Norfolk Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Norfolk

Starting a short-term rental (STR) business in Norfolk, Virginia, requires careful planning and adherence to local regulations. The city has specific rules for vacation rentals, which are defined as properties rented for fewer than 30 consecutive nights when the owners are not staying on the property. To legally operate an STR in Norfolk, you must obtain a short-term rental zoning permit from the city.

It's important to note that homestays, where homeowners live on the property and rent out a single room, are not considered short-term rentals under Norfolk's law. This distinction is crucial for those considering starting an STR business, as the regulations and requirements may differ depending on the type of rental property.

Before investing in a property or converting an existing one into a short-term rental, it's essential to research the local market and understand the demand for vacation rentals in Norfolk. Factors to consider include the property's location, proximity to popular attractions, and the overall tourism industry in the area. Additionally, potential hosts should assess their financial readiness, as starting an STR business requires initial investments in property acquisition, renovations, and furnishings.

Once you have a suitable property, you'll need to ensure that it complies with Norfolk's rules and regulations for rental properties. This includes meeting the city's requirements for off-street parking, occupancy limits, and safety standards. Failure to comply with these regulations can result in fines and legal consequences, so it's crucial to thoroughly review and understand the local laws before proceeding with your STR business.

Short Term Rental Licensing Requirement in Norfolk

To legally operate a vacation rental in Norfolk, you must obtain several permits and licenses in a specific order. The first step is to ensure that your property is located in Norfolk and complies with the city's rules and regulations on rental properties. This includes meeting the requirements for off-street parking, occupancy limits, and safety standards.

Next, you'll need to obtain a Conditional Use Permit if required for your specific property. The necessity of this permit depends on factors such as the property's location, size, and intended use. It's essential to check with the city's zoning department to determine whether your property requires a Conditional Use Permit.

After obtaining the necessary permits, you must apply for a Short-Term Rental Registration Zoning Permit. This permit is specific to short-term rental properties and is required to legally operate an STR in Norfolk. The application process involves submitting various documents, which will be discussed in the next section.

Before your Short-Term Rental Registration Zoning Permit can be approved, you must pass a fire inspection of your property. This inspection ensures that your rental property meets the city's fire safety standards, including the installation of smoke detectors, carbon monoxide detectors, and fire extinguishers. Once your property passes the fire inspection, you'll receive proof of compliance, which is necessary for the permit application.

In addition to the fire inspection, your property must also undergo a zoning inspection.

This inspection verifies that your rental property complies with the city's zoning regulations, such as off-street parking requirements and occupancy limits. Upon passing the zoning inspection, you'll be one step closer to obtaining your Short-Term Rental Registration Zoning Permit.

Finally, to legally operate your short-term rental business in Norfolk, you must obtain a business license from the city. This license is separate from the Short-Term Rental Registration Zoning Permit and is required for all businesses operating within the city limits. To obtain a business license, you'll need to provide proof of your Short-Term Rental Registration Zoning Permit and pay the applicable fees.

Required Documents for Norfolk Short Term Rentals

When applying for a Short-Term Rental Zoning Permit in Norfolk, you'll need to submit several documents to demonstrate your compliance with local regulations. One of the most important documents is proof of liability insurance. The city requires short-term rental operators to maintain liability insurance coverage of at least $300,000 for guest injuries that may occur on the property. This insurance protects both the host and the guests in case of accidents or incidents during their stay.

In addition to liability insurance, you'll need to provide a photo of your compliant off-street parking area. Norfolk has specific requirements for the number of paved off-street parking spaces based on the property's location and the number of bedrooms. By submitting a photo of your parking area, you demonstrate compliance with these regulations.

If your property shares a driveway with adjacent property owners, you must obtain written permission from them to use the shared driveway for your short-term rental business. This written permission should be submitted along with your Short-Term Rental Zoning Permit application.

Lastly, you'll need to provide the assessor's parcel number for your property. This unique identifier can be found on the Norfolk AIR (Assessor's Information Resource) website. The assessor's parcel number helps the city track and manage your short-term rental property within their system.

By gathering and submitting these required documents, you demonstrate your commitment to operating a legal and compliant short-term rental business in Norfolk. Failure to provide these documents may result in delays or denial of your Short-Term Rental Zoning Permit application.

Norfolk Short Term Rental Taxes

As a short-term rental operator in Norfolk, you are responsible for collecting and remitting applicable taxes, such as the transient occupancy tax. This tax is levied on the rental of accommodations for periods of fewer than 30 consecutive days. The current transient occupancy tax rate in Norfolk is 8% of the total rental amount, which includes the base rent and any additional fees charged to the guest.

To ensure compliance with Norfolk's tax regulations, short-term rental operators must obtain a business license from the City Commissioner of Revenue. This license is separate from the Short-Term Rental Registration Zoning Permit and is required for all businesses operating within the city limits. When applying for a business license, you'll need to provide proof of your Short-Term Rental Registration Zoning Permit and pay the applicable fees.

Once you have obtained your business license, you are responsible for collecting the transient occupancy tax from your guests and remitting it to the city on a regular basis. The frequency of tax remittance depends on the total amount of taxes collected. For example, if you collect less than $100 in taxes per month, you may be required to remit taxes quarterly. However, if you collect more than $100 in taxes per month, you may be required to remit taxes monthly.

It's crucial to maintain accurate records of your short-term rental income and taxes collected. These records may be subject to audits by the city to ensure compliance with tax regulations. Failure to collect and remit the transient occupancy tax can result in fines, penalties, and legal consequences.

To simplify the tax collection and remittance process, many short-term rental platforms, such as Airbnb and VRBO, offer the option to automatically collect and remit taxes on behalf of the host. However, it's important to note that not all platforms provide this service, and it's ultimately the host's responsibility to ensure compliance with local tax regulations.

Norfolk-wide Short Term Rental Rules

In addition to obtaining the necessary permits and licenses, short-term rental operators in Norfolk must adhere to several city-wide regulations. These regulations are designed to ensure the safety and well-being of guests, as well as to minimize the impact of short-term rentals on neighboring properties.

One of the most important regulations pertains to off-street parking. Norfolk requires short-term rental properties to have a specific number of paved off-street parking spaces based on the property's location and the number of bedrooms. The exact number of required parking spaces varies depending on the "character district" in which the property is located. Failure to provide the required off-street parking can result in fines and legal consequences.

Another crucial regulation is the occupancy limit. In Norfolk, the maximum occupancy for a short-term rental is limited to two guests per bedroom, with a total limit of 10 guests at one time. This means that a three-bedroom property can accommodate up to six guests, while a five-bedroom property can accommodate up to 10 guests. Exceeding the occupancy limit can result in fines and the revocation of your Short-Term Rental Registration Zoning Permit.

To protect guests and minimize liability, Norfolk requires short-term rental operators to maintain liability insurance coverage of at least $300,000 for guest injuries that may occur on the property. This insurance must be in place before you can obtain your Short-Term Rental Registration Zoning Permit and must be maintained throughout the duration of your STR operation.Before your Short-Term Rental Registration Zoning Permit can be approved, your property must pass both fire safety and zoning inspections. The fire safety inspection ensures that your property meets the city's fire safety standards, including the installation of smoke detectors, carbon monoxide detectors, and fire extinguishers. The zoning inspection verifies that your property complies with the city's zoning regulations, such as off-street parking requirements and occupancy limits.

To ensure that guests have access to important information and emergency contacts, Norfolk requires short-term rental operators to post emergency contact information both inside and outside the property. This information should include the name and phone number of the property owner or a designated local contact who can be reached 24/7 in case of emergencies.As of June 2022, Norfolk introduced additional regulations for short-term rentals. These new regulations include the requirement for security cameras, noise monitors, trash collection agreements, and conditional use permits for larger properties.

The security camera requirement is designed to enhance guest safety and deter criminal activity, while noise monitors help ensure that guests are not disturbing neighboring properties. Trash collection agreements are necessary to maintain the cleanliness and appearance of the property and surrounding area, and conditional use permits are required for larger properties to ensure that they do not negatively impact the neighborhood.

Does Norfolk strictly enforce STR rules?

Compared to nearby Virginia Beach, Norfolk has taken a slightly more lenient approach to regulating vacation rentals. However, this does not mean that the city does not enforce its regulations. Norfolk has clear processes in place for compliance, and unregistered short-term rentals face a $200 penalty.While some hosts may choose to operate despite the rules, it is not advisable to do so. Operating an unregistered short-term rental can result in fines, legal consequences, and the potential loss of your business. Additionally, non-compliant properties may face difficulties in obtaining insurance coverage and may be subject to increased liability in case of accidents or incidents.

Norfolk's enforcement of short-term rental regulations is designed to ensure the safety and well-being of guests, as well as to minimize the impact of vacation rentals on neighboring properties. By complying with the city's regulations, short-term rental operators demonstrate their commitment to responsible business practices and contribute to the overall quality of the local tourism industry.

It's important to note that Norfolk's regulations are subject to change, and it's the responsibility of short-term rental operators to stay informed about any updates or amendments to the city's laws. Regularly checking the city's website and attending local workshops or information sessions can help ensure that you remain compliant with the most current regulations.

How to Start a Short Term Rental Business in Norfolk

Starting a short-term rental business in Norfolk requires careful planning and adherence to local regulations. To help you navigate the process, here is a step-by-step guide:

• Research the local market and assess your financial readiness. Before investing in a property or converting an existing one into a short-term rental, it's essential to understand the demand for vacation rentals in Norfolk and ensure that you have the financial resources to start and maintain your business.
• Ensure your property complies with Norfolk's rules and regulations for rental properties. This includes meeting the city's requirements for off-street parking, occupancy limits, and safety standards.
• Obtain a Conditional Use Permit, if required. The necessity of this permit depends on factors such as the property's location, size, and intended use. Check with the city's zoning department to determine whether your property requires a Conditional Use Permit.
• Apply online for a Short-Term Rental Registration Zoning Permit through the Zoning and Planning Office. This permit is specific to short-term rental properties and is required to legally operate an STR in Norfolk.
• Schedule and pass a fire inspection of your property. This inspection ensures that your rental property meets the city's fire safety standards, including the installation of smoke detectors, carbon monoxide detectors, and fire extinguishers.
• Complete a zoning inspection. This inspection verifies that your rental property complies with the city's zoning regulations, such as off-street parking requirements and occupancy limits.
• Obtain a business license to operate a short-term rental from the City Commissioner of Revenue. This license is separate from the Short-Term Rental Registration Zoning Permit and is required for all businesses operating within the city limits.
• Set up your property for guests. This includes furnishing the property, providing essential amenities, and creating a welcoming atmosphere. Consider hiring a professional photographer to take high-quality photos of your property for your online listing.
• Create a listing on popular short-term rental platforms, such as Airbnb and VRBO. Be sure to accurately describe your property, its amenities, and any unique features that set it apart from other listings in the area.
• Establish a system for managing bookings, guest communication, and cleaning. This may involve hiring a property management company or handling these tasks yourself.

By following these steps and adhering to Norfolk's regulations, you can start a successful and compliant short-term rental business in the city.

Who to contact in Norfolk about Short Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Norfolk, the best resource is the City of Norfolk's Department of City Planning. You can reach them by phone at (757) 664-4752 or by email at planning@norfolk.gov.

The Department of City Planning is responsible for overseeing the city's zoning regulations and can provide guidance on the specific requirements for short-term rental properties in Norfolk. They can help you determine whether your property is eligible for a Short-Term Rental Registration Zoning Permit and guide you through the application process.

In addition to the Department of City Planning, you may also need to contact other city departments depending on your specific needs. For example, if you have questions about the fire safety inspection, you should contact the Norfolk Fire Marshal's Office. If you have questions about the business license requirements, you should contact the City Commissioner of Revenue's office.

When contacting city departments, be prepared to provide information about your property, such as its address, size, and intended use. Having this information readily available can help expedite the process and ensure that you receive accurate guidance.

It's also a good idea to regularly check the city's website for updates and changes to short-term rental regulations. The website may also provide additional resources, such as FAQs, application forms, and contact information for relevant city departments.

What do Airbnb hosts in Norfolk on Reddit and Bigger Pockets think about local regulations?

While there are limited discussions specifically about Norfolk's short-term rental regulations on Reddit and Bigger Pockets, hosts generally acknowledge the importance of complying with local laws and obtaining necessary permits. Some hosts mention that the process can be time-consuming but is necessary to operate legally and avoid penalties.

On Bigger Pockets, a popular real estate investing forum, hosts discuss the importance of due diligence when starting a short-term rental business. This includes researching local regulations, obtaining necessary permits and licenses, and ensuring that the property meets all safety and zoning requirements. Hosts also emphasize the need to maintain accurate records and stay informed about any changes to local laws.

On Reddit, hosts share their experiences navigating the short-term rental regulations in various cities, including Norfolk. While some hosts express frustration with the complexity of the regulations, most acknowledge that compliance is essential for the long-term success of their business. Hosts also share tips and advice for working with city departments, such as the importance of being proactive and maintaining open communication.

Overall, the sentiment among Airbnb hosts on Reddit and Bigger Pockets is that complying with local regulations is a necessary part of operating a short-term rental business. While the process may be time-consuming and sometimes confusing, hosts recognize that failure to comply can result in fines, legal consequences, and the potential loss of their business.

By staying informed about local regulations, obtaining necessary permits and licenses, and maintaining open communication with city departments, short-term rental operators in Norfolk can build successful and compliant businesses that contribute to the local tourism industry.