Cape Charles

Cape Charles requires all short-term rental operators to obtain both a town business license and a specific STR permit, subject to an annual $100 fee. The town enforces strict occupancy limits (2 per bedroom + 2) and requires a $1M liability insurance policy. Hosts must remit 4.7% in local Transient Occupancy Tax in addition to state sales taxes.

To host an Airbnb in Cape Charles, you must apply for a Town STR Permit and a Business License. You don't need to live in the home to rent it out, but you must follow strict occupancy rules, usually limited to 2 people per bedroom plus 2 extra guests. You are required to have $1 million in liability insurance and must post emergency contact info and exit maps inside the house. Even if Airbnb collects your taxes, you still have to file quarterly tax forms with the Town showing $0 due.