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

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in Loudoun County, Virginia. However, operators of these rentals must comply with various county regulations. Here is an overview of the key rules for short-term rentals in Loudoun County.

Starting a Short-Term Rental Business in Loudoun County

To legally operate a short-term rental in Loudoun County, property owners must take the following steps:

• Register the property annually with the county. Registration is free and valid from July 1 to June 30 each year. Failure to register can result in a $500 fine per violation.
• Obtain a zoning permit. All short-term rentals require a zoning permit. The application requires submitting parking information, a floor plan, and septic system verification (if applicable). Zoning permits can be applied for online, in-person, or by mail with a $165 fee.
• File for Business Tangible Personal Property Tax (BPPT). Short-term rental operators must report any business equipment located in the rental property and pay the associated BPPT tax.

All short-term rentals in Loudoun County are subject to an 8% tourism tax paid by guests, in addition to the 6% Virginia state sales tax. Previously, the tourism tax only applied to rentals with at least four bedrooms.

The county's zoning regulations define a short-term rental as a property available to rent for fewer than 30 consecutive days at a time. Rentals meeting this definition must comply with all the registration, permitting, and tax requirements outlined above.

Short-term rental operators who conduct all their transactions through booking platforms like Airbnb and VRBO do not need to separately register with the state, as these marketplaces are required to collect and remit state and local lodging taxes on behalf of their hosts. However, operators are still responsible for county-level registration and taxes.

By carefully following Loudoun County's short-term rental regulations, hosts can legally operate their business and avoid fines or penalties. The county provides detailed information and resources on its website to guide operators through the registration and permitting process.

Short-Term Rental Licensing Requirements in Loudoun County

In addition to registering properties and obtaining zoning permits, short-term rental operators in Loudoun County must meet the following licensing requirements:

1. Smoke detectors that are interconnected with smoke detectors in the rest of the structure must be present and operational in each room used for overnight accommodations and on all floors.
2. An operational fire extinguisher must be provided in a conspicuous location that is clearly marked and accessible to guests on each floor.
3. An operational carbon monoxide detector must be provided on each floor.
4. Each room used for overnight accommodations must have at least 2 means of egress to the outside on the ground floor.
5. A fire safety plan and emergency contact information, including for the operator, local law enforcement, fire, and rescue, must be posted in a conspicuous location.

The operator must provide the Zoning Administrator with permission to conduct an inspection prior to approval of the zoning permit.

To submit a zoning permit application, operators can apply online through the county's LandMARC system, in-person at the Government Center in Leesburg, or by mail. The application fee is $165. Processing times vary but the county advises allowing at least 30 days.

By carefully following Loudoun County's short-term rental regulations and licensing requirements, hosts can legally operate their business and avoid costly violations. The county provides detailed information and resources on its website to guide operators through the registration and permitting process.

Required Documents for Loudoun County Short-Term Rentals

When applying for a zoning permit for a short-term rental in Loudoun County, operators must submit the following documents:

1. Parking Plan: A drawing showing the location of the dwelling unit and/or accessory dwelling on the parcel used for the short-term rental and all required parking. At least one off-street parking space must be available for the rental, in addition to the required spaces for the dwelling unit.
2. Floor Plan: A drawing showing the location of the room(s) being rented and illustrating compliance with safety requirements, including smoke detectors, fire extinguishers, carbon monoxide detectors, and egress.
3. Septic System Verification (if applicable): Records from the Loudoun County Health Department verifying that the total number of permitted guests per night does not exceed the maximum capacity of the property's septic system. This is not required for properties on public sewer.
4. Road Access Documentation (for commercial whole-house rentals): If the rental property does not have frontage on a Class I or Class II road, documentation must be provided demonstrating that the private road serving the parcel may be used to provide access to the short-term rental.

These documents help the county verify that short-term rentals are operating safely and in compliance with local regulations. The parking plan and road access documentation ensure adequate access for guests and emergency vehicles. The floor plan confirms proper safety measures are in place. Septic records prevent overcrowding and environmental health issues.

By carefully following Loudoun County's short-term rental regulations and licensing requirements, hosts can legally operate their business and avoid costly violations. The county provides detailed information and resources on its website to guide operators through the registration and permitting process.

Loudoun County Short-Term Rental Taxes

Short-term rental operators in Loudoun County are subject to several taxes:

Transient Occupancy Tax (TOT): An 8% tax on the total amount paid by guests for the rental of rooms or spaces. This tax is collected by the operator or accommodations intermediary (like Airbnb or VRBO) and remitted to the county monthly. Of the 8% collected:

1. 2% goes to the county's General Fund
2. 3% is allocated to tourism promotion
3. 3% is remitted to the state for transportation funding

Virginia Sales Tax: A 6% state sales tax also applies to most short-term rental transactions. Operators should collect a total of 14% in taxes from guests (8% TOT + 6% sales tax) and remit the sales tax portion to the Virginia Department of Taxation.

Business, Professional, and Occupational License (BPOL) Tax: Operators renting out eight or more bedrooms are subject to the BPOL tax.

Business Tangible Personal Property Tax (BPPT): All short-term rental operators must report business equipment located in the rental property, such as furniture, appliances, and amenities. The BPPT tax is then assessed on these assets.

Potential tax deductions for short-term rental businesses may include a portion of mortgage interest, property taxes, insurance, utilities, and repairs/maintenance costs. Operators should consult with a tax professional to determine eligible write-offs based on their specific circumstances.

By carefully following Loudoun County's short-term rental regulations, licensing requirements, and tax obligations, hosts can legally operate their business and avoid costly penalties. The county provides detailed information and resources on its website to guide operators through the registration and permitting process.

Virginia-Wide Short-Term Rental Rules

In addition to Loudoun County's specific regulations, short-term rental operators must also comply with state-level laws and ordinances:

1. Short-Term Rental Property Classification: The Code of Virginia classifies short-term rental property as a separate category of merchants' capital, distinct from other classifications. Local governments may levy a tax on this classification at a different rate than the general merchants' capital rate.
2. Smoke and Carbon Monoxide Detectors: Virginia law requires all short-term rental properties to have interconnected smoke alarms in each room used for sleeping, as well as carbon monoxide detectors on every floor if the property uses fossil fuels for heat, ventilation, hot water, or appliances.
3. Liability Insurance: While not mandated by state law, many Virginia localities require short-term rental operators to carry a minimum amount of liability insurance, typically $500,000 to $1 million in coverage.
4. Occupancy Limits: Some Virginia cities and counties cap the number of guests allowed per bedroom in a short-term rental, often at two adults per bedroom plus an additional two guests.
5. Conditional Use Permits: Certain jurisdictions, like Virginia Beach, require some short-term rental operators to obtain a conditional use permit that must be renewed every five years.

By carefully following state and local short-term rental regulations, licensing requirements, and tax obligations, Loudoun County hosts can legally operate their businesses and avoid costly penalties. Operators should stay informed of any changes to Virginia's laws and consult with local authorities, legal counsel, and tax professionals to ensure full compliance.

Does Loudoun County Strictly Enforce Short-Term Rental Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Loudoun County does actively enforce its short-term rental regulations compared to some other jurisdictions. Several Redditors mentioned that the county requires STR operators to prominently display their permit number in all advertisements, and failure to do so is a strong indicator that the rental is operating illegally without a permit.

One Reddit user shared their experience reporting non-compliant STRs near their home, stating "As the above comment said they're required to also follow a whole slew of rules that I highly doubt everyone is complying with even with a permit. Report and let the county take care of tracking it all down. If it helps I went down this path and got both houses switched to min 30 day rentals near me."

This suggests that Loudoun County does investigate complaints about short-term rentals and takes action against those operating outside of the established regulations. The county's detailed permitting process and explicit requirement to include permit numbers in all STR listings enables stricter monitoring and enforcement compared to localities with more lenient oversight.

However, the county is not necessarily anti-Airbnb or anti-STR in general. Loudoun allows short-term rentals in most zoning districts with an approved permit. But the county does appear to prioritize ensuring STRs are properly registered, permitted, and following all applicable rules. So while not outright unfriendly to Airbnb and other short-term rental platforms, Loudoun seems less tolerant of unpermitted or non-compliant listings compared to some other markets.

Ultimately, while some hosts may attempt to skirt the rules, the consensus on real estate forums is that Loudoun County's permitting requirements and code enforcement make it riskier and more difficult to operate STRs completely under the radar. Hosts are more likely to face fines and penalties in Loudoun than in cities or counties with more hands-off approaches to short-term rental regulation and oversight.

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

To legally launch and operate a short-term rental in Loudoun County, follow these steps:

1. Determine your business structure. If your STR will operate as a corporation, LLC, or limited partnership, register with the Virginia State Corporation Commission. Sole proprietorships and general partnerships do not require state registration.
2. Register your trade name. Businesses using a fictitious name must register it with the State Corporation Commission. The Commissioner of Revenue cannot issue a business license without proof of trade name registration.
3. Obtain a Business, Professional, and Occupational License (BPOL). Apply for a BPOL with the Commissioner of Revenue. There is a $30 first-year fee for most businesses. Annual license renewal fees are based on gross receipts.
4. Register the property annually with the county. STR registration is free and valid July 1 to June 30 each year. Register online at loudoun.gov/shorttermrentals. Some operators may be exempt from registration under state law but still need a zoning permit.
5. Obtain a zoning permit. Complete the STR zoning permit application and submit it with required documents, including a parking plan, floor plan, and septic capacity verification (if applicable). Apply online through LandMARC, in person, or by mail with a $165 fee.
6. Comply with safety requirements. Install interconnected smoke detectors in each rental room and all floors, provide fire extinguishers and CO detectors, ensure rooms have two exits, and post a fire safety plan.
7. Register and pay taxes. Create an account at loudoun.gov/efile for Business Tangible Personal Property Tax (BPPT). Report all business equipment like furniture, TVs, and hot tubs in the rental annually. Collect the 8% Transient Occupancy Tax from guests in addition to the 6% state sales tax.
8. Verify HOA and town regulations. If your property is in an HOA or condo association, confirm their STR rules. Incorporated towns may have additional regulations.

Tips for success:

1. Consult with the Commissioner of Revenue to ensure you complete all tax registrations.
2. Carefully review zoning rules, as some districts require a special exception for whole-house rentals.
3. Prioritize guest safety by diligently following the county's requirements for detectors, extinguishers, and egress.
4. Be transparent in all listings, clearly displaying your permit number to show compliance.
5. Stay up to date on regulation changes that may impact your business.

By properly registering, obtaining permits, and following Loudoun's STR rules, you can launch a successful rental business while avoiding penalties. The county provides ample information online to help guide you through the startup process.

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

For questions about short-term rental regulations and zoning in Loudoun County, contact the Department of Planning and Zoning's Customer Service Center:

1. Phone: 703-777-0246 (option 5)
2. Email: DPZMail@loudoun.gov
3. In-person: Visit the 2nd floor of the County Government Center (1 Harrison Street SE, Leesburg, VA 20175). Make an appointment online or get in the virtual line at loudoun.gov/getinline.
4. Hours: Monday through Friday, 8:30 a.m. - 5:00 p.m.

The Customer Service Center provides a central point of contact for land development applications, zoning permits, and general zoning inquiries. They can guide you through the process of registering your short-term rental, obtaining a zoning permit, and ensuring compliance with county regulations.

For additional resources and community discussions, consider joining these groups:

1. Loudoun County Short-Term Rental Alliance (LCSTRA): A local organization advocating for fair and reasonable short-term rental regulations. Join their Facebook group or visit their website (lcstra.org) for updates and events.
2. Loudoun County Bed and Breakfast Guild: While focused on traditional B&Bs, this group provides networking opportunities and resources for short-term rental operators. Visit their website (loudounbandb.com) for membership information.
3. Loudoun County Airbnb Hosts Forum on BiggerPockets: Connect with other local hosts, ask questions, and share experiences on this popular real estate investing platform. Find the forum at biggerpockets.com/forums/783/loudoun-county-airbnb-hosts.
4. r/AirbnbHostsLoudoun subreddit: This Reddit community is dedicated to discussing short-term rental hosting in Loudoun County. Join the conversation and learn from experienced operators.

By contacting the Department of Planning and Zoning and engaging with local host communities, you can stay informed about Loudoun County's short-term rental regulations and ensure your property remains compliant.

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

Discussions on Reddit and BiggerPockets reveal a mix of experiences and opinions from Airbnb hosts in Loudoun County regarding local short-term rental regulations:

• Zoning Permit Process: In a thread on the Loudoun County subreddit, one host shared their experience obtaining a zoning permit for their short-term rental. They noted that the process was relatively straightforward but required submitting detailed documentation, including a parking plan, floor plan, and septic system verification. The host advised others to allow ample time for the permit application to be processed.
• Compliance Challenges: On the BiggerPockets forums, a Loudoun County host expressed frustration with the county's short-term rental regulations, particularly the requirement to include permit numbers in all listings. They felt this made it easier for the county to identify and penalize hosts who were not fully compliant with local rules. The host also mentioned that the county seemed to be cracking down on unpermitted rentals more aggressively in recent years.
• Impact on Property Values: In a discussion on the r/nova subreddit, a Loudoun County resident shared that their neighbor had lost two potential buyers for their home after the buyers discovered the property next door was being used as an Airbnb. This anecdote suggests that the presence of short-term rentals can sometimes deter buyers and potentially impact property values in the surrounding area.
• Enforcement Concerns: A Redditor in the r/loudoun subreddit questioned how well the county was actually enforcing its short-term rental regulations. They pointed out that the number of active Airbnb listings in the county appeared to far exceed the number of approved zoning permits, implying that many hosts were operating illegally. The commenter urged residents to report suspected violations to the county's code compliance department.
• Navigating HOA Rules: On BiggerPockets, a Loudoun County host asked for advice on dealing with their homeowners association's restrictions on short-term rentals. Responses from other local hosts suggested that HOA rules can vary widely, with some prohibiting rentals under 30 days and others allowing them with certain conditions. Several hosts emphasized the importance of thoroughly reviewing HOA bylaws before purchasing a property intended for use as a short-term rental.

Overall, these online discussions indicate that Loudoun County's short-term rental regulations pose challenges for some Airbnb hosts, particularly around zoning permits, compliance, and HOA restrictions. However, hosts who do their due diligence and follow local rules carefully can still operate successful rentals in the county.

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.