Townsend does not appear in our data as having a city-level STR ordinance, so your property is governed primarily by Tennessee state law. Under TCA § 13-7-602 (Short Term Rental Unit Act, 2018), Tennessee provides partial preemption: cities cannot ban STRs that existed before a new ordinance is adopted (grandfather protection), but they retain authority to regulate new STRs, including capping permits, requiring licenses, and restricting frequency. Tennessee applies a 7% state sales tax to short-term stays, plus any applicable local hotel/motel taxes. Contact Blount County and the Town of Townsend directly to confirm any local permit, tax, or zoning requirements that may apply to your rental.
Licensing and Permits
Townsend requires hosts to obtain an STR license or permit before listing their property on platforms like Airbnb or VRBO. An inspection is required as part of the permitting process.
Enforcement
Townsend has low enforcement of STR regulations. Operating without proper licensing or failing to comply with local regulations can result in citations, fines, and potential loss of your permit.
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Sign Up FreeDisclaimer: This guide is for informational purposes only and does not constitute legal advice. STR regulations change frequently. Always verify current requirements with your local municipality before making investment or operational decisions.