LicensedRental

Virginia city rules

Charlottesville, VA vacation rental rules and taxes

Charlottesville allows short-term rentals in residential zones only as homestays: the owner must live in the home at least 185 days a year and get a $100 permit every January. Up to six adult guests, no signs, and one annual inspection. Stays pay 5.3% sales tax plus the city’s 9% lodging tax, and hosts also need a city business license.

Checked against official sources November 7, 2026
Market
About 690 Airbnb listings
Ranked fifth in Virginia by AirROI.Source
Homestay permit
$100 a year, due in January
Valid through December 31.Source
Owner residency
185 days a year
In R-A, RN-A, R-B, R-C, RX-3, and RX-5. Rentals in other districts are lodging facilities under the building code.Source
Guests
Up to 6 adults per lot
Taxes
5.3% sales + 9% lodging tax
Plus a city business license.Source

After a yearlong study, city staff recommended in March 2026 keeping the homestay rules as they are. Ideas that were considered and set aside included a $500 three-year permit, a required inspection before the permit, and cutting the 185-day residency rule to 90 days.

What to do

  1. Apply for the homestay permit

    In a residential zone, apply for an Accessory Use Permit in the city’s permit portal with proof that you own the home and live there at least 185 days a year (a driver’s license or similar), plus contact details for the responsible party if someone else manages it. Pay $100. Permits run through December 31 and are renewed each January.Source

    Charlottesville homestays →

  2. Get a business license and register for the lodging tax

    Every short-term rental, in any district, needs a city business license and a transient occupancy tax registration with the Commissioner of the Revenue.Source

  3. Taxes on each stay

    Stays under 90 days owe 5.3% sales tax, and stays under 30 days also owe the local transient occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with Virginia Tax. Charlottesville’s 9% transient occupancy tax is filed with the Commissioner of the Revenue by the 20th of each month in the Business Tax Portal, and a return is due even in months with no rentals.Source

Fees

Homestay accessory use permit (annual)$100

Source

Inspection checklist

What the inspector looks for, from City of Charlottesville, Virginia’s published checklist.

  • Smoke and carbon monoxide detectors, fire extinguishersWorking and accessible to guests at all times.Source
  • Annual city inspectionYou agree to one a year when you apply.Source

House rules for guests

Signs
Not allowed
Source
Food
No meals prepared or served
Source
Complaints
3 substantiated in a year ends the permit
You can’t get a new one for the rest of that year and the next.Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.