Understanding Short-Term Rental Regulations in the Greater Chattanooga Area

A Homeowner’s Guide from Your Local Property Manager

Owning or purchasing a short-term rental in the Greater Chattanooga Region comes with an important responsibility: understanding the laws that govern STRs where your property is located. Regulations in this area vary widely. One neighborhood may welcome STRs, while the next may prohibit them entirely. As local property managers, we guide homeowners through these rules every day. This overview breaks down what you need to know to stay compliant and protect your investment.

Why STR Regulations Matter in Tennessee

Tennessee gives local governments broad authority to shape their own STR policies. Because of this, the rules in Chattanooga look very different from the rules in Signal Mountain or in the nearby North Georgia counties. Some areas require official permits. Others tightly limit or disallow STRs altogether. A street’s zoning designation can determine whether a home is eligible to operate as a vacation rental.

Non-compliance isn’t something to take lightly. Owners may face fines, permit revocation, or even being forced to stop renting entirely. Staying informed is essential—and far more cost-effective than dealing with corrective enforcement later.

Statewide Requirements All Tennessee STR Owners Must Follow

Regardless of local jurisdiction, Tennessee has a few statewide requirements all STR operators must meet. First, owners must register with the Tennessee Department of Revenue. Second, STR hosts are required to collect and remit all applicable taxes, including state sales tax and any county or city occupancy taxes.

It’s worth noting that Airbnb and Vrbo sometimes collect certain taxes on behalf of hosts, but they do not always collect every tax required locally. This is one of the most common compliance issues we see with new homeowners.

How STR Rules Differ Across the Region

SkyRun Vacation Rentals Chattanooga manages homes throughout the region, giving us a clear view of how regulations vary from one area to the next.

Chattanooga, TN

Chattanooga requires STR permits and differentiates between owner-occupied and non-owner-occupied rentals. Zoning plays a major role in where STRs are allowed, and most permits must be renewed annually. Some properties also require inspections or additional safety documentation.

Signal Mountain, TN

Signal Mountain is one of the most restrictive towns for short-term rentals. Non-owner-occupied STRs are rarely approved, and neighborhood covenants often add another layer of rules. Enforcement is active, meaning homeowners should verify eligibility early in the process.

North Georgia Counties (Dade, Walker, Catoosa)

Just across the Tennessee border, each county in North Georgia has its own approach to STRs. Some require operating certificates or business licenses, while others focus heavily on lodging tax compliance. Because these counties follow Georgia—not Tennessee—laws, homeowners near the border must understand which jurisdiction governs their property.

Key Requirements STR Owners Should Expect

Although the specifics vary by city or county, most areas in the region share similar expectations. Zoning verification is the first step for any homeowner, ensuring that STR use is even allowed in the property’s district. Many areas require a permit, proof of insurance, and a verified emergency contact who is available 24/7.

Safety requirements typically include working smoke and carbon monoxide detectors, fire extinguishers, and posted emergency exit information. Occupancy limits may be determined by bedroom count, septic capacity, or square footage, while parking guidelines often depend on how many guests the home can host.

Understanding these requirements ahead of time makes the onboarding process significantly smoother and avoids disruptions once a rental is live.

Who to Contact for Accurate STR Information

If you’re unsure about STR rules in your area, start with your local zoning department—they can confirm whether STR use is allowed at your address. The city clerk or permitting office can walk you through permit applications and renewal processes, while codes enforcement handles safety and compliance questions.

As a local property manager, SkyRun Chattanooga stays up to date with STR regulations across all surrounding counties. We help homeowners identify whether their property qualifies, manage the permitting process, and stay compliant as regulations evolve.

Final Thoughts

Short-term rental laws in the Greater Chattanooga Area are detailed and often complex, but with the right information and professional support, staying compliant is manageable. Understanding zoning rules, obtaining the proper permits, and meeting safety standards protects your home, your revenue, and your guests.

If you’d like help evaluating whether your home qualifies for STR use—or need guidance through the permitting and compliance process—we’re here to help. Reach out to our team at chattanooga@skyrun.com.