Fairfax County, Virginia Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Fairfax County, Virginia?

Fairfax County, Virginia enacted new regulations for short-term rentals like Airbnb and VRBO that went into effect on October 1, 2018. The rules are intended to allow residents to rent out their homes while maintaining the character of residential neighborhoods.

Starting a Short-Term Rental Business in Fairfax County

To operate a short-term rental in Fairfax County, the following key requirements must be met:

• The property must be the operator's primary residence, established by living there at least 185 days per year
• A Short-Term Lodging (STL) permit is required, issued by the Zoning Administrator for a $200 fee every 2 years
• STRs are limited to a maximum of 60 nights per calendar year
• No more than 6 adult lodgers are allowed at one time (fewer may be allowed depending on home size)
• Only one rental contract is permitted at a time
• The operator must collect Transient Occupancy Tax (TOT) for each rental and file a monthly return with the county
• Safety requirements include providing a fire extinguisher, interconnected smoke detectors, and posting exit plans in each sleeping room

These regulations apply to rentals of an entire home as well as individual rooms within a residence. They are allowed in all dwelling types including single-family homes, townhouses, condos, and apartments.

Operators who fail to obtain the required STL permit or publish the permit number in rental advertisements are in violation of the law. Fines and other penalties may apply.

While the county cannot require consent from a homeowners association (HOA) to issue an STL permit, the operator is still responsible for ensuring their rental complies with any HOA restrictions. Many HOAs prohibit or further limit short-term rentals in their communities.

The 60-night annual limit on rentals has been criticized by Airbnb as "very restrictive" compared to rules in other jurisdictions that allow 90-180 rental nights per year. Some Fairfax residents rely on Airbnb income to afford their mortgage and argue the regulations infringe on their property rights. However, county officials believe oversight is needed to preserve neighborhood character and prevent issues like noise and parking problems.

In summary, while short-term rentals are permitted in Fairfax County, the regulations are fairly strict in an attempt to balance the interests of rental operators and the surrounding community. Hosts must carefully follow the rules and obtain proper permits to avoid legal issues with their rental business.

Short-Term Rental Licensing Requirement in Fairfax County

To legally operate a short-term rental in Fairfax County, property owners and tenants must obtain a Short-Term Lodging (STL) Permit from the Zoning Administrator. The key requirements for an STL Permit include:

1. The property must be the operator's primary residence, established by living there at least 185 days per year

2. A complete STL Permit application must be submitted, including:

1. A $200 non-refundable permit fee, valid for 2 years
2. Proof of permanent residency
3. Proof of property ownership or, if a tenant, written consent from the owner
4. A dimensioned floor plan identifying the rooms to be used for lodging
5. Signed affidavit agreeing to comply with STL Zoning Ordinance provisions

3. Demonstration that the dwelling meets applicable safety requirements:

1. Working interconnected smoke detectors
2. Fire extinguisher on each floor
3. Exit plan posted in each bedroom to be rented

STL Permit applications can be submitted online through the county's website or in person at the Permit Application Center. The review process typically takes 2-3 weeks. Once issued, the permit number must be published in all STR advertisements.

Operators who fail to obtain the required STL Permit or publish the permit number in rental listings are in violation of the Zoning Ordinance. Penalties for non-compliance include:

1. Permit revocation or denial of future permit applications
2. Civil penalties of $200 for the first violation and $500 for subsequent violations
3. Misdemeanor charges punishable by fines up to $1000 and/or up to 30 days in jail

In addition to the STL Permit, STR operators must collect and remit Transient Occupancy Tax (TOT) for each rental. A Business Professional and Occupational License (BPOL) is also required if gross receipts exceed $10,000 per year.

While obtaining an STL Permit and complying with the regulations adds some cost and effort, it is essential for running a legal short-term rental business in Fairfax County. Failure to do so risks significant penalties that could jeopardize an operator's ability to continue renting their property.

Required Documents for Fairfax County Short-Term Rentals

To apply for a Short-Term Lodging (STL) Permit in Fairfax County, the following documents must be submitted with the application:

1. Government Issued ID or Registration: To demonstrate permanent residency at the property, provide a government-issued ID such as a driver's license, passport, or voter registration card showing the address of the STL property. This establishes that the operator lives at the residence for at least 185 days per year.
2. Proof of Property Ownership: Provide a copy of the deed or tax bill showing ownership of the property. If the operator is a tenant rather than the owner, they must submit written consent from the property owner allowing them to operate an STL at the residence.
3. Dimensioned Floor Plan: Submit a floor plan identifying the specific rooms and spaces to be used for lodging. The plan should clearly label and provide dimensions for bedrooms, living spaces, and any other areas to be rented. This helps verify compliance with maximum occupancy limits.
4. Signed Affidavit: An affidavit signed by the STL operator agreeing to comply with all provisions of the STL Zoning Ordinance. This includes acknowledging the 60-night annual limit, maximum of 6 adult lodgers at a time, and prohibition on renting to more than one party concurrently.
5. Safety Certifications: While not documents per se, the application requires demonstrating the dwelling meets applicable safety requirements. These include having interconnected smoke detectors, fire extinguishers on each floor, and an exit plan posted in each bedroom to be rented.

Most of these required documents, like proof of residency and property ownership, are records the STL operator should already have on hand. The dimensioned floor plan and safety certifications may require some additional effort to prepare before submitting the STL Permit application.

All STL Permit applications and supporting documents must be submitted electronically through Fairfax County's PLUS system web portal. The non-refundable $200 permit fee can be paid by credit card through the online system.

Fairfax County Short-Term Rental Taxes

Short-term rental operators in Fairfax County are subject to several types of taxes related to their rental business. It's important to understand these taxes and comply with filing and payment requirements. The main taxes that apply to STRs in Fairfax County include:

Transient Occupancy Tax (TOT): The total TOT rate in Fairfax County is 7%, consisting of:

1. 2% general transient occupancy tax
2. 2% tourism tax
3. 3% regional transportation tax

The TOT is calculated on the gross room rental, less any exempt rentals and refunds. As of October 1, 2022, accommodation intermediaries like Airbnb and VRBO are responsible for collecting and remitting the TOT on behalf of hosts. However, hosts should verify with the platforms that this is being done and may still need to file monthly TOT returns with the county.

Business, Professional and Occupational License (BPOL) Tax: If an STR host's total annual gross receipts exceed $10,000, they must obtain a BPOL and pay the associated tax. The BPOL tax rate varies depending on the business category.

Short-Term Daily Rental (STDR) Tax: Fairfax County levies an additional 1% tax on the total gross proceeds of STRs. This tax is separate from the TOT.

While these taxes add to the cost of operating an STR, hosts can take advantage of several tax deductions to offset expenses and reduce their taxable income. Some key deductions available for STRs in Fairfax County include:

1. Mortgage interest on the rental property
2. Property taxes
3. Utility costs paid by the host, such as water, electricity, and gas
4. Repairs and maintenance expenses
5. Insurance premiums, including property damage, liability, and rental income loss coverage
6. Fees paid to professionals like property managers, accountants, and lawyers
7. Depreciation of the rental property (excluding land) over its useful life

It's crucial for STR operators to keep detailed records and receipts for all expenses in order to claim these deductions. Consulting with a tax professional can help ensure compliance with all tax requirements and optimize deductions.

By understanding the applicable taxes and available deductions, Fairfax County STR hosts can better manage the financial aspects of their rental business. Staying on top of these obligations not only avoids penalties but allows hosts to run a profitable and legally compliant operation.

Virginia Wide Short-Term Rental Rules

In addition to Fairfax County's local regulations, short-term rental hosts must also comply with state-wide laws in Virginia. Some key state-level requirements include:

1. Senate Bill 544 (2024): This recently passed law, which goes into effect after December 31, 2023, prohibits localities from requiring special use permits for short-term rentals if the property is the owner's primary residence where they live for most of the year. However, it still allows localities to establish other regulations like rental registries and caps on the number of nights rented per year.
2. Transient Occupancy Tax: The state of Virginia imposes a Transient Occupancy Tax on short-term rentals, which is collected in addition to local occupancy taxes. As of 2022, short-term rental platforms like Airbnb are required to collect and remit these taxes on behalf of hosts.
3. Safety Requirements: All short-term rentals in Virginia must meet statewide building and fire safety codes, including having working smoke detectors, carbon monoxide alarms, and fire extinguishers. Localities may impose additional safety requirements.
4. Rental Registry: While not required statewide, the state allows localities to establish rental registries and require short-term rental operators to register annually. Hosts may be exempt from registering if they are licensed by the Real Estate Board or represented by a licensed realtor.
5. Fines and Penalties: Localities can impose fines up to $500 per violation for short-term rental operators who fail to register if the locality requires it. The state can also levy fines for failure to collect and remit required taxes.

While Virginia has enacted some state-wide short-term rental rules, most of the detailed regulations are determined at the local level by city and county governments. Fairfax County hosts must carefully review both state and county-specific requirements to ensure they are in full compliance.

As short-term rentals continue to grow in popularity, Virginia lawmakers are trying to balance reasonable oversight with the rights of property owners. The trend seems to be toward preserving some local control while preventing overly onerous restrictions on rentals that are the host's primary residence. However, the regulatory landscape remains fluid, so hosts must stay informed of the latest developments at both the state and local levels.

Does Fairfax County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Fairfax County appears to be fairly strict in enforcing its short-term rental regulations compared to some other jurisdictions. The county actively investigates complaints about illegal rentals and has issued fines and court summons to non-compliant operators.

However, despite the rules, some hosts still attempt to operate STRs in Fairfax County without obtaining the required permits or following the 60-night annual limit. Discussions among investors suggest a number of listings are active that likely don't comply with the county regulations. But the risks of operating illegally are significant.

One BiggerPockets member shared their experience converting a Fairfax condo from a short-term to long-term corporate rental after the condo association cracked down on STRs that violated the bylaws. Another advised always having a contingency plan as local governments, including Fairfax County, have been moving to further restrict or prohibit STRs in residential areas.

So while Fairfax County is not as STR-friendly as some cities, the ongoing presence of non-compliant listings shows some hosts are still willing to operate under the radar. But the county's active enforcement and substantial penalties make this a risky approach. Hosts are better off carefully following the regulations or considering alternate rental strategies.

In summary, Fairfax County takes STR compliance seriously and is not afraid to drop the hammer on hosts who violate the rules. Investors describe an environment where illegal STRs may still operate but face a very real risk of getting shut down. Fairfax is much less hospitable to STRs compared to the policies in many other U.S. cities and counties.

How to Start a Short-Term Rental Business in Fairfax County

Starting a short-term rental (STR) business in Fairfax County requires careful planning and compliance with local regulations. Here are the key steps to get your STR business up and running:

1. Verify your property is eligible for STR use: Ensure your property is located in a zoning district that allows STRs and that the property type (single-family home, townhouse, condo, etc.) is permitted. STRs must be the operator's primary residence, established by living there at least 185 days per year. Review the county's zoning ordinance and consult with the Department of Planning and Development if you have any questions about your property's eligibility.
2. Obtain a Short-Term Lodging (STL) Permit: Apply for an STL Permit through the county's online PLUS system. The application requires a $200 non-refundable fee, proof of residency, property ownership or owner consent, a floor plan, and a signed affidavit agreeing to comply with STL regulations. Gather all required documents before starting the application. The review process typically takes 2-3 weeks, so apply well in advance of when you want to start renting.
3. Prepare your property for rental: Make any necessary repairs or upgrades to ensure your property is safe, clean, and attractive to guests. Install required safety equipment like smoke detectors, fire extinguishers, and post exit plans in each bedroom. Invest in high-quality photos that showcase your property's best features. Consider unique amenities or experiences you can offer to make your listing stand out.
4. Register for tax collection: Register your STR business with the county and state for tax purposes. You'll need to collect and remit Transient Occupancy Tax (TOT) for each rental. If your annual revenue exceeds $10,000, you'll also need a Business Professional and Occupational License (BPOL). Keep detailed records of all income and expenses to simplify tax filing. Consider using a platform like Airbnb that collects and remits taxes on your behalf.
5. Create your rental listing: Once your property is permitted and prepared, create a listing on popular STR platforms like Airbnb and VRBO. Craft a compelling description, upload high-quality photos, and set competitive rates. Be responsive to inquiries and develop a friendly, welcoming communication style. Consider using a dynamic pricing tool to optimize your rates based on demand.
6. Manage your bookings and guests: Establish a system for managing bookings, communicating with guests, and coordinating cleanings between stays. You can do this yourself or hire a property management service. Use technology like smart locks and digital guidebooks to create a seamless check-in experience. Promptly address any issues that arise during a guest's stay.
7. Comply with ongoing regulations: Regularly review Fairfax County's STR regulations to ensure your business remains compliant. This includes limits on rental nights per year, occupancy limits, and safety requirements. Set calendar rules to avoid exceeding the 60-night annual limit. Proactively communicate rules to guests to prevent violations.

Starting an STR business in Fairfax County requires navigating some red tape, but the potential for profit is substantial. By following these steps, conducting thorough research, and continually optimizing your operation, you can build a successful and compliant STR business in the county.

Who to Contact in Fairfax County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Fairfax County, here are the key contacts and resources:

Department of Planning and Development - Zoning Administration Division: Responsible for administering and enforcing the Zoning Ordinance, including short-term lodging regulations.

• Phone: 703-324-1314
• Email: ordadmin@fairfaxcounty.gov
• Address: 12055 Government Center Pkwy, Fairfax, VA 22035

Short-Term Lodging Permit Application: Submit your STL Permit application and supporting documents through the county's online PLUS system.

Website: https://www.fairfaxcounty.gov/planning-development/zoning/short-term-property-rentals

Department of Tax Administration: Register your STR business and get information on collecting and remitting Transient Occupancy Tax and BPOL licensing.

• Phone: 703-222-8234
• Email: dtappdbusiness@fairfaxcounty.gov
• Website: https://www.fairfaxcounty.gov/taxes/

In addition to official county resources, connecting with other STR hosts through online forums and communities can provide valuable insights and support:

• Fairfax County Short-Term Rental Alliance (Facebook Group): A private group for STR owners and operators in Fairfax County to share information and advocate on short-term rental issues.
• Airbnb Community Center - Northern Virginia Forum: An online forum for Airbnb hosts in the Northern Virginia area, including Fairfax County, to discuss local regulations and challenges.
• BiggerPockets Forums - Short-Term & Vacation Rental Discussions: While not specific to Fairfax County, the BiggerPockets vacation rental forum is an active community for discussing STR investing and management.

By utilizing both official county channels and tapping into the knowledge of experienced hosts in online communities, you can get the information and support needed to successfully navigate Fairfax County's short-term rental landscape. Don't hesitate to reach out with any questions - the county staff and host community are there to help.

What Do Airbnb Hosts in Fairfax County on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Fairfax County have shared their experiences and opinions on local short-term rental regulations across various online forums. Here are some key takeaways:

Fairfax County's 60-night annual limit is very restrictive: Hosts on Reddit have expressed frustration with the county's 60-night cap on short-term rentals, viewing it as overly restrictive compared to more lenient rules in neighboring jurisdictions like Alexandria. One host noted they had already rented their property for 175 nights in Alexandria.

Concerns about regulatory overreach and property rights: Some hosts see Fairfax County's regulations as an overreach and infringement on their property rights. They argue the county is trying to regulate and tax how homeowners use their own property without a clear rational basis.

Speculation about hotel industry influence: There is a sentiment among some hosts that the strict regulations are a result of lobbying by the hotel industry to restrict competition from short-term rentals.

Advice to check HOA rules before buying or renting: Experienced hosts caution that many homeowners associations (HOAs) in Fairfax County have their own restrictions on short-term rentals. They advise thoroughly reviewing HOA bylaws before purchasing a property with the intent to do Airbnb.

Calls for hosts to organize and advocate against restrictions: A post on the Airbnb community forum urged Fairfax County hosts to coordinate efforts to fight against the proposed regulations, noting they were up against well-organized HOA opposition. However, it's unclear how much traction this effort gained.

Strategies for operating within the rules: Despite the challenges, some hosts are finding ways to make it work. One host on BiggerPockets shared they are successfully hosting on Airbnb in Fairfax County by being very selective with guests, keeping the property in top shape, and closely monitoring the 60-night limit.

Overall, the sentiment among Airbnb hosts in Fairfax County skews negative toward the local regulations, with many viewing them as too restrictive and an overreach. However, some have found ways to operate profitably within the constraints. The key seems to be carefully researching the rules, including HOA bylaws, and having a clear strategy to stay compliant.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.