Memphis Introduces New Ordinance to Regulate Short-Term Rentals
Memphis, Tennessee, has introduced a new ordinance aimed at addressing the growing concern of residential properties being used as short-term
Nik Richie
Memphis, Tennessee, has introduced a new ordinance aimed at addressing the growing concern of residential properties being used as short-term rentals via Airbnb. This ordinance, effective since July 1, mandates that property owners seeking to rent out their homes must obtain a permit.
Robert Knecht, the City of Memphis’s public works director, explained the reasoning behind this local change. He noted that while state laws impose certain limitations, the city sought to implement local measures to manage better what is commonly known as Airbnbs.
The primary objective of this initiative is to differentiate between legitimate and improper uses of residential properties. According to Knecht, some individuals are utilizing these properties for purposes other than traditional lodgings.
Furthermore, Knecht emphasized that renters might inadvertently violate zoning regulations by engaging in such activities, thereby breaking the law.
Under the new ordinance, property owners wishing to rent out their homes must register their short-term rentals. To obtain a permit, they are required to pay an initial fee of $300 per property and renew it annually for $150.
However, existing short-term rental operators are exempt from the registration requirement unless their property has been sold or has not been used for short-term rentals for a period of 30 months.
CELEB spoke with a source in the Airbnb market in Memphis who told us the taxes for properties must be paid, or jail time will be incurred. With the new permit regulation, homeowners want to sell in the down market to avoid penalties and potential prison time.