On Monday, June 22, Richmond City Council passed a series of amendments to the city’s Zoning Ordinance that creates a set of regulations on short-term rental (STR) properties, which are usually advertised on apps like Airbnb. Those changes go into effect Wednesday, July 1. 
 
Before this ordinance passed, short-term rentals were not a permitted use in the City of Richmond’s Zoning Ordinance. Therefore, rental units offered for a period of fewer than 30 consecutive days were effectively prohibited. However, a March 2018 study revealed that 749 unique short-term rental units were active within city lines. 
 
The city recognized a need to formalize its stance on short-term rentals, working with Richmond Regional Tourism and PlanRVA to identify best practices and discuss the various approaches pursued by neighboring counties and cities. The city’s work group studied 14 localities, all of which were either located in Virginia or similar in size to Richmond, who had already implemented short-term rental regulations. 
 
“This is a great example of how city policies can make Richmond more competitive,” said Mayor Stoney. “I’m all about tourism and economic empowerment, letting Richmonders leverage their assets to strengthen our city’s economy. However, other cities have seen unfettered short-term rentals lead to speculative markets. Bottom line: the health of our city’s housing market must be protected. The Department of Planning and Development Review and Planning Commission have done a great job ensuring we have a responsible regulatory framework in place.”
 
For a two-month period in 2019, staff of the Planning and Development Review conducted an aggressive public input campaign, soliciting opinions via print and online surveys, emails and phone calls. The city’s team attended councilmembers’ meetings in all nine council districts and hosted two informational meetings exclusively focused on short-term rental regulations.
 
“Throughout the community engagement process, we have heard from both short-term rental operators and other residents who had concerns about STRs,” explained Mark Olinger, director of the Department of Planning and Development Review. “With these regulations, we hope to strike a balance by allowing homeowners to rent their properties to supplement their incomes while limiting the effects to the character of residential neighborhoods and the housing supply.”
 
The finalized regulations emulate best practices from around the Commonwealth, allowing short-term rental units to operate as an accessory use to dwelling units with conditions to ensure the health and safety of the renters and minimize any negative effect on the permanent residents of the neighborhood.
 
In order to operate a short-term rental, the rental unit must be the operator’s primary residence, meaning the operator must reside there at least 185 days a year. This protects the housing market from the speculative use of private residences as effective hotels and is present in the regulations of counties such as Henrico and Arlington. The number of nights a year each short-term rental can operate is currently unlimited.
 
The Planning Commission offered an amendment to the administration’s original ordinance. The amendment, recommended by the Planning and Development Review staff, requires the Department of Planning and Development Review to provide a report on the implementation of the ordinance in the summer of 2021.
 
Said Olinger of the amendment: “We appreciate the opportunity to review the implementation of the ordinance in a year to determine what amendments may need to be made to the regulations.”
 
For more information on short term rentals in the City of Richmond, visit http://www.richmondgov.com/PlanningAndDevelopmentReview/ShortTermRental….
 
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