Chattanooga Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Chattanooga, Tennessee?

Short-term vacation rentals (STVRs) in Chattanooga, Tennessee, are subject to new regulations aimed at protecting the city's long-term housing supply and ensuring compliance with zoning and planning codes. The new policy for VRBO and Airbnb rentals was adopted after 13 months and 27 drafts1. The city has designated specific zones where STVRs are allowed, such as commercial zones that allow hotels5. Homestays, where the homeowner lives full-time in the dwelling, are allowed in every commercial zone that allows hotels, as well as any residential zone in the existing short-term vacation rental overlay2.

To operate an STVR in Chattanooga, you must obtain a license and remit occupancy taxes5. The application fee for a homestay is $250, and the renewal fee is also $250. For an absentee rental, the application fee is $500, and the renewal fee is also $5005. The city has implemented stricter enforcement measures for STVRs, including fines for violations of the new ordinance2.

Chattanooga's regulations are in line with state-wide rules for short-term rentals in Tennessee3. To start a short-term rental business in Chattanooga, you must check your property's zoning and proximity to the Short-Term Vacation Overlay, obtain the necessary licenses and permits, remit occupancy taxes, and ensure compliance with all local regulations and zoning codes5.

Starting a Short Term Rental Business in Chattanooga

Chattanooga, Tennessee, has implemented new regulations for short-term vacation rentals (STVRs) to protect the city's long-term housing supply and ensure compliance with zoning and planning codes. These regulations apply to both Airbnb and VRBO rentals.

To start a short-term rental business in Chattanooga, follow these steps:

• Check your property's zoning and proximity to the Short-Term Vacation Overlay: STVRs are allowed in specific zones, such as commercial zones that allow hotels and residential zones in the existing short-term vacation rental overlay3.
• Obtain the necessary licenses and permits: The city has designated specific zones where STVRs are allowed, such as commercial zones that allow hotels1. Homestays, where the homeowner lives full-time in the dwelling, are allowed in every commercial zone that allows hotels, as well as any residential zone in the existing short-term vacation rental overlay4.
• Remit occupancy taxes: The Hamilton County Occupancy Tax Form can be found on the city's website3.
• Ensure compliance with all local regulations and zoning codes: Chattanooga has implemented stricter enforcement measures for STVRs, including fines for violations of the new ordinance1. The city has also implemented a cooling-off period before anyone can apply for an STVR permit for a specific property1.

Chattanooga's new regulations aim to provide an avenue for residents to reap the economic benefits of STVRs while maintaining a healthy housing market for residents1. The city has worked closely with business owners and neighborhood groups to develop these new rules1.

Short Term Rental Licensing Requirement in Chattanooga

In Chattanooga, Tennessee, all short-term rentals (STRs) must obtain a permit and renew it annually. There are two main types of STR designations: Homestay (owner-occupied) and Absentee (non-owner-occupied). The licensing fees are as follows:

• Homestay: $250 application fee, $250 renewal fee
• Absentee: $500 application fee, $500 renewal fee1.

The city has also implemented additional fees, and while the specific documents required for an STR permit were not listed, typical requirements in other cities include proof of ownership/rights to the property, floor plans indicating rooms rented to guests, local contact information, and proof of insurance1.

Chattanooga's new regulations aim to simplify compliance, increase fines for violations, and protect residential zones from overtly commercial activity2. The city has also introduced an 18-month cooling-off period before anyone can apply for an STR permit for a specific property to discourage circumvention of the new laws3.

Required Documents for Chattanooga Short Term Rentals

To obtain a short-term rental license in Chattanooga, you must submit the following documents and pay the required fees:

• Homestay:
• Application fee: $250
• Renewal fee: $250
• Absentee:
• Application fee: $500
• Renewal fee: $500

Additional fees may also apply. The specific documents required for a short-term rental permit were not listed in the search results. However, based on typical requirements in other cities, owners likely need to provide:

• Proof of ownership/rights to the property
• Floor plans indicating rooms rented to guests
• Local contact information
• Proof of insurance

Please note that these requirements may vary, and it is essential to consult the city's official website or contact the city directly for the most up-to-date information.

Chattanooga Short Term Rental Taxes

Short-term rental taxes are an essential part of operating a short-term rental business in Chattanooga, Tennessee. Property owners, marketplace facilitators, and property management companies who rent, facilitate, or manage real property meeting the definition of a short-term rental unit may be responsible for collecting and remitting various Tennessee taxes4. Renting a room, lodging, or accommodation for a charge is subject to Tennessee sales tax, including cabins, cottages, chalets, condominiums, houses, or individual rooms that are rented for lodging4. However, sales tax does not apply to accommodations or rooms rented for more than 90 consecutive days4.

In addition to sales tax, short-term rental operators must also remit occupancy taxes. The Hamilton County Occupancy Tax Form can be found on the city's website1. The return and payment are due by the 20th day of each month, and the return includes both the state sales tax (7%) and the local sales tax (which varies depending on where the short-term rental unit is located) 4. A marketplace facilitator with an active Tennessee sales tax permit may collect and remit the state and local sales tax on behalf of the short-term rental operator4.

It is important to note that these taxes are generally paid directly to the local county or municipality, not to the Department4. Short-term rental operators must ensure compliance with all local regulations and zoning codes to avoid fines for violations of the new ordinance2. By remitting occupancy taxes, short-term rental operators can contribute to the local economy while ensuring compliance with state and local regulations.

Tennessee Wide Short Term Rental Rules

Chattanooga's short-term rental regulations are in line with state-wide rules for short-term rentals in Tennessee. The city has worked closely with business owners and neighborhood groups to develop these new rules1. Key aspects of Tennessee-wide short-term rental rules include:

• Protection of Private Property Rights: The new regulations aim to protect private property rights and safeguard the integrity of Chattanooga's neighborhoods by limiting new short-term vacation rentals1.
• Different Approaches for Absentee Landlords and Homeowners: The city recognizes the difference between absentee landlords and landlords who reside in the city and has adopted different approaches for each, given the commercial nature of renting out an entire home as a business versus renting out a bedroom or basement to help make ends meet1.
• Zoning and Planning Codes: Chattanooga's regulations are in line with state-wide rules for short-term rentals in Tennessee, ensuring compliance with zoning and planning codes1.
• Simplified Compliance and Enhanced Enforcement: The new regulations simplify compliance, increase fines for violations, and protect Chattanooga's residential zones from overtly commercial activity1.
• Cooling-Off Period: The city has implemented a cooling-off period before anyone can apply for an STVR permit for a specific property, discouraging property owners from circumventing the new laws4.
• Administrative Hearing Officer: All alleged violations of any STVR rules will go before an administrative hearing officer, who can charge up to $500 per day for violations of the new ordinance5.

In summary, Chattanooga's short-term rental regulations are in line with state-wide rules for short-term rentals in Tennessee. The city has worked closely with business owners and neighborhood groups to develop these new rules, ensuring compliance with zoning and planning codes while protecting private property rights and safeguarding the integrity of Chattanooga's neighborhoods1.

Does Chattanooga strictly enforce STR rules?

Chattanooga has implemented stricter enforcement measures for short-term vacation rentals (STVRs) to protect the city's long-term housing supply and ensure compliance with zoning and planning codes. The city has approved administration-sponsored legislation that will reform and simplify compliance while toughening enforcement15. The new law will protect private property rights and safeguard the integrity of Chattanooga's neighborhoods by limiting new short-term vacation rentals15.

The city has designated specific zones where STVRs are allowed, such as commercial zones that allow hotels2. Homestays, where the homeowner lives full-time in the dwelling, are allowed in every commercial zone that allows hotels, as well as any residential zone in the existing short-term vacation rental overlay23.

Chattanooga has implemented a cooling-off period before anyone can apply for an STVR permit for a specific property34. The city has also implemented stricter enforcement measures, including fines for violations of the new ordinance2. All alleged violations of any STVR rules will go before an administrative hearing officer, who can charge up to $500 per day for violations of the new ordinance3.

Airbnb hosts in Chattanooga have mixed opinions about the city's regulations. Some hosts appreciate the new rules, while others find them restrictive3. However, the city has made efforts to simplify compliance and protect residential zones from overly commercial activity3.

How to Start a Short Term Rental Business in Chattanooga?

To start a short-term rental (STR) business in Chattanooga, follow these steps to ensure compliance with the city's regulations:

• Determine Property Qualification: Check if your property qualifies as a Homestay (owner-occupied) or Absentee (non-owner-occupied) rental. Homestays are allowed in all commercial zones, provided the owner lives on-site as their primary residence. Absentee rentals are only allowed in select commercial districts and prohibited in residential zones3.
• Review Zoning Regulations: Confirm that STRs are allowed in your property's location and comply with the city's zoning regulations3.
• Apply for Permit: Apply for the required permit and pay the necessary fees. The application fee for a homestay is $250, and the renewal fee is also $250. For an absentee rental, the application fee is $500, and the renewal fee is also $5005.
• Register for Occupancy Taxes: Register to collect and remit occupancy taxes for your STR property5.
• Set Up Property: Establish house rules, cleaning procedures, and other necessary arrangements to ensure your property is ready for guests3.
• List on Rental Platforms: Once licensed and compliant, list your property on rental platforms such as Airbnb and VRBO3.

Chattanooga's recent reforms aim to protect residential zones, simplify compliance, and increase fines for violations, demonstrating the city's commitment to regulating the short-term vacation rental industry45.

Who to contact in Chattanooga about Short Term Rental Regulations and Zoning?

For inquiries related to STR rules and zoning in Chattanooga, contact:Land Development Office (423) 643-5880 stvr@chattanooga.govYou can also schedule an in-person meeting to discuss STR policies and procedures.

What do Airbnb hosts in Chattanooga on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Chattanooga have varying opinions about the city's regulations. Some hosts appreciate the new rules, as they provide clarity and simplify compliance. However, others find the regulations restrictive, as they limit the number of short-term rentals in residential zones and require a local contact to be available 24/72.

Despite the regulations, some hosts continue to operate in Chattanooga, as the city has made efforts to simplify compliance and protect residential zones from overly commercial activity3. The city has also implemented a cooling-off period before anyone can apply for an STVR permit for a specific property3.

In summary, Chattanooga's regulations for short-term rentals have both positive and negative aspects, depending on the perspective of the hosts. The city has worked to balance the needs of residents, business owners, and visitors while ensuring compliance with zoning and planning codes.