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Memphis short-term rental rules

Locate the property inside Memphis city limits or in unincorporated Shelby County before choosing an application. The Memphis ordinance defines a short-term rental dwelling as containing not more than three sleeping rooms, so a larger property needs an eligibility check with the City. It regulates STRs under the rental ordinance rather than the Unified Development Code's rooming-house provisions. Memphis requires a permit before operating or advertising and a permit number in online advertisements. The ordinance exempts qualifying rentals used by the owner before its effective date until sale, transfer, 30 continuous months without STR use, or three or more separate violations of generally applicable local law; the City guide identifies July 1, 2023 as the relevant date. Published City requirements include a $300 application fee, $150 annual renewal fee, a responsible party residing or located within 50 miles, inspection and insurance verification. The principal renter must be at least 18, and occupancy must be for at least 24-hours. The City ordinance imposes $2.00 per paid occupied room night and an occupancy privilege tax of three and one-half percent of the consideration charged. City collection responsibilities depend on whether a hosting platform has collected and remitted under a voluntary collection agreement. For unincorporated Shelby County, the county ordinance requires an STR permit and defines the dwelling as containing not more than four sleeping rooms. Its application lists an original permit at $100.00 and renewal at $50.00, a responsible-party address within 50 miles, final code-enforcement inspection and room-occupancy-tax compliance. The county STR ordinance levies a privilege tax of five percent of the consideration charged by the owner and also contains an exemption for qualifying preexisting rentals. Tennessee's general state sales-tax rate is 7%, with local sales tax varying by county or city. The Department of Revenue lists lodging for less than 90 consecutive days as taxable. Marketplace sales-tax collection does not cover direct bookings or remove the owner's business-licensing responsibilities. For occupancy taxes, the Department distinguishes marketplace bookings from rentals handled directly by the owner. Check address-specific zoning using the Unified Development Code and Zoning Atlas; zoning matters go to the Memphis City Council for city properties and the Shelby County Board of Commissioners for unincorporated properties. Confirm eligibility, any exemption, registrations and tax accounts with the relevant offices before advertising.

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