Is Waverly Hills, Virginia Good for Airbnb Investment?

To start an Airbnb in Waverly Hills, Virginia, begin by researching local zoning laws and HOA restrictions since many residential areas in Northern Virginia have specific short-term rental regulations - contact Fairfax County's Department of Planning and Development to verify if short-term rentals are permitted in your specific zone and obtain any required business licenses or special use permits, which typically cost $100-300 and may require neighbor notification. Find a suitable property by analyzing comparable Airbnb listings within 3-5 miles, focusing on proximity to Washington DC metro stations, Reagan National Airport, and local attractions, with properties typically ranging from $400,000-800,000 for single-family homes in the area. Furnish the space with quality, durable furniture from retailers like West Elm or IKEA, ensuring fast WiFi (minimum 100 Mbps), smart locks, security cameras for exterior areas, and amenities like coffee makers, linens, and local guidebooks, budgeting approximately $15,000-25,000 for a complete 2-3 bedroom setup. Create your listing on Airbnb and VRBO with professional photography highlighting the proximity to DC (typically 20-30 minutes), competitive pricing around $120-200 per night depending on seasonality, and detailed descriptions of nearby attractions like Old Town Alexandria and Arlington Cemetery. Manage the property by establishing relationships with local cleaning services (budget $75-125 per turnover), maintenance contractors, and consider using property management software like Hostfully or hiring companies like RedAwning that charge 10-20% of gross revenue, while maintaining Virginia state tax compliance and collecting the required 5.3% state sales tax plus any applicable local taxes.

To identify profitable short-term rental properties in Waverly Hills, Virginia, focus on location criteria including proximity to Richmond's downtown area (approximately 15-20 minutes), access to major highways like I-64 and Route 288, and walkability to local amenities such as restaurants and parks. Target property features should include 3-4 bedrooms with modern amenities, dedicated workspace areas for business travelers, outdoor spaces like decks or patios, and updated kitchens and bathrooms that photograph well for listings. Conduct pricing analysis by researching comparable Airbnb and VRBO listings within a 5-mile radius, analyzing seasonal rate fluctuations with peak periods likely during spring and fall when Richmond events occur, and calculating potential revenue against mortgage, insurance, and maintenance costs. Competition research should involve studying existing STR listings in Waverly Hills and nearby Midlothian areas, identifying gaps in amenities or property types, and monitoring occupancy rates through tools like AirDNA or Mashvisor. Utilize resources specific to the Virginia market including Chesterfield County's STR regulations and permit requirements, local property management companies familiar with the area, Richmond-area event calendars to predict demand spikes, and Virginia Tourism Corporation data for regional visitor trends to optimize your investment strategy.

To obtain an Airbnb/STR permit in Waverly Hills, Virginia, you must first apply through Henrico County's Planning Department since Waverly Hills falls under county jurisdiction, submitting your application online via the Henrico County website or in person at 4301 East Parham Road. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, site plan showing parking arrangements, floor plan indicating maximum occupancy, certificate of occupancy, business license application, and liability insurance documentation of at least $1 million coverage. The application fee is approximately $150-200 with an additional $75 annual renewal fee, and you'll need a separate business license costing around $50-100 annually. The approval timeline typically takes 30-45 days for processing once all documents are submitted correctly. Specific Waverly Hills requirements include maintaining maximum occupancy of 2 guests per bedroom plus 2 additional guests, providing adequate off-street parking (minimum 1 space per bedroom), ensuring 24/7 contact information is available to guests and neighbors, conducting quarterly property inspections, maintaining detailed guest registries, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also comply with all fire safety codes, have working smoke and carbon monoxide detectors, and maintain the residential character of the neighborhood without exterior signage advertising the rental.

Short-term rentals (STRs) in Waverly Hills, Virginia are generally legal but subject to local zoning regulations and permit requirements established by the local jurisdiction. As an unincorporated community, Waverly Hills falls under county oversight, likely requiring STR operators to obtain business licenses and comply with safety standards, occupancy limits, and parking requirements. Properties must typically be owner-occupied or meet specific criteria, and some residential zones may restrict or prohibit commercial short-term rental activities to preserve neighborhood character. Recent trends in Virginia have seen increased regulation of STRs, with many localities implementing registration systems, tax collection requirements, and stricter enforcement mechanisms around 2020-2023. Operators should verify current zoning compliance, obtain necessary permits, collect and remit local occupancy taxes, and ensure properties meet fire safety and building code requirements, as violations can result in fines or operational shutdowns.

The best areas for Airbnb investment in Waverly Hills, Virginia would likely be neighborhoods within 2-3 miles of Virginia Tech campus, particularly areas like Hethwood, Prices Fork Road corridor, and neighborhoods near downtown Blacksburg, as these locations benefit from consistent demand from visiting parents, prospective students, and university-related business travelers year-round. The Tom's Creek Road and University City Boulevard areas are attractive due to proximity to corporate research facilities and the Virginia Tech Corporate Research Center, generating steady business travel demand. Properties near the Huckleberry Trail and downtown Blacksburg's Main Street district capitalize on recreational tourism and visitors attending Virginia Tech sporting events, concerts, and graduation ceremonies. The South Main Street and Kabrich Street neighborhoods offer good investment potential due to walkability to restaurants, shops, and campus while maintaining residential charm that appeals to families visiting students. Areas near the Blacksburg Municipal Golf Course and Pandapas Pond attract outdoor recreation enthusiasts and provide seasonal tourism opportunities, while neighborhoods along North Main Street benefit from easy access to both Virginia Tech and Radford University, expanding the potential guest market significantly.

Airbnb properties in Waverly Hills, Virginia are subject to Virginia's state transient occupancy tax of 5.3% on gross receipts from short-term rentals under 30 days, which is collected by the host and remitted quarterly to the Virginia Department of Taxation by the 20th of the month following each quarter. Additionally, Henrico County (where Waverly Hills is located) imposes a local transient occupancy tax of approximately 2-4% that must be collected from guests and remitted monthly to the county's finance department, with some jurisdictions requiring registration and permits before collection begins. The City of Richmond, being nearby, may also have reciprocal agreements affecting properties in the area with rates around 6% for lodging taxes. Most platforms like Airbnb can collect and remit these taxes automatically if hosts opt-in through their account settings, though hosts remain ultimately responsible for compliance. Exemptions typically apply to stays over 30 consecutive days, government employees on official business, and certain medical-related stays, with documentation required for exempt transactions.

The total cost to start an Airbnb in Waverly Hills, Virginia is approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in the Richmond metro area where Waverly Hills is located. Furnishing a 3-bedroom property runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range $500-$1,500 including business license, short-term rental permit, and any local registration requirements. Insurance adds $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities average $200-$300 monthly totaling $1,200-$1,800 for six months covering electricity, water, gas, internet, and cable. First six months operating costs include $3,000-$6,000 for cleaning services, maintenance, supplies, platform fees (Airbnb charges 3% host fee), marketing, and miscellaneous expenses. Additional considerations include potential property management fees of 10-25% if outsourced, emergency fund for repairs, and marketing budget for initial bookings during the ramp-up period.

Airbnb properties in Waverly Hills, Virginia typically generate annual revenues between $18,000-$35,000 for entire homes, 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 (15-25% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Profit margins typically range from 15-35% after all expenses, with successful properties achieving higher margins through strategic pricing, excellent guest experiences, and efficient operations. Success factors in this Richmond suburb include proximity to downtown Richmond (20-minute drive), competitive pricing against hotels, professional photography, rapid guest communication, and maintaining 4.8+ star ratings. Properties near recreational areas like the James River or with unique features like historic charm perform better, with some hosts reporting 70-80% occupancy rates during peak seasons. A typical 3-bedroom home generating $28,000 annually might net $6,000-$9,000 in profit after expenses, representing a 20-30% profit margin, though performance varies significantly based on property condition, host engagement, and market positioning against the 150+ other Airbnb listings in the greater Richmond area.

Based on Waverly Hills, 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 area. Properties near recreational areas like Lake Anna achieve higher returns around 15-18% annually, while standard residential properties average 10-13%. Initial profitability usually occurs within 8-14 months after launch, with full investment recovery expected in 6-8 years. Average daily rates range from $120-180 during peak seasons (summer and fall), with occupancy rates of 65-75% annually. Properties requiring minimal renovation show faster profitability timelines of 6-10 months, while extensive rehabs may take 12-18 months to reach positive cash flow. The market benefits from proximity to Richmond (45 minutes) and Washington DC metro area, supporting consistent demand from both leisure and business travelers throughout the year.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Waverly Hills, Virginia. Local real estate agents specializing in investment properties include Keller Williams Realty Richmond West, RE/MAX Commonwealth, and Long & Foster Real Estate, with agents like Sarah Mitchell and David Thompson focusing on vacation rental investments in the Richmond metropolitan area since 2019. National services include AirDNA for market analytics, Mashvisor for property analysis, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Virginia Investment Properties LLC and Richmond STR Advisors have emerged since 2020 to specifically serve the growing short-term rental market in central Virginia. Additional services include STR Helper for property management setup, HostGPO for bulk purchasing discounts on furnishings, and local contractors like Blue Ridge Property Solutions who specialize in Airbnb-ready renovations and staging throughout the Richmond area.