The short answer: In the City of Charlottesville's residential zoning districts, short-term rentals (stays under 30 days) are allowed only as "homestays." The City's Homestays page says the property owner must occupy the property as their permanent residence for at least 185 days per calendar year. A homestay also needs an annual Accessory Use Permit ($100 a year), a business license, and the City's 9% transient occupancy tax. If you've moved away and the house is purely an investment, nightly rental of the whole home in a City residential zone isn't an option. A 12-month lease is the path the rules leave open.
This article is general information, not legal or tax advice. Rules change, so confirm your situation with the City, the County, a Virginia attorney, or a tax professional.
What the City counts as a homestay
The City defines a homestay as a rental for less than 30 days in a residential zoning district (R-A, RN-A, R-B, R-C, RX-3, or RX-5), using the entire home, part of it, or an accessory apartment. A short-term rental in a non-residential district is a "lodging facility," governed by a separate code section and the Building Code.
The rule itself is in Section 3.5.2.E of the Charlottesville Development Code. It allows "an individual who owns a dwelling unit and uses it as their permanent residence" to rent out all or part of it as lodging.
The 185-day rule, read carefully
"185 days" is often mistaken for a cap on rental nights. It's actually a residency requirement for the owner:
- The owner must live there. Under Sec. 3.5.2.E.9, the owner must occupy the unit as their permanent residence for at least 185 days during the permit's validity period. The permit runs from the date it's issued through December 31 of that year.
- You have to prove it. Applicants show proof of ownership and permanent residence, such as a driver's license, voter registration card, or passport with that address.
- Six adult guests, max. No more than six adult overnight guests per lot per night.
- No signs, no meals. Exterior signs are prohibited, and neither the owner nor the owner's agents or contractors may prepare or serve food to guests.
- Safety equipment. Working smoke detectors, carbon monoxide detectors, and fire extinguishers must be accessible to guests at all times, along with Uniform Statewide Building Code compliance.
- An annual inspection. Applying authorizes at least one City inspection a year, with advance written notice.
- Revocation. Three or more substantiated complaints in a calendar year, or noncompliance, can cost you the permit for the rest of that year and all of the next.
Who this fits: an owner who lives in Charlottesville most of the year and rents a spare room, an accessory apartment, or the house while traveling. Who it doesn't fit: an owner who relocated, inherited a house, or never planned to live there.
Permits, licenses, and taxes in the City
According to the City's Commissioner of the Revenue homestay guide, a compliant City homestay involves four steps:
- Homestay permit from Neighborhood Development Services, applied for in the City's permit portal. Permits are due in January and must be renewed every year.
- Business license, renewed by March 1 each year.
- Accommodations Provider Attestation. If you book only through intermediaries like Airbnb or VRBO, the attestation exempts you from monthly reporting for that license year. If you take any direct bookings, you file monthly.
- Business tangible personal property. Report furniture, fixtures, and equipment used in the business, including items you consider personal.
On taxes, the City's Transient Occupancy Tax page sets the rate at 9% of the total amount paid for lodging of less than 30 consecutive days. That's on top of the 5.3% Virginia retail sales and use tax. Returns are due on the 20th of each month, and the City says one must be filed even when there was no rental activity. (Hosts who book exclusively through intermediaries and file the attestation are the exception described above.)
Federal income tax has separate rules for homes that are both lived in and rented (IRS Topic 415). Ask a tax professional how mixed use affects you.
Two things that are changing (or might)
Tenants and sublessees. State law, Va. Code § 15.2-983(D), says a local ordinance can't prohibit someone from offering a short-term rental solely because they're a lessee or sublessee, as long as the property owner has given permission. On its Homestay / Short-Term Regulations Study page, the City says it has clarified that this allowance applies today. It plans to update its code next year to align with state law. For landlords, the takeaway is simple: your lease should say clearly whether subletting or short-term hosting is allowed. Then the decision stays yours.
The City study. After a 2025–2026 study, City staff recommended keeping the current ordinance without amendments for now and revisiting the code next year. Check back before you make a long-term decision.
HOAs and condos. The state law doesn't override condominium instruments or HOA declarations, so read your association documents before you list.
If your property is in Albemarle County
A Charlottesville mailing address doesn't mean you're in the City. Per the County's homestay business page, any lodging rental under 30 days is a homestay business needing a zoning clearance, business license, transient occupancy tax, and business tangible property filings. The County's zoning standards in Sec. 18-5.1.48 require at least one owner to live on the parcel at least 180 days a year. They also generally require the owner or an approved resident manager to be present overnight during stays, with limited unhosted stays allowed only on Rural Areas parcels of five acres or more.
Homestay vs. 12-month lease: an honest comparison
We won't quote nightly rates or projected income; those depend on the property, the season, and your effort. The structural differences are clear:
| City homestay | 12-month lease | |
|---|---|---|
| Who can do it | Owner who lives there 185+ days a year | Any owner |
| Permits and filings | Annual permit, business license, attestation, BPP filing, possibly monthly TOT returns | No homestay permit |
| Turnover | Frequent guest changeovers and cleaning | Typically one move-in per lease term |
| Furnishing | Furnished; those items are assessable business property | Often unfurnished |
| Income pattern | Varies by night and season | One monthly rent, set by the owner |
| Governing law | Lodging rules plus the City permit conditions | Virginia Residential Landlord and Tenant Act |
A long-term lease has its own obligations, including giving tenants the Statement of Tenant Rights and Responsibilities and following the VRLTA's notice and court rules, such as Virginia's 14-day nonpayment notice. For an out-of-area owner, though, it's the option that fits.
When owners who've moved out ask us about nightly rentals, we refer them to Stay Charlottesville, a local vacation rental manager, or to Airbnb.
How pmi commonwealth helps
Our tagline is making property management manageable. For owners who can't (or don't want to) run a homestay, that means a well-run long-term rental:
- A rent range based on comparable Charlottesville-area rentals. We suggest a range; you set the rent. We never promise a specific rent.
- Leasing, screening, rent collection, and maintenance coordination under the VRLTA
- Lease language that addresses subletting and short-term hosting
Our full-service fee is simple: 10% of monthly rent for management, plus a $1,000 leasing fee for placing a tenant (pricing details). Start with a free rental analysis, or read about our Charlottesville property management services. Our Charlottesville office is at 1835 Seminole Trail Ste B, Charlottesville, VA 22901.
FAQ
Does the 185-day rule mean I can rent my home for up to 185 nights?
No. It means the owner must live in the home as a permanent residence for at least 185 days during the permit year. It's a residency test, not a rental allowance.
Can I run a whole-house short-term rental in the City if I live somewhere else?
Not as a homestay in a residential zone, because homestays require owner residency. Non-residential districts treat short-term rentals as lodging facilities with separate requirements.
Is the lodging tax owed if Airbnb collects it?
Platforms file and pay local lodging tax on bookings they facilitate. You still file the City's attestation and pay on direct bookings.
What about a 30-day-plus furnished rental?
Stays of 30 days or more fall outside the City's homestay definition and outside the 9% lodging tax. That arrangement raises different legal questions, so talk to counsel before structuring one.
