Operating a short-term rental in the City of Sevierville requires an annual 'Overnight Rental Permit' and is strictly limited to properties in specific commercial and industrial zones; residential zones are prohibited. The process involves a building inspection, proof of $1M liability insurance, and obtaining state/county business licenses. The permit number must be displayed on all listings, and occupancy is limited by a formula based on the number of bedrooms.
To host an Airbnb in Sevierville, your property MUST be in a specific commercial zone, as short-term rentals are banned in all residential neighborhoods. You'll need to get an annual 'Overnight Rental Permit' from the city, which costs $250. Before you apply, you must get a state tax certificate, a county business license, and have proof of $1 million in liability insurance. The city will inspect your property for safety, and once approved, you must display your permit number on your Airbnb listing. Be aware that your maximum guest count is calculated as two people per bedroom plus four extra guests.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
12.8%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$250
Processing Time
2-4 weeks
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