Short-Term Rental Laws in Charlottesville, Virginia

Charlottesville restricts STRs to owner-occupied "Homestay" operations — the host must reside in the unit as primary residence and be present (or have an on-site host substitute) during the rental. The 2020 ordinance effectively prohibits non-owner-occupied investor STRs within the city limits, with limited exceptions for properties holding a continuously-renewed grandfathered permit predating the ordinance. Albemarle County (which surrounds Charlottesville and contains most of the broader Charlottesville-area STR inventory) has a separate, more permissive framework — most investor STR activity in the region operates in Albemarle County, not Charlottesville City.

Within Charlottesville city limits, only Homestay-class (owner-occupied) STRs are permitted, allowed broadly across residential zones (R-1, R-2, R-3) with the primary-residence verification. Bed & Breakfast operations are separately permitted under the B&B framework with more stringent standards. Albemarle County (unincorporated areas: Crozet, Earlysville, Free Union, Keswick, Scottsville, plus the broader county) operates a separate STR framework — most "Charlottesville-area" investor STR inventory actually sits in Albemarle County and is permitted under the county's more relaxed rules.

Operators must hold a short-term rental permit before listing. See the official permit portal.

STRs are limited to the operator's primary residence.

Charlottesville Neighborhood Development Services administers the Homestay permit program. Annual renewal. Application requires primary-residence verification (driver's license + utility bills + voter registration), proof of property insurance, life-safety self-certification, parking plan, and an attestation that the operator (or a designated on-site host substitute) will be present during rentals. Operating without a permit: civil fines + stop-rental + back-tax. The city actively cross-references Airbnb/Vrbo listings against the Homestay permit registry.

Combined short-term lodging tax in Charlottesville is approximately 13.700% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Virginia State sales tax 5.3% + Charlottesville Transient Occupancy Tax 8% + small tourism surcharge — combined ~13.7% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.