Background

On March 26, 2019, City Council adopted Zoning Ordinance regulations associated with short-term transient lodging commonly referred to as “Airbnbs.” The regulations established a new term and definition for "short-term rental" (STR). Since March 2019, several amendments have been made to the regulations including the addition of a new use called "homestays." Individuals wishing to operate an STR or homestay are encouraged to contact Planning and Zoning Division at the Department of Community Development to determine whether the planned operation can begin as a homestay without special approvals or if the operation requires approval of a special use permit granted by City Council. Many STR and homestay operators use services, including but not limited to Airbnb, VRBO, HomeAway, and FlipKey to advertise their properties. 

Homestay vs. Short-Term Rentals

If you answer "yes" to all 6 questions below, then you may apply to operate a by right homestay. If you answer "No" to questions 3 through 6, then you must receive approval of a special use permit for short-term rental.  If you answer "No" to questions 1 and 2, then you are not eligible to apply to operate either a homestay or short-term rental. 

  1. Do you live at this home/is the property your primary residence? Operators must live on the property.
  2. Will you be renting to guests for lodging periods of less than 30 consecutive nights at a time?
  3. Is your home a single-family detached, duplex, or townhouse?
  4. Will you be renting to 4 or fewer guests at one time?
  5. Do you plan to rent the homestay/short-term rental for less than 90 nights in a calendar year?
  6. Will guests be staying within the main residence? (As opposed to staying in a separate building on your property). 

Definitions

A homestay is defined as: "[i]n a single-family detached, duplex, or townhouse dwelling unit, the provision of a guest room or accommodation space within the principal building that is suitable or intended for transient occupancy for dwelling, sleeping, or lodging purposes and is offered in exchange for a charge for the occupancy.

A short-term rental (STR) is defined as “[t]he provision of a dwelling unit, a guestroom or accommodation space within the dwelling unit, or any accessory building that is suitable or intended for transient occupancy for dwelling, sleeping, or lodging purposes and is offered in exchange for a charge for the occupancy.” (Related term: short term rental)

An operator is defined as "the proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee, or any other possessory capacity." (Refer to State Code Section 15.2-983)

Comparison of By Right Homestay vs. Short-Term Rental by Special Use Permit

By Right Homestay

City Council approval would not be required for this use.

 

Short-term rental by Special Use Permit (STR by SUP)

Anyone who wants to operate outside of what is permitted through a Homestay use may apply for a STR SUP. Below are minimum regulations for STRs. During review/approval, conditions can be placed upon a STR SUP that are more restrictive.

The property must be operator’s primary residence.The property must be operator’s primary residence.
If the operator is not the property owner, then the operator must be present during the lodging period.If the operator is not the property owner, then the operator must be present during the lodging period.
Lodging periods limited to less than 30 consecutive nights.Lodging periods limited to less than 30 consecutive nights.
May operate up to 90 nights per calendar year.No limit on number of nights that the STR can operate per year unless conditioned by SUP.
Maximum of 4 guests.No maximum number of guests unless conditioned by SUP.
Allowed in all zoning districts in which residential uses are allowed.Allowed in all zoning districts in which residential uses are allowed.
Allowed in single-family detached, duplex, and townhomes. Not allowed in multi-family dwellings/apartments. Allowed in single-family detached, duplex, townhomes, and multi-family units. Note that multi-family units will likely require physical renovations, which will necessitate proper Building and trade permits and associated inspections.
Allowed only in principal dwellings. Allowed in principal dwellings or accessory buildings unless a restriction is conditioned by SUP.
No off-street parking requirements.One off-street parking space for each accommodation space, unless conditioned otherwise.
Annual registration - $25/yearAnnual registration - $25/year

See full text of Article DD. - Short-term rentals of the Zoning Ordinance.

Homestay and Short-Term Rental Annual Registration

Unless exempt by State Code, all operators of homestays and STRs must register annually with the Department of Community Development. The registration is valid from the date the registration occurs through December 31st and shall be renewed annually between January 1st and March 1st. The annual registration is $25 per year. There are two ways to register:

  1. Complete and submit the Homestay and Short-Term Rental Annual Registration Form [284KB] or
  2. Register online via the Permitting Web Portal. 

One form of proof that the property is the operator’s primary residence will be required. Acceptable documents include:  

  1. Virginia driver’s license or identification (ID) card;
  2. Voter registration card;
  3. U.S. Internal Revenue Service tax reporting W-2 form;
  4. Payroll check stub issued by employer not more than two months old; and
  5. U.S. Postal Service change of address confirmation form or postmarked U.S. mail with forwarding address label.
Business License and Registration for transient occupancy and state sales tax

To operate a homestay or STR in the City of Harrisonburg, operators must also obtain a business license and register for transient occupancy and state sales tax. 

  1. A business license from the City of Harrisonburg Commissioner of Revenue.
    1. A business license for a STR operation cannot be obtained until a STR SUP is approved by City Council.
    2. Business licenses are valid from January 1st through December 31st and must be renewed annually by March 1st.
    3. General information and how to obtain a business license.
    4. General information on how to register for Transient Occupancy Tax.
  2. A registration for state sales tax through the Virginia Department of Taxation. (Note: Some online services, such as AirBnB, are collecting and remitting state sales tax to the Virginia Department of Taxation for bookings made using their service. STR operators should contact online service providers for more information before registering with the Virginia Department of Taxation. Any failure to remit state sales tax is the responsibility of the STR operator.)
Short-Term Rental Special Use Permit Process

Before beginning operations, STR operators shall obtain the following: 

  1. A special use permit.
    1. This is a one-time application obtained through the Department of Community Development and requires review by the Planning Commission and approval by City Council.
    2. Special Use Permit application fees are $425.00 plus $30.00 for each acre of property. Property acreage is rounded up to the nearest whole number.
    3. Applicants may schedule a meeting with city staff before submitting an application to discuss planned STR operations and SUP application process. While this meeting is optional and not required, it is encouraged. Contact Planning staff at the Department of Community Development at 540-432-7700.
    4. Special use permit application and general procedures.
      1. Complete a Special Use Permit application.
      2. Complete a Short-Term Rental questionnaire.
      3. Include a site or property map.
      4. Include a letter explaining the proposed use and reasons for seeking a special use permit. Applicants are encouraged to address the following in the letter:
        1. Who the intended operator of the short-term rental is.
        2. How many bedrooms or accommodation spaces will be rented for STR. Note: "Accommodation spaces" mean any room offered for sleeping including, for example, living rooms with pull-out sofas. This would not include living spaces or rooms where guests would not be sleeping.
        3. Description of where the accommodation spaces are located on the property. Is it within the main residence or an accessory building?
        4. The maximum number lodgers that would be accommodated.
        5. Where lodgers will park their vehicles. 

    5. Planning Commission meeting dates and deadlines.

      City staff, Planning Commission, and City Council may use the information provided to recommend or establish conditions that limit or expand the allowable STR operation. Applicants are encouraged to review the frequently asked questions section to address any other relevant questions.

  2. Short-Term Rental (STR) Pre-Operation Form.
    1. Short-Term Rental (STR) Pre-Operation Form [207KB]. This form is required for properties with an approved STR special use permit when City Council has required that prior to operation, the operator shall have guest rooms and accommodation spaces and means of egress comply with the STR Pre-Operation Form. Applicants are encouraged to review this form prior to submitting a STR special use permit application to determine if planned accommodation spaces comply with Pre-Operation Form requirements.
    2. The form must be completed by the property owner or STR operator, and summited to the Planning & Zoning Division of the Department of Community Development (409 South Main Street, 2nd Floor, Harrisonburg, VA 22801) before the STR operation can begin. 
Frequently Asked Questions

Where are homestays and short-term rentals (STRs) allowed?

Homestays can operate in single-family detached, duplex, or townhouse dwellings in the following zoning districts:  

  • R-1, R-2, R-3 (multiple), R-3 (medium), R-4, R-5, R-6, R-7, R-8
  • MX-U, B-1, and U-R

Homestays are not allowed in apartment buildings or accessory structures. 

Short-term rentals (STRs) require an approved special use permit (SUP). With an approved SUP, STRs may operate in single-family detached, duplex, townhouse, and apartment dwellings. Apartment units may require physical renovations before they can be used as STRs.

STRs are allowed in the following zoning districts:

  • R-1, R-2, R-3 (Multiple), R-3 (Medium), R-4, R-5, R-6, R-7, R-8
  • MX-U, B-1, and U-R

Accessory structures may be used for an STR unless prohibited by a condition of the SUP.

Determine the zoning district of your property.

Apartment buildings in the B-1 district: Contact the Planning & Zoning Division at 540-432-7700 to discuss options for transient occupancy in an existing multifamily building.

Are City inspections required?

For single-family detached, duplex, and townhouse dwellings, City inspections are generally not required to:

  • Annually register a homestay or STR; or
  • Apply for an STR SUP.

However, the Building Inspections Division may require an inspection if staff identify Building Code compliance concerns or differences between City records and the proposed accommodation spaces described in an STR SUP application.

Apartment or multifamily units will likely require renovations, Building and trade permits, and inspections.

City officials may inspect any dwelling type when investigating a potential violation.

City Council may also require completion of the STR Pre-Operation Form [207KB] as a condition of an approved STR SUP. The property owner or STR operator must complete the form before beginning operations.

Can I rent my basement or another room as a homestay or STR?

Yes, but only if the space meets current Building Code requirements for sleeping rooms. This may include a second means of egress, such as an emergency egress window. 

For Building Code questions, contact the Building Inspections Division at 540-432-7700 or by email to permits@harrisonburgva.gov.

Are off-street parking spaces required?

Homestays: No off-street parking spaces are required.

STRs: Yes. STRs must provide and clearly identify at least one off-street parking space for each bedroom or accommodation space, unless the SUP includes a different requirement.

During the SUP process, an applicant may request fewer spaces or no delineated spaces. City Council may also require additional parking spaces.

For both homestays and STRs, operators are encouraged to direct guests to park on the property or directly in front of the property when using on-street parking. If the property is subject to a homeowners association or property manager, operators should also confirm applicable guest-parking rules.

Is food service allowed?

Yes, but food service is limited to guests. 

A Virginia Department of Health Lodging Permit may be required. Food service may be subject to the City's Food and Beverage Tax. Please contact the Commissioner of Revenue's Office at 540-432-7795 for more information. 

Can the operator serve alcohol to guests?

Contact the Virginia Alcohol Beverage Control Board to determine whether a permit or license is required. 

Alcohol sales may be subject to the City's Food and Beverage Tax. Contact the Commissioner of Revenue's Office at 540-432-7795 to inquire. 

Can the property be marketed and used for events such as, but not limited to, weddings, and receptions?

Homestays: No. Homestays cannot be marketed or used for events.

STRs: Event use must be requested and described as part of the SUP application, including in the applicant’s letter. Events may require renovations or other property improvements to meet Building Code requirements.

Applicants are strongly encouraged to discuss event plans with City staff before submitting an SUP application.

Are there other requirements?

Operators must comply with the Virginia Uniform Statewide Building Code and Virginia Statewide Fire Prevention Code. 

For questions, contact the Building Inspections Division at 540-432-7700.

What happens if I operate a homestay or STR without obtaining a SUP, or if I am found to be operating a STR in violation of SUP conditions or the Zoning Ordinance?

Advertising or accepting reservations for an STR without an approved SUP is a Zoning Ordinance violation.

Under Section 10-3-13 of the Zoning Ordinance, civil penalties are:

  • First offense: $100
  • Second offense: $200
  • Each additional offense arising from the same set of operative facts: $500

If civil penalties total $5,000, the violation may be prosecuted as a criminal misdemeanor. 

My STR SUP has been approved. When must I establish the STR use?

Unless your SUP states otherwise, the STR use must be established within 12 months of City Council’s approval.

Most operators establish the use by registering the STR with the Department of Community Development. Some operators are exempt from annual registration under the Code of Virginia.

To establish the use, an operator may complete one or more of the following within one year:

  1. Obtain a business license from the Commissioner of Revenue’s Office.
  2. Advertise or list the STR for rent.
  3. Receive a reservation, even if it is later canceled.
  4. Voluntarily submit an annual homestay and STR registration to the Department of Community Development.

Operators should keep documentation showing that the use has been established.

STR SUPs approved before September 8, 2020: Contact the Planning & Zoning Division for guidance. The options for establishing the use are different.

Who is exempt from the homestay and STR annual registration requirements?

Section 15.2-983 of the Code of Virginia exempts operators who are:

  1. Licensed by the Real Estate Board or is a property owner who is represented by a real estate licensee;
  2. Registered pursuant to the Virginia Real Estate Time-Share Act (§ 55-360 et seq.);
  3. Licensed or registered with the Department of Health, related to the provision of room or space for lodging; or
  4. Licensed or registered with the locality, related to the rental or management of real property, including licensed real estate professionals, hotels, motels, campgrounds, and bed and breakfast establishments.

An exemption from annual registration does not exempt an operator from zoning requirements or from obtaining an STR SUP when one is required.

Do I need to submit an annual registration for a homestay or STR or receive approval of a STR SUP if I am renting my residential unit for 30 or more days?

No. Homestay and STR registration and STR SUP approval apply only to rentals of less than 30 consecutive days.

Property owners still must comply with Zoning Ordinance Occupancy Regulations for tenants living in the unit for more than one month in succession.

Do I need approval from my HOA or COA?

The City cannot require HOA or COA approval before issuing a permit, certificate, or license.

However, operators are responsible for complying with any applicable restrictive covenants, HOA rules, or COA rules.

How do I report a possible violation or neighborhood nuisance?

Please contact the Planning & Zoning Division at 540-432-7700. 

 

 

Frequently Asked Questions

Contact Information

For zoning and special use permit questions, contact the Planning & Zoning Division of the Department of Community Development at 540-432-7700 or by email to CDPlanning@harrisonburgva.gov.

For building code questions, contact the Building Inspections Division of the Department of Community Development at 540-432-7700 or by email to permits@harrisonburgva.gov. 

For business license and transient occupancy tax questions, contact the Commissioner of Revenue’s Office at 540-432-7704.
 

Related Pages
Community Development