Short-Term Rental Rules In Chattanooga

Thinking about turning your Chattanooga property into an Airbnb or VRBO? You are not alone. Short-term rentals can create solid income, but only if you set them up the right way. The good news is you can avoid costly mistakes by understanding how Chattanooga regulates permits, zoning, safety, and taxes. This guide walks you through what to check, how to apply, and where to verify details with official sources. Let’s dive in.

Chattanooga STR basics

Short-term rentals are regulated inside Chattanooga city limits. You should expect to register with the City, follow zoning rules, meet safety standards, and handle state and local taxes. Start by reviewing the City’s official site for department contacts and updates, then scan the municipal code library for the definitions and sections that apply to short-term lodging.

• Review City info and updates on the City of Chattanooga official site.
• Search the Chattanooga municipal code library for current ordinances.

If your property is outside city limits but still in Hamilton County, county rules and tax offices may apply. The Hamilton County official site is a good starting point for property records and county-level contacts.

Permit types and how to apply

Many cities, including Chattanooga, distinguish between different STR setups. In practice, this means you will confirm which category fits your property, then complete the related application steps.

• Owner-occupied or primary residence: You live on site and rent a room or your home while you are there. This often has lighter requirements.
• Non-owner-occupied or whole-home: You rent the entire property when you are not living there. This usually involves stricter zoning checks and may trigger inspections.
• Commercial or multi-unit: Properties used primarily for lodging may be processed under a commercial or special classification.

You can locate the right office and application portal by using the City’s department directory. Look for Planning, Building Inspections or Code Enforcement, and Revenue.

• Use the City departments directory to find Planning, Code Enforcement, Building Inspections, and Revenue.

What you will likely need

Plan to gather a simple but thorough package before you apply:

• Proof of ownership or authorization from the owner.
• Proof of primary residence if applying as owner-occupied.
• A floor plan and a statement of maximum occupancy.
• A local emergency contact or responsible party.
• Evidence of code compliance and basic life-safety features.
• Insurance that covers short-term rental activity.
• Payment for application and renewal fees.

Typical application flow

• Submit your online application with required documents.
• The City reviews zoning and building code compliance.
• If required, an inspection is scheduled and completed.
• Once approved, you receive a permit or registration number.
• Plan to display your permit or registration number on listings if the City requires it.

Always confirm current forms, fees, renewal timelines, and display rules with the appropriate City office. You can navigate to the correct department from the City departments directory.

Zoning and neighborhood rules

Zoning determines where short-term rentals are allowed and under what conditions. In some districts STRs are allowed by right. In other areas, only owner-occupied rentals may be permitted. Whole-home rentals may require a conditional approval process or may not be allowed at all in specific zones.

What to check for your address:

• Zoning district and any overlay districts that affect your parcel.
• Whether owner-occupied or non-owner-occupied STRs are allowed.
• Parking requirements and trash rules.
• Neighborhood caps, spacing rules, or historic district guidelines.
• HOA bylaws or condo rules if the property is in a community association.

To verify zoning for a specific property and request guidance, contact Planning via the City departments directory. For ordinance text and definitions, search the municipal code library.

Safety, occupancy, and operating standards

Short-term rentals must meet basic life safety standards and operate in a way that respects neighbors. While specific requirements vary by permit type and zone, most STRs will need the following:

• Working smoke alarms and carbon monoxide detectors.
• Safe, clear egress from bedrooms and living areas.
• Posted emergency instructions and a local contact.
• A fire extinguisher in an accessible location.
• House rules that address noise, parking, and trash pickup.

Occupancy is often tied to building or fire code calculations. Some cities set a general rule such as a limit per bedroom, while others rely on square footage and egress standards. Confirm limits for your address with Building Inspections or Code Enforcement through the City departments directory. When in doubt, err on the conservative side to protect guest safety.

Taxes and business registration

Short-term rental income typically triggers both state and local taxes, along with registration requirements. In Tennessee, you should expect to register to collect and remit sales tax on taxable rental receipts. Local occupancy or hotel taxes may also apply within Chattanooga or Hamilton County.

• Register with the Tennessee Department of Revenue for sales and use tax and to review state guidance on lodging.
• Contact the City Revenue or Finance office via the City departments directory for local occupancy tax and any business license requirements.
• Keep monthly or quarterly records for reporting.
• Check whether your platform collects certain taxes on your behalf in this jurisdiction. Even if a platform collects some taxes, you may still need to register and file with the City and State.

Failure to register and remit taxes can lead to penalties, back taxes, or a suspension of your ability to operate. If a question is unclear, verify in writing with the revenue offices listed above.

Step-by-step launch plan for Chattanooga

Follow this practical roadmap to set up your STR correctly:

1. Confirm zoning and allowed use

• Identify your parcel’s zoning and any overlay districts.
• Ask Planning if your specific address can operate as owner-occupied or non-owner-occupied, and whether a conditional approval is needed.

2. Check HOA or condo rules

• Review community documents for rental restrictions and minimum stay requirements.

3. Prepare your permit application

• Gather ownership documents, safety details, floor plan, and emergency contact information.
• Confirm fees, inspections, and renewal timing with the City office that handles STRs.

4. Register for taxes

• Register with the Tennessee Department of Revenue for sales tax.
• Contact City Revenue through the City departments directory to set up local occupancy tax and obtain any required business license.

5. Complete safety upgrades and inspections

• Install smoke and CO detectors, post emergency info, and place a fire extinguisher.
• Schedule any required inspection through Building Inspections.

6. List with compliance in mind

• Display your permit or registration number on your listing if required.
• Publish clear house rules on noise, parking, and trash.
• Confirm taxes are being collected and remitted correctly.

Quick property pre-screen checklist

Use this checklist to evaluate a property before you buy or list it as a short-term rental:

• Zoning and overlays: STR allowed at this address for your intended use?
• Property type: Single-family, condo, or multi-unit; any HOA rules to follow?
• Permit path: Owner-occupied or non-owner-occupied; inspections required?
• Taxes: Registered with State and City; platform tax collection verified?
• Safety: Smoke and CO detectors, egress, fire extinguisher, posted info.
• Parking and trash: Meets City standards and neighborhood rules.
• Insurance: Policy specifically covers short-term rental activity.
• Local contact: A reachable responsible party to address issues promptly.
• Enforcement history: Any prior complaints on the block or at the address?
• Financial model: Projected occupancy, nightly rate, cleaning, and taxes.

For zoning, permitting, and department contacts, start with the City departments directory. For broader county matters or property records, use the Hamilton County official site.

Common mistakes to avoid

Avoid these missteps that often lead to delays or fines:

• Listing before you confirm zoning and permits.
• Ignoring HOA or condo rules that restrict short-term rentals.
• Skipping the safety basics like CO detectors and posted instructions.
• Assuming the platform handles all your taxes without checking with the City and State.
• Forgetting to post your permit or registration number on the listing if required.
• Not keeping clean records for renewals and tax filings.

How a local pro can help

Getting the details right can save you time and money. You can lean on a local real estate advisor who knows Chattanooga neighborhoods and the practical ins and outs of STR investing. From screening properties for zoning fit to connecting you with the right City offices and local insurance contacts, the right partner helps you set up the right way.

If you are considering buying, selling, or repositioning a property for short-term rental, reach out to Kevin Jennings. Kevin combines local expertise with a consultative, pressure-free approach so you can make confident moves. Ready to estimate value or map your next steps? Get Your Instant Home Valuation and let’s talk through your goals.

FAQs

What is a short-term rental in Chattanooga?

• It generally means renting a dwelling for short stays rather than a long-term tenancy. For exact definitions and thresholds, review the Chattanooga municipal code library or confirm with Planning through the City departments directory.

Do I need a permit to operate an Airbnb in Chattanooga?

• You should expect to register and obtain any required permit before listing, with steps that depend on your property type and location. Verify the process with the appropriate office via the City departments directory and check the municipal code library.

Are non-owner-occupied STRs allowed in every Chattanooga neighborhood?

• It depends on zoning and any overlay districts. Some areas allow STRs by right, some limit them to owner-occupied setups, and others may require special approvals. Start with Planning via the City departments directory.

What taxes apply to short-term rentals in Chattanooga and Hamilton County?

• Expect Tennessee sales tax and a local occupancy or hotel tax to apply. Register with the Tennessee Department of Revenue and contact City Revenue through the City departments directory to confirm local requirements.

Will my Chattanooga STR need an inspection before a permit is issued?

• Many jurisdictions require inspections, especially for non-owner-occupied or whole-home rentals. Check with Building Inspections or Code Enforcement through the City departments directory to confirm what applies to your address.