Is Scottsville, Virginia Good for Airbnb Investment?

To start an Airbnb in Scottsville, Virginia, begin by researching local zoning laws through Albemarle County's planning department, as Scottsville falls under county jurisdiction, where short-term rentals typically require a special use permit and must comply with residential zoning restrictions. Contact Albemarle County at (434) 296-5832 to obtain the necessary special use permit application, which costs approximately $1,685 and requires neighbor notification, site plan review, and county board approval - a process taking 3-6 months. Find a suitable property in Scottsville's historic downtown area or surrounding residential neighborhoods, ensuring it meets county requirements for parking (typically 1 space per bedroom), septic capacity for increased usage, and fire safety standards including smoke detectors in each bedroom and common areas. Obtain a Virginia business license ($50) and register for state and local taxes, including Virginia's 5.3% sales tax on short-term rentals. Furnish the property with quality furniture, linens, kitchen essentials, and WiFi, budgeting $15,000-25,000 for a 2-3 bedroom property, while ensuring compliance with Americans with Disabilities Act guidelines if applicable. Create your Airbnb listing with professional photos highlighting Scottsville's proximity to the James River, Monticello, and University of Virginia, setting competitive rates around $120-180 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, maintaining 24/7 guest communication, and ensuring compliance with Albemarle County's annual inspection requirements and occupancy limits of 2 guests per bedroom plus 2 additional guests maximum.

To identify profitable short-term rental properties in Scottsville, Virginia, focus on properties within walking distance of the James River and downtown historic district, as these locations attract tourists visiting Monticello (15 minutes away) and outdoor enthusiasts. Target 2-4 bedroom homes built after 1950 with modern amenities, full kitchens, outdoor spaces, and parking, as these features command higher nightly rates of $120-200 in this market. Analyze pricing by researching comparable Airbnb listings within 5 miles, considering seasonal fluctuations with peak rates during spring/fall when river activities and Charlottesville events drive demand. Study competition using AirDNA and Mashvisor to identify supply gaps, noting that Scottsville has limited STR inventory compared to Charlottesville, creating opportunity for well-positioned properties. Utilize tools like Rabbu and STR Helper for market analysis, monitor James River State Park visitor patterns, and track University of Virginia event calendars since parent weekends and graduation periods significantly impact demand. Properties near Route 20 with river access or historic charm typically achieve 65-75% occupancy rates and generate $2,000-4,000 monthly revenue, making them ideal targets for STR investment in this emerging market that benefits from Charlottesville overflow while maintaining lower acquisition costs.

To obtain an Airbnb/STR permit in Scottsville, Virginia, you must first contact the Scottsville Town Office at 290 Valley Street or call (434) 286-3706 to inquire about their specific short-term rental ordinance requirements, as the town may require a business license and zoning compliance verification. You'll need to submit a completed business license application, proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plan of the rental unit, and contact information for a local property manager if you're not residing locally. The application fee is estimated at $50-150 for the business license, with potential additional zoning review fees of $25-75. You must also comply with Albemarle County health department requirements if applicable, obtain a Virginia sales tax registration, and ensure the property meets all fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. The approval timeline typically takes 2-4 weeks once all documentation is submitted, but may extend to 6-8 weeks if zoning review or inspections are required. Additionally, you'll need to register with the Virginia Department of Taxation for transient occupancy tax collection and remittance, and ensure compliance with any homeowners association restrictions if applicable.

Short-term rentals (STRs) in Scottsville, Virginia are generally legal but subject to local zoning regulations and state requirements. As a small town in Albemarle County, Scottsville follows county zoning ordinances that typically allow STRs in residential areas with proper permits and compliance with safety standards including fire safety inspections and business licenses. The town requires STR operators to obtain a zoning permit and business license, maintain liability insurance, and ensure properties meet building and fire codes. Recent changes in Virginia state law around 2019-2021 have given localities more authority to regulate STRs while preventing outright bans, leading to standardized permitting processes. Properties must comply with parking requirements, occupancy limits based on bedrooms and septic capacity, and noise ordinances. STRs are generally prohibited in areas zoned exclusively for agricultural use without special permits, and the town may restrict density in certain neighborhoods to preserve residential character. Operators must also comply with state tax collection requirements and register with the Virginia Department of Taxation for transient occupancy taxes.

The best areas for Airbnb investment in Scottsville, Virginia include the historic downtown district along Main Street, which attracts visitors interested in the town's 19th-century architecture and proximity to the James River for recreational activities like fishing, kayaking, and tubing. The Riverview area near the James River offers scenic waterfront appeal for tourists seeking outdoor experiences and is popular during summer months when river activities peak. The residential neighborhoods near Scottsville Elementary and the town center provide convenient access to local restaurants like The Riverside Restaurant and are attractive to business travelers visiting nearby companies or attending events at the Scottsville Museum. Properties within walking distance of Hardware River and the Virginia Central Railway historical sites appeal to history enthusiasts and weekend tourists exploring Virginia's heritage trail. The areas near Route 20 corridor offer easy access for visitors traveling between Charlottesville and Lynchburg, making them ideal for overnight stays, while properties near local vineyards and farms attract agritourism visitors year-round, particularly during harvest seasons and wine-tasting events.

Airbnb properties in Scottsville, Virginia are subject to Virginia state sales tax of 5.3% on lodging accommodations, which applies to short-term rentals under 90 days. Additionally, Albemarle County (where Scottsville is located) imposes a local transient occupancy tax of 2% on lodging stays, bringing the total tax burden to approximately 7.3%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2019 for Virginia properties. Airbnb remits these taxes quarterly to the Virginia Department of Taxation and applicable local jurisdictions on behalf of hosts. However, hosts remain responsible for registering with Virginia Tax and obtaining any required local business licenses, and should verify their tax obligations as some smaller jurisdictions may require direct host collection and remittance. Exemptions generally apply to stays of 90 days or longer, which are considered long-term rentals rather than transient lodging, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

The total cost to start an Airbnb in Scottsville, Virginia is approximately $285,000-$315,000. Property purchase costs around $250,000 based on median home prices in rural Virginia markets. Furnishing a 2-3 bedroom property requires $15,000-$20,000 for quality furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registration cost approximately $500-$800. Insurance for short-term rental coverage adds $1,200-$1,800 annually. Utilities including electricity, water, internet, and cable average $200-$300 monthly. First six months operating costs including cleaning services, supplies, maintenance, platform fees to Airbnb and VRBO, and marketing total $8,000-$12,000. Additional considerations include property management software subscriptions, welcome amenities, and emergency repair funds which can add another $2,000-$3,000 to initial startup costs.

Airbnb properties in Scottsville, Virginia typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 per year. Properties near James River or University of Virginia (30 minutes away) command premium rates, with successful hosts like those operating restored farmhouses or riverfront cabins achieving 65-75% occupancy rates and net profit margins of 25-35%. Key success factors include professional photography, responsive communication, strategic pricing during UVA events and summer river season, and offering unique amenities like kayak rentals or farm experiences. Properties within walking distance of Scottsville's historic downtown or with river access typically outperform suburban listings by 20-30% in both occupancy and rates, with some premium properties generating $40,000-$55,000 annually while maintaining profit margins above 30% after accounting for higher initial investment and operational costs.

Based on Scottsville, Virginia market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the market. Properties near Lake Monticello and James River recreational areas command premium rates of $120-180 per night during peak seasons, while standard residential properties average $80-120 nightly. Initial profitability usually occurs within 8-14 months after accounting for startup costs, furnishing, and marketing expenses. The market benefits from proximity to Charlottesville and University of Virginia events, generating consistent demand from visitors, parents, and outdoor recreation enthusiasts. Properties requiring minimal renovation typically achieve break-even faster, with well-positioned vacation rentals near water access or historic downtown areas showing stronger performance metrics and 15-20% higher occupancy rates than suburban locations.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Scottsville, Virginia, offering comprehensive market analysis and property recommendations. Local real estate agents in the Charlottesville-Scottsville area who focus on investment properties include Keller Williams Realty agents specializing in rental properties, Coldwell Banker Residential Brokerage investment specialists, and RE/MAX Commonwealth agents with short-term rental expertise. National services that serve the Scottsville market include Mashvisor for property analysis and market data, BiggerPockets for investor networking and deal sourcing, Awning for Airbnb property management and investment guidance, RedAwning for vacation rental property identification, and AirDNA for market analytics and revenue projections. Local property management companies that assist investors include Blue Ridge Property Management and Central Virginia Property Services, while national companies like Vacasa and RedAwning also operate in the region to help investors maximize their Airbnb returns through professional management and optimization services.