Airbnb Rental Laws and Regulations in Gatlinburg, TN

How does Gatlinburg, TN define a short-term (Airbnb) rental (STR)?

  • Any residential dwelling unit that is occupied by overnight transient guests.
  • A transient lodging option that is rented for periods of one day up to 89 days consecutively.

For the purpose of this information, the terms “Vacation Rental” and “Short-Term Rental” are synonymous. 

Source: Tennessee Department of Revenue

Can investors own more than one vacation rental property in Gatlinburg, TN? 

Yes, in Gatlinburg, Tennessee, there are no restrictions on the number of vacation rental properties an investor can own. However, each property will need to meet the requirements for licensing and adhere to all local regulations regarding short-term (Airbnb) rentals. 

Source: City of Gatlinburg, TN

Does Gatlinburg, TN have any zoning restrictions for STRs?

Yes, Gatlinburg, TN does have zoning restrictions for short-term (Airbnb) rentals. However, these regulations are quite relaxed. Specifically, tourist residencies, which include short-term rental properties, are permitted in most zoning districts.

Source: City of Gatlinburg, TN

In Gatlinburg, Tennessee can an investor own and operate their Airbnb property as a business entity? 

Yes, in Gatlinburg, Tennessee, an investor is allowed to own and operate their Airbnb property as a business entity. This gives investors the flexibility to manage their property in a way that best suits their business structure and financial goals. It’s important to note that all business entities must comply with local and state regulations regarding short-term (Airbnb) rentals.

Source: City of Gatlinburg, TN

In Gatlinburg, TN, can investors register accessory dwelling units (ADU), duplexes, and multifamily homes as Vacation Rentals?

Yes, in Gatlinburg, Tennessee, investors can register accessory dwelling units (ADUs), duplexes, and multifamily homes as vacation rentals. However, they must ensure that these properties comply with all local zoning laws and regulations for short-term (Airbnb) rentals. 

Source: City of Gatlinburg, TN

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What is Gatlinburg, Tennessee’s requirement for obtaining a Vacation Rental License?

In Gatlinburg, Tennessee, investors must obtain a Tourist Residency Permit to use their property for overnight rentals within the city limits, which is obtained by: 

  • Check your property’s zoning.
  • Fill out the Tourist Residency Permit application.
  • Pay the application fee.
  • Submit your application and fee.

Source: Tennessee Department of Revenue

What are the costs associated with a Vacation Rental License in Gatlinburg, TN?

In Gatlinburg, Tennessee, the costs associated with obtaining a Vacation Rental License are as follows:

  • Application fee: $200 for a unit with 2 or fewer bedrooms.
  • Additional fee: $75 per bedroom for each bedroom over two.

These fees cover fire and building inspections of the property to ensure safety for visitors.

Source: Tennessee Department of Revenue

Does Gatlinburg, TN have Vacation Rental occupancy limits?

Gatlinburg, TN does have occupancy limits for vacation rentals, typically determined by factors such as the size of the property and the number of bedrooms it contains. For example, a studio apartment may have a limit of two guests, while a 3 bedroom home may have a limit of 8.

Source: City of Gatlinburg, TN

Does Gatlinburg, Tennessee require an inspection for investors to obtain an STR license? What are the physical and structural requirements for a vacation rental?

Yes, Gatlinburg, Tennessee does require an inspection for investors to obtain a Short-Term (Airbnb) Rental (STR) license. As part of the application process for a Tourist Residency Permit, properties are subject to a fire and building inspection. 

As far as physical and structural requirements, please read this document which explains everything. 

Source: City of Gatlinburg, TN

Does Gatlinburg, TN have any responsible agent requirements?

Yes, Gatlinburg, Tennessee does have responsible agent requirements for operating a vacation rental. As part of the application process for a Tourist Residency Permit, the owner must provide the name and contact information of the rental agent responsible for the property. This individual is expected to manage the property, attend to guests’ needs, and respond promptly to any issues that may arise during a guest’s stay.

Source: City of Gatlinburg, TN

Does Gatlinburg, TN have specific insurance requirements for a Vacation Rental?

Yes, Gatlinburg, TN has specific insurance requirements for vacation rentals. Property owners are typically required to carry liability insurance coverage to protect against potential accidents or injuries that may occur on the premises. Additionally, they may also be required to provide proof of property damage insurance to cover any potential damage caused by guests. 

Source: City of Gatlinburg, TN

What are the duration and renewal terms of a Gatlinburg, Tennessee Vacation Rental license?

In Gatlinburg, Tennessee, there is no specific interval required for renewing Vacation Rental licenses according to the state’s short-term (Airbnb) rental laws. Generally, business licenses for vacation rentals are automatically renewed on an annual basis in most counties and cities, including Gatlinburg, as long as the appropriate taxes are filed and paid.

Source: City of Gatlinburg, TN

In Gatlinburg, TN, do Airbnb and VRBO remit taxes on the host’s behalf? Are there any taxes that the host must track and pay directly to Gatlinburg, Tennessee?

In Gatlinburg, TN, property owners using a management company have the company handle sales tax collection. Those without a management company must register and collect sales tax themselves based on the rental price. Property owners and management companies need to register and collect sales tax in the applicable jurisdictions. Internet platforms may collect and report sales tax, but owners are responsible for other platforms or direct rentals. 

Source: Tennessee Department of Revenue

Who should I contact if I have questions regarding Gatlinburg, TN  Vacation Rentals?

Gatlinburg City Hall: (865) 436-1400

Are there any new laws and regulations that the city is requiring?

No, at the time of writing this, Get Chalet did not find any updates to the city’s laws and regulations governing short-term rentals. 

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