Important note on source materials:

• The provided web content pertains to Greene County, Tennessee, and does not contain information about Pennington Gap, Virginia, or applicable Virginia (VA) regulations.
• This guide therefore defaults to state-level guidance for Virginia and flags city/county-specific steps that must be confirmed with the local authority in Pennington Gap/Lee County.

Overview: Are Short-Term Rentals Allowed?

• Explicit answer: Short-term rentals (STRs) are generally allowed in Virginia as a residential use unless a locality adopts specific restrictions. There is no statewide prohibition against STRs in Virginia.
• City/county specifics: The provided sources do not include any ordinance, permit process, or contact information for Pennington Gap (Lee County, VA). As a result, you must confirm with the Town of Pennington Gap and/or Lee County whether local zoning, business licensing, or registration applies, and whether any caps, occupancy limits, safety requirements, or tax obligations are in effect.

How to Start an STR Business in This Market

1. Verify property eligibility

   • Confirm the property’s zoning allows transient lodging as a short-term rental (for example, in a residential zoning district).
   • Identify whether the STR will be a “whole-home” rental or a “room-rental” within a primary residence, as some localities distinguish rules for these types.

2. Comply with state-level requirements (Virginia)

   • Transient occupancy tax (Virginia transient occupancy tax): If you host guests for fewer than 90 consecutive days at a single property, you are generally subject to the state transient occupancy tax of 5.3%, which must be collected and remitted. Confirm your local tax rate (some counties/cities levy additional local transient taxes).
   • Sales and use tax: Many STR operators also have sales/use tax obligations related to the rental transaction; confirm applicability and registration with the Virginia Department of Taxation.

3. Obtain any local approvals (verify with Lee County and the Town of Pennington Gap)

   • Local permits, licenses, and registration may be required by county or town ordinance.
   • If the STR operates in a planned unit development (PUD), homeowners association (HOA), or similar community, obtain written approval and confirm compliance with community rules.

4. Safety and building considerations

   • Confirm whether smoke detector, carbon monoxide detector, fire extinguisher, emergency egress, and other life-safety standards are required.
   • If the STR is a separate dwelling unit, verify whether any inspections or certificates of occupancy are needed.

5. Establish responsible operation

   • Adopt guest screening, house rules, and quiet-hours policies appropriate to the neighborhood.
   • Implement a local point-of-contact/manager and reasonable response times for complaints.
   • Comply with parking, trash, and occupancy restrictions that may apply locally.

6. File taxes and maintain records

   • Register for state tax accounts (as applicable) and file/pay the Virginia transient occupancy tax and any local occupancy taxes.
   • Maintain records of bookings, taxes collected, and remittances for at least the required period.

Required Documents, Permits, Licenses, and Guidelines

State-level (Virginia):

• Registration/accounts with the Virginia Department of Taxation for transient occupancy tax and any sales/use tax obligations, if applicable.
• Compliance with any state-level health and safety standards applicable to transient lodging (local ordinances may add requirements).

Local (Pennington Gap/Lee County):

• Unknown based on provided sources. Confirm with the local authority whether any of the following are required:
  • Zoning compliance or a conditional use permit for STRs.
  • Business license and/or local registration/permit for STR operators.
  • Occupancy limits and life-safety measures (smoke/CO detectors, fire extinguishers).
  • Local occupancy taxes and lodging taxes (in addition to the state 5.3% tax).
  • Parking, trash, and nuisance regulations tailored to STRs.
  • Inspection or certificate-of-occupancy requirements (especially for units not previously used as lodging).

Specific Regulations (City/County/State)

• City (Pennington Gap): No specific regulations provided in the sources. The town may have adopted ordinances; you must verify directly.
• County (Lee County, VA): No specific regulations provided in the sources. The county may have adopted rules for STRs; you must verify directly.
• State (Virginia):
  • STRs are generally allowed unless prohibited by local ordinance.
  • Virginia transient occupancy tax: 5.3% on rentals for fewer than 90 consecutive days; must be collected and remitted. Localities may add additional transient taxes.
  • Sales/use tax may apply to the rental transaction depending on how the rental is categorized; confirm with the Virginia Department of Taxation.
  • No statewide permit/license is required solely for operating an STR; however, localities can impose their own requirements.

Note on external references:

• The provided content includes a news article regarding Greene County, TN adopting a permit and inspection model for STRs. That article is not applicable to Pennington Gap, VA, and is included here only as an illustration of how some nearby jurisdictions handle STRs, not as guidance for Virginia. www.wjhl.com/news/local/greene-co-commission-adopts-resolution-to-regulate-short-term-rental-properties/

Contact Information for Local Authority

Because the provided materials do not include city/county contacts for Pennington Gap or Lee County, verify contacts directly.

Suggested steps:

• Town of Pennington Gap
  • Visit the town’s official website or contact the town office (phone/email) to confirm whether the town regulates STRs, requires a business license or registration, and whether any local taxes apply.
• Lee County (Virginia)
  • Contact the county administrator’s office or the commissioner of the revenue to confirm county-level STR requirements, zoning, and any local occupancy taxes.
• Virginia Department of Taxation
  • Use the official state tax website or contact the department to register and obtain guidance on transient occupancy tax and sales/use tax obligations.

Links to Source Pages (if available)

• News article on Greene County, TN (not applicable to VA): www.wjhl.com/news/local/greene-co-commission-adopts-resolution-to-regulate-short-term-rental-properties/
• Virginia Department of Taxation (register and file): www.tax.virginia.gov/ (see the site for forms, guidance, and contact details)

Closing guidance for STR investors:

• Because the provided search results do not include Pennington Gap or Lee County–specific rules, treat this guide as state-level background. Before listing or operating an STR, contact the Town of Pennington Gap and Lee County to confirm local permits, taxes, zoning compliance, safety standards, and any operational restrictions. This will protect your investment and ensure full compliance.