Overview: Short-Term Rental Status in Maryville, TN

Yes, short-term rentals are allowed in Maryville, TN. However, it is important to note that the city has a complex regulatory environment. The city council initially imposed a ban on STRs in November 2018 to allow time for the development of a comprehensive ordinance. This ban has been in place, but it was not intended to be permanent. As of the latest available information, the city is actively working on creating specific regulations for short-term rentals, and a new ordinance is on the table for consideration by the city council. The process of establishing clear rules is ongoing, and the final regulations could significantly impact how STRs are operated.

How to Start a Short-Term Rental Business in Maryville

If you are considering starting a short-term rental business in Maryville, TN, you are taking a calculated risk. The process involves navigating both city-level and state-level requirements, and you must be prepared to adapt to the evolving regulatory landscape. Before you invest, you should familiarize yourself with the potential regulations and comply with the existing permitting and tax requirements.

Step-by-Step Guide:

1. Verify Zoning and Property Eligibility: Check the zoning classification of your property with the city's Development Services department to ensure it is permitted for short-term rental use. As of the latest available information, the city is considering allowing STRs in some residential zones but has not finalized its decision.
2. Complete the Required Life Safety Compliance: All properties intended for short-term rental must comply with specific life safety standards. This includes the installation and proper functioning of smoke alarms, carbon monoxide detectors, and a fire extinguisher. You must be able to demonstrate compliance.
3. Submit the Application: Submit the completed "Short Term Rental Unit Sketch/Plan" and the "Affidavit of Life Safety Compliance" to the city. These forms are available from the city.
4. Obtain All Required Business Licenses and Permits: You must obtain a city business license, a Blount County business license, and a state business tax registration.
5. Set Up Your Tax Accounts: You are responsible for setting up accounts with the city to remit the hotel/motel tax and with the state of Tennessee to remit the state sales tax.
6. Operate and Monitor: Once you have all the required licenses and permits, you can begin operating your short-term rental. It is crucial to stay informed about the new STR ordinance that is being developed by the city, as it may impose additional requirements and restrictions. You should monitor city council meeting agendas and minutes for updates.

Required Documents, Permits, Licenses, and Guidelines

The following documents and compliance measures are required to legally operate a short-term rental in Maryville.

Required Documents and Permits

• Short Term Rental Unit Sketch/Plan: This form requires a detailed sketch of your property. You must provide an accurate site plan and floor plan, clearly depicting the size and location of the existing dwelling and any accessory buildings. The floor plan must also describe the use of each room and the number and size of beds in each bedroom, the number and location of off-street parking spaces, the maximum number of vehicles allowed for overnight occupants, and the locations of all life safety equipment.
• Affidavit of Life Safety Compliance for Short-Term Rental Unit: This is a legally binding affidavit in which you, as the property owner, swear that your property meets the following life safety requirements:
  1. Smoke Alarms: A smoke alarm meeting UL 217 standards must be installed inside each sleeping room, outside of, and within fifteen feet of, sleeping rooms, and on each story of the dwelling unit, including basements. Every smoke alarm must function properly.
  2. Carbon Monoxide Detectors: A carbon monoxide detector must be installed within 15 feet of all bedrooms. Every detector must function properly.
  3. Fire Extinguisher: The property must have an operational fire extinguisher.
  4. Accuracy of Information: You must confirm that the number and location of the required safety equipment, as provided on the application, is accurate.
  5. Inspection: You acknowledge that the life safety equipment is subject to verification or inspection before the initial permit is issued, and at all other reasonable times upon reasonable notice.

Required Business Licenses and Permits

1. State of Tennessee Business Tax Registration: You must register with the State of Tennessee to pay the state-administered business tax. This tax is due annually by the 15th day of the fourth month after the business's fiscal year end.
2. City of Maryville Business License ($15): This license is required for any business operating within the city limits.
3. Blount County Business License: This license is required for any business operating within Blount County.
4. Hotel/Motel Tax: The City of Maryville imposes an occupancy tax on any lease or rental of transient lodging or accommodations for a period of less than 30 continuous days. You are responsible for remitting these monthly tax payments to the city.
5. Sales Tax: You are required to collect and remit sales tax on the rental amount to the State of Tennessee. If you use an online company (e.g., Airbnb, VRBO) that has an agreement with the state to collect and remit sales tax on your behalf, the company will be responsible. If you use an online company that has not signed an agreement with the state, or if you rent the property directly, you are responsible for collecting and remitting sales tax.

Specific Regulations for Short-Term Rentals

As of the latest available information, Maryville has a temporary ban on short-term rentals that was enacted in November 2018. This ban was put in place to give the city time to develop a comprehensive set of regulations. The city council has been working on an ordinance that would establish specific standards for short-term rental units. The city is considering the following potential regulations:

• Zoning: The city is considering where to allow STRs. It is exploring the possibility of allowing them in some residential zones but has not made a final decision.
• Local 24/7 Contact: The city is considering requiring a 24/7 local contact person for each STR. This person must be able to respond to complaints and resolve issues.
• Owner-Occupied vs. Non-Owner-Occupied: The city is considering a distinction between owner-occupied and non-owner-occupied STRs. This could mean different rules and requirements for each type.

At the state level, Tennessee law defines a short-term rental as "a residential dwelling that is rented wholly or partially for a fee for a period of less than 30 continuous days." This definition does not include hotels or bed-and-breakfast establishments. It is important to note that the legal landscape for STRs is still evolving, and recent court rulings in Tennessee have expanded the rights of STR owners in certain circumstances. For example, a recent Tennessee Supreme Court ruling has made it more difficult for HOAs to prohibit STRs. It is always best to consult with an attorney to understand the full implications of these legal changes.

Contact Information

If you have questions or need to apply for the necessary permits and licenses, you should contact the following authorities:

• City of Maryville - Business License Department: Phone: (865) 273-3401. Website: Maryville, TN Official Website. Address: 400 West Broadway, Maryville, TN 37801.
• City of Maryville - Development Services Department: Phone: (865) 273-3500.
• Blount County - Business License Office: Phone: (865) 273-5800. Website: Blount County, TN Official Website.
• Tennessee Department of Revenue: Website: tn.gov. Phone: (615) 253-0600.

Source Links

• Short Term Rental Unit Sketch/Plan & Affidavit Form
• Maryville’s Ban on Short-Term Rentals, Conversation with Residents Continues
• Vacation Rental Management in Maryville, Tennessee
• The Legal Ramifications of Turning a Property into a Short-Term Rental
• City Council Meeting Minutes - November 5, 2019