What you need to know to buy at SML
Nestled at the foot of the Blue Ridge Mountains of Virginia, Smith Mountain Lake is a highly desired location for buyers wanting a second home or approaching retirement. Smith Mountain Lake was created in 1963, following the construction of a hydroelectric dam for Appalachian Power Company at the confluence of the Blackwater and Roanoke Rivers. The lake reached its full capacity in 1966. American Electric Power (AEP) controls the shoreline, more precisely the 800-feet contour of the lake.
Since the lake was established in the 1960s, real estate options have grown from traditional waterfront properties to custom building opportunities, maintenance-free planned neighborhoods and condominium and townhome communities. Golf community homes and condos are currently some of its most enticing real estate options. The lake is now home to about 22,000 year-round residents, not all of whom are retirees. While living at the lake can be carefree, buying a home in this vacation market with plenty of variables, such as renting, landscaping and building docks is not a simple undertaking.
Where to buy
Berkshire Hathaway Realtor Debbie Shelton says, “My best tip for buying at the lake is to try and spend some time getting to know the different areas, like vacationing here, before you start shopping for a house. Some people hone in on a specific area, or neighborhood, and it will make your home search more enjoyable and productive to know ahead of time.”
With more than 550 miles of scenic shoreline, Smith Mountain Lake presents a myriad of ownership opportunities. The lake is surrounded by three counties: Bedford, Franklin and Pittsylvania. Bedford is to the east of the lake, and home to Huddleston and Mariners Landing Resort Community and Conference Center. Franklin County is to the west of the lake, home to Bridgewater Plaza and miles of hiking trails. Pittsylvania is the southern part of the lake. It houses the oldest marina on the lake: The Dock at Smith Mountain Lake in Penhook. This county is made up of historic main street communities and has the least amount of lake frontage of the trio of counties.
Bedford County was developed first and has older homes. “[The Bedford County] area was developed with a more rural vibe. Concentration is less and there are older communities with more trees,” according to Realtor Fred Cuffari of ML Realty. He goes on to add, “Franklin County was developed a decade later with newer homes and more subdivisions. Pittsylvania is the most remote of the three.”
How to rent your property
The lake is a popular destination for renters, but only about 50 percent of the homes are rentable. If you are a prospective buyer, you will significantly limit your selection of available homes to buy and pay more for the perk.
Different counties have different regulations for renting, so a buyer needs to be familiar with the permit variance, or work with a Realtor who does. According to Teresa Grant of The Realty Group Team, “Bedford and Pittsylvania counties allow short-term rentals whereas Franklin County is not as short-term rental friendly except in particular zoning.” In Franklin County, short-term rentals are allowed by right in Planned Commercial Development Districts (PCD) and Residential Planned Unit Development Districts (RPD). Short-term rentals are allowed in Agricultural districts (A-1) by issuance of a Special Use Permit. This involves meeting with planning staff, submitting a complete application with necessary fees and attending public hearings before the Planning Commission and Board of Supervisors.
Bedford County has new regulations in place after concerns from residents about some negative impacts of renters in the communities. As of August 2023, all short-term property owners are required to submit a yearly management plan. Owners must designate a local (within a 50-mile radius) point of contact who will be available to come out to the property in case of emergency. The ordinance clearly states that guests can only park vehicles on the property itself, not in the street. Any violations to the management plan will be charged to the property itself, with a three-violation limit.
All three counties consider the allowable person count as two adults per bedroom. The number of bedrooms in dwellings rely upon septic tanks and sewage disposal, and the health department issues permits for the number of bedrooms. Each county requires proof of septic system approval and a compliance inspection. In Bedford County, septic pump-out every five years is mandatory.
Dock rules and regulations
While you can read more extensively about docks starting by clicking here, here’s a quick overview:
“AEP essentially controls the entire shoreline of Smith Mountain Lake. The primary things that require an AEP permit are the following: building or modifying a boat dock, adding riprap [rocky material added to the shoreline to protect from erosion] and removing vegetation, such as trees blocking your view,” according to Grant. A formal Dock Permit from AEP is required and a licensed surveyor needs to perform a survey on the property, showing details of the planned dock. This survey usually costs between $800-$1,000. Grant stresses that building docks generates “a lot of paperwork that must be done properly and usually takes between 30-90 days to approve.” Docks built before 2003, the year the Shoreline Management Plan was introduced, are grandfathered in, even if they don’t conform to current regulations. But any modifications to an existing dock require a permit.
Best time to buy
High season at the lake is Memorial Day until Labor Day, and is not necessarily the ideal time to buy. More people put houses on the market in prime season, but it’s also the hottest market. According to Cuffari, “Fall is the time when owners are the most receptive to selling. Buyer demand increases in the new year.”
If you wish to call the lake home, make sure you use a local, experienced Realtor. Shelton says, “Most people don’t realize that buying a lake house is a bit like putting a puzzle together. There are many variables to consider in addition to location … It can be daunting to find the perfect combination, or decide which things you can compromise on. My advice, houses are changeable, lots aren’t.”
With a little help, you soon may be navigating the beautiful lake in front of your new home. Happy house hunting! ✦