Dandridge, Tennessee Short-Term Rental Investor Guide

Overview: Are Short-Term Rentals Allowed in Dandridge, TN?

Yes, short-term rentals ARE explicitly allowed in Dandridge, Tennessee, but they are subject to comprehensive regulation through a formal permit system. The Town of Dandridge has established a structured regulatory framework for short-term rental units (STRUs) that requires property owners to obtain a permit before operating. According to Ordinance No. 23/24-22, the town regulates short-term rentals "in order to protect the health, safety, and welfare of the public." STRs without valid permits are deemed public safety hazards and face daily fines.

How to Start a Short-Term Rental Business in Dandridge, TN

Starting a STR business in Dandridge requires following a structured application and permitting process. The town has established clear procedures that investors must follow:

Step 1: Initial Assessment

• Verify your property zoning allows short-term rentals (contact Building Department)
• Determine which permit type applies to your situation (owner-occupied, non-owner occupied, unoccupied)
• Review all application requirements and fee structure

Step 2: Application Preparation

• Complete the Short Term Rental Unit Permit Application
• Gather all required documentation (see permits section below)
• Prepare site plan and floor layout information
• Ensure compliance with all life safety requirements

Step 3: Submit Application

• Submit complete application packet to Building Department
• Pay $300 permit fee (credit card carries 2.5% service charge)
• Application must include all required forms and supporting documentation
• Incomplete packets will be returned to applicant

Step 4: Inspection Process

• Building code compliance inspection will be performed
• Fire Department safety inspection required
• Life Safety Compliance Verification must be completed

Step 5: Permit Issuance

• If approved, permit is valid for one year
• Permit must be renewed annually for $100
• Permit remains valid unless revoked

Required Documents, Permits, Licenses, and Guidelines

Primary Permit Requirements

1. Short-Term Rental Unit Permit Application - Complete application packet
2. Permit Fee - $300.00 payable to Town of Dandridge
3. City and County Business License - Copy required
4. Life Safety Compliance Verification Form - Must be completed and signed

Supporting Documentation

• Proof of ownership - Copy of recorded deed for the STRU
• Proof of residency (for owner-occupied permits) - Two documents demonstrating owner's residency:
  • Owner's motor vehicle registration
  • Valid driver's license or TN identification card
  • School registration for owner's children (if applicable)
  • Owner's voter registration card
  • Owner's W-2 form reflecting property address
• Site plan - Using forms provided in application packet
• Entity good standing proof (if applicable) - For business entities, proof of good standing with Tennessee Secretary of State

Additional Requirements

• 24/7 Local Contact - Designate local contact person available 24 hours/day to address issues
• Platform disclosure - List all hosting platforms and websites where STRU will be advertised
• Life Safety Equipment Verification:
  • Smoke alarms meeting UL 217 standards (inside sleeping rooms, outside sleeping rooms, within 15 feet of bedroom doors, on each story including basements)
  • Carbon monoxide alarms within 15 feet of bedroom doors
  • At least one operable fire extinguisher

Specific Regulations for Short-Term Rentals

City of Dandridge Regulations

• Three permit types: Owner Occupied, Non-Owner Occupied, and Unoccupied
• 24/7 Response Requirement: Local contact must be available and able to respond within 45 minutes to address complaints
• Advertisement Restrictions: Permits required before advertising STRUs
• Penalty Structure: $50 per day fine for operating without a valid permit
• Application Fee: $300 initial permit fee
• Renewal Fee: $100 annual renewal fee
• Inspection Requirements: Both building code and fire safety inspections mandatory
• Conditional Eligibility: According to news reports, only properties operating for at least 6 months are eligible to apply for permits (this provision has caused concern among property owners)

County-Level Regulations

Jefferson County Tax Requirements:

• Total lodging tax rate: 14.75% on all bookings
  • 7% Tennessee state sales tax
  • 2.75% Jefferson County sales tax
  • 5% Jefferson County lodging tax

State of Tennessee Requirements

• Gross Receipts Tax: State-level gross receipts tax applies to STR operations
• Business License: Required at city and county levels
• Sales Tax: Must comply with Tennessee sales tax requirements

Zoning Considerations

• Properties must be in zoning districts that permit short-term rentals
• Zoning district verification required through town planning department
• Check Dandridge zoning map via town website or contact Building Department

Contact Information for Local Authority

Town of Dandridge Building Department

• Address: 131 East Main Street, Dandridge, TN 37725
• Mailing Address: P.O. Box 249, Dandridge, TN 37725
• Phone: (865) 397-7420, Ext. 113
• Fax: (865) 397-1839
• Email: treneau@dandridgetn.gov
• Application Processing: Short Term Rental Unit Permit Application Processor
• Website: dandridgetn.gov (Building and Planning tab → Planning Information tab → zoning map)

Source Links

• Official Permit Application: dandridgetn.gov/wp-content/uploads/2024/05/Short-Term-Rental-Application.pdf
• News Coverage of Ordinance: www.wvlt.tv/2024/03/22/town-dandridge-trying-regulate-airbnbs-other-short-term-rentals/
• Market Overview (Third-party): www.gosummer.com/vacation-rental-management/dandridge-tennessee

Important Notes for Investors

1. Compliance is Mandatory: Operating without a permit results in daily fines and potential legal action
2. Six-Month Operating Requirement: Current regulations may limit new permit applications to properties with existing STR operations
3. Ongoing Obligations: Permits must be renewed annually, taxes must be remitted, and 24/7 contact availability must be maintained
4. Inspection Preparedness: Properties must maintain compliance with all life safety standards at all times
5. Regulatory Changes: The town indicates continued oversight and potential additional regulations

This comprehensive framework establishes Dandridge as a regulated but viable short-term rental market. Investors should carefully review all requirements and ensure full compliance before commencing operations to avoid penalties and maintain profitable operations.