Short-term rentals subject to new law

A new state law forbids localities from requiring special use permits for short-term rentals if the dwelling is occupied by the property owner and it is their primary residence. 

On April 17, both houses of the General Assembly adopted Gov. Glenn Youngkin’s amendments to Senate Bill 544. Gov. Youngkin had added the word “no” to the beginning of a section that reads, “No local ordinance enacted after December 31, 2023, shall require that a special exception, special use, or conditional use permit be obtained for the use of a residential dwelling as a short-term rental where the dwelling unit is also legally occupied by the property owner as his primary residence.”

Local control

Localities still have some authority over short-term rentals. The bill also states, “Except as provided in this section, nothing herein shall be construed to prohibit, limit, or otherwise supersede existing local authority to regulate the short-term rental of property through general land use and zoning authority.”

Localities can still “establish a short-term rental registry and require operators within the locality to register annually.”

There are exemptions from the registry. “No ordinance shall require a person to register pursuant to this section if such person is (i) licensed by the Real Estate Board or is a property owner who is represented by a real estate license…”

Also, “If a locality adopts a registry ordinance pursuant to this section, such ordinance may include a penalty not to exceed $500 per violation for an operator required to register who offers for short-term rental a property that is not registered with the locality.

In 2023, there was an effort in the General Assembly to pass legislation that would have restricted a locality’s ability to restrict short-term rental properties if they were managed by a Virginia realtor.

This bill came close to becoming law during the 2023 legislative session, but did not pass.