Virginia Short-Term Rental Regulation Propose Senate Bill 544

The Virginia General Assembly is currently considering Senate Bill 544, introduced by Sen. Lamont Bagby (D-Richmond), which would restrict the ability of local governments to regulate short-term rentals like those listed on different booking platforms. This legislation has sparked heated debate among supporters and opponents of short-term rentals, as it could significantly impact how these properties are managed across the state.

SB 544 would prevent localities from introducing certain new regulations on short-term rentals after December 31, 2023. Specifically, the bill states that no local ordinance enacted after this date can require a special exception, special use permit, or conditional use permit for a property owner to operate a short-term rental at their primary residence.

It's important to note that SB 544 would not overturn existing short-term rental requirements already imposed by localities. The legislation pertains to short-term rentals on a homeowner's primary residence and does not limit the ability of local governments to regulate other types of short-term rentals, such as vacation homes or investment properties.

Supporters of SB 544, including short-term rental owners and companies like Airbnb, argue that the bill would protect homeowners' rights to earn additional income from their properties. They claim that the current conditional use permit process can be bureaucratic, costly, and unfair.

On the other hand, opponents of the legislation, including representatives of various local governments and some neighborhood associations, fear that limiting local authority over short-term rentals could negatively impact communities. They argue that short-term rentals can change the character of neighborhoods, create nuisances for homeowners, and exacerbate housing shortages.

Virginia SB 544 Possible Impact and Will it Pass?

SB 544 passed the Virginia Senate on a 25-15 vote and was reported from the House's Counties, Cities, and Towns Committee on a 13-9 vote. The legislation has received bipartisan support and opposition thus far.

If enacted, SB 544 could significantly impact the short-term rental industry in Virginia, which has grown rapidly in recent years. AirDNA shows thousands of active short-term rental listings across Hampton Roads alone, with 2,900 in Virginia Beach, 2,000 in Norfolk, and 710 in Hampton.

This bill, if passed, could provide more flexibility for short-term rental owners operating in their primary residences. However, it's equally important to consider the concerns raised by local governments and community members regarding the potential impacts of short-term rentals on neighborhoods and housing availability.

Investors should closely monitor the progress of SB 544 and engage with their local representatives to ensure that any new regulations strike a balance between protecting property rights and maintaining the character and stability of Virginia's communities.