Gatlinburg, TN Rental Regulations FAQ 2025

Written by: Sanjin Hadziomerovic

Comprehensive FAQs for Short-Term Rental (STR) Regulations in Gatlinburg, TN

Investing in short-term rental (STR) properties requires an in-depth understanding of local regulations. Below is a comprehensive list of frequently asked questions (FAQs) for STR operators and investors to help you navigate the rules in Gatlinburg, TN and stay compliant while maximizing profitability.

1. What is considered a short-term rental in Gatlinburg, TN?

Any “overnight rental” within the corporate limits—that is, lodging rented for transient occupancy (generally less than 30 consecutive days)—requires a Tourist Residency Permit and related business licenses (Overnight Rental Information).

2. Do I need a permit to operate a short-term rental in Gatlinburg, TN?

Yes. You must obtain:

• A City of Gatlinburg business license ($15 application fee) and a Sevier County business license ($15 application fee) (Overnight Rental Information).
• A Tennessee Department of Revenue tax ID (required for gross receipts and sales taxes).
• A Tourist Residency Permit, which carries a $200 fee for a two-bedroom (or fewer) unit plus $75 per additional bedroom; permit fees cover the required fire and building inspections (Apply for a Tourist Residency Permit).

3. What are the zoning laws for STRs in Gatlinburg, TN?

Before applying for a Tourist Residency Permit, you must confirm with the Building & Planning Department that your property’s zoning classification allows overnight rentals. Contact the Department at (865) 436-7792 or visit City Hall, 2nd floor, for zoning verification (Apply for a Tourist Residency Permit).

4. Are there occupancy limits for short-term rentals in Gatlinburg, TN?

You declare the maximum occupant count on your Tourist Residency Permit application. Properties over three stories, exceeding 5,000 sq ft, or accommodating more than 12 guests must install an approved sprinkler system before permit issuance (TR Permit Application).

5. What taxes are short-term rental hosts required to pay in Gatlinburg, TN?

• Gross Receipts Tax: 1.25 % of total gross sales, due monthly by the 20th (Overnight Rental Information).
• Hotel/Motel Tax: 3 % city tax (plus the state’s 9.75 %, totaling 12.75 %), remitted monthly by the 20th (Overnight Rental Information).
• State & Local Sales/Occupancy Taxes: Platforms like Airbnb collect and remit Tennessee state sales tax (7 %), local sales tax (1.50–2.75 %), and any local occupancy taxes on hosts’ behalf (Airbnb Help Center).

6. What are the safety and health requirements for STR properties in Gatlinburg, TN?

All Tourist Residency Permit applications include fees for mandatory fire and building inspections. Properties subject to sprinkler requirements must demonstrate compliance prior to permit approval (Apply for a Tourist Residency Permit).

7. How are noise and nuisance complaints handled in Gatlinburg, TN?

The City’s general code-enforcement process applies; STR-specific procedures are not outlined in Gatlinburg’s ordinance. Best practice is to establish a clear guest conduct policy and respond promptly to any neighborhood complaints.

8. Can I manage multiple short-term rental properties in Gatlinburg, TN?

Yes. Each property requires its own City and County business licenses and a separate Tourist Residency Permit (fees apply per unit) (Overnight Rental Information; Apply for a Tourist Residency Permit).

9. What are the penalties for non-compliance with STR regulations in Gatlinburg, TN?

Enforcement falls under Gatlinburg’s business-license and zoning codes; specific STR penalties are not specified. Best practice is to maintain all permits and inspections current to avoid fines, suspension, or revocation of your permit.

10. Are there any updates or changes to STR regulations I should be aware of in Gatlinburg, TN?

The Tourist Residency Permit application was revised on June 18, 2020, to clarify sprinkler requirements for larger or taller properties (TR Permit Application). No subsequent amendments are noted on the City’s STR permit page.

11. Can I self-manage my short-term rental in Gatlinburg, TN?

Yes. The application requires owner and designated agent contact information only; engagement of a third-party management company is not mandated (Apply for a Tourist Residency Permit).

12. What are the insurance requirements for short-term rentals in Gatlinburg, TN?

Insurance requirements are not detailed in Gatlinburg’s ordinance or on the City’s STR permit page. Best practice is to carry at least $1 million in liability coverage and property insurance that specifically covers short-term rental activity.

13. Are there any local rules regarding hosting platforms in Gatlinburg, TN?

Platform-specific obligations are not addressed in the City’s regulations. Best practice is to verify that any platform you use collects and remits state and local occupancy and sales taxes on your behalf, and to retain proof of those remittances.

14. What are the inspection requirements for STRs in Gatlinburg, TN?

All applicants undergo building and fire inspections funded by the permit fee; additional sprinkler inspections are required for properties over three stories, over 5,000 sq ft, or hosting more than 12 guests (TR Permit Application).

15. Are there any neighborhood-specific restrictions for STRs in Gatlinburg, TN?

No neighborhood-specific prohibitions or overlays are included in Gatlinburg’s ordinance. Best practice is to consult the Building & Planning Department before applying if you suspect any local covenants or homeowners-association rules may apply.

16. Is there a cap on the number of STR permits issued in Gatlinburg, TN?

No numerical cap exists. Any properly zoned property meeting licensing and permit requirements may register.

17. What parking requirements exist for STRs in Gatlinburg, TN?

Off-street parking standards are set by each zoning district; STR-specific parking rules are not specified. Best practice is to review your property’s zoning district requirements or consult the Building & Planning Department.