Charlottesville Short-Term Rental Regulations

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Permit & Licensing

Accessory Use Permit (Homestay)

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

Submit application through the City's online Permit Portal with proof of ownership/permanent residency and the $100 annual fee; supporting documents (proof of residency) are addressed in the portal. Operators must also register for Business Licensing and Transient Occupancy Tax with the Commissioner of Revenue.

Tax Obligations

Combined rate: 14.3% (9% city Transient Occupancy Tax + 5.3% Virginia Retail Sales & Use Tax) of gross rental income.

Collection: Collected from the guest at point of sale by the host/accommodations provider or booking intermediary, then remitted to the city

Filing: Monthly, due by the 20th of each month; a return must be filed even if there was no rental activity

Rental Limits

Charlottesville does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 days per stay.

Occupancy & Density Limits

6 adult overnight guests per lot per night

Zoning & Restrictions

Permitted only as an accessory use in residential zoning districts R-A, RN-A, R-B, R-C, RX-3, and RX-5; a short-term rental located in a non-residential district is instead treated as a lodging facility under Development Code Sec. 3.2.2 and must comply with the Building Code

Insurance & Safety

Insurance

Charlottesville does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Working smoke detectors
• Carbon monoxide detectors
• Fire extinguishers accessible to overnight guests at all times
• Compliance with the applicable version of the Virginia Uniform Building Code

Penalties for Non-Compliance

• Homestay Accessory Use Permit may be revoked for 3 or more substantiated complaints within a calendar year, or for failure to maintain compliance with homestay requirements
• A property owner whose permit has been revoked cannot receive a new Homestay Accessory Use Permit for the remainder of that calendar year and the entire following calendar year
• Violating the Transient Occupancy Tax ordinance is a Class 3 misdemeanor
• Late remittance of Transient Occupancy Tax incurs a penalty of 5% of the tax due, or a minimum of $2.00

Compliance Checklist

Follow these steps to legally operate a short-term rental in Charlottesville:

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. Working smoke detectors. Carbon monoxide detectors. Fire extinguishers accessible to overnight guests at all times. Compliance with the applicable version of the Virginia Uniform Building Code.
3. Apply for Accessory Use Permit (Homestay). Submit application + $100 fee.
4. Register for tax accounts. Set up lodging tax accounts with Charlottesville Commissioner of the Revenue.
5. Collect and remit taxes. 14.3% (9% city Transient Occupancy Tax + 5.3% Virginia Retail Sales & Use Tax) on all bookings.
6. Renew annually. $100 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Charlottesville?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Charlottesville requires an Accessory Use Permit (Homestay).

How much does a short-term rental permit cost in Charlottesville?

An Accessory Use Permit (Homestay) in Charlottesville costs $100 per year.

Does Charlottesville require a short-term rental to be your primary residence?

Yes. Every Charlottesville permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

How many days a year can you short-term rent in Charlottesville?

Charlottesville does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Charlottesville?

Short-term rental stays in Charlottesville are subject to a combined 14.3% in lodging taxes. This combines 9% Transient Occupancy Tax (Lodging Tax) + 5.3% Virginia Retail Sales & Use Tax. The host is responsible for collecting and remitting them.