Overview

Short-term rentals ARE currently allowed in Altavista, Virginia, with specific regulations and restrictions that vary by zoning district. The town is actively regulating this use, with recent discussions at the Planning Commission level focusing on restrictions in residential districts, while the new R-3 High Density Residential District explicitly permits short-term rentals.

Current Status of Short-Term Rentals in Altavista

Permitted vs. Restricted Districts

Based on the current regulatory framework, short-term rentals in Altavista have a mixed status:

• R-3 High Density Residential District: Short-term rentals are explicitly permitted as a commercial use type, subject to section 86-522
• R-1 Residential Districts: Under active discussion for potential removal, with the Planning Commission voting 3-1 to recommend eliminating the use entirely from R-1 districts
• Other Districts: The status varies, with ongoing regulatory development

Key Regulatory Timeline

• October 1, 2022: Virginia Code § 58.1-3826 enacted, requiring third-party accommodation intermediaries to collect and remit local Transient Occupancy Tax
• April 2023: Town staff began preparing to draft a short-term rental ordinance
• 2025: Active Planning Commission discussions regarding restrictions in residential districts

How to Start a Short-Term Rental Business in Altavista

Step 1: Determine Zoning Compliance

1. Verify your property's zoning classification

   • Contact the Planning and Community Development Department
   • Confirm whether short-term rentals are permitted in your specific district
   • Note that R-3 districts explicitly allow the use; R-1 districts face potential restrictions

2. Review district-specific requirements

   • For R-3 districts: Subject to section 86-522 standards
   • For other districts: Check current zoning ordinance provisions

Step 2: Special Use Permit Process (If Required)

Based on current discussions, short-term rentals may require Special Use Permits in certain districts:

1. Application Process

   • Submit SUP application to the Planning and Community Development Department
   • Application requirements include site plans and compliance documentation
   • Pay associated filing fees (amount to be determined)

2. Public Hearing Process

   • Planning Commission review and recommendation
   • Town Council final approval
   • Public notice requirements include:
     • Publication in Altavista Journal for two successive weeks
     • Adjacent property owner notifications via first-class mail
     • Property posting with public hearing notice

Step 3: Tax Compliance

Virginia law requires compliance with Transient Occupancy Tax requirements:

1. Register with appropriate tax authorities
2. Collect and remit required taxes
3. Maintain compliance with state reporting requirements

Required Documents, Permits, and Licenses

Zoning Compliance Documentation

• Proof of zoning classification
• Site plan showing property boundaries and structures
• Compliance with setback and density requirements

Special Use Permit (If Required)

• Completed SUP application
• Site plan and development drawings
• Proof of property ownership or lease authorization
• Filing fees
• Public hearing advertisement costs

Tax Registration

• Transient Occupancy Tax registration
• State sales tax registration
• Local business registration (if applicable)

Operational Documentation

• Emergency contact information
• Property management plan
• Occupancy limits compliance documentation

Specific Regulations by Level

City-Level Regulations (Altavista)

R-3 High Density Residential District

• Permitted Use: Short-term rentals explicitly allowed in the district
• Subject To: Section 86-522 of the zoning ordinance
• Development Standards: Must meet all R-3 district requirements including:
  • Minimum lot area: 5,000 sq ft for single-family
  • Public water and sewer required
  • Maximum building coverage: 60%
  • Height restrictions: 2.5 stories for single-family
  • Setback requirements: 15' front, 10% lot width sides (min 5'), 20' rear

R-1 Residential Districts (Under Review)

• Current Status: Under consideration for removal
• Planning Commission Position: 3-1 vote to recommend elimination from R-1
• Potential Impact: Existing permits may be grandfathered, but new applications likely prohibited

General Zoning Requirements

• Parking: Must comply with Article IV, Division 3 parking standards
• Setbacks: Must meet minimum yard requirements for the district
• Height: Must not exceed district maximum height restrictions
• Utilities: Must have adequate water and sewer service

State-Level Regulations (Virginia)

Transient Occupancy Tax (Virginia Code § 58.1-3826)

• Third-Party Intermediaries: Must file, collect, and remit local Transient Occupancy Tax
• Local Acceptance: Towns must accept payments submitted by intermediaries
• Intermediary Liability: Intermediaries are deemed as making retail sales and are liable for tax collection and remittance

General Requirements

• 30-Day Rule: Lodging tax cannot be charged for stays longer than 30 consecutive days
• Business Registration: May require state business registration
• Health and Safety: Must comply with Virginia Uniform Statewide Building Code

Contact Information

Primary Contacts

Town of Altavista - Planning and Community Development

• Address: 510 7th Street, Altavista, VA 24517
• Phone: (434) 369-5001
• Email: mdperkins@altavistava.gov (Assistant Town Manager/Zoning Administrator)

Jamie Gillespie - Director of Planning and Community Development

• Phone: (434) 369-5001
• Department: Planning and Community Development

Gary Shanaberger - Town Manager

• Phone: (434) 369-5001
• Email: Available through Town Hall

Planning Commission

• Meeting Location: Council Chambers of Town Hall, 510 7th Street, Altavista, VA 24517
• Commission Secretary: Matt Perkins, Assistant Town Manager

Public Notice Requirements

• Newspaper: Altavista Journal
• Public Hearing Notice: Required publication two successive weeks prior to hearing

Links to Source Pages

Source Documents Analyzed:

1. Town of Altavista Planning Commission Agenda - April 3, 2023

   • Details staff preparation of short-term rental ordinance
   • Outlines regulatory considerations and Virginia Code § 58.1-3826

2. Town of Altavista Planning Commission Agenda Packet - September 2, 2025

   • Contains discussion of short-term rental restrictions in R-1 districts
   • Shows Planning Commission vote to recommend removal from residential districts

Investment Considerations and Risks

Regulatory Uncertainty

• R-1 Districts: High risk due to active consideration for prohibition
• Non-Conforming Uses: Existing permits may be grandfathered if regulations change
• Ongoing Development: Regulations continue to evolve

Market Opportunities

• R-3 District: Explicitly permits short-term rentals with clear development standards
• Limited Supply: Potential first-mover advantage in permitted districts
• Tourism Potential: Smaller market with growth opportunities

Due Diligence Recommendations

1. Verify Current Zoning: Confirm district classification and current regulations
2. Check Permit Status: Determine if any existing approvals affect the property
3. Monitor Regulatory Changes: Stay informed of Planning Commission and Town Council actions
4. Consult Local Experts: Engage with local planning professionals familiar with Altavista regulations

Important Note: Given the active regulatory environment and recent changes to Planning Commission positions, investors should verify the current status of regulations before making property acquisitions or investment decisions. The regulatory framework for short-term rentals in Altavista continues to evolve, with particular scrutiny on residential district applications.