Virginia short-term rental rules for owners

Virginia sits between the two American models. It does not preempt local regulation the way Arizona or Florida do, yet it has written a statute that shapes what local governments may do: a framework for local short-term rental registries, and since 2024 a protection for homeowners who rent part of the house they live in. Zoning, however, remains local, and Virginia's counties and cities use it very differently, from beach overlays to rural by-right uses.

The state framework: Virginia Code 15.2-983

Section 15.2-983 lets any locality create a short-term rental registry. Its main features:

• operators may be required to register annually, giving their name, the addresses of their rentals and, if they lease rather than own, the owner's permission;
• the locality may charge a reasonable fee tied to the actual cost of running the registry;
• real estate licensees, timeshare operators and licensed lodging establishments are exempt from registering;
• violations can bring a penalty of up to $500 each, and an operator with multiple violations of state and local laws on more than three occasions can be prohibited from registering the property;
• nothing in the section limits a locality's general land use and zoning authority over short-term rentals.

One limit on that authority was added: no local ordinance enacted after December 31, 2023, may require a special exception, special use or conditional use permit for a short-term rental in a dwelling that the owner also legally occupies as a primary residence. Investor-owned whole-home rentals get no such protection.

Markets with very different rulebooks

Virginia's rental demand is spread across contrasting places: the Atlantic beaches and military community of Hampton Roads, colonial Williamsburg, Charlottesville's university and wineries, the cabins of the Shenandoah Valley and Luray, Smith Mountain Lake, the college towns of the Southwest, and business travel around Washington in Northern Virginia. Because each sits in a different city or county, two properties an hour apart can fall under a by-right regime and a strict permit system respectively. That is why, in Virginia, we always start with the locality's ordinance and zoning map before looking at the property itself.

How localities use their powers

The result is a spectrum. Some cities run a simple registry and allow rentals by right in most districts; Lynchburg, with a registration through its online portal and no owner-occupancy requirement, is an example. Others confine whole-home rentals to overlay districts or demand conditional use permits in residential zones, a pattern common in coastal cities and the suburbs of Northern Virginia. Rural counties in the Shenandoah Valley and the Blue Ridge often allow rentals as a by-right or permitted use in agricultural zones, with conditions on septic, parking and events.

Taxes

Virginia taxes the sale, lease and rental of accommodations. The general sales tax is 5.3% (4.3% state plus 1% local) in most of the state, 6% in Northern Virginia, Hampton Roads and Central Virginia, 6.3% in a group of Southside counties and 7% in the Historic Triangle around Williamsburg. On top, localities levy transient occupancy taxes at their own rates, sometimes with a flat per-night charge. Accommodations intermediaries such as booking platforms collect and remit on their bookings; direct bookings are the operator's to report to Virginia Tax and the locality.

Associations and insurance

Virginia's property owners' associations and condominiums can restrict rentals through their declarations, and state law gives them tools to enforce and to charge reasonable fees tied to rental activity. Read the governing documents and recent minutes before you buy. Confirm that your policy covers commercial short-term use; in coastal Hampton Roads, add flood and wind review.

Owner checklist

• Find out whether your locality has a registry under 15.2-983, and register before the first booking.
• Check zoning: by right, overlay, or conditional use permit.
• If you live in the home, check whether the owner-occupant protection applies to the ordinance in force.
• Register for sales tax and the local transient occupancy tax for direct bookings.
• Obtain a business license where the locality requires one.
• Review HOA or condominium rules and insurance.

If you own a Virginia property or are weighing one, we study every request and tell you honestly whether and how we can help.