Reviewed and updated 7/22/2020
The city of Alexandria is holding a public council meeting with the hopes of introducing new short-term rental laws. Council members are currently proposing that all property owners who rent out their home be required to register with the city.
It’s currently not known if the city plans to draft any further legislation such as commercial liability insurance requirements for short-term rentals or increased fees.
Update: Alexandria City currently enforces tax requirements and requires hosts like yourself to apply for a permit through the city. Addtional existing requirements include the following:
- State and local Sales Taxes totaling 6% must be collected form the renter and remitted by the operator to the Virginia Department of Taxation.
- Regional and local Transient Lodging Taxes of 8.5% plus $1 per room per night must be collected from the renter and remitted by the operator to the City of Alexandria for any rental that can lodge four or more persons at any one time.
- The operator must obtain a Business, Professional and Occupational License (BPOL) if their gross revenue is greater than $10,000 annually, and they rent more than four separate dwelling units (each having cooking facilities). A BPOL license is only required if they meet these two conditions.
View additional details regarding operation your vacation rental business on the Alexandria government website: Short-Term Residential Rental Registery.
Understanding short-term rental regulations and insurance
It’s easier to accept regulations once you understand that cities view short-term rentals as businesses. As with any other business, short-term rentals need to ensure they have proper insurance coverage to protect against any accidents.
When you welcome a paying guest into your home, you are subject to a whole slew of liability concerns. As the cities seek to protect their communities, it’s important that you make sure you and your business are protected as well. You may have a traditional homeowner’s policy for your short-term rental, but that coverage is simply not enough. Most homeowner’s and landlord policies have a “business activity exclusion.” That’s bad news for you as a host.
The good news is you can find a full-replacement, comprehensive short-term rental policy with Proper Insurance. Proper Insurance offers coverage for vacation homes, cabins, cottages, apartments, and more. With coverage for your building, contents, income, and liability ($1,000,000 commercial general liability) you’ll have all the coverage you need to run a successful business.
Call Proper today to discuss their vacation rental policy – (888) 631-6680!