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

Yes—short-term rentals (STRs) are allowed in the Stanardsville area, but they are regulated primarily at the county level (Greene County) and are subject to zoning and permitting controls. At the county level, tourist lodging is permitted by-right in A‑1 (Agricultural) and C‑1 (Commercial) zoning districts, with specific caps on guest rooms or dwelling units unless a special use permit is obtained. Within the Town of Stanardsville’s zoning ordinance, “bed and breakfast inns” and “motels” are listed uses in certain districts; however, the ordinance does not explicitly define or regulate STRs as a separate use. Consequently, STR operators must confirm their property’s county zoning district and either use the property by-right (if in A‑1 or C‑1 and within limits) or apply for a special use permit. County-level taxes and registration requirements also apply.

How to Start a Short-Term Rental Business in This Market

• Confirm zoning at the county level and town limits:
  • Greene County: Tourist lodging is allowed by-right in A‑1 and C‑1 districts, limited to no more than five guest rooms or one dwelling per parcel unless a special use permit is secured.
  • Town of Stanardsville: The zoning ordinance lists “Bed & Breakfast Inns” and “Motels” as permitted or special uses in specific districts; the ordinance does not define or separately regulate STRs. Determine which town district your property sits in and whether a bed & breakfast approval pathway (if applicable) is feasible.
• Assess HOA rules if the property is in a subdivision with a homeowners association.
• Align insurance coverage:
  • Obtain commercial liability insurance; standard homeowner’s policies typically exclude short‑term rental activity.
• Select and formalize your business structure:
  • Choose a legal structure (sole proprietorship, partnership, or corporation). If using a corporation/partnership, obtain an Employer Identification Number (EIN) from the IRS.
• Register your business:
  • Complete the Virginia Department of Taxation Business Registration (Form R‑1).
• Obtain local business licensing:
  • Apply for a Greene County Business License through the Commissioner of the Revenue’s office.
• Set up tax collection and remittance:
  • Virginia sales tax (5.3% of gross sales) is typically collected on lodging and remitted monthly/quarterly to the Commonwealth.
  • Greene County Transient Occupancy Tax (TOT) is 5% of gross sales and is remitted monthly to the County.
• File for any required approvals:
  • If your property is outside A‑1/C‑1 or exceeds the five‑room/one‑dwelling limits, apply for a special use permit through the Planning & Zoning Department and the Board of Supervisors.
• Operational readiness:
  • Adopt a guest screening policy, define house rules (quiet hours, occupancy limits, parking), and establish reliable local vendors for cleaning, maintenance, and guest support.

Required Documents, Permits, Licenses, and Guidelines

• County-level approvals:
  • Zoning certification: Confirm A‑1 or C‑1 district status for by-right tourist lodging; otherwise obtain a special use permit.
  • Special Use Permit (as applicable): Required when renting fewer than 30 days at a time and for properties outside allowed parameters; approval rests with the Greene County Board of Supervisors.
• Business registration:
  • Virginia Department of Taxation Business Registration (Form R‑1) for state tax accounts.
  • Employer Identification Number (EIN) from the IRS if operating as a corporation or partnership (sole proprietors use SSN).
• Licensing:
  • Greene County Business License (Commissioner of the Revenue).
  • Verify whether any Virginia state lodging license applies to your specific setup; local guidance indicates state lodging licensing is typically for establishments with more rooms than the county’s STR thresholds, but confirm with the Virginia Department of Health/Virginia Department of Professional and Occupational Regulation (DPOR) based on your model.
• Insurance:
  • Commercial general liability and property coverage suitable for a lodging business; homeowner’s policies generally do not cover business activity.
• Taxes:
  • Virginia Sales Tax (5.3%) on gross sales, collected by the host, remitted to the Commonwealth.
  • Greene County Transient Occupancy Tax (5%) on gross sales, remitted monthly to the County.
• HOA/CC&Rs:
  • Review subdivision covenants for transient rentals and secure any required approvals.
• Health and safety:
  • Compliance with the Virginia Uniform Statewide Building Code, local health and fire codes; verify any Greene County Health Department requirements for lodging.
• Operational policies:
  • Guest screening, booking terms, cancellation policy, house rules, and safety procedures.

Specific Regulations (City, County, and State)

• County (Greene County, Virginia):
  • STRs are allowed by-right in A‑1 and C‑1 zoning districts as “tourist lodging,” subject to a limit of no more than five guest rooms or one dwelling per parcel; exceeding these limits requires a special use permit.
  • A special use permit is required for renting fewer than 30 days at a time, subject to approval by the Greene County Board of Supervisors.
  • Transient Occupancy Tax (TOT): 5% of gross lodging receipts, payable monthly to Greene County.
  • Sales Tax: 5.3% of gross sales, payable to the Commonwealth of Virginia monthly or quarterly based on revenue.
  • Hosts must ensure the property meets applicable health, safety, and building codes.
• Town of Stanardsville:
  • The town’s zoning ordinance lists “Bed & Breakfast Inns” and “Motels” as permitted or special uses in specific districts (e.g., RC district allows both; R‑3 allows “Bed & Breakfast Inns” by special use permit; R‑2 lists “Boarding and Rooming Houses” by special use permit).
  • The ordinance does not define or regulate “short‑term rentals” as a separate category. STRs should rely on the county zoning and permit framework unless the property qualifies as a Bed & Breakfast Inn under town rules.
• State of Virginia:
  • Hosts must register for state sales tax and remittance.
  • Building, health, and fire code compliance under the Virginia Uniform Statewide Building Code and local authorities.
  • State lodging licensing: Applicability depends on lodging model; most private STRs operate under local rules, but if your operation resembles a traditional lodging establishment, confirm state licensing requirements with DPOR and the Department of Health.

Contact Information (Phone, Email, Website)

• Commissioner of the Revenue (Greene County)
  • Address: 15 Ford Avenue, Stanardsville, VA 22973
  • Phone: 434‑985‑5211
  • Email: pganoe@gcva.us
• Planning & Zoning (Greene County)
  • Address: 40 Celt Road, Stanardsville, VA 22973
  • Phone: 434‑985‑5282
  • Email: planning@gcva.us
• Economic Development & Tourism (Greene County)
  • Address: 9157 Seminole Trail, Ruckersville, VA 22968
  • Phone: 434‑985‑6663
  • Email: economic.development@gcva.us
  • Website: ExploreGreene.com
• Virginia Department of Taxation
  • Address: 1957 Westmoreland Street, Richmond, VA 23230
  • Phone: 804‑367‑8037
  • Website: tax.virginia.gov

Source Links (Important)

• Greene County regulations and STR overview: www.carriagehousestr.com/greene-county-regulations
• Stanardsville/STR regulatory summary (permits, TOT): www.gosummer.com/vacation-rental-management/stanardsville-virginia
• Stanardsville, VA zoning ordinance (Bed & Breakfast Inns and related uses): www.stanardsville.org/wp-content/uploads/Town-Zoning-Ordinance-2013-12-9.pdf
• Greene County “Easy Steps to Start a Vacation Lodging Business”: greenecountyva.gov/DocumentCenter/View/440/Easy-Steps-to-Start-a-Vacation-Lodging-Business-PDF

Notes and cautions:

• Always verify with Planning & Zoning whether your property’s zoning allows short‑term rental activity as tourist lodging or requires a special use permit.
• For bed & breakfast operations inside town limits, confirm which zoning district your property is in and the approval pathway under the town’s ordinance.
• If you intend to operate in a subdivision, obtain written HOA approval before listing.