare your property: Ensure your rental property meets all safety requirements, such as working smoke detectors, fire extinguishers, and carbon monoxide detectors. Consider any necessary repairs, upgrades, or furnishings to make your property attractive and comfortable for guests.

Create a detailed listing: Craft an appealing and informative listing on platforms like Airbnb or Vrbo. Include high-quality photos, a thorough description of your property and its amenities, and clear house rules. Be transparent about any quirks or limitations to manage guest expectations.

Set competitive rates: Research similar STRs in your area to determine a competitive nightly rate. Consider factors like seasonality, events, and demand when setting prices. Utilize dynamic pricing tools to automatically adjust rates based on market conditions.

Implement a robust cleaning protocol: Develop a comprehensive cleaning checklist to ensure your rental is spotless and sanitized between guests. Hire a reputable cleaning service or train your own team to maintain consistent cleanliness standards.

Automate and streamline operations: Utilize vacation rental software and tools to automate tasks like booking management, guest communication, and cleaning scheduling. This will save time, reduce errors, and allow you to scale your business more efficiently.

Prioritize guest communication: Respond promptly to inquiries, provide clear check-in instructions, and maintain open lines of communication throughout each guest's stay. Quick response times and helpful service can lead to positive reviews and repeat bookings.

Continuously monitor and adapt: Regularly review your STR's performance, guest feedback, and local regulatory changes. Be prepared to adapt your strategy as needed to optimize occupancy, revenue, and compliance. Consider joining local host communities or online forums to stay informed and share best practices.

By following these steps and remaining diligent in your regulatory compliance and guest service, you'll be well-positioned to launch and grow a successful short-term rental business in Virginia. Remember, the key is to stay informed, adaptable, and focused on providing an exceptional guest experience while operating within the bounds of the law.

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

When navigating the complex world of short-term rental regulations and zoning in Virginia, it's crucial to seek guidance from the appropriate authorities and connect with knowledgeable professionals. Here are some key contacts and resources for Virginia hosts:

Local Zoning and Planning Departments: Each city and county in Virginia has its own zoning and planning department responsible for overseeing land use regulations, including short-term rental ordinances. Reach out to your local department for specific questions about permitting, licensing, and compliance. For example:

1. In Virginia Beach, contact the Zoning Administration office at (757) 385-8074 or visit their website at https://www.vbgov.com/government/departments/planning/zoning/Pages/default.aspx.
2. For Richmond hosts, the Zoning Administration office can be reached at (804) 646-6340 or via email at PDRZoningAdministration@rva.gov.
3. In Suffolk, the Community Development Division of the Department of Planning and Community Development is the go-to resource. Call them at (757) 514-4150 during regular business hours.

Commissioner of the Revenue Offices: Most Virginia localities require short-term rental operators to register with the Commissioner of the Revenue's office for tax purposes. Contact your local office for information on registering your business, obtaining necessary licenses, and remitting applicable taxes. For instance, Virginia Beach hosts can reach the Commissioner of the Revenue's office at (757) 385-4515.

Virginia Department of Housing and Community Development: The state's Department of Housing and Community Development (DHCD) offers resources and information on statewide housing policies and regulations. While short-term rental rules are primarily set at the local level, the DHCD can provide general guidance. Visit their website at https://www.dhcd.virginia.gov/ or call (804) 371-7000.

Virginia REALTORS®: The Virginia REALTORS® association has a wealth of information on real estate laws, regulations, and best practices. They offer resources specific to short-term rentals, including a "Short-Term Rental Toolkit" for homeowners and property managers. Check out their website at https://virginiarealtors.org/ or contact them at (804) 264-5033.

Short-Term Rental Host Communities: Connecting with fellow hosts in Virginia can be an invaluable way to share experiences, ask questions, and stay up-to-date on regulatory changes. Some popular online communities include:

The Virginia Airbnb Hosts Facebook group: https://www.facebook.com/groups/virginiaairbnbhosts/

The "Virginia Short-Term Rental Regulations" thread on BiggerPockets: https://www.biggerpockets.com/forums/530/topics/1029071-virginia-beach-short-term-rental

The r/VirginiaAirbnb subreddit: https://www.reddit.com/r/VirginiaAirbnb/

By proactively reaching out to these contacts and engaging with host communities, Virginia short-term rental operators can ensure they have the most up-to-date information on local regulations and zoning requirements. Building relationships with local officials and experienced hosts can help navigate the complexities of compliance and set your rental business up for long-term success.

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

Airbnb hosts in Virginia have shared their experiences and opinions about local short-term rental regulations on various online platforms. Here are some insights from real-life stories and discussions on Reddit and Bigger Pockets:

Reddit - r/VirginiaAirbnb:

In a thread titled "Richmond's New Airbnb Rules," hosts discussed the city's recent ordinance limiting short-term rentals to primary residences. One host expressed frustration, stating, "I've been operating my Airbnb legally for years, and now I'm being told I can't rent out my second property. It's a huge blow to my income."

Another host shared their experience with strict enforcement in Suffolk: "I received a cease-and-desist order from the city for operating without a proper permit. The fines and legal threats were no joke. I had to jump through so many hoops to get compliant."

Reddit - r/AirBnB:

A Virginia Beach host posted about the city's zoning permit requirements, asking for advice on navigating the application process. Several hosts chimed in with their own experiences, with one noting, "It's a time-consuming and expensive process, but it's essential to operate legally. I've seen too many hosts get shut down for non-compliance."

Bigger Pockets Forum - "Virginia Short-Term Rental Regulations" Thread:

One host shared their struggle to obtain a short-term rental permit in a historic district: "My property is in a prime location, but the local zoning board denied my permit application due to neighborhood pushback. It's frustrating when you're trying to do everything by the book."

Another host cautioned about the importance of understanding local tax obligations: "I thought I was in the clear after getting my permit, but then I got hit with a hefty bill for unpaid occupancy taxes. Make sure you're collecting and remitting all required taxes from day one."

Overall, Virginia hosts on these platforms express a mix of frustration and acceptance regarding local short-term rental regulations. While many find the rules challenging to navigate, most acknowledge the importance of compliance to avoid penalties and maintain positive relationships with their communities. The general consensus is that operating legally, even if cumbersome, is essential for long-term success as a short-term rental host in Virginia.

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 area 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.