Overview

Short-term rentals ARE explicitly allowed in Gallatin, TN. The City of Gallatin has established a comprehensive regulatory framework for short-term rental operations through Ordinance No. 02109-59, which became effective on October 19, 2021. This ordinance establishes specific permitting requirements, operational standards, and compliance measures for short-term rental units within city limits.

How to Start a Short-Term Rental Business in Gallatin, TN

Step-by-Step Process

1. Property Assessment and Zoning Verification

   • Verify your property is within Gallatin city limits
   • Confirm zoning allows short-term rentals (permitted in residential, mixed-use, and commercial districts)
   • Review any private covenants or deed restrictions that may apply

2. Permit Application

   • Submit Short-Term Rental Permit application to the Planning Department
   • Pay required business tax (annual renewal required)
   • Provide all required documentation

3. Property Preparation

   • Ensure compliance with operational requirements (see regulations section)
   • Complete fire marshal inspection before beginning operations
   • Provide proof of liability insurance

4. Business Operations Setup

   • Designate 24/7 caretaker or local contact person
   • Establish rental minimums and occupancy restrictions
   • Prepare parking per requirements

5. Annual Compliance

   • Renew permit and business tax yearly
   • Complete annual fire marshal re-inspection
   • Maintain liability insurance coverage

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

1. Short-Term Rental Permit

• Authority: City of Gallatin Planning Department
• Renewal: Annual (required with business tax renewal)
• Contact: 615-451-5796

2. Business Tax Registration

• Authority: City of Gallatin (Chapter 8, Article V, Gallatin Code of Ordinances)
• Requirement: Annual payment and renewal
• Basis: Required for operating short-term rental units

3. Fire Marshal Inspection

• Timing: Prior to beginning operation
• Renewal: Annual re-inspection required
• Compliance: Must pass inspection before permit approval

Required Documentation

For Permit Application:

• Completed Short-Term Rental Application form
• Proof of liability insurance for the property
• Business license copy
• Site plan/plot plan showing parking arrangements
• Property Information Request Form (if needed for zoning verification)

For Business Entity Operators:

• Name, address, email, and phone number of entity contact person
• Proof that entity is in good standing with Tennessee Secretary of State

Operational Documentation:

• Designation of 24/7 caretaker/local contact person
• Occupancy restriction postings (conspicuous placement required)

Specific Regulations for Short-Term Rentals

City of Gallatin Regulations

Definition: Short-term rental units are residential dwelling units rented wholly or partially for a fee for a period of less than thirty (30) continuous days, including platforms like Airbnb, VRBO, and similar services.

Zoning Districts Where Permitted:

• Residential Districts: A-Agricultural, R40, R20, R15, R10, R8, R6 (all permit short-term rentals meeting Section 12.02 requirements)
• Mixed-Use Districts: MRO, MU, MUG, MUL, GO, OR (all permit short-term rentals meeting Section 12.02 requirements)
• Commercial Districts: CC, CS, CG, PGC (transient habitation including short-term rentals permitted)
• Planned Commercial: PNC (conditional use)

Operational Requirements

1. Occupancy Restrictions:

• Maximum 2 residents/guests per bedroom
• Maximum 12 persons total per unit
• Each bedroom minimum 140 square feet with separate attached closet space
• Occupancy restrictions must be posted conspicuously within the unit

2. Minimum Rental Period:

• Units must be rented for no less than 24 continuous hours

3. Parking Requirements:

• Minimum: 1 space per 1,000 sq ft of living space OR 1 space per bedroom (whichever is greater)
• Maximum: 1 space per 500 sq ft of living space OR 1.25 spaces per bedroom (whichever is greater)
• Only hard-surfaced or dust-free gravel parking permitted
• No parking allowed on unimproved surfaces
• Site plan showing parking required with application

4. Insurance and Safety:

• Liability insurance proof required
• Annual fire marshal inspection required
• Fire code compliance mandatory

5. Management Requirements:

• 24/7 caretaker/local contact person required
• Must be available to respond physically within 1 hour of emergency/complaint
• Authorized to make decisions regarding use and resolve complaints
• Contact person may be owner, lessee, or owner's agent

6. Property Sale:

• Upon sale of property, operation as short-term rental terminates
• New owner must reapply for permit

Sumner County (Unincorporated Areas)

Currently, no specific short-term rental regulations exist for unincorporated areas of Sumner County. As of July 2025, county officials were still debating potential ordinances but had not enacted specific rules. This means properties outside Gallatin city limits currently operate without specific short-term rental restrictions from the county level.

Tennessee State Regulations

Gallatin's ordinance complies with Tennessee Code Annotated § 13-7-601-608, which establishes the state's framework for regulating short-term rental units. The city has exercised its authority under this state legislation to create local standards.

Contact Information

Primary Authority

City of Gallatin Planning Department

• Phone: 615-451-5796
• Address: 311 West Main Street, Room 108, Gallatin, TN 37066
• Application Submission: Planning Department
• Questions: Contact above number for short-term rental inquiries

Additional Resources

City of Gallatin Main Offices:

• Phone: 615-451-5961
• Website: www.gallatintn.gov

Permit Application:

• Document: Short-Term Rental Application
• Location: Available at Planning Department
• Updated: March 28, 2023

Source Links

• Short-Term Rental Application: www.gallatintn.gov/DocumentCenter/View/8256/Short-Term-Rental-Application
• Zoning Ordinance Amendment: gallatintn.gov/DocumentCenter/View/7827/O2109-59---Amending-Several-Articles-of-the-Gallatin-Zoning-Ordinance-PDF
• News Coverage (Sumner County): www.wkrn.com/news/local-news/sumner-county-debates-short-term-rental-rules-in-unincorporated-areas/

Important Notes for Investors

• Pre-existing Units: Units established before October 19, 2021, that were continuously operated and not subject to revocation may continue operating under grandfather provisions
• Registry Required: All short-term rental units (including pre-existing) must register with the city
• Private Restrictions: City regulations apply regardless of zoning compliance; private covenants or deed restrictions may further limit operations
• Annual Compliance: Maintain active permit, business tax payment, and fire inspection compliance for continued operations
• Enforcement: Violations can result in suspension or prohibition of use under TCA § 13-7-603 or § 13-7-604

This regulatory framework provides clear pathways for legitimate short-term rental operations while maintaining neighborhood character and addressing public health, safety, and welfare concerns.