Tennessee Vacation Rental Agreement Overview
Tennessee imposes its 7% state sales tax plus local hotel/motel taxes. Nashville is one of the most heavily regulated STR markets, requiring permits with caps by census tract. Gatlinburg/Pigeon Forge and the Smoky Mountains are major markets.
Required in Nashville; varies elsewhere
STR license
7% state sales tax + local hotel/motel tax (Nashvi
Occupancy tax / TOT
Nashville limits non-owner-occupied
Maximum stay
Nashville HOAs commonly restrict STRs
HOA restrictions
Tennessee Short-Term Rental Requirements
Operating a vacation rental in Tennessee requires compliance with state and local regulations. Here are the key requirements for TN short-term rental hosts:
Important: Check Local Tennessee Regulations
Short-term rental regulations in Tennessee can vary significantly by city and county. Always verify current requirements with your local government before listing your property. Regulations may include permit requirements, occupancy limits, parking rules, noise ordinances, and safety inspections.
- STR License/Permit: Required in Nashville; varies elsewhere — check with your local city/county government
- Tax Registration: Register with the Tennessee Department of Revenue to collect and remit occupancy taxes
- Safety Requirements: Working smoke detectors, carbon monoxide detectors, fire extinguishers, and posted emergency exit routes
- Insurance: Obtain short-term rental or commercial liability insurance — standard homeowner's policies may not cover STR activity
- HOA/Condo Rules: Nashville HOAs commonly restrict STRs — review your CC&Rs before listing
How to Fill Out a Tennessee Vacation Rental Agreement
Follow these steps to properly complete your Tennessee vacation rental agreement. Our template guides you through each section to ensure compliance with TN requirements.
Enter Host and Guest Information
Include the host's full legal name and contact information, and the primary guest's name, address, phone number, and email. The primary guest is responsible for all terms of the agreement.
Describe the Rental Property
Provide the complete Tennessee property address, property type, number of bedrooms and bathrooms, maximum occupancy, and included amenities (parking, pool, hot tub, Wi-Fi, kitchen, laundry).
Set Check-In/Check-Out and Rental Rates
Specify check-in date and time, check-out date and time, nightly rate, cleaning fee, Tennessee occupancy taxes, and total amount due. Include payment schedule and accepted payment methods.
Define Cancellation Policy and Damage Deposit
Establish cancellation tiers (full refund, partial refund, no refund deadlines), damage deposit amount, conditions for deductions, and refund timeline after checkout.
Include Tennessee House Rules
Set maximum occupancy, quiet hours, smoking policy, pet policy, parking instructions, pool/hot tub rules, trash procedures, and a no-parties/no-events clause.
Sign and Distribute
Both host and guest should sign and date the agreement. Electronic signatures are valid in Tennessee under the Uniform Electronic Transactions Act. Provide a copy to the guest before or at check-in.
Tennessee Occupancy Taxes & Fees
Tennessee imposes taxes on short-term accommodations that hosts must collect and remit. Here's a summary of the tax obligations for TN vacation rental operators:
| Tax / Fee | Rate / Amount |
|---|---|
| Occupancy / Lodging Tax | 7% state sales tax + local hotel/motel tax (Nashville ~15.25%) |
| STR License/Permit Fee | Varies by municipality |
| Business License | May be required — check local requirements |
| Platform Collection | Some platforms collect certain taxes automatically in TN |
Sample Tennessee Vacation Rental Agreement
Below is a preview of our Tennessee-specific vacation rental agreement.
STATE OF TENNESSEE
VACATION RENTAL AGREEMENT
Short-Term Rental Contract
HOST / PROPERTY OWNER:
Name: [Host Name]
Address: [Tennessee Address]
GUEST:
Name: [Guest Name]
Address: [Guest Address]
RENTAL PROPERTY
Address: [Tennessee Property Address]
Check-in: [Date/Time] Check-out: [Date/Time]
Nightly Rate: $[Rate] Total: $[Total]
Tennessee Vacation Rental Agreement FAQ
Answers to common questions about Tennessee vacation rental agreements, short-term rental regulations, and host obligations.
Official Tennessee Resources
Use these official resources for Tennessee short-term rental tax registration, licensing, and regulatory guidance.
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