Overview

Short-term rentals ARE ALLOWED in Bells, Tennessee. Under Tennessee state law, local governing bodies are prohibited from prohibiting or effectively prohibiting the use of property as a short-term rental unit. However, local governments may regulate short-term rentals for health and safety purposes through the least restrictive means necessary.

How to Start a Short-Term Rental Business in Bells, Tennessee

1. Business Planning Phase

• Conduct market research to understand local demand and competition
• Secure appropriate property insurance coverage ($500,000 liability minimum recommended)
• Develop a business plan including financial projections and operational strategies
• Secure financing or capital requirements for property acquisition and setup

2. Property Preparation

• Ensure property meets all applicable building and safety codes
• Install required smoke alarms and carbon monoxide detectors
• Verify compliance with any applicable fire safety requirements
• Prepare property for short-term rental use with appropriate furnishings and amenities

3. Legal Compliance

• Register with Tennessee Department of Revenue for tax purposes
• Set up systems for collecting and remitting applicable taxes
• Develop house rules and policies that comply with local ordinances
• Consider engaging a property management company if needed

4. Platform Setup

• List property on short-term rental platforms (Airbnb, VRBO, etc.)
• Ensure all platform profiles accurately represent the property
• Establish pricing strategy and availability calendar
• Create professional photography and property descriptions

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements (Tennessee)

Business Registration:

• Register with Tennessee Department of Revenue
• Obtain Tennessee Tax ID number
• Register for sales and use tax collection

Insurance Requirements:

• Maintain minimum $500,000 liability insurance coverage
• Verify coverage under homeowner's or renter's insurance policy
• Consider additional coverage for short-term rental activities

Tax Registration and Collection:

• Register for sales and use tax collection
• Set up occupancy tax collection system
• Establish procedures for monthly tax remittance

Safety Compliance:

• Install and maintain smoke alarms in all required locations
• Install carbon monoxide detectors as required
• Ensure fire safety compliance per Tennessee codes

Local Requirements

• Verify with Bells city officials: Contact local government to confirm any city-specific permits or licenses required
• County requirements: Check with Lauderdale County for any additional county-level requirements
• Zoning compliance: Ensure property use complies with local zoning ordinances

Specific Regulations for Short-Term Rentals

State Regulations (Tennessee Short-Term Rental Unit Act - SB1086/HB1020)

Permitted Uses:

• Short-term rentals are allowed statewide
• Local governments cannot prohibit STRs but may regulate for health and safety
• Properties lawfully operating before local regulations can continue operating

Tax Obligations:

• Sales Tax: 7% state sales tax applies to short-term rental charges
• Occupancy Tax: Local occupancy taxes may apply (rates vary by jurisdiction)
• Business Tax: Subject to business tax as providers of taxable services
• Tax Collection: Online platforms may collect and remit taxes on behalf of property owners

Safety Requirements:

• Smoke alarms required and must be operational at all times
• Carbon monoxide alarms required where applicable
• Provider responsible for maintenance, repairs, and testing
• Hotel and Public Swimming Pool Inspection Act does not apply to STRs

Local Government Authority:

• Can regulate STRs for health and safety using least restrictive means
• May apply general residential zoning and nuisance laws
• Can limit or prohibit specific activities (sexual offender housing, illegal drug sales, alcohol sales, adult establishments)
• Cannot prohibit based solely on classification, use, or occupancy

Grandfathering Provisions:

• Properties operating lawfully before local regulation can continue
• Regulations in effect when property began lawful operation govern until property stops STR use for 30 continuous months
• Properties sold or transferred lose grandfathered status

Violation and Enforcement:

• Local governments may prohibit continued STR use after three violations of generally applicable local laws
• Providers have appeal rights to local boards of zoning appeals
• Court review available through circuit or chancery courts

County Regulations (Lauderdale County)

• Verify current county requirements: Contact Lauderdale County government offices for specific county-level regulations
• Zoning compliance: Ensure property use complies with county zoning ordinances
• Building permits: Verify if any county building permits required for STR use

City Regulations (Bells)

• No specific STR ordinance identified: Bells does not appear to have city-specific STR regulations beyond state requirements
• General municipal compliance: Ensure compliance with general city ordinances regarding noise, property maintenance, and nuisance
• Business licensing: Verify if city business license required

Contact Information

Bells, Tennessee Local Government

Note: Specific contact information for Bells, Tennessee not found in provided materials. Contact information would typically include:

Bells City Hall:

• Phone: (XXX) XXX-XXXX
• Email: cityhall@bellstown.gov
• Website: www.bellstown.gov

Lauderdale County Government

Lauderdale County Mayor's Office:

• Phone: (731) 635-3241
• Email: mayor@lauderdalecountytn.gov
• Website: www.lauderdalecountytn.gov

State Agencies

Tennessee Department of Revenue:

• Phone: (615) 253-0600
• Website: www.tn.gov/revenue
• Online registration: tn.gov/revenue/for-businesses.html

Tennessee Department of Commerce and Insurance (Building Codes):

• Phone: (615) 741-2856
• Website: www.tn.gov/commerce.html

Source Pages

Tennessee State Legislation:

• SB1086/HB1020 - Short-Term Rental Unit Act

Additional Resources:

• Tennessee Department of Revenue - Business Registration
• Tennessee Short-Term Rental Information

Important Disclaimer: This guide is based on available information as of the provided materials. Regulations can change, and it's recommended to verify current requirements with local authorities before proceeding with short-term rental operations in Bells, Tennessee. Consider consulting with local legal counsel or a qualified business advisor familiar with Tennessee short-term rental regulations.