The state of Virginia offers endless opportunities for Airbnb investors looking for profitable deals. The multiple historic sites and diverse natural attractions bring tourists from near and far, pushing some of the strongest Airbnb occupancy rates in the U.S. market. However, before buying an investment property to rent on Airbnb and Vrbo, investors need to familiarize themselves with Virginia short-term rental laws.
As Virginia does not have specific statewide Airbnb laws, local governing bodies have implemented their own rules to regulate vacation rentals. These rules vary widely, from virtually no control to limitations on non-owner occupied properties.
This article covers everything that you should know about Virginia Airbnb laws, necessary documents, taxes to be paid, and rules by city. Still, you should always consult with a local real estate attorney or the local government as regulations can and do change at all times.
In addition to complying with all applicable laws, a short-term rental business needs to be driven by data-based decisions. Summer Forecast offers you unlimited access to accurate Airbnb data, intuitive analytics, and powerful forecasting tools to build a top-performing investment portfolio that outperforms the competition.
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Does Virginia allow short-term rentals?
The state of Virginia allows short-term rentals, and Virginia cities generally have investor-friendly Airbnb laws compared to other U.S. markets, with some variations. Currently, Virginia does not have detailed vacation rental regulations, so control over the STR industry has been generally left to local authorities.
The Code of Virginia 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 definition or definitions to this effect have been widely adopted by cities within the state of Virginia.
How to start a short-term rental business in Virginia
The process of starting an Airbnb business in Virginia differs from one city to the next, but there are certain steps and requirements that are valid in the majority of locations.
The most common steps involved acquiring the following:
- Zoning permit: Many Virginia cities require STR owners/operators to obtain a short-term rental zoning permit which is typically valid for one year. Applying for such a permit requires the submission of a number of documents providing information about the property and the owner.
- Conditional Use Permit (CPU): In some markets, certain types of short-term rentals need to have a Conditional Use Permit (CPI) in addition to a zoning permit.
- Local business license: All Virginia vacation rental owners need to get a business license from the city where their property is located. This is needed to pay local and Virginia short-term rental tax. Business licenses have to be renewed each year.
- Zoning ordinances: A number of Virginia cities permit STRs in some zoning districts, while they limit them in other areas, so investors need to check out local zoning ordinances to confirm that their intended property is located within a permitted district.
- Safety regulations: Local Virginia Airbnb laws demand the installation of smoke detectors, carbon monoxide detectors, fire extinguishers, and other safety equipment on site to guarantee the health and safety of guests and neighbors.
- Fire inspection: In many cases, properties need to undergo a fire inspection before receiving a permit to operate as an Airbnb.
- Liability insurance: While many local authorities demand proof of short-term rental insurance with liability coverage, hosts are strongly advised to get such insurance even if it's not required by law as it can save them tons of money in case of guest injury on site.
- Permit and license fee payments: Short-term rental operators have to pay varying fees for permits, licenses, and inspections.
- Tax payments: All Virginia vacation rental businesses need to pay various taxes, so owners have to complete proper paperwork to be prepared to do that once they launch their business.
- Required paperwork: Some of the most common documents that hosts need to provide when applying for permits and licenses include property information, owner information, proof of ownership, parking plan, and floor plan.
The specific requirements for starting a short-term rental business in the state of Virginia vary between cities, so investors need to check local regulations and consult with a legal expert to ensure legality and to get started on the right footing.
Short-term rental licensing requirements in Virginia
The state of Virginia does not require state-level short-term rental licenses and permits. However, most local authorities require Airbnbs to be registered, licensed, or permitted for this specific use. Permits are valid for one to two years. Moreover, all Virginia STRs need to have a valid business license issued by the city, which is valid for one year.
License renewals for short-term rentals in Virginia
Local STR registrations, zoning permits, and similar documents need to be renewed every one or two years, depending on the rules applied by city-level governing authorities. Local business licenses need to be renewed annually. Renewal fees vary between cities.
Required documents for short-term rentals in Virginia
Typically, vacation rental owners need to provide the following documentation:
- Driver's license
- Federal EIN
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Proof of ownership and/or residence
- Proof of payment of fees
- Parking plan
- Floor plan
- Insurance
There are differences in the requirements imposed by local authorities, and hosts need to make sure they have all necessary documents to license their business to avoid delays or denials.
Virginia short-term rental taxes
Short-term rental property owners need to pay the following taxes:
- Virginia Sales Tax: 6%
- City or County Lodging Tax, also referred to as Transient Occupancy Tax (TOT): Typically a percentage of booking revenue plus a fixed fee per room per night that varies by location
- Income Tax: Applicable federal and local rates
- Property Tax: Applicable state and municipal rates
The combined Virginia short-term rental tax can easily exceed 15% of rental revenue plus additional income and property taxes. This amounts to a significant share of the income generated by local hosts. However, Airbnb investors are able to reduce their taxable income by applying deductions.
Deductible business operating costs include:
- Property depreciation (conduct a short-term rental cost segregation study to optimize tax benefits)
- Property tax
- Mortgage interest
- Mortgage insurance premium (MIP)
- Airbnb insurance
- Furniture, appliances, and electronics costs
- Property management fees
- Utilities
- Cleaning costs
- Accounting, legal, and other professional service fees
- Property maintenance costs
- Home office expenses
- Business travel expenses
While it's crucial for hosts to pay all relevant state and local taxes to avoid issues with authorities, it's also important to take advantage of available deductions to boost the revenue and profit from their Airbnb business.
Statewide short-term rental laws in Virginia
At the moment, Virginia does not have specific Airbnb regulations at the state level. Under the current legal framework, STR regulations are largely left to local authorities, which are unrestricted in the rules and limitations that they can apply.
It's important to note that Virginia is discussing SB 544, which, if enacted, would limit the ability of local authorities to implement new regulations to properties listed on Airbnb, Vrbo, and other short-term rental websites. While already existing laws will not be overruled, new ones will be restricted. If this bill is passed, the state of Virginia is expected to maintain its relatively host-friendly regulations.
Short-term rental laws by Virginia city
In the absence of Virginia Airbnb laws at the state level, local authorities have been introducing their own rules to regulate the spread of the short-term rental industry. Existing rules vary widely from one city to another.
Following are the vacation rental laws in some of the most popular Virginia markets for Airbnb investments.
1. Virginia Beach, Virginia short-term rental laws
The City of Virginia Beach defines a short-term rental as an entire dwelling rented for less than 30 consecutive days for compensation. This is different from homeshare, which refers to a room or rooms offered for rent for less than 30 consecutive days by the homeowner who uses the dwelling as their principal residence and who occupies the home during all rental periods.
STRs are allowed in the following districts of Virginia Beach:
- Sandbridge Special Service District: All properties are eligible as long as they obtain necessary licensing.
- Oceanfront Resort STR Overlay District: Properties may be able to obtain a Conditional Use Permit (CUP) from the City Council.
- Areas outside the Sandbridge and Oceanfront districts: Properties may be able to obtain a CUP from the City Council.
- Grandfathered properties: STRs registered with the Commissioner's Office prior to July 1, 2018 and STRs granted a CUP from the City Council prior to September 7, 2021 that are not located within an STR Overlay District are considered grandfathered as long as they meet City Code requirements.
Virginia Beach Airbnb rentals need to have:
- Conditional Use Permit (CUP) from the City Council if located in certain districts that needs to be renewed every five years
- Short-term rental zoning permit renewed annually
- Registration with the Commissioner of the Revenue's office to be renewed annually for a fee of $50
Applying for a short-term rental zoning permit from the Planning & Community Development department requires the following:
- STR address and number of bedrooms
- Owner's name, address, phone number, and email
- Emergency contact's name, company, phone number, and email
- Current physical survey of the property sealed by a Commonwealth of Virginia Registered Design Professional
- Illustrated and notated parking plan
- Life-safety inspection report submitted annually
- Structural safety inspection report submitted every three years
- Liability insurance policy document for at least $1,000,000 in coverage
- Proof of current registration with the Commissioner of the Revenue
- Sworn statement form
- Application fee of $200
Zoning permits are valid for one year and need to be renewed on an annual basis by submitting the above-listed documents plus proof of paid taxes.
According to Section 241.2 of the Virginia Beach Code of Ordinances, all STRs need to meet the following conditions:
- Provide adequate off-street parking
- Not hold events with more than 50 people present without a special events permit
- Provide a responsible person's name and phone number
- Post a sign identifying the property as a short-term rental and providing the phone number of the Short-Term Rental Hotline with no additional signage
- Maintain registration with the Commissioner and pay applicable taxes
- Post in a conspicuous space within the dwelling a summary providing information about noise, solid waste collection, fires on the beach, fireworks, and approved parking plan
- Place all refuse in automated refuse receptacles
- Have no more than two rental contracts in any seven consecutive days
- Hold liability insurance applicable to rental activities for no less than $1,000,000
- Produce no outdoor amplified sound between 10 P.M. and 10 A.M.
- Limit maximum occupancy to three individuals per bedroom between 11 P.M. and 7 A.M.
- Provide to the City Planning Department permission for annual zoning inspection
- Have fire extinguishers, smoke alarms, and carbon monoxide detectors
- Not use accessory structures
The owners of Virginia Beach, VA vacation rentals within the Sandbridge Special Service District have to pay a total TOT of 16.5% plus $2/night, while the applicable tax outside this district is 15.0% plus $2/night.
While Virginia Beach has very specific and somewhat demanding Airbnb laws, it remains one of the top short-term rental markets for investors not only in the state of Virginia but also nationwide. The sandy beaches, the endless oceanfront, the long boardwalk, and the delicious seafood attract millions of visitors each and every year, leading to strong STR revenue and profit.
Below, you can check out the average performance of the Virginia Beach vacation rental market based on data from Summer Forecast:
- Gross Revenue: $44,163
- Daily Rate: $286
- Occupancy Rate: 59%
- Short-Term Rentals: 332
- Listing Price: $440,000
- Active Listings for Sale: 145
2. Richmond, Virginia short-term rental laws
The City of Richmond follows the Virginia statewide definition of a short-term rental which refers to the renting of space for fewer than 30 consecutive days. Short-term rental regulations are provided in Division 14 of the City Code of Ordinances.
In Richmond, an Airbnb needs to be operated by a short-term rental operator, who is the property owner. In residential districts, including the R-1, R-2, R-3, R-4, R-5, R-5A, R-6, R-7, R-8, R-43, R-48, R-53, R-63, R-73, R-MH, RO-1, RO-2, and RO-3 districts, the vacation rental property needs to be located on the same lot as the short-term rental operator's primary residence. Only one STR is permitted on a single lot in a residential zoning district. However, there are no distinctions and limitations related to hosted and unhosted STRs, meaning that the owner doesn't have to be on site during rentals.
Meanwhile, in multifamily dwellings, the total number of STRs permitted on the lot is limited to the lesser of ten and one third of the dwelling units.
Richmond, VA Airbnb hosts need to obtain a Short-Term Rental Permit, applying for which requires:
- Property information
- STR operator information
- Dimensioned floor plan of the layout of the dwelling unit including the use of each room, occupancy level of sleeping room, cooking facilities, location and size of emergency egress and rescue openings, and location of fire extinguishers and smoke and carbon monoxide detectors
- Proof of primary residence
- Short-Term Rental Owner Affidavit acknowledging compliance with the rules for operating a STR
- Fee of $600
Permits are valid for two years, and the biennial fee is $600.
Richmond Airbnb rentals need to comply with the following regulations:
- Not host more than eight persons 18+ years of age
- Have at least one of the short-term renters be 18+ years of age
- Not have more than one booking transaction for the same time
- Be operated by a short-term rental operator
- Provide to the Zoning Administrator and post within the property a floor plan with the use of each room, occupancy level of sleeping rooms and cooking facilities, location and size of emergency egress and rescue openings, and location of fire and carbon monoxide detectors
- Have smoke detectors, a fire extinguisher, and carbon monoxide detectors in compliance with the Virginia Uniform Statewide Building Code
- Obtain a certificate of zoning compliance
- Include the active certificate of zoning compliance in all advertising
The local TOT rate in the City of Richmond is 8%.
While Richmond short-term rental rules aim to secure the safety and comfort of local communities, they are conducible enough to allow local investors to benefit from the strong Airbnb market. As the capital of Virginia, the city attracts year-round visitors with its rich history, cultural events, amazing natural landscape, creative atmosphere, and vibrant cuisine.
Following is a summary of the average performance of the Richmond short-term rental market based on Summer Forecast analytics:
- Gross Revenue: $30,850
- Daily Rate: $158
- Occupancy Rate: 70%
- Short-Term Rentals: 373
- Listing Price: $409,975
- Active Listings for Sale: 78
3. Alexandria, Virginia short-term rental laws
The City of Alexandria goes along with the state of Virginia definition of STRs and generally defines short-term residential rentals, also referred to as home sharing, as the rental of houses, condos, or apartments to short-term guests.
According to existing Alexandria short-term rental laws, such properties need to be added to the City's Short-Term Residential Rental Registry. The registration process is quick and free of charge. Operators can register multiple Airbnb rentals with the City.
In case an Alexandria Airbnb host gross annual revenue exceeds $10,000 and they rent more than four separate dwelling units with cooking facilities, they need to obtain a Business, Professional and Occupational License (BPOL).
STRs need to collect a State and Local Sales Tax of 6% to be remitted to the Virginia Department of Taxation in addition to a Regional and Local Transient Lodging Tax of 9.5% plus $1.25/room/night to be remitted to the City of Alexandria.
However, local authorities have been discussing newly proposed short-term regulations which would introduce the following requirements:
- Limit maximum occupancy to two guests per bedroom plus two additional guests
- Have a clearly visible street address
- Provide parking in graded spaces
- Regulate trash collection
- Provide Good Neighbor Guide to guests prior to arrival and within the STR
- Obtain an annual short-term rental permit for a fee
Currently, Alexandria has some of the best Airbnb rules in Virginia as STRs are allowed everywhere and are virtually unregulated. Nevertheless, interested investors need to keep an eye on potential changes to existing legislation which would introduce some regulations but still allow for profitable vacation rental business opportunities within the city. Before starting working on finding Airbnb properties for sale in Alexandria, it's a good idea to check out the websites of local authorities and consult with a local attorney to confirm up-to-date rules.
Meanwhile, you can check out the performance of the Alexandria Airbnb market, on average, based on Summer Forecast analysis:
- Gross Revenue: $48,021
- Daily Rate: $237
- Occupancy Rate: 74%
- Short-Term Rentals: 266
- Listing Price: $924,800
- Active Listings for Sale: 27
4. Norfolk, Virginia short-term rental laws
Article VI of the Code of Ordinances of the City of Norfolk defines a short-term rental unit as any dwelling unit constructed for use as a residential house or apartment in which lodging is offered for fewer than 30 consecutive days.
Norfolk distinguishes between two types of STRs:
- Vacation Rental: This is the provision of a dwelling unit for rent to a guest for fewer than 30 consecutive nights when all owners are staying off the premises at any time during the rental period. In brief, this refers to a non-owner occupied short-term rental.
- Homestay: This is the provision of a space within a dwelling unit for a minimum of one night but fewer than 30 consecutive nights when any of the owners uses the dwelling unit as their primary residence. This refers to an owner-occupied STR.
All Norfolk, VA Airbnb properties need to have the following:
- Registration Zoning Permit or Conditional Use Permit (CUP)
- Business License
- Paved parking the minimum size of which depends on the Character District and the number of bedrooms
Short-term rental registration is necessary to obtain a Registration Zoning Permit. Applications require:
- Online registration application
- Proof of liability insurance of no less than $300,000
- Photo of driver's license to confirm primary residence in case of homestay
- Written permission of all adjacent property owners in case of shared driveway
- Writer permission from the Condo Association in case of homestay in a condominium
- Proof of fire inspection
- Zoning inspection
Permits are valid for two years, and each unit within a duplex or triplex requires an individual permit. Registration is free of charge, but some associated costs include:
- Fire inspection: $50-$75
- Business License: $50-$75
- CUP: $1,080
Business Licenses are issued by the Commissioner of the Revenue only after a zoning permit has been granted and need to be renewed annually. They are required in order to pay relevant taxes. The annual cost is $50-$75.
Some common examples of STR businesses that require a CUP include:
- Vacation rental properties in the SF-T, SF-10, and MF-NS zoning districts
- Vacation rentals housed in buildings with 4+ bedrooms in the R-C, SF-2, SF-4, and SF-6 zoning districts
- Vacation rentals with 3+ dwelling units in the R-C and D zoning districts
- Homestays with 4+ bedrooms on the property
- Properties without sufficient parking
Applying for a CUP is associated with a fee of $1,080 and takes 2-3 months.
Meanwhile, Norfolk short-term rentals need to comply with the following:
- Obtain a Certificate of Occupancy in case of operating 3+ units in the same building
- Post a sign on the interior and the exterior with the emergency contact's name and phone number
- Limit maximum occupancy to two people per bedroom for rent
- Provide remote entry for all guests in case of vacation rental
- Maintain interior decibel meters in the home's main congregation rooms in case of vacation rental
- Place waste containers within their enclosures within 24 hours after the day the waste is collected in case of vacation rental
Norfolk collects a City Lodging & Room Tax of 9% plus $3.00/room/night.
While Norfork Airbnb laws allow both owner-occupied and non-owner occupied short-term rentals, there might be some restrictions related to Zoning and Character Districts. As the city offers very profitable opportunities for vacation rental investors, you are advised to consult with a local attorney or Airbnb manager on applicable regulations and look for options in feasible areas of Norfolk.
Below is a summary of the average performance of the Norfolk short-term rental market according to data from Summer Forecast:
- Gross Revenue: $33,553
- Daily Rate: $188
- Occupancy Rate: 67%
- Short-Term Rentals: 175
- Listing Price: $323,250
- Active Listings for Sale: 118
5. Rileyville, Virginia short-term rental laws
The City of Rileyville has not enacted any specific short-term rental regulations. Meanwhile, Rileyville Airbnb owners need to follow Virginia short-term rental laws that require obtaining a business license (renewable on an annual basis) and paying taxes.
Page County, where Rileyville is located, charges a TOT of 10%.
The lack of Rileyville vacation rental laws make it one of the best locations to invest in a STR in Virginia from a legal point of view. Meanwhile, the beautiful nature, the beaches, the outdoor activities, the amusement parks, and the frequent fairs make it an attractive destination for guests and thus hosts. Still, it's worth contacting a local real estate lawyer or property manager to confirm legality in your selected location.
Here's the performance of the Rileyville Airbnb market according to data from Summer Forecast:
- Gross Revenue: $46,470
- Daily Rate: $254
- Occupancy Rate: 60%
- Short-Term Rentals: 110
6. Wintergreen Resort, Virginia short-term rental laws
Wintergreen Resort short-term rental regulations are light and easy to follow.
Wintergreen Airbnb hosts need to:
- Notify the Wintergreen Property Owners Association (WPOA) that the property is used as a STR
- Comply with local ordinances
- Inform guests in writing and on site of the Wintergreen Community Rules published by the WPOA
- Provide the WPOA with emergency contact's contact information
- Have a business license that needs to be renewed annually by March 1
- Pay Nelson County TOT at a rate of 7%
These Wintergreen Resort Airbnb rules leave both owner-occupied and non-owner occupied short-term rentals unrestricted. At the same time, the hiking trails, the skiing slopes, and the breathtaking views make Wintergreen an ideal location for family vacations and, consequently, for Airbnb investments.
Below is a quick summary of the Wintergreen Resort vacation rental market with the most important performance numbers from Summer Forecast:
- Gross Revenue: $34,027
- Daily Rate: $275
- Occupancy Rate: 43%
- Short-Term Rentals: 170
- Listing Price: $579,000
Do Airbnbs do well in Virginia?
Statewide and city-specific Virginia short-term rental laws are more friendly to vacation rental investors than many other top Airbnb markets in the U.S. While getting permits and licenses and paying taxes is a must in most cities, both owner-occupied and non-owner occupied Airbnbs are generally allowed across the state.
Meanwhile, short-term rentals can be very profitable in Virginia, as demonstrated by Summer Forecast data. High daily rates and strong occupancy rates lead to above-average revenue and excellent profit in a number of Virginia markets.
Ready to get started? Contact one of the best Airbnb management companies in Virginia to discuss your investment goals and learn about available opportunities.
Once you're good to go, remember that Summer Forecast is your go-to platform for uncovering profitable investments in Virginia and beyond. Our institutional-quality STR data, readily available analytics, and powerful forecasting tools help you make smarter, data-informed investments. Powered by detailed data on daily rates, occupancy, revenue, comps, and market trends, you can identify new opportunities that maximize profit and outperform the competition each and every time.
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