Is Airbnb legal in Memphis?

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Memphis, United States Airbnb Rules & Regulations

Last updated on: 19th September, 2024

Don’t worry, Airbnb is legal in Memphis!
Here are some statistics! As of 19th September, 2024, there are 1,602 listings available in Memphis from Airbnb alone. Out of 1,602 listings, 0% of listings have short-term rental licenses. Most listings are operating without official license. It means short-term rental regulation isn't strictly enforced in Memphis.
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Map
Occupancy Rate

57%

$116

Daily Rate

$24K

Revenue (2023)

1,602

Number of Listings

Short-term Rental Regulation & Rules in Memphis

Overview of Airbnb Regulations in Memphis, Tennessee

Memphis has established a detailed regulatory framework for short-term rentals (STRs), including properties listed on platforms like Airbnb and VRBO, to ensure neighborhood integrity and compliance with safety standards. Here are the key regulations that prospective hosts should be aware of:

Permit Requirements

  1. Application Process: All operators must obtain a permit from the City Division of Public Works. The initial application fee is $300, with an annual renewal fee of $150.
  2. Grandfather Clause: Properties that were actively used as short-term rentals before July 1, 2023, are exempt from this permit requirement until they are sold or transferred.
  3. Documentation: To apply, owners must submit a site plan, proof of insurance (at least $1 million coverage), and documents confirming compliance with local codes.

Local Contact

Operators must designate a local contact person within 50 miles of the rental property. This individual is responsible for addressing complaints and compliance issues promptly.

Zoning and Property Restrictions

  1. Hosts must ensure their rental property complies with local zoning regulations.
  2. STRs are classified as a dwelling unit accommodating no more than four sleeping rooms for stays of up to 30 continuous days.

Tax Obligations

Hosts are responsible for collecting and remitting several taxes: - Occupancy Privilege Tax: Around 15.25% of the rental rate. - Additional Assessment: $2 per bedroom, per night from guests.

For those using platforms like Airbnb, the site generally facilitates tax collection, whereas other platforms may require hosts to manage these responsibilities themselves.

Compliance and Enforcement

The City of Memphis enforces STR regulations strictly, with fines for non-compliance exerted at $50 per day per unit for operating without a permit. Regular inspections and adherence to safety codes ensure that STRs do not negatively affect residential neighborhoods.

Community Impact and Relations

The aim of these regulations is to balance the benefits of short-term rentals with maintaining community character. Hosts are encouraged to be mindful of noise, parking, and other community concerns to foster positive relations with neighbors.

Conclusion

Prospective Airbnb hosts in Memphis must navigate a structured set of regulations, from securing permits and complying with tax obligations to managing neighborhood relations effectively. Adhering to these guidelines ensures responsible operation and contributes to the positive perception of short-term rentals in Memphis communities.

Airbnb Statistics in Memphis! 🚀

Currently, there are 1602 Airbnb listings in Memphis. The Average Occupancy Rate in Memphis is 57% and the average daily rate is $116. According to vacation rental market data source Airbtics, average revenue in Memphis is up to $24,990 each year.
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