Are Short-Term Rentals Allowed in Alexandria, VA?

Yes, short-term rentals are explicitly allowed in Alexandria, VA, but they are subject to comprehensive regulations adopted in 2025. The City Council adopted Ordinance No. 5575 on March 15, 2025, with an effective date of September 1, 2025. This ordinance established Alexandria's formal short-term rental framework, replacing the previous registry system with a permitting process designed to balance economic opportunities with neighborhood preservation.

Alexandria's approach allows short-term rentals as a legitimate business activity while implementing robust safety, occupancy, and operational requirements to address community concerns about noise, parking, and neighborhood character.

How to Start a Short-Term Rental Business in Alexandria, VA

Step 1: Determine Property Eligibility and Zoning Compliance

• Verify your property is located in a zone that permits short-term rentals (typically allowed in residential districts)
• Check if your property falls within any special overlay districts (historic or conservation areas) that may have additional restrictions
• Review your property association rules (HOA, condo board) if applicable, as these may impose additional limitations or prohibitions

Step 2: Obtain Required Permits and Licenses

• Short-Term Residential Rental Permit: Required if renting for more than 10 days per calendar year
• Business License: Required if gross revenue exceeds $10,000 annually and you rent more than four separate dwelling units with cooking facilities
• Transient Lodging Tax Registration: Required for collecting and remitting lodging taxes

Step 3: Prepare Your Property for Compliance

• Install required safety equipment (smoke detectors, carbon monoxide alarms, fire extinguishers)
• Develop parking plan meeting city requirements
• Create and post the required Good Neighbor Guide
• Establish 24/7 local contact system for guest issues

Step 4: Register for Tax Collection and Remittance

• Set up systems to collect Virginia state sales taxes (6%)
• Set up systems to collect Alexandria Transient Lodging Tax (9.5% + $1.25 per night for qualifying rentals)
• Register with Virginia Department of Taxation and Alexandria Department of Finance

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses

1. Short-Term Residential Rental Permit

   • Application through City of Alexandria APEX permit portal
   • Proof of ownership or signed consent from owner
   • Local agent registration if owner lives more than 30 miles away
   • Parking plan documentation
   • Photographs verifying safety equipment installation
   • Copy of posted Good Neighbor Guide
   • Application fees (amount TBD)

2. Business, Professional and Occupational License (BPOL)

   • Required only if gross revenue exceeds $10,000 annually AND renting more than four separate dwelling units with cooking facilities
   • Application through Business Tax Portal

3. Tax Registrations

   • Virginia State Sales Tax registration
   • Alexandria Transient Lodging Tax registration

Safety and Operational Requirements

1. Safety Equipment Documentation

   • Smoke detector installation verification (photos)
   • Carbon monoxide alarm verification (photos)
   • Fire extinguisher placement verification (photos)

2. Good Neighbor Guide

   • Must be provided to all guests 24 hours minimum before check-in
   • Must be posted in prominent location within rental unit
   • Contains parking information, occupancy limits, quiet hours, waste disposal procedures

3. Recordkeeping Requirements

   • Maintain detailed rental records for minimum 3 years
   • Guest names and occupancy dates
   • Financial records for tax reporting
   • Complaint and response documentation

Notice Requirements

• Neighbor Notification: Send certified mail notice to all abutting property owners
• HOA/Condo Notification: For properties in managed communities, provide notice to homeowners' association or condominium board

Specific Regulations for Short-Term Rentals in Alexandria, VA

Occupancy Limits

• Maximum 2 guests per bedroom plus 2 additional guests total
• Absolute limit of 10 people per rental at any time
• Children age 3 and under excluded from occupancy calculations
• Limits apply to both overnight stays and events/gatherings

Parking Requirements

Enhanced Transit Areas:

• 1 bedroom: 1 parking space required
• 2-3 bedrooms: 2 parking spaces required
• 4 bedrooms: 3 parking spaces required
• 5 bedrooms: 4 parking spaces required

Non-Transit Areas:

• No parking requirement for 1-bedroom rentals
• 0.75 spaces per bedroom required for 2+ bedroom rentals (2-5 bedrooms)

Parking Options:

• On-site parking preferred
• Off-site parking within 500 feet with signed agreement acceptable
• Off-site arrangements must be approved by Planning and Zoning Director

Operational Restrictions

1. Noise and Quiet Hours

   • Quiet hours: 11:00 PM to 7:00 AM
   • Maximum noise levels per city noise ordinance
   • One-hour response time required for quality-of-life violations

2. Events and Gatherings

   • No commercial events or large gatherings permitted
   • Events exceeding occupancy limits require special permits in commercial/office/mixed-use zones
   • Specific rules for event hours, deliveries, outdoor storage, and trash removal

3. Accessory Dwelling Units (ADUs)

   • Maximum 120 days per year for STR use
   • Main dwelling and ADU cannot be simultaneously listed as STRs

Safety and Building Compliance

• All applicable building, fire, and property maintenance codes apply
• Safe egress requirements must be met
• Secure windows and doors required
• Working smoke and carbon monoxide detectors mandatory
• Fire extinguisher placement required

Enforcement and Penalties

Violations and Consequences:

• Operating without permit: Civil fines + 1-year prohibition from STR activity
• Incomplete application or false information: 30-day permit revocation notice
• 3+ violations of same city law section within permit year: Permit revocation
• 5+ violations of separate city law sections within permit year: Permit revocation
• Single violation creating health/safety risk: Immediate permit revocation
• Two or more zoning citations: 1-year prohibition on STR permit applications

Compliance Monitoring:

• City reserves right to inspect properties for compliance
• Complaint-based enforcement system
• Detailed recordkeeping required for at least 3 years

Tax Obligations

1. Virginia State Sales Tax: 6% of rental rate
2. Alexandria Transient Lodging Tax: 9.5% plus $1.25 per room per night (for rentals accommodating 4+ persons)
3. Business License Tax: Based on gross revenue (if BPOL required)

Local Contact Requirements

• Must designate 24/7 local emergency contact
• Contact must be available to respond to complaints within one hour
• Contact information must be posted within rental unit
• Contact details included in permit application

Contact Information for Local Authority

Primary Contact:

• Department of Planning and Zoning
• Phone: 703.746.4666
• Email: pczoning@alexandriava.gov
• Address: City of Alexandria, 301 King Street, Alexandria, VA 22314

Tax and Finance Department:

• Phone: 703.746.4311
• For Transient Lodging Tax questions

Complaints and Reporting:

• Alex311: 703.746.4311
• Online complaint system available at alex311@alexandriava.gov

Mailing Address: City of Alexandria 301 King Street Alexandria, VA 22314

Links to Source Pages

Official Alexandria STR Information:

• Main STR Page: www.alexandriava.gov/zoning/short-term-residential-rentals
• Adopted Ordinance (PDF): www.alexandriava.gov/sites/default/files/2025-04/str-ordinance-5575.pdf
• STR At-a-Glance Guide (PDF): www.alexandriava.gov/sites/default/files/2025-04/str-at_a_glance-information-sheet-april2025.pdf
• Good Neighbor Guide (PDF): www.alexandriava.gov/sites/default/files/2025-08/alexandria-str-good-neighbor-guide.pdf

Tax Information:

• Transient Lodging Tax: www.alexandriava.gov/taxes/transient-lodging-tax
• State Sales Tax: www.alexandriava.gov/taxes/basic-page/state-income-tax
• Business Tax Portal: businesstaxportal.alexandriava.gov/BTP/

Additional Resources:

• Alexandria Zoning Ordinance Section 7-1404: library.municode.com/va/alexandria/codes/zoning?nodeId=ARTVIISUZORE_7-1404PE
• Alexandria City Code Section 3-2-141 (Transient Lodging): library.municode.com/va/alexandria/codes/code_of_ordinances?nodeId=PTIITHCOGEOR_TIT3FITAPR_CH2TA_ARTKTRLOTA_S3-2-141DE
• STR Registry (Historical): www.alexandriava.gov/business-resources/short-term-residential-rental-registry

Planning Commission and Council Resources:

• Planning Commission Meetings: alexandria.granicus.com/ViewPublisher.php?view_id=57
• City Council Meetings: alexandria.granicus.com/ViewPublisher.php?view_id=57

This comprehensive framework represents Alexandria's approach to balancing short-term rental opportunities with neighborhood preservation and guest safety. Investors should carefully review all requirements and ensure full compliance before commencing operations.