Overview Short-term rentals are explicitly allowed in Thompson’s Station, Tennessee. The town has a formal permitting program for Short Term Rental Properties (STRPs), with a published application, fee schedule, and safety/insurance requirements. Compliance with zoning, fire/life-safety codes, business licensing, and annual renewals is mandatory. The town also levies a Hotel/Motel Privilege Tax (4%) on transient occupancy, administered by the town administrator/designee; this tax applies to occupancy in “hotels” as defined by state statute and local ordinance. STATE-LEVEL TAXES ALSO APPLY (Tennessee sales and business taxes).

How to Start a Short-Term Rental Business in Thompson’s Station

• Confirm zoning and property constraints
  • Review the Thompson’s Station Zoning Code (Section 206.26 governs STRPs) to confirm your property’s zoning allows short-term rentals and whether there are site-specific constraints (e.g., setbacks, parking, access, HOA restrictions).
  • While not a municipal restriction, HOA/POA or condo association rules can prohibit or limit STRs; confirm these before investing.
• Complete the STRP permit application and obtain approvals
  • Submit the town’s STRP Permit Application to the Codes Department.
  • Undergo a fire inspection for the current year.
  • Obtain a current Town of Thompson’s Station Business License.
  • Provide proof of liability insurance meeting the town’s minimum ($1,000,000).
  • Pay the permit fee:
    • Owner-occupied: $75
    • Non-owner occupied: $150
    • Annual renewal: $100
• Obtain required business and tax registrations
  • Secure a Thompson’s Station Business License (privilege tax license) and remain current.
  • Tennessee sales tax: Register with the Tennessee Department of Revenue (DOR) and collect/remit sales tax on short-term rentals as required by state law (short-term lodging is taxable in Tennessee). Exact filing cadence and rates are determined by the DOR.
  • Local occupancy tax: The town levies a 4% Hotel/Motel Privilege Tax on transient occupancy. Operators classified as “hotels” under the town code must collect and remit monthly (by the 20th day of the following month) to the town administrator/designee. Keep records for three years.
• Insurance and safety
  • Maintain general liability coverage of at least $1,000,000 for the STR unit.
  • Comply with adopted fire and life-safety codes (NFPA 1 Uniform Fire Code and NFPA 101 Life Safety Code, 2015 editions).
• Ongoing compliance
  • Renew the STRP permit annually ($100).
  • Keep fire inspection current.
  • Maintain current business license(s).
  • File and remit state sales tax and local occupancy tax as applicable.
  • Monitor any HOA rules and town code updates.

Required Documents, Permits, Licenses, and Guidelines

• Town of Thompson’s Station Short Term Rental Property (STRP) Permit
  • Application and issuance through the Codes Department.
  • Required attachments/conditions:
    • Fire Inspection (current year).
    • Town Business License (current).
    • Proof of Liability Insurance Compliance:
      • Policy issue/expiration dates.
      • Minimum $1,000,000 in coverage.
    • Certification acknowledging compliance with Zoning Code Section 206.26 and town STRP standards.
  • Fees:
    • Owner-occupied: $75
    • Non-owner occupied: $150
    • Annual Renewal: $100
• Zoning and Safety Requirements
  • Zoning compliance under Section 206.26 of the Thompson’s Station Zoning Code.
  • Fire/life-safety compliance under NFPA 1 and NFPA 101 (2015 editions), adopted by reference.
  • The permitting process includes town official approval and issuance of a permit number referencing Ordinance #2023-11.
• Business Licensing (Town)
  • Business privilege tax license required to operate any business in town, including STRs.
• Insurance
  • Minimum liability coverage of $1,000,000 for STRPs (per the application).
• Taxes
  • Tennessee sales tax on short-term rentals (state-level; register and remit via TN DOR).
  • Hotel/Motel Privilege Tax (town), 4% of transient occupancy charges, remitted monthly to the town administrator/designee (due by the 20th of the following month), with records retained for 3 years.

Specific Regulations for Short-Term Rentals

• Local (Town of Thompson’s Station)
  • Permitting: STRPs require a town permit; owner- and non-owner-occupied classifications have different fees; annual renewal is required.
  • Zoning: STRPs are subject to Zoning Code Section 206.26. Investors should review zoning district allowances and any site-specific requirements before purchase or operation.
  • Fire/Life-Safety: The town has adopted NFPA 1 Uniform Fire Code and NFPA 101 Life Safety Code (2015) by reference, and these govern STR safety requirements.
  • Business License: A current town business license is required.
  • Insurance: Minimum $1,000,000 liability coverage is required for STRPs.
  • Occupancy Tax: The town levies a 4% Hotel/Motel Privilege Tax on transient occupancy. Operators meeting the “hotel” definition must collect this tax and remit monthly to the town administrator/designee by the 20th for the preceding month. The operator receives a 2% collection allowance if remitted on time. Interest (12% per annum) and penalties (1% per month or fraction thereof) apply to delinquent payments. Records must be kept for 3 years. Tax proceeds are designated for tourism/tourism development and may not be used as hotel/motel subsidies.
  • Enforcement: Code enforcement and administrative hearing processes exist for municipal ordinance violations; the Codes Department administers STRP permits.
• County (Williamson County)
  • No county-specific STR permitting was identified in the provided materials. If county health, fire, or other regulations apply to your property, confirm requirements directly with county authorities.
• State (Tennessee)
  • Sales and business taxes apply to short-term rentals. Hosts must register with and remit applicable taxes to the Tennessee Department of Revenue (DOR). Consult the DOR for current rates and filing requirements for lodging.

Contact Information (Phone, Email, Website) – Local Authority

• Town of Thompson’s Station – Codes Department (STRP permits)
  • Mailing/Physical: 1555 Thompson’s Station Road West, Thompson’s Station, TN 37179
  • Website: www.thompsons-station.gov (staff directory/contact forms may be available online)
• Town of Thompson’s Station – Town Administrator’s Office (Hotel/Motel Privilege Tax administration)
  • Address: 1555 Thompson’s Station Road West, Thompson’s Station, TN 37179
  • Website: www.thompsons-station.gov (tax and forms/information may be posted online)
• Additional Local Contact (for general inquiries; not the permitting authority)
  • Phone: (615) 426-1116 (as listed on a local property services site as serving Thompson’s Station and Middle Tennessee)

Source Links

• Town of Thompson’s Station – Short-Term Rental Property Permit Application (2024): www.thompsons-station.gov/sites/default/files/uploads/documents/Forms/strp-permit-application-2024.pdf
• Thompson’s Station Municipal Code (Updated through Feb 11, 2025): www.mtas.tennessee.edu/system/files/codes/combined/ThompsonsStation-code.pdf
• Short-Term Rentals Management in Thompson’s Station, TN (EPS Blog): www.epstn.com/blog/short-term-rentals-management-in-thompsons-station-tn
• Vacation Rental Management in Thompson’s Station, TN (GoSummer): www.gosummer.com/vacation-rental-management/thompsons-station-tennessee/

Notes and Best Practices for Investors

• Always verify HOA/POA or condo rules; they can prohibit or limit STR operations regardless of municipal approval.
• Maintain detailed records for insurance, inspections, and taxes (including the 4% local occupancy tax where applicable).
• Schedule fire inspections early; a current-year inspection is required for permit issuance.
• Build processes for annual permit renewal and ongoing fire code compliance.
• Monitor municipal code updates (including zoning amendments) and state tax guidance from the Tennessee DOR.

If no city-specific regulation applied, state-level Tennessee requirements would govern. In Thompson’s Station, there is a city-level STRP permit regime plus the local Hotel/Motel Privilege Tax—investors must follow both municipal and state rules.