Tennessee Short-Term Rental Law (2026)

Key Facts

Statute: TCA 13-7-602
Grandfather Protection: Pre-ordinance units
Local Permits: Allowed for new units
Family Transfer: Status preserved

Full Breakdown

Under TCA 13-7-602, the Short-Term Rental Unit Act prevents local governments from prohibiting STRs that were operating lawfully before a restrictive ordinance was adopted. Cities may require permits for new STRs and impose reasonable health, safety, and noise standards, but cannot retroactively ban grandfathered units. Permit revocation is limited to specified violations, and units retain protected status when transferred to family members. The state law preserves local zoning authority for new applications while shielding existing operators from outright prohibition.

Violations & Penalties

Operating without a required local permit risks municipal fines, but state law blocks cities from banning grandfathered units outright.

Frequently Asked Questions

Does Tennessee require a state STR permit?

No, Tennessee does not issue a statewide STR permit. Permits are issued at the local level, but state law limits how cities can ban existing operators.

Can my city ban my existing short-term rental?

Generally no, if you were lawfully operating before the local ordinance was adopted. TCA 13-7-602 grandfathers pre-ordinance STRs from outright prohibition.

Can I transfer my grandfathered STR to my child?

Yes, the protected status under TCA 13-7-602 transfers to family members when ownership changes within a family, preserving the unit's grandfathered rights.

Tennessee Short-Term Rental Unit Act Local Permit Preemption

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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