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Introduction

In Covington, Tennessee, short-term rentals (STRs)—often referred to as "Airbnbs"—are legal and subject to specific regulations implemented by the city. Owners must obtain two types of licenses: a general business license for $50 and a short-term rental license costing $500. Non-host occupied rentals require adherence to additional procedures regarding zoning and inspections to ensure compliance with safety and building codes. STRs can flourish in various properties, particularly single-family homes and some multi-family units, appealing mostly to tourists visiting the region rather than business travelers due to Covington's small-town charm and proximity to attractions in nearby cities. The local government authority responsible for overseeing these regulations is the Covington City Commission. For further details and to access official documents, refer to the city's website at https://www.covingtonky.gov/. Additionally, information on applying for short-term rental licenses can be found here.

Occupancy restriction

Two persons are allowed per bedroom and a maximum of 12 persons per rental irrespective of the size of the accommodation.

Length of Stay
29 days or less.
Registration & Licensing Fees
Combined license fee of $645.00
Licenses or Permits Required
Short-Term Rental License, Zoning/Certificate of Appropriateness, Secure an occupational or “business” license from the Finance Department.
Property Inspection
Yes, a paid annual inspection is required after initial application for the permit or at the point of renewal of the license .
Guest Record
Guest record are not required
Zoning

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Occupancy taxes and fees

Combined tax rate of 14.75%

Insurance requirement

Yes, with a minimum $500,000 insurance requirement.

Does any Building, Health & Safety Regulation affects STR?

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Parking Requirement

Adequate parking must be provided for guests

Advertising Requirement

Yes, you have to be licensed before you can advertise and include your license number in the advertisement of your rental unit.

Noise regulation

State has established noise limits that must be adhered to at all times.

Neighbor Notification

Yes, you have to have informed the neighbor adjacent to your property and show an evidence of notification before you can be granted a license.

Limitation on number of STR owned

Yes, there's a limitation on the number of STR owned by a person.

Regulations on hosting events or parties in STR

Yes, there's a strict rule about using a short-term rental for any party or event.

Regulations on hosting events or parties in STR

Yes, there's a strict rule about using a short-term rental for any party or event.

Hosting events regulations
Restrictions on number of reservations

No, there are no restrictions on the number of reservations each year.

Waste disposal regulations

No, there are no specific waste disposal regulations for short-term rentals instead you are required to comply with the waste disposal regulation that affects the city.

Accessibility Requirement

Yes, there are ADA accessibility requirement in place for non-owner occupied short term rental units as it qualifies as a place of public accommodation. However, this requirement is waived for owner occupied short term rental units that have less than 5 rooms.

waste disposal regulations
Waste disposal regulations

No, there are no specific waste disposal regulations for short-term rentals instead you are required to comply with the waste disposal regulation that affects the city.

Emergency Contact Information

Yes, you need a contact person who could be reached 24 hours a day and 7 days a week, whenever you are hosting a guest

What is short term rental?

In Covington, Tennessee, short-term rentals (STRs)—often referred to as "Airbnbs"—are legal and subject to specific regulations implemented by the city. Owners must obtain two types of licenses: a general business license for $50 and a short-term rental license costing $500. Non-host occupied rentals require adherence to additional procedures regarding zoning and inspections to ensure compliance with safety and building codes. STRs can flourish in various properties, particularly single-family homes and some multi-family units, appealing mostly to tourists visiting the region rather than business travelers due to Covington's small-town charm and proximity to attractions in nearby cities. The local government authority responsible for overseeing these regulations is the Covington City Commission. For further details and to access official documents, refer to the city's website at https://www.covingtonky.gov/. Additionally, information on applying for short-term rental licenses can be found here.

Are there STR regulations that affect property owners?

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Is there any short-term rental-related tax?

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Is it only individuals that are permitted to operate short-term rental?

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What are the procedures and requirement for the neighborhood approval?

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Do I need a neighborhood approval?

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Building, Health & Safety Regulation
  1. Short-term rental owners and hotel are prohibited from operating without installing a smoke alarm in every room that is ordinarily used for sleeping purposes; When activated, the smoke alarm shall initiate a warning sound that is audible in the sleeping rooms of the living unit.
  2. A short - term rental or hotel owner that has a fossil-fuel-burning heater or appliance, a fireplace, or other feature, fixture, or element that emits carbon monoxide as a byproduct of combustion must install an approved carbon monoxide alarm within ten feet (10′) of each room used for sleeping purposes.

Tennessee 7%, Tipton 2.25%, Covington 0.5% -

Occupancy Tax - 5%

As such, leases with operators of short-term rental facilities must be drafted with the ADA requirements in mind.

As such, if the short-term rental provides “guest rooms for sleeping” for short-term stays where the occupant does not have the right to return after the conclusion of his or her stay and offers hotel-like conditions or amenities such as the ones described above, it could qualify as a “place of public accommodation” to which the ADA applies.

Tenure. A short-term rental tenant shall not stay more than 29 consecutive days in duration.

5. Number of Tenant Rooms. A short-term rental shall have no more than four tenant rooms. Each floor of the

building shall have a functioning carbon monoxide alarm. Each tenant room and each hallway shall have a

functioning smoke detector.

6. Number of Occupants. Each short-term rental tenant room shall be limited to a maximum of two adults, over

18 years old (e.g. a short-term rental unit with two tenan

could have a maximum of four adult shortterm rental tenants at one time).

7. Building and Property Maintenance. All short-term rentals shall be in compliance with the City's Building and

Property Maintenance codes.

8. Signs. One wall sign a maximum of one square foot in area is permitted on a short-term rental property if no

other signage is permitted per Division 13, Signs.

9. Inspection. Each short-term rental shall be subject to inspection by the Chief Building Inspector prior to the

issuance

e of an annual business license, and at all renewals, and all short term rentals shall be subject to

Chapter 110 of the City Code, License Fees and Taxes, regarding rental licensing.

10. Insurance. Each short-term rental host shall obtain and maintain, at the host’s sole expense, liability

insurance to cover the injury or death of a tenant while the tenant is in, on, or about the short-term rental

property.

11. Parking. Regardless of other provisions in this NDC, such as Division 11, Parking, Lo

, Loading, and Circulation,

each short-term rental that is conditionally approved or is within an area with a residential parking program

shall:

a. Provide one off-street parking space for each tenant room, which may be provided on the property of

the short-term rental or on a separate property within the boundary of the surrounding residential

parking program; or

b. Provide one residential parking pass for each tenant room; or

c. Demonstrate that there is sufficient available on-street parking,

within 600 feet of the short-term rental.

Which of these taxes does Airbnb or other booking company collect?

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What zoning laws affect Short Term Rentals?

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Is there any guest record requirement?

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Do i require any license(s) for STR?

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Which tax(es) am i obligated to collect and remit?

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Which tax(es) am i obligated to collect and remit?

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Tax
What ZIP Codes have been prohibited for STR use?

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What types of properties are eligible for short-term rentals?

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Does occupancy limit affect STR?

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What STR regulations affect me as an Owner?

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What are the procedures or requirements for keeping the guest records?

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Notification
What are the occupancy limits for STR?

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What other STR regulations am i obligated to observe?

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What are the penalties and fines for non compliance?

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Is there any official regulatory body or authority?

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How can i contact the authority?

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Which jurisdictions are exempted from the regulations?

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What are the requirements and fees for the permit (s)?

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Basic Information
Length of Stay
29 days or less.
Occupancy taxes and fees

Combined tax rate of 14.75%

Licenses or Permits Required
Short-Term Rental License, Zoning/Certificate of Appropriateness, Secure an occupational or “business” license from the Finance Department.
Building and Health Regulation
  1. Short-term rental owners and hotel are prohibited from operating without installing a smoke alarm in every room that is ordinarily used for sleeping purposes; When activated, the smoke alarm shall initiate a warning sound that is audible in the sleeping rooms of the living unit.
  2. A short - term rental or hotel owner that has a fossil-fuel-burning heater or appliance, a fireplace, or other feature, fixture, or element that emits carbon monoxide as a byproduct of combustion must install an approved carbon monoxide alarm within ten feet (10′) of each room used for sleeping purposes.

Tennessee 7%, Tipton 2.25%, Covington 0.5% -

Occupancy Tax - 5%

As such, leases with operators of short-term rental facilities must be drafted with the ADA requirements in mind.

As such, if the short-term rental provides “guest rooms for sleeping” for short-term stays where the occupant does not have the right to return after the conclusion of his or her stay and offers hotel-like conditions or amenities such as the ones described above, it could qualify as a “place of public accommodation” to which the ADA applies.

Tenure. A short-term rental tenant shall not stay more than 29 consecutive days in duration.

5. Number of Tenant Rooms. A short-term rental shall have no more than four tenant rooms. Each floor of the

building shall have a functioning carbon monoxide alarm. Each tenant room and each hallway shall have a

functioning smoke detector.

6. Number of Occupants. Each short-term rental tenant room shall be limited to a maximum of two adults, over

18 years old (e.g. a short-term rental unit with two tenan

could have a maximum of four adult shortterm rental tenants at one time).

7. Building and Property Maintenance. All short-term rentals shall be in compliance with the City's Building and

Property Maintenance codes.

8. Signs. One wall sign a maximum of one square foot in area is permitted on a short-term rental property if no

other signage is permitted per Division 13, Signs.

9. Inspection. Each short-term rental shall be subject to inspection by the Chief Building Inspector prior to the

issuance

e of an annual business license, and at all renewals, and all short term rentals shall be subject to

Chapter 110 of the City Code, License Fees and Taxes, regarding rental licensing.

10. Insurance. Each short-term rental host shall obtain and maintain, at the host’s sole expense, liability

insurance to cover the injury or death of a tenant while the tenant is in, on, or about the short-term rental

property.

11. Parking. Regardless of other provisions in this NDC, such as Division 11, Parking, Lo

, Loading, and Circulation,

each short-term rental that is conditionally approved or is within an area with a residential parking program

shall:

a. Provide one off-street parking space for each tenant room, which may be provided on the property of

the short-term rental or on a separate property within the boundary of the surrounding residential

parking program; or

b. Provide one residential parking pass for each tenant room; or

c. Demonstrate that there is sufficient available on-street parking,

within 600 feet of the short-term rental.

Registration & Licensing Fees
Combined license fee of $645.00
Accessibility Requirement

Yes, there are ADA accessibility requirement in place for non-owner occupied short term rental units as it qualifies as a place of public accommodation. However, this requirement is waived for owner occupied short term rental units that have less than 5 rooms.

Property Inspection
Yes, a paid annual inspection is required after initial application for the permit or at the point of renewal of the license .
Zoning Regulations
STRs are only allowed as a conditional use in some zones and as a limited use in some other zones.
Guest Record
Guest record are not required
Occupancy Restriction

Two persons are allowed per bedroom and a maximum of 12 persons per rental irrespective of the size of the accommodation.

Regulations on hosting events or parties in STR

Yes, there's a strict rule about using a short-term rental for any party or event.

Noise Regulation

State has established noise limits that must be adhered to at all times.

Insurance Requirement

Yes, with a minimum $500,000 insurance requirement.

Restrictions on number of reservations

No, there are no restrictions on the number of reservations each year.

Waste disposal regulations

No, there are no specific waste disposal regulations for short-term rentals instead you are required to comply with the waste disposal regulation that affects the city.

Limitation on number of STR owned

Yes, there's a limitation on the number of STR owned by a person.

Emergency Contact Information

Yes, you need a contact person who could be reached 24 hours a day and 7 days a week, whenever you are hosting a guest

Neighbor Notification

Yes, you have to have informed the neighbor adjacent to your property and show an evidence of notification before you can be granted a license.

Does any Building, Health & Safety Regulation affects STR?

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Parking Requirement

Adequate parking must be provided for guests

Advertising Requirement

Yes, you have to be licensed before you can advertise and include your license number in the advertisement of your rental unit.

Regulations on hosting events or parties in STR

Yes, there's a strict rule about using a short-term rental for any party or event.

Hosting events regulations
waste disposal regulations
Waste disposal regulations

No, there are no specific waste disposal regulations for short-term rentals instead you are required to comply with the waste disposal regulation that affects the city.

Provide your rental address, and we'll send you the regulation details accordingly

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Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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