Overview

• STR status: Short‑term rentals (defined as dwelling units rented for fewer than 90 consecutive days) are not explicitly defined or authorized by Lenoir City’s current zoning ordinance. Lodging that is “transient” in nature is generally treated as commercial lodging (e.g., hotels, motels, tourist courts) and is restricted to commercial districts. Accessory residential use on upper floors of a commercial building in the C‑2 district is permitted. In practice, the viability of an STR in Lenoir City depends on zoning, district‑specific allowances, and (if applicable) Board of Zoning Appeals (BZA) approval for special exceptions.
• Practical implication: Operating a residential STR in R‑1, R‑2, R‑3, R‑1‑S, or O‑1 districts risks being found a prohibited lodging use unless you obtain a special exception or operate within a clearly authorized context (e.g., C‑2 upper‑floor accessory residential).

Zoning‑Based Pathway in Lenoir City

• Where lodging use is explicitly allowed:
  • C‑2 (Central Business District): Residential use is permitted as an accessory use on any floor above the first (Section 11‑407(1)(s)). This can cover STRs conducted as “apartment‑style” lodging in commercial buildings, provided off‑street parking for the lodging activity is provided per Section 11‑308.
  • C‑3 (Highway Commercial): “Motels and tourist courts” are a permitted use (Section 11‑408(1)(b)). Traditional single‑family or small‑multi‑unit residential STRs are not contemplated here.
  • C‑4 (Interchange Commercial): Includes “tourist related activities” similar to C‑2 and C‑3 (Section 11‑412(1)(c)). STRs are not specifically mentioned; lodging that fits the “tourist” definition may be evaluated case‑by‑case.
• Where lodging use is likely not allowed without BZA approval:
  • R‑1, R‑2, R‑3, R‑1‑S (all residential): Permitted principal uses are dwellings and customary home occupations; transient lodging is not enumerated. To operate an STR, you would likely need a special exception (if available for lodging‑type uses) or demonstrate compliance under a similar‑use standard, both subject to the BZA (Section 11‑806). The burden is on the applicant to show the use meets safeguards and conditions.
• Lodging‑related off‑street parking requirement:
  • “Hotels, motels and other tourist accommodations” must provide not less than one (1) space per room to be rented plus one (1) additional space for each three (3) employees (Section 11‑308(1)(d)).
• Site plan and approvals:
  • All commercial and residential complexes with more than four (4) units require site plan review and Planning Commission approval prior to building permits (Section 11‑312). If your STR is a simple single‑unit conversion in a conforming building, a full site plan may not be required, but it is at the Building Official’s discretion.

How to Start a Short‑Term Rental in This Market

1. Verify zoning and permitted use pathway
   • Confirm your parcel’s district on the City’s zoning map and contact the Building Official or Planning Commission to confirm whether an STR falls within permitted uses in that district. In R‑districts, plan to request a BZA special exception if you believe an STR qualifies under safeguards (Section 11‑806).
   • If in C‑2, ensure your STR qualifies as accessory residential on a floor above the first (Section 11‑407(1)(s)) and confirm sufficient off‑street parking under Section 11‑308(1)(d) and 11‑308(5)(b) (minimum 10’ x 19’ space).
   • If in C‑3/C‑4, ensure your lodging fits “motel/tourist court” or “tourist activity” definitions; otherwise, seek BZA review.
2. Secure special exception (if required)
   • If your STR is in a residential district or otherwise not expressly permitted, prepare a special exception application demonstrating:
     • Conformance with district intent (e.g., protection of neighborhood character).
     • Compliance with off‑street parking standards for lodging (Section 11‑308).
     • Mitigation of externalities (noise, traffic, signage), as required by the BZA under safeguards and qualifying conditions.
3. Apply for business licensing (City/County)
   • Obtain a Lenoir City business license (City Recorder; application required).
   • Obtain Loudon County business license (County Clerk).
4. Register for state taxes
   • Tennessee business tax and sales tax registration through the TN Department of Revenue, as transient lodging is subject to state hotel occupancy tax and related state tax regimes (consulttn.gov/revenue).
5. Design and layout compliance
   • For lodging, meet off‑street parking ratios and design specs (Section 11‑308 and 11‑310 for loading where applicable).
   • If commercial lodging is proposed with multiple units or site‑level changes, submit a site plan and obtain Planning Commission approval before building permits (Section 11‑312).
6. Permitting and inspections
   • Submit building permit application with necessary plans (including compliance with floodplain overlays, if applicable; Section 11‑411 is referenced).
   • Coordinate utility approvals (Lenoir City Utilities Board, where applicable).
7. Insurance and liability coverage
   • Confirm property and casualty coverage appropriate for transient lodging operations.
8. Operations setup
   • Develop house rules that align with local standards (e.g., parking, trash, noise).
   • Ensure safe egress, life safety, and electrical/plumbing systems are code‑