Airbnb & VRBO Performance in Chattanooga Tennessee.

Short-Term Rental Regulations in Chattanooga, Tennessee for 2024

Zoning and Designation

• Short-term rentals are allowed in properties zoned for residential use if the rental is operated by an owner who also lives on the property.
• Absentee owners (those who do not live on the property) must have the land zoned for commercial use. Allowed zones for absentee STVRs include C-2, C-3, C-4, UGC, CC, IX, RF, RV, CX, and SH.
• Homestays (owner-occupied rentals) are allowed in every commercial zone that allows hotels and in any residential zone within the existing short-term vacation rental overlay.

Licensing Requirements

• All short-term rentals must obtain a permit and renew it annually. There are two main types of STR designations: Homestay (owner-occupied) and Absentee (non-owner-occupied).
• Homestay: $250 application fee, $250 renewal fee.
• Absentee: $500 application fee, $500 renewal fee.

Enforcement Measures

• Stricter enforcement measures are in place, including fines for violations. Alleged violations will go before an administrative hearing officer who can charge up to $500 per day for violations.

Occupancy Taxes

• Operators must collect and remit room/hotel occupancy tax and pay sales taxes.

Cooling-Off Period

• An 18-month cooling-off period is required before anyone can apply for an STVR permit for a specific property that has been rezoned from residential to commercial. This is designed to disincentivize property owners from circumventing the new laws.

Community Engagement and Safety

• A local contact must be available 24 hours per day by phone and must be able to arrive in person within two hours in case of a safety issue or noise complaint.

Required Documentation

• Application requires information about the owner, different forms of ID, and information about the property. Typical requirements include proof of ownership/rights to the property, floor plans, local contact information, and proof of insurance.

Public Feedback and Development

• The regulations were developed after extensive consultation over 13 months and 27 drafts, involving dozens of meetings with business owners and neighborhood groups.

Additional Requirements

• Operators must maintain liability insurance of at least $500,000 unless provided by the marketplace. Properties must have fire sprinklers, smoke alarms, and carbon monoxide alarms.
• Ensure the presence of safety equipment and comply with maximum occupancy standards.

Saturation Limits

• Saturation within multi-family residential buildings is limited to 25% of total dwellings.

Top Neighborhoods for Airbnb Revenue in Chattanooga, Tennessee

1. Northshore

• Average Revenue: $45.3K per year
• Average Daily Rate: $214 per night
• Average Occupancy Rate: 58%
• Average RevPAR: $125
• Appeal: Northshore is highly appealing due to its vibrant and convenient location along the Tennessee River. It is seamlessly connected to downtown Chattanooga via multiple bridges, including the iconic Walnut Street Bridge. This neighborhood offers a unique blend of urban convenience and natural beauty, making it easy for visitors to explore the city's attractions while enjoying a tranquil riverfront setting.

2. St. Elmo

• Average Revenue: $42.2K per year
• Average Daily Rate: $199.4 per night
• Average Occupancy Rate: 58%
• Average RevPAR: $115.9
• Appeal: St. Elmo is a charming historic neighborhood at the foot of Lookout Mountain, known for its proximity to outdoor adventures, unique local businesses, and a strong sense of community. This neighborhood provides an authentic taste of Chattanooga, making it a favorite among visitors seeking a genuine local experience.

3. Southside Historic District

• Average Revenue: $39.9K per year
• Average Daily Rate: $198.9 per night
• Average Occupancy Rate: 55%
• Average RevPAR: $108.3
• Appeal: Once a neglected industrial area, the Southside Historic District has transformed into a trendy and vibrant neighborhood. It boasts a unique blend of historic charm, a thriving arts scene, and an eclectic mix of restaurants and shops. This area is increasingly popular among travelers and offers a promising opportunity for Airbnb investors.

4. Highland Park

• Average Revenue: $38.1K per year
• Average Daily Rate: $171.1 per night
• Average Occupancy Rate: 61%
• Average RevPAR: $104.8
• Appeal: Highland Park is a historic neighborhood that offers a blend of urban convenience and natural beauty. It is close to downtown attractions and provides easy access to outdoor recreation. The neighborhood's charming residential streets and diverse activities, including the Bluff View Art District and the Chattanooga Choo Choo Hotel, make it an attractive destination for visitors.

Furnishing and Design Tips for an Inviting Airbnb in Chattanooga, Tennessee

Measuring and Layout

• Start by measuring your rooms and planning the best layout to ensure ample space to move around and to preserve natural light sources.

Furniture Selection

• Choose timeless, sturdy pieces that fit your theme and can withstand frequent use.
• Opt for a solid bed with easy-to-clean surfaces and consider a storage bed for extra space.
• Select a mattress that is at least 8 inches thick, preferably a memory foam mattress for durability.
• Use a mattress cover to extend the life of the mattress.
• For sofas, pick ones with washable covers and avoid real or faux leather; consider a sofa bed to increase guest capacity.

Storage and Organization

• Implement smart storage solutions such as beds with drawers, wall hooks, and stackable containers.
• Provide designated spots for guests' personal items, like luggage racks, to keep the space tidy.

Lighting and Mirrors

• Use mirrors to make the space feel bigger and brighter.
• Ensure there is good lighting, especially in areas like the desk for working guests.

Kitchen Essentials

• Equip the kitchen with essentials like a coffee maker, microwave, toaster, and kettle.
• Include basic cookware, utensils, dinnerware, and extras like a blender and sharp knives.
• Provide ample storage for food and cooking supplies.

Bathroom Amenities

• Offer high-quality, durable towels in neutral colors that can be bleached.
• Ensure there is sufficient storage for guests' toiletries and personal items.
• Include a hairdryer, basic toiletries, and a first-aid kit.

Dining Area

• Choose a durable dining table that can withstand wear and tear; it can be dressed up with tablecloths and decor.
• Select comfy, lightweight chairs that are easy to move around and prefer darker colors to hide stains.

Workspace

• Provide a sturdy desk and a comfortable chair for guests who need to work.
• Ensure good lighting and easy access to power outlets.
• Offer high-speed internet and consider a Wi-Fi booster for larger spaces.

Safety and Accessibility

• Install smoke detectors, carbon monoxide detectors, and a first aid kit.
• Consider making your Airbnb accessible to guests with disabilities by adding features like ramps, wide doorways, and grab bars in bathrooms.

Local Touch

• Incorporate elements that reflect Chattanooga's unique style, such as emphasizing outdoor recreation themes or using local decor to give the space a regional feel.
• Highlight the city's scenic beauty by adding plants or using natural materials in the decor.

Seasonal Considerations

• Since peak season in Chattanooga is from May to October, ensure the space is well-suited for warm weather and outdoor activities. For the cooler months, add cozy elements like a fireplace or warm lighting.

Discover Chattanooga: Local Attractions and Insider Tips for Your Guests

Must-Visit Attractions

Natural Wonders

• Rock City Gardens: Explore massive ancient rock formations, gardens with over 400 native plant species, and enjoy the “See 7 States” panoramic views.
• Ruby Falls: Visit the 145-foot tall underground waterfall and take in the views from the mountainside deck.
• Lookout Mountain Incline Railway: Ride the world’s steepest passenger railway for breathtaking views from the top of Lookout Mountain.

Outdoor Adventures

• Tennessee Riverwalk: A 16-mile path along the Tennessee River, perfect for walking, biking, or a leisurely stroll. Enjoy public art and water features along the way.
• Coolidge Park: Relax in this downtown park featuring a 100-year-old carousel, interactive play fountain, and plenty of open space.
• Chattanooga Ducks: Take a narrated tour of the city and river on an authentic WWII amphibious landing craft.

Family-Friendly Fun

• Tennessee Aquarium: Home to sharks, penguins, otters, and more. A great place to spend a couple of hours with family.
• Creative Discovery Museum: A hands-on museum for kids with changing exhibits, water play, dinosaur digging, and more.
• Reflection Riding Arboretum and Nature Center: Explore over 300 acres of public park, nature center, and learning grounds.

Cultural and Historical Sites

• Hunter Museum of American Art: Immerse yourself in fine art by Lichtenstein, Warhol, Rauschenberg, and more.
• Chickamauga and Chattanooga National Military Park: Visit the museum, tour the park, or join a ranger-guided car caravan tour to explore Civil War history.
• Chattanooga Choo Choo: Step back in time at this historic train station turned attraction.

Unique Experiences

• Southern Belle Riverboat: Enjoy sightseeing tours, lunch and dinner cruises, and live music on this iconic steamboat.
• Ocoee Zipz: Experience over 6,000 feet of ziplining fun with guides and themed launch towers.
• Walnut Street Bridge: Stroll across one of the world’s longest pedestrian bridges for stunning river views.

Insider Tips

Local Favorites

• Aretha Frankenstein’s: Enjoy a famous breakfast featuring a short stack of pancakes made famous by Rachael Ray.
• Mean Mug Coffeehouse: Start your day with a house-made cinnamon roll and locally-roasted coffee.
• Lupi’s Pizza: Create your own signature pizza from over 40 available toppings.

Hidden Gems

• Bluff View Art District: Savor hand-made chocolates and coffee while enjoying scenic views of the Tennessee River.
• St. Elmo: Visit the International Towing Museum, a unique attraction at the base of Lookout Mountain.
• Warehouse Row: Explore local restaurants, shopping, and start-ups in the heart of Chattanooga’s City Center.

Seasonal Activities

• Summer Fun: Cool off in the interactive play fountain at Coolidge Park or take a Tennessee River Sunset Cruise on the Southern Belle Riverboat.
• Sports: Catch a game with the Chattanooga Lookouts baseball team or the Chattanooga Football Club soccer team.

By sharing these attractions and insider tips, you can help your guests make the most of their visit to Chattanooga and create unforgettable memories.

Practical Tips to Run a Successful Short Term Rental Business in Chattanooga, Tennessee

To ensure the success and compliance of your short-term rental business in Chattanooga, Tennessee, several practical tips can be invaluable. First, it is crucial to adhere to the city's noise regulations by informing your guests about quiet hours and the importance of not disturbing the peace of the neighborhood. This can be achieved by including clear rules in your listing and reminding guests upon arrival.

Creating a comprehensive digital and physical house manual is also essential. This manual should include detailed instructions on how to use appliances, Wi-Fi passwords, and other important information about the property. This helps in reducing the number of inquiries and ensures a smooth stay for your guests.

Simplifying the check-in process can significantly enhance the guest experience. Utilizing smart locks eliminates the need for physical key exchanges, allowing guests to check in at their convenience. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property easily and avoid any potential issues.

By implementing these strategies, you can not only ensure compliance with local regulations but also improve guest satisfaction, leading to better reviews and higher occupancy rates for your short-term rental business in Chattanooga.

Here is a brief list of house cleaning providers in Chattanooga, Tennessee:

House Cleaning Services in Chattanooga, TN

Nooga Home Cleaning

• Offers vacuuming, sweeping, mopping, dusting, bathroom cleaning, laundry, and more.
• Provides one-time and recurring cleaning services, including deep cleanings and move-in/move-out cleaning.
• Uses eco-friendly cleaning products and employs background-checked, insured professionals.

Chattanooga Cleaning Company

• Provides personalized cleaning and housekeeping services.
• Offers general cleaning, commercial cleaning, deep cleaning, and vacation services.
• Known for swift and efficient service.

Scrubd Cleaning

• Specializes in complete residential cleaning services, including move-out cleans for homes and apartments.
• Team members have passed extensive background checks and are trustworthy.
• Provides deep house cleaning services.

Home Clean Heroes of Chattanooga

• Offers customizable cleaning services tailored to individual preferences.
• Employes bonded, insured, and background-checked professionals.
• Prioritizes safety with a proprietary home-cleaning system to prevent cross-contamination.

Chattanooga, Tennessee, Short-Term Rental Management Fees: A Comprehensive Guide

In Chattanooga, Tennessee, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum. Companies like Summer and PMI Scenic City offer these extensive services, ensuring that every aspect of the rental property is managed, from coordinating bookings and responding to inquiries to overseeing cleaning, inspections, and property maintenance.

Basic service packages, which may only include essential management tasks, are generally less expensive. Additionally, property owners may incur extra fees for services such as cleaning, repairs, or design enhancements. These fees can be structured as flat rates or percentages of the rental income, and they may vary based on the property's location, size, and condition within Chattanooga.