Overview: Are short‑term rentals allowed in Danville?

Short‑term rentals are permitted in Danville, Virginia, as long as operators obtain the required approvals and comply with local zoning, licensing, building safety, and tax requirements. The city defines a short‑term rental (STR) as any furnished residential property that provides sleeping accommodations for monetary compensation for 30 or fewer consecutive days. This definition specifically excludes hotels, motels, and bed and breakfast establishments that are separately licensed by the City or State. As of the latest city information, about 145 STR properties have been approved, with roughly 110 currently operating, indicating a robust and regulated local STR market.

How to proceed depends on whether the STR will be the primary use of the structure or an accessory use to a dwelling:

• Primary use (i.e., the STR is the main function of the structure): Special Exception Permit (Board of Zoning Appeals approval) plus standard permits and licensing.
• Accessory use (STR operated alongside the primary residential use): Administrative Zoning Clearance is allowed in specific zoning districts, plus standard permits and licensing. A business license and tax registration remain mandatory in all cases.

Note: The City’s Building Inspections Division issues the Certificate of Occupancy; Planning & Zoning issues Zoning Clearances; the Commissioner of the Revenue issues the business license and collects the transient lodging tax. The Planning & Zoning page provides the application portal, forms, and contact information.

Sources:

• City STR definition, approvals, and process overview: www.danville-va.gov/2419/Short-Term-Rentals
• STR standards, use permissions, and operational requirements: www.danville-va.gov/DocumentCenter/View/30142
• Market activity and background: cardinalnews.org/2024/10/14/more-short-term-rental-zoning-applications-near-casino-agenda-danville/
• Proposed tightening of consistency and standards: wset.com/news/local/new-short-term-rental-guidelines-proposed-in-danville-to-ensure-safety-and-consistency-may-2025-caesars-airbnb-vrbo

How to start a short‑term rental business in Danville (step‑by‑step)

The following is a structured, compliant pathway. Many steps occur in parallel; however, your sequence should follow the order that minimizes delays, especially around inspections and hearings.

1. Pre‑application due diligence

• Confirm zoning. STRs are permissible accessory uses in: SR‑R, T‑R, S‑R, NT‑R, OT‑R, A‑R, MHP‑R, TO‑C, CB‑C, and TW‑C zoning districts. If the STR is the principal use of the structure, a Special Exception Permit is required. If it is an accessory use, a zoning clearance (administrative) applies.
• Review the City’s STR standards to ensure your property can meet them: minimum rental period 18 hours, occupancy and parking limitations, safety equipment (fire extinguisher, detectors, posted exit plans), signage limits, and prohibition on events. Ensure compliance with the Virginia Uniform Statewide Building Code (VUSBC).
• Confirm whether your property is within a City Rental Housing Inspection Division district; if so, it must be registered as a rental property and maintain a certificate of compliance.
• If you live more than 50 miles from Danville, designate a responsible local agent (someone you can be reached through in emergencies). Proposed changes also suggest a property manager living within 30 minutes—treat this as a likely requirement to prepare for.

2. Secure building safety approvals

• Schedule and pass a Certificate of Occupancy inspection with the Division of Building Inspections. This inspection should occur before your Board of Zoning Appeals hearing when a Special Exception Permit is required. If the inspection fails, your case may be postponed or denied.
• Certificate of Occupancy fee: $50.
• Post‑inspection: Address any deficiencies and maintain documentation for future renewals and inspections.
• Source: www.danville-va.gov/2419/Short-Term-Rentals

3. Seek Special Exception Permit (if primary use)

• If the STR is the principal use of the structure, file a Special Exception Permit application and appear before the Board of Zoning Appeals (BZA) for approval.
• Application fee: $250 (used to advertise and schedule the case on the BZA agenda).
• Prepare for your hearing. If you cannot attend, have a representative who can speak on your behalf; absence can result in postponement.
• If using the STR as an accessory use, proceed with the zoning clearance instead of a Special Exception Permit.

4. Obtain your STR Permit Number

• After BZA approval (for primary use) or after the administrative zoning clearance is issued (for accessory use), apply for the STR permit number specific to each rental address.
• Fee: $50.
• Permits are subject to annual renewal. The City requires renewal by January 1 each year.

5. Apply for Zoning Clearance

• Zoning Clearance is required for each rental address and is issued by Planning & Zoning.
• Fee: $20.
• You can only apply after any required BZA approval (for primary use).
• Source: www.danville-va.gov/2419/Short-Term-Rentals

6. Register with the Commissioner of the Revenue and comply with taxation

• Apply for your City of Danville business license and register to collect and remit the City’s transient lodging tax and other applicable fees as specified in Chapter 37 (“Taxation”).
• Bring your Zoning Clearance receipt when registering.
• Office location: 311 Memorial Dr. (utility building, second floor).

7. Finalize and operate

• Post required safety items in each unit: working multi‑purpose fire extinguisher, interconnected smoke detectors, carbon monoxide detectors (as required), and an emergency exit plan posted inside each sleeping room door.
• Comply with the City’s STR standards (e.g., minimum rental period 18 hours, no events, signage limits). Ensure parking is on the property or immediately adjacent street unless your STR is in CB‑C or TW‑C zoning.
• Note: Virginia state sales tax does not generally apply to transient lodging; however, local transient lodging tax and local business license taxes do apply and must be collected and remitted by the operator.

Table: Process and fees at a glance

• Special Exception Permit (primary use only): $250
• Certificate of Occupancy inspection: $50
• STR permit number: $50 (annual renewal)
• Zoning Clearance: $20

Sources:

• Steps, fees, and contact: www.danville-va.gov/2419/Short-Term-Rentals
• Standards and zoning permissions: www.danville-va.gov/DocumentCenter/View/30142
• Business licensing information: www.danville-va.gov/526/Business-Licenses
• Commissioner of the Revenue (business license and tax): www.danville-va.gov/524/Commissioner-of-Revenue
• BZA meeting context and streamlining: cardinalnews.org/2024/10/14/more-short-term-rental-zoning-applications-near-casino-agenda-danville/
• Proposed standards emphasis: wset.com/news/local/new-short-term-rental-guidelines-proposed-in-danville-to-ensure-safety-and-consistency-may-2025-caesars-airbnb-vrbo

Required documents, permits, licenses, and operational guidelines

Documents and permits:

• Zoning compliance confirmation (review zoning and STR regulations).
• Special Exception Permit application (if STR is principal use of structure).
• Certificate of Occupancy (and passed inspection).
• STR Permit Number (specific to each address).
• Zoning Clearance (for each address).
• City of Danville business license (Commissioner of the Revenue).
• Transient lodging tax registration (Commissioner of the Revenue).
• If located in a Rental Housing Inspection Division district: rental property registration and certificate of compliance.

Key operational standards (Danville Code Section Y—Short‑Term Rentals):

• Permissible zoning districts: accessory uses are allowed in SR‑R, T‑R, S‑R, NT‑R, OT‑R, A‑R, MHP‑R, TO‑C, CB‑C, and TW‑C.
• Minimum contract rental period: 18 hours.
• Local management: owner/operator must live within 50 miles or designate a responsible local agent.
• Building code: comply with VUSBC (City Code sections 9‑81 through 9‑88); Certificate of Occupancy required per unit.
• Rental housing inspections: if the property lies within an inspection district, it must register and maintain a certificate of compliance (City Code sections 9‑204 through 9‑207).
• Safety equipment:
  • Working multi‑purpose fire extinguisher.
  • Interconnected smoke detectors.
  • Carbon monoxide detectors where required (e.g., fireplace or gas service).
  • Emergency exit plan posted inside the door to each sleeping room.
• Parking: on the associated property or on the street immediately adjacent, except in CB‑C or TW‑C districts (additional parking flexibility can apply in those commercial districts per code).
• Signage: same signage allowances as associated dwellings under Article 10.
• Prohibited activities: all events and activities (luncheons, banquets, parties, weddings, meetings, fundraisers, commercial or advertising activities, and any other gatherings beyond authorized lodgers) are prohibited, whether for direct or indirect compensation.
• Contract lodging services: STRs may provide lodging, packaged food and beverages, and incidental items typically found within a residence; they may not prepare food or beverages, provide event services, or unrelated services for compensation.

Sources:

• STR standards: www.danville-va.gov/DocumentCenter/View/30142
• Steps and fees: www.danville-va.gov/2419/Short-Term-Rentals

City, county, and state regulatory overview

City of Danville (independent city; county‑level rules do not apply)

• STRs are permitted subject to zoning, safety, licensing, and tax requirements. Administrative zoning clearances are available for accessory uses in multiple zoning districts; Special Exception Permits are required if STR is the principal use of the structure.
• Operators must obtain a business license from the Commissioner of the Revenue, register to collect/remit local transient lodging tax, and pass a Certificate of Occupancy inspection. STR permit numbers are required and must be renewed annually.
• Building and life‑safety compliance with VUSBC, including smoke/CO detectors and posted exit plans, is mandatory. STRs in designated rental inspection districts must also maintain rental housing compliance certificates.
• Operational rules include an 18‑hour minimum contract period, signage limits, off‑street parking standards, and a prohibition on events.
• Compliance is overseen by Community Development (Building Inspections) for Certificates of Occupancy, Planning & Zoning for zoning clearances/Special Exceptions, and the Commissioner of the Revenue for business licensing and tax administration.

County

• Danville is an independent city. STRs located within city limits are governed exclusively by Danville municipal code and do not require Pittsylvania County approvals.

State of Virginia

• STRs must comply with the Virginia Uniform Statewide Building Code (VUSBC). Virginia does not impose a state‑level occupancy cap specifically for STRs; occupancy is determined by local code and building/safety standards. Virginia state sales tax generally does not apply to lodging; however, local transient lodging tax and local business taxes apply and must be collected and remitted.

Sources:

• STR zoning, standards, and compliance: www.danville-va.gov/DocumentCenter/View/30142
• Process and permit requirements: www.danville-va.gov/2419/Short-Term-Rentals

Proposed changes to watch (Board of Zoning Appeals)

The Board of Zoning Appeals has proposed updates to tighten consistency and safety. Items include:

• Require property manager contact information and ensure the manager lives within 30 minutes of the STR (owner must live within 50 miles or designate a local agent under current code).
• Require a completed checklist before application submittal; allow postponement if the checklist is incomplete.
• Require no open building permits at time of application.
• Require inclusion of the STR map in neighbor notification letters.
• Limit occupancy to two persons per bedroom and require one off‑street parking space per bedroom.
• Provide approved STR list and manager contact info to police.
• Require 24‑hour contact information for complaints and ensure websites direct immediate issues to police as appropriate.
• No cap was placed on the total number of STRs or on the number an individual entity can operate.
• BZA requests to be informed of permit extensions.

These proposals were under review by the Planning Commission. If adopted, they will change application content, occupancy, parking, and contact standards. Prepare to comply with both current code and likely near‑term updates.

Sources:

• Summary of proposals and process: wset.com/news/local/new-short-term-rental-guidelines-proposed-in-danville-to-ensure-safety-and-consistency-may-2025-caesars-airbnb-vrbo
• Background on streamlining to BZA: cardinalnews.org/2024/10/14/more-short-term-rental-zoning-applications-near-casino-agenda-danville/

Contact information

• Short‑Term Rental Technician (Planning & Zoning): Arsenio Day; Phone: 434.799.5260 Ext. 2490; Email: str@danvilleva.gov
• Planning & Zoning (applications, clearances): Planning & Zoning Division, City Hall, 427 Patton Street, Suite 208, Danville, VA 24541
• Division of Building Inspections (Certificate of Occupancy): Community Development – Building Inspections
• Commissioner of the Revenue (business license and transient lodging tax registration): 311 Memorial Dr., Danville, VA 24541 (utility building, second floor)
• City Hall main address: 427 Patton Street, Danville, VA 24541; Mailing address: P.O. Box 3300, Danville, VA 24543

Sources:

• Contacts and process: www.danville-va.gov/2419/Short-Term-Rentals
• Business licenses and Commissioner of the Revenue links: www.danville-va.gov/526/Business-Licenses; www.danville-va.gov/524/Commissioner-of-Revenue

Links to source pages

• City of Danville – Short‑Term Rentals (process, contacts, fees): www.danville-va.gov/2419/Short-Term-Rentals
• Danville Code – Short‑Term Rental Standards (ORDINANCE NO. 2023‑04.06): www.danville-va.gov/DocumentCenter/View/30142
• Business License Information (Commissioner of the Revenue): www.danville-va.gov/526/Business-Licenses
• Commissioner of the Revenue – Office and functions: www.danville-va.gov/524