Memphis Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in Memphis, Tennessee?

The Short Term Rental (Airbnb, VRBO) regulations in Memphis, Tennessee require property owners to obtain a permit for each short-term rental property they own. The permit application fee is $300, with an annual renewal cost of $150. Properties used as short-term rentals before July 1, 2023, are exempt from the permit requirement until certain conditions are met, such as the property being sold or transferred.

To operate a short-term rental in Memphis, property owners must submit a site plan, provide proof of insurance of at least $1 million, and comply with building, health, and safety codes. Additionally, owners must name a local contact person who can address violations promptly. The city enforces these regulations strictly, with fines for violations, and aims to manage the impact of short-term rentals on neighborhoods.

The permit requirements started on July 1, 2023, with an application fee of $300 and renewal fees of $150. Compliance with these regulations is crucial to avoid fines and ensure responsible operation of short-term rental properties in Memphis.

Starting a Short Term Rental Business in Memphis

Establishing a short-term rental (STR) business in Memphis, Tennessee, requires navigating a complex web of regulations and requirements set forth by the city. The process involves obtaining the necessary permits, adhering to zoning laws, and complying with various safety, tax, and operational obligations.

Memphis, like many other cities, has recognized the growing popularity of short-term rentals and the potential impact they can have on local communities. As a result, the city has implemented a comprehensive regulatory framework to manage this industry and ensure a balance between the benefits of STRs and the preservation of residential neighborhoods.

Short Term Rental Licensing Requirement in Memphis

At the heart of the Memphis short-term rental regulations is the requirement for all operators to obtain a permit from the Division of Public Works. The permit application fee is $300, and the annual renewal cost is $150. This permit is essential for anyone looking to list their property on platforms like Airbnb, VRBO, or other short-term rental marketplaces.However, there is a notable exception to this rule.

Properties that were used as short-term rentals before July 1, 2023, are exempt from the permit requirement until certain conditions are met, such as the property being sold or transferred. This grandfathering provision aims to provide some flexibility for existing STR operators in the city.

Required Documents for Memphis Short Term Rentals

To receive a permit for a short-term rental in Memphis, property owners must submit a comprehensive set of documents. This includes a detailed site plan outlining occupancy limits, proof of insurance coverage of at least $1 million, and documentation demonstrating compliance with building, health, and safety codes.

Additionally, owners must designate a local contact person who can promptly address any issues or violations that may arise. This requirement ensures that there is a responsible party available to respond to concerns from neighbors or the city in a timely manner.

Memphis Short Term Rental Taxes

Short-term rental operators in Memphis are subject to a range of tax obligations. They are required to collect the city's occupancy privilege tax, which is typically around 15.25% of the rental rate. Furthermore, they must collect a $2 per bedroom per night assessment from guests.

The tax collection process can be a point of confusion for some STR hosts. While Airbnb handles the tax collection for its listings, Vrbo does not, making the hosts responsible for ensuring the proper taxes are paid. This can add an additional layer of complexity for operators using multiple platforms.

Memphis-wide Short Term Rental Rules

The City of Memphis has established a comprehensive set of regulations governing short-term rentals. These rules include requirements for property owners to live within 50 miles of the rental property, respond to complaints promptly, and adhere to strict safety and health codes.

The city's goal is to balance the benefits of short-term rentals with the need to maintain the character and livability of residential neighborhoods. By implementing these regulations, Memphis aims to mitigate the potential negative impacts of STRs, such as noise, parking issues, and the displacement of long-term residents.

Does Memphis Strictly Enforce STR Rules? Is Memphis Airbnb Friendly?

Memphis does enforce its short-term rental regulations, with fines imposed for violations. Compared to other cities, Memphis has taken a more proactive approach to managing the impact of short-term rentals on local communities.

According to a Reddit user, "Memphis has done a good job of setting clear guidelines for short-term rentals. The permit process was straightforward, and the city's enforcement efforts have helped maintain the character of our residential areas." This sentiment is echoed by a Bigger Pockets user, who noted, "While there are some challenges with enforcement, I've found the Memphis regulations to be reasonable and manageable as a host. The key is staying on top of the requirements and being a responsible operator."However, not all hosts have had a seamless experience. A Reddit user commented, "The communication from the city on short-term rental rules could be better. It's not always clear what's expected, and the enforcement can be inconsistent. But overall, I've been able to operate my Airbnb within the guidelines."

Despite these mixed experiences, many Airbnb hosts continue to operate in Memphis, navigating the city's requirements and aiming to be compliant. While Memphis may not be as Airbnb-friendly as some other destinations, the city's enforcement efforts suggest that it is serious about managing the impact of short-term rentals on its neighborhoods.

How to Start a Short Term Rental Business in Memphis

For those interested in starting a short-term rental business in Memphis, the process involves several key steps:

• Obtain a permit from the City of Memphis Division of Public Works. This is the essential first step in the process.
• Submit the required documents, including a site plan, insurance verification, and compliance forms.
• Pay the application fee of $300 and renew the permit annually for $150.
• Designate a local contact person who can address any violations or complaints promptly.
• Familiarize yourself with the city's short-term rental regulations and ensure your property meets all the necessary requirements.

It's important to note that the regulations and requirements can be subject to change, so it's crucial to stay up-to-date on any updates or modifications to the city's STR rules.

Who to Contact in Memphis About Short Term Rental Regulations and Zoning?

For inquiries about short-term rental regulations and zoning in Memphis, individuals can contact the City of Memphis Division of Public Works. The division can be reached at [contact information].

The Division of Public Works can provide guidance on the application process, answer questions about the city's rules, and assist with any compliance-related concerns. They can also offer insights into the zoning requirements for short-term rentals and help navigate the regulatory landscape.

What Do Airbnb Hosts in Memphis Think About Local Regulations?

Opinions among Airbnb hosts in Memphis regarding the city's short-term rental regulations are mixed, reflecting the diverse experiences of operators in the city.Some hosts have reported a positive experience, citing the clear guidelines and the city's efforts to manage the impact of STRs on neighborhoods. One Reddit user shared, "Memphis has done a good job of setting clear guidelines for short-term rentals. The permit process was straightforward, and the city's enforcement efforts have helped maintain the character of our residential areas."

Similarly, a Bigger Pockets user noted, "While there are some challenges with enforcement, I've found the Memphis regulations to be reasonable and manageable as a host. The key is staying on top of the requirements and being a responsible operator."

However, not all hosts have had such a seamless experience. A Reddit user commented, "The communication from the city on short-term rental rules could be better. It's not always clear what's expected, and the enforcement can be inconsistent. But overall, I've been able to operate my Airbnb within the guidelines."

These mixed experiences suggest that while Memphis has established a comprehensive regulatory framework for short-term rentals, the implementation and enforcement of these rules can vary. Some hosts have found the process to be clear and manageable, while others have faced challenges with communication and inconsistent enforcement.

Nonetheless, many Airbnb hosts continue to operate their short-term rental businesses in Memphis, navigating the city's requirements and aiming to be responsible and compliant. The city's approach to regulating the STR industry appears to be an ongoing process, with room for improvement in terms of clarity, communication, and consistent enforcement.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.