Overview: Short-Term Rentals Are Allowed in Sevierville, TN

YES, short-term rentals are explicitly allowed in both Sevierville city limits and Sevier County (outside city limits), but they are subject to specific regulations and mandatory permit requirements. All short-term rental units must obtain annual permits and pass safety inspections before operating legally.

As of January 1, 2024, Sevier County implemented a comprehensive Short-Term Rental Unit (STRU) Permit Program requiring annual permits and safety inspections for all STRs outside city limits. Sevierville city maintains its own separate permit system for properties within city boundaries.

How to Start a Short-Term Rental Business in Sevierville

Step 1: Determine Your Property Location

First, verify whether your property is within Sevierville city limits using the Sevierville City Limits Verification Map. This determines which regulatory path you'll follow.

Step 2: Apply for Required Permits

County Properties (Outside City Limits):

• Apply through Sevier County's Short-Term Rental Unit (STRU) Permit Program
• Submit application via the CommunityConnect portal
• Pay applicable permit fees based on occupancy

City Properties (Within City Limits):

• Apply for Sevierville's Short-Term Rental Operational Permit
• Contact Fire Prevention Bureau and Planning & Development Department
• Complete life-safety inspection requirements

Step 3: Obtain Business License

All properties must obtain business licenses from both the city and county. The application fee for each is typically $15.

Step 4: Schedule Safety Inspection

Both jurisdictions require mandatory annual safety inspections by fire department officials:

• County: Scheduled through Sevier County Fire Marshal's Office
• City: Coordinated with Sevierville Fire Prevention Bureau

Step 5: Register for Hospitality Tax

Register to file required hospitality tax returns with the appropriate jurisdiction.

Required Documents, Permits, Licenses, and Guidelines

For Properties in Sevier County (Outside City Limits):

Required Documents:

• Completed STRU Permit Application
• Property ownership documentation
• Occupancy determination documents
• Owner's Acknowledgement Form (if applicable)

Key Forms Available:

• SCFMO Short-Term Rental Permit Application
• Change of Information Application
• New Build Application
• Residence to Short-Term Rental Unit Application
• Purchasing/Selling Short-Term Rental forms
• Increasing Occupancy Steps documentation
• STRU 12 or Less Notarized Letter (for occupancy reduction)

Safety Requirements for Inspection:

• Working smoke detectors and carbon monoxide detectors
• 2A10BC Fire Extinguisher on each level
• Clear escape routes without obstructions
• Proper electrical wiring and outlets
• Functioning heating and cooling systems
• Fire safety compliance
• Proper escape route signage

For Properties Within Sevierville City Limits:

Required Documents:

• Short-Term Rental Operational Permit application
• Life-safety inspection documentation
• Property compliance certification
• Business license application (both city and county)

Additional Requirements:

• Annual permit renewal
• Life-safety inspection by Sevierville Fire Department
• Compliance with city planning and fire department standards

Specific Regulations for Short-Term Rentals

Sevier County Regulations (Outside City Limits):

Permit Program Details:

• Program effective date: January 1, 2024
• Annual permit required for all short-term rental units
• Permits issued following successful annual inspection
• Program administered by Sevier County Fire Marshal's Office

Fee Structure:

• $250 per year for units sleeping 12 or fewer occupants
• Additional $25 per occupant for units sleeping 13 or more
• Re-inspection fees: $25 for third and subsequent inspections
• Payments are non-refundable

Application Process:

1. Visit https://www.communityconnect.io/info/tn-seviercounty
2. Select "Business Owners" and register for account
3. Complete separate application for each rental property
4. Select appropriate permit type based on occupancy
5. Download, complete, and upload application PDF
6. Submit payment online or mail check to:
   • Sevier County Fire Marshal's Office
   • 149 Industrial Park Drive
   • Sevierville, TN 37862

Inspection Coverage:

• Fire safety systems
• Smoke alarm functionality
• Emergency escape routes
• Carbon monoxide detector compliance
• Electrical safety standards
• General life safety requirements

Sevierville City Regulations (Within City Limits):

Operational Permit System:

• Created in August 2021
• Joint project between city planning and fire departments
• Annual permit with yearly renewal requirement
• Focus on life safety requirements and code compliance

Benefits:

• Reduces liability claims
• Potentially lowers insurance rates
• Ensures compliance with city codes and ordinances
• Monitors rental locations for safety

Inspection Requirements:

• Mandatory life-safety inspection by Sevierville Fire Department
• Annual renewal inspections
• Focus on unfamiliar occupant safety considerations

State-Level Tennessee Regulations:

Under the Tennessee Short-Term Rental Unit Act (SB1086), effective May 17, 2018:

Statewide Requirements:

• Maintain liability insurance of at least $500,000 unless provided by the marketplace
• Have fire sprinklers, smoke alarms, and carbon monoxide alarms in the property
• Most Tennessee cities require valid city and county business licenses
• Collect and remit room/hotel occupancy tax
• Pay sales taxes
• Follow zoning laws
• Comply with maximum occupancy standards (typically 2 guests per bedroom, max 12 per property)

Additional State Requirements:

• Provide appropriate parking spaces
• Ensure presence of safety equipment
• Register for both state and local taxes

Contact Information for Local Authorities

Sevier County (Outside City Limits):

Sevier County Fire Marshal's Office

• Address: 149 Industrial Park Drive, Sevierville, TN 37862
• Phone: (865) 774-3603
• Email: firecodequestions@seviercountytn.org
• Permit-specific Email: firepermits@seviercountytn.gov
• Inspection Scheduling: Sevier County STRU Inspection Scheduling Link
• Online Portal: https://www.communityconnect.io/info/tn-seviercounty

Sevierville City (Within City Limits):

Fire Prevention Bureau

• Address: 1162 Dolly Parton Parkway, Sevierville, TN 37862
• Main Phone: (865) 868-1710
• Fax: (865) 453-5518
• Fire Marshal: JC Green - (865) 868-1709
• Email: jcgreen@seviervilletn.org
• Office Hours: Monday - Friday, 8:00am - 5:00pm

Planning & Development Department

• Address: 120 Gary Wade Blvd., Sevierville, TN 37862
• Phone: (865) 453-5504
• Development Director: Corey Divel - cdivel@seviervilletn.org
• Planner: Wendy Toral - wtoral@seviervilletn.org

Inspection Scheduling:

• Fire Marshal Inspections
• Fire Inspectors

Source Links

• Sevier County STRU Program: https://www.seviercountytn.gov/news_detail_T2_R68.php
• Sevierville STR Information: http://www.seviervilletn.org/index.php/i-want-to/start-a-short-term-rental-in-sevierville.html
• Sevierville Fire Prevention STR Page: http://www.seviervilletn.org/index.php/fire-prevention-bureau/fire-prevention-str.html
• Start a Short-Term Rental Guide: https://arcg.is/1GfmmS1
• Business License Application: https://sevierville.forms.govos.com/f/l8rcyt8mmuyg
• City Limits Verification Map: https://mdib.seviervilletn.org/arcgis/apps/webappviewer/index.html?id=75e5acd29f0f456c9d25e398bf70fdc3

Important Compliance Notes

Penalties for Non-Compliance:

• Fines or other penalties may be issued for non-compliance
• Potential prohibition from renting until compliance is achieved
• Loss of grandfathered exemptions to current building codes
• Possible requirement to upgrade to 2016 Tennessee Building Code standards

Key Deadlines:

• County permit renewals occur in the month your original application was processed
• City permits require annual renewal
• Inspections must be scheduled promptly after permit application

Ongoing Requirements:

• Annual permit renewals for both jurisdictions
• Annual safety inspections
• Hospitality tax filing obligations
• Business license maintenance
• Compliance with occupancy limits and safety standards

Additional Tax Considerations:

• County and city room/hotel occupancy taxes
• State and local sales taxes (typically 9.25%-9.75% combined)
• Property tax obligations
• Income tax reporting requirements

This comprehensive regulatory framework ensures that short-term rentals in Sevierville and Sevier County operate safely while supporting the local tourism economy. Property owners should carefully review all requirements and maintain ongoing compliance to avoid penalties and ensure successful rental operations.