Tennessee's Short-Term Rental Unit Act limits how local governments can regulate vacation rentals and grandfathers properties operating before local bans took effect.
The Tennessee Short-Term Rental Unit Act, codified at Tennessee Code Annotated Sections 13-7-601 through 13-7-603, establishes statewide rules governing local regulation of short-term rentals. Local governments may regulate STRs but cannot prohibit a property that was lawfully operating before the local ordinance took effect, preserving vested rights. Cities retain authority over health, safety, occupancy limits, noise, parking, and tax collection. The statute also requires local governments to allow grandfathered owners to continue operating, and platforms must comply with state registration and tax remittance frameworks under sales and occupancy tax law.
Local ordinances banning grandfathered STRs are void; cities may still enforce health, safety, and tax compliance violations.
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See how Columbia's rental registration rules stack up against other locations.
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