Overview: Are Short-Term Rentals Allowed in Leesburg, VA?

Yes, short-term rentals are explicitly allowed in Leesburg, Virginia, subject to specific regulations at the city, county, and state levels. Leesburg classifies these rentals as "Homestay Rentals" and operates under both town-specific ordinances and Loudoun County regulations. The Virginia State Code § 15.2-983 provides the foundational legal framework, defining short-term rentals as accommodations for fewer than 30 consecutive days in exchange for compensation.

Investors must navigate a dual regulatory environment: Loudoun County's short-term rental ordinances apply county-wide, while the Town of Leesburg has its own homestay rental regulations that supersede county rules within town limits. Both systems require registration, permits, and compliance with zoning requirements.

How to Start a Short-Term Rental Business in Leesburg

Initial Assessment and Planning

Before listing your property, conduct a comprehensive zoning analysis using Loudoun County's online mapping system to determine which zoning ordinance applies to your specific property. This will dictate whether you follow the current (2023) Loudoun County Zoning Ordinance or the 1972 ordinance (primarily applicable to Sterling's Countryside community).

Verify whether your intended rental model—whole house, room rental, or accessory structure—complies with local zoning requirements. Some configurations may require minor special exceptions or special exceptions, which involve additional legislative review processes.

Town of Leesburg Process

1. Apply for Homestay Home Occupation Permit

   • Submit application through the eTRAKiT portal
   • Provide required documentation (detailed below)
   • Pay $50 permit fee
   • Submit in January or during the calendar year of intended operation

2. Pre-Inspection Scheduling

   • Town staff will contact you to schedule a mandatory pre-inspection
   • Property must demonstrate compliance with safety and zoning requirements

3. Business License Registration

   • Contact the Business Tax Office to obtain your business license
   • Complete any additional tax registrations required

Loudoun County Process (for properties outside Leesburg town limits)

1. Annual Registration

   • Register online by July 1 of each calendar year (no fee)
   • Submit confirmation documentation for records

2. Zoning Permit Application

   • Complete appropriate zoning permit application based on your property's ordinance
   • Submit required documentation package
   • Pay $165 application fee

3. Business Tax Registration

   • Register with Commissioner of the Revenue for annual reporting
   • File required business taxes annually by March 1

Required Documents, Permits, Licenses, and Guidelines

Town of Leesburg Requirements

Homestay Home Occupation Permit Application:

• Local authorized agent contact information (if applicable)
• Signed property owner consent form
• Sketch plan showing entire lot, house, and parking areas
• Homestay location specification (principal dwelling, basement, or accessory dwelling)
• Number of rental bedrooms
• $50 permit fee

Additional Town Requirements:

• Town of Leesburg Business License (contact Business Tax Office)
• Annual permit renewal (free) by January 31 each year
• Pre-inspection completion prior to permit issuance

Loudoun County Requirements

Annual Property Registration:

• Online registration form
• Confirmation email documentation
• Compliance with registration deadline (July 1)

Zoning Permit Application Package:

• Completed zoning permit application (appropriate to property's ordinance)
• Parking diagram showing dwelling location and required parking (minimum 1 off-street space)
• Floor plan showing rented rooms and safety compliance
• Individual Sewage Disposal System Capacity Verification (if not on public sewer)
• For commercial whole house: Roads/Access documentation for properties without frontage on Class I or II roads
• $165 application fee

Business Tax Documentation:

• Business registration with Commissioner of the Revenue
• Business Personal Property Tax annual filing
• Transient Occupancy Tax compliance (8% of gross rental revenue)
• Business License Tax filing (if more than 7 overnight rooms available)

State-Level Requirements

Virginia Code § 15.2-983 Compliance:

• Adherence to state-defined short-term rental parameters
• Understanding of exemptions to registration requirements
• Compliance with transient occupancy tax obligations

Specific Regulations for Short-Term Rentals

Town of Leesburg Homestay Rental Regulations

Operational Limits:

• Maximum 6 guests per night (may be reduced to meet building code requirements)
• Maximum stay less than one 30-day period
• No more than one homestay use per lot or parcel

Property Use Restrictions:

• Primary residential dwelling (whole or partial) may be rented
• Accessory structures permitted as homestay rentals
• No exterior signage advertising the rental property

Parking Requirements:

• No additional parking required if entire principal dwelling is used
• Minimum 1 off-street parking space (maximum 2) if basement or detached accessory structure is used
• On-street parking may satisfy requirements for H-1 Overlay District properties with established residential parking permits

Compliance and Enforcement:

• Pre-inspection required before permit issuance
• Annual permit renewal mandatory
• Zoning Administrator may modify parking requirements under specific circumstances
• Failure to register results in immediate termination of unregistered use
• Civil penalties apply for violations

Loudoun County STR Regulations

Registration Requirements:

• Annual registration by July 1 (free)
• $500 fine for failure to register

Zoning Compliance:

• Zoning permit required for all STRs
• Some whole house rentals require minor special exception or special exception
• Address assignment required for public safety response (911 access)

Business Operations:

• Equipment in rental spaces subject to Business Personal Property Tax
• 8% Transient Occupancy Tax applies
• Business license taxes apply for operators with more than 7 overnight rooms
• Annual tax filings required by March 1

Additional Considerations:

• Environmental health permits required for bed and breakfast operations serving up to 18 guests with food service
• Compliance with applicable HOA regulations
• Town-specific regulations supersede county rules within incorporated areas

Contact Information for Local Authorities

Town of Leesburg

Community Development Department - Zoning Division

• Phone: 703-771-2765
• Email: permitting@leesburgva.gov
• Online Portal: eTRAKiT system for permit applications

Business Tax Office

• Phone: 703-771-2723
• Email: businesslic@leesburgva.gov

Public Works Department (Parking Permits)

• Phone: 703-771-2791

Town Main Contact

• Phone: 703-777-2420
• Address: 25 West Market Street, Leesburg, VA 20176

Loudoun County

Building & Development Department

• Phone: 703-777-0220
• Address: 1 Harrison Street S.E., P.O. Box 7000, Leesburg, VA 20177-7000
• Online Portal: LandMARC system for zoning permit applications

Commissioner of the Revenue - Business Tax Division

• Phone: 703-777-0260
• Email: Business Tax Division

Loudoun County General Contact

• Phone: 703-777-0100
• Mailing Address: P.O. Box 7000, Leesburg, VA 20177
• Government Center: 1 Harrison St. SE, Leesburg, VA 20175

Environmental Health Department

• Phone: 703-777-0234
• Email: Health Department

Links to Source Pages

Primary Regulatory Sources

• Loudoun County Short-Term Rentals
• Town of Leesburg Homestay Rentals
• Town of Leesburg Homestay Rental FAQs

Application Portals

• Loudoun County Online Registration
• Town of Leesburg eTRAKiT Portal
• Loudoun County LandMARC Portal

Legal and Regulatory Documents

• Virginia Code § 15.2-983
• Town of Leesburg Zoning Ordinance §9.3.11.3 Homestay
• Loudoun County Short-Term Rental Registration Ordinance

Business and Tax Resources

• Loudoun County Business Personal Property Tax Guide
• Town of Leesburg Business Tax Information

Helpful Tools and Maps

• Loudoun County Online Mapping System
• Town of Leesburg Interactive Zoning Map

This comprehensive guide provides investors with the essential regulatory framework for operating short-term rentals in Leesburg, Virginia. Success requires careful attention to both county and town requirements, proper permit acquisition, and ongoing compliance with all applicable regulations.