Overview: Are STRs allowed?

• Explicit answer: Yes — short-term rentals (STRs) are allowed in Berryville, but only in specific zoning districts and only with prior approvals.
• Allowed with a Special Use Permit (SUP) and a site development plan in: R-1, R-2, R-3 Residential; OSR Open Space Residential; DR-1, DR-2, DR-4 Detached Residential; AR Attached Residential; MR Multifamily Residential; BC Business Commercial; C General Commercial; C-1 Commercial; and L-1 Industrial.
• Prohibited in: LI Light Industrial, C-2 Commercial, B Business, BP Business Park, ITL Institutional, and OPR Older Person Residential districts.
• Grandfathering: Existing STRs in operation before the ordinance’s adoption are grandfathered and not required to obtain a SUP or site plan approval.

Note on definitions

• The zoning ordinance defines “bed and breakfast establishment” and related lodging uses; “short-term rental” is defined by town ordinance but not duplicated in the zoning ordinance. Use the town ordinance’s definition for legal purposes.

How to start an STR business in this market

1. Select a compliant property

• Confirm zoning: The property must be in an allowed district (see list above).
• If you already operate, you are grandfathered and need not obtain a SUP or site plan for the STR use.
• If you are new, ensure the parcel can accommodate parking and compliance with all applicable development standards.

2. Secure approvals

• Special Use Permit (SUP): Required for any new STR; submit with a site development plan to the Town (Community Development/Planning).
• Site development plan: Required and reviewed alongside the SUP.
• Planning and Zoning fee for SUP plus site plan review: $450 (combined).
• Timing: The ordinance’s public process included a Planning Commission hearing on June 27, 2023. New applicants should anticipate a similar hearing schedule and notice requirements consistent with standard Berryville SUP procedures.

3. Obtain required licenses and registrations

• Berryville business license: $20 annual license for the STR operator.
• Registry for short-term rentals: Required to operate; $20 annual registration fee.
• Certificate of occupancy: Issued by the Clarke County Building Department (apply after approvals are in place and before hosting guests).
• Virginia business registration: Confirm whether a Virginia state-level business registration is required for your entity; this is a routine best practice but not explicitly detailed in the provided sources. Contact the Town or Virginia State Corporation Commission for confirmation.

4. Tax obligations

• Transient occupancy taxes: You must remit transient occupancy taxes like other lodging providers. The articles do not specify the local rate or remittance process. Contact the Town for current rates and filing procedures.
• Virginia sales and use tax: Not addressed in the provided articles. Clarify applicability with the Virginia Department of Taxation and the Town.

5. Operational constraints

• Occupancy: Maximum two people per bedroom; total occupancy may not exceed 13 guests at any time.
• Guest restrictions: No special events or gatherings for a fee allowed on the premises; no prepared food service to guests on site.
• Advertising: Compliance with registry and tax obligations is required to list and operate.
• Existing properties: Grandfathered as of the ordinance’s effective date.

Required documents, permits, licenses, and guidelines

• For new STRs:
  • Special Use Permit (SUP) application
  • Site development plan for the STR use
  • Business license application (Town of Berryville)
  • Certificate of occupancy application (Clarke County Building Department)
  • STR registry application (Town) with:
    • Property address
    • Owner and operator contact details (mailing address, phone, email)
    • Emergency contact
    • Number of bedrooms, bathrooms, and parking spaces
    • Online advertising platforms
    • Copy of certificate of occupancy
  • Evidence of transient occupancy tax registration and compliance plan
• For existing STRs:
  • Business license, registry registration, and certificate of occupancy (as applicable) as well as tax compliance
  • Note: SUP and site plan review are not required for existing (grandfathered) STRs

Specific regulations: city, county, and state

• City (Berryville) — zoning and use
  • STRs allowed only in the specified zoning districts via SUP + site plan (or grandfathered).
  • STR registry required; operator must maintain current contact details and property information.
  • Business license required for STR operations.
  • Occupancy: 2 people per bedroom; no more than 13 total occupants.
  • Prohibited activities: Special events for a fee; prepared food service to guests on site.
  • Inspections: The Town aims to avoid direct inspections of STR units, relying instead on SUP/site plan compliance, registry information, and occupancy controls.
• County (Clarke County) — certificates and building code
  • Certificate of occupancy issued by the Clarke County Building Department is required for STRs.
  • Building code compliance is governed by state codes enforced locally.
• Commonwealth (Virginia) — statewide context
  • Virginia’s Uniform Statewide Building Code and health regulations apply to lodging uses.
  • The zoning ordinance references relevant state enabling legislation and building/occupancy standards.

Contact information (Town of Berryville and county offices)

• Town of Berryville
  • Main phone: 540-955-1231
  • Mailing address: 101 E Main St, Berryville, VA 22611
  • Website (municipal code and planning/zoning documents): berryvilleva.gov
• Community Development/Planning
  • Role: SUPs, site plans, zoning inquiries
  • Contact via Town switchboard or website
• Business License/Registry
  • Role: Business licenses and STR registry
  • Contact via Town Hall/Business License office or website
• Clarke County Building Department
  • Role: Certificate of occupancy and building code compliance
  • Contact via Clarke County government; contact details not provided in the sources
• Transient Occupancy Tax inquiries
  • Role: Tax registration, rates, and remittance
  • Contact via Town Finance/Administration; contact details not provided in the sources

Links to source pages (Berryville STR rules and zoning)

• Berryville imposes rules on short-term rental properties (Oct 12, 2023)
  • www.winchesterstar.com/winchester_star/berryville-imposes-rules-on-short-term-rental-properties/article_56c98498-df1d-552c-8c62-203710c67029.html
• Berryville considering rules for short-term lodging rentals (May 25, 2023)
  • www.winchesterstar.com/winchester_star/berryville-considering-rules-for-short-term-lodging-rentals/article_c49183b2-8920-503e-ab7e-0ba6fee7ca82.html
• Town of Berryville Zoning Ordinance (updated July 2024)
  • www.berryvilleva.gov/DocumentCenter/View/2274/Zoning-Ordinance-072024

Fees at a glance (current as of the articles)

• Planning & Zoning: $450 combined fee for SUP application and site plan review
• Business license: $20 annual
• STR registry: $20 annual
• Certificate of occupancy: Fee not specified in the sources
• Transient occupancy tax: Rate and filing details not provided in the sources

Practical notes for investors

• Timing and hearings: Expect public hearings and administrative reviews typical of Berryville’s SUP process. Build time into your acquisition and opening schedule.
• Grandfathering advantage: If the property is already operating as an STR, you may avoid the SUP/site plan steps, but you still must register, obtain a business license, a certificate of occupancy, and comply with tax and occupancy rules.
• Neighbor issues: Complaints cited by the Town historically involve parking, noise, safety, and occupancy. Design your site plan and guest policies accordingly.
• Marketing: Align your listing content with occupancy limits and house rules; maintain accurate registry and license information.

Caveats

• The provided articles do not specify the current transient occupancy tax rate, the certificate of occupancy application process/fees, or the exact SUP review timeline. Contact the Town and Clarke County Building Department for current details and forms.