Why Charlottesville keeps Airbnb Close to Home
Charlottesville is a wonderful place to get an education, but not for outside short term rental investors. The city keeps the rental market open only to residents as a way to manage a limited housing stock.
So, you’ve fallen in love with Charlottesville — the brick sidewalks, the vineyards, the energy of the University, the mountain views — and you’re thinking, “Hey, I’ll buy a cute little house and rent it on Airbnb!”
Well… not so fast.
Charlottesville loves its visitors, but when it comes to short-term rentals, the city keeps things pretty tight. In fact, you can’t legally run a stand-alone Airbnb here — meaning you can’t rent out a property you don’t live in.
Let’s break down why that is (and why it’s not as bad as it sounds).
“Homestay” Is the Magic Word
Charlottesville doesn’t even call them Airbnbs — it calls them homestays. And that word matters.
A homestay means you’re renting out all or part of your primary residence for fewer than 30 days at a time. That’s right: it’s got to be your home, not just a property you own.
So, if you live there most of the year — at least 185 days — you can host guests in your spare bedroom, basement suite, or even the whole house when you’re out of town.
But if you bought a second house just to list on Airbnb? That’s a no-go.
Why the Rule Exists
It all comes down to keeping Charlottesville’s neighborhoods, well… neighborhoods.
Imagine living on a quiet street where every other house suddenly turns into a mini hotel. Cars come and go, weekend parties pop up, and you never see the same faces twice. That’s not exactly the cozy, community-driven vibe the city wants.
By limiting short-term rentals to owner-occupied homes, Charlottesville aims to:
Keep housing available for actual residents
Prevent investors from snapping up houses just for short-term profit
Avoid parking, trash, and noise headaches
Preserve that friendly, small-town feel that makes Charlottesville so special
It’s Not Just About Zoning — It’s About Balance
Charlottesville classifies homestays as a home-based business. That means you need a Homestay Permit from the city and a business license to operate legally.
Those permits only apply to homes where you live. If you want to rent a place you don’t occupy, it’s considered commercial lodging — basically a small hotel. And you can’t have hotels in most residential zones.
So the rule isn’t anti-Airbnb — it’s pro-community. It lets locals make some extra income while keeping housing stable and neighborhoods calm.
What Happens If You Ignore It?
The city does enforce its homestay ordinance. If you list a stand-alone Airbnb without the proper permit (or without living there), you could face fines or even lose your right to host altogether.
And it’s not hard for the city to find unpermitted listings — they often pop up in neighborhood complaints or on public booking platforms.
The Upside: Authentic Hosting
Here’s the good news: when you do follow the rules, you’re not just renting a room — you’re offering something special. Guests get to experience Charlottesville through the eyes of a local. They’ll ask you where to find the best brunch (spoiler: it’s probably MarieBette), which wineries to hit, or how to avoid the UVA game-day crowds.
That’s what makes Charlottesville hosting personal, genuine, and so much fun.
In Short
Charlottesville says yes to homestays — but no to absentee Airbnbs.
If it’s your home, open your doors and share the magic of the city.
If it’s an investment property, you’ll have to find another way to spread the love.
Because at the end of the day, Charlottesville isn’t just a place to stay — it’s a place to belong.
Before you start your Charlottesville short term rental, I’d love to talk it through with you. Reach out to set up time, so you can launch with confidence and success.
