Memphis

City permit

No one may operate or advertise a short term rental without the owner first getting a short term rental property permit from the city.[1] The city runs online registration and renewal through its Develop901 portal.[3] The application fee is $300 and non-refundable, renewal is $150 and due at least 30 days before the permit expires, and a permit lasts 365 days.[1, 3]

Size limit

The code defines a short term rental property as a residential dwelling unit with not more than three sleeping rooms.[1] A city page says the same: a rental subject to the ordinance can have three rooms used as bedrooms.[6]

Per-unit rule

Each unit needs its own permit, and an owner of more than one rental needs a permit for each.[1]

Who holds the permit

The permit goes to the owner first, and the application asks for proof of the owner's current ownership.[1] The code's owner definition also lists a lessee in control of a dwelling and an authorized agent.[1] A permit can't be transferred to another person, entity or address, so ask the city whether a tenant can apply.[1]

Application papers

Send the maximum number of guests per night with a site plan, proof of ownership, proof of $1,000,000 in insurance, and a compliance verification form saying each unit meets building, health and life safety codes.[1] Also list any citations tied to the property in the last 12 months and name your responsible party.[1]

Who can't get one

You can't get a permit if a similar permit was denied, suspended or revoked within the last 365 days, if you owe court fines or costs tied to the ordinance, or if you aren't current on local property taxes for any property you own in the city.[1]

Inspections

The city may inspect before it issues a permit and before a renewal, but the code doesn't require it.[1] A city page says the ordinance authorizes an on-site inspection before each license is issued and before renewal, as needed.[6]

Older rentals

The code doesn't apply to a rental the owner already used before the effective date, until the property is sold, transferred, sits unused for 30 continuous months, or has three or more violations.[1] The city says a property that began operating on or after July 1, 2023 needs a license.[6]

Listing rules

Show your permit number in every ad or description on a website, app or other hosting platform.[1] The principal renter must be at least 18, and you can't take payment for a stay of less than 24 hours.[1]

Responsible party

Name one or more adults or businesses who live or are located within 50 miles of the property.[1] The owner or a designee must answer calls 24 hours a day, seven days a week for the whole rental, and their name and phone number must be posted in the unit.[1, 3]

Insurance

Carry fire, hazard and liability coverage of at least $1,000,000 per occurrence, and send proof with your application.[1]

Smoke and carbon monoxide alarms

Install UL 217 smoke alarms in all sleeping areas and in every room along the exit path from the sleeping area.[1] Install carbon monoxide detectors on every habitable floor.[1]

Noise, trash and housing code

You and your guests must follow the city's noise rules in City Code 22-1 and the garbage collection rules in Ordinance No. 4840.[1] Keep the property in line with all local housing code ordinances.[1]

City privilege tax

Chapter 5-44 levies a privilege tax of 3.5% of the amount charged for occupancy of a short term rental.[1]

Room-night assessment

The city also adds an assessment of $2.00 per paid occupied room night on short term rentals, which goes to destination marketing.[1]

Booking platforms

A platform that has a voluntary collection agreement with the city is solely responsible for collecting and remitting occupancy and sales taxes to the city.[1] An owner who has confirmation that the platform collected and remitted the taxes isn't responsible for them.[1] If no agreement exists, the owner is liable for collecting and remitting.[1]

State and local sales tax

Tennessee's general state sales tax rate is 7%.[4] The local rate varies by county and city and can't be higher than 2.75%.[5]

No permit

A rental found operating without the required permit pays double fees when it later gets one.[1] The city adds that operating without a valid license can bring extra fees, penalties and suspension of operating privileges.[3]

Suspension

If your responsible party doesn't show up in time to respond to alleged violations, the city can suspend the permit for up to 30 days.[1] You get notice and a chance to show cause first.[1]

Revocation

A false, misleading or fraudulent statement in your application can lead to revocation for 12 months, after notice and a chance to show cause.[1] Use of the unit is also prohibited and the permit revoked if, as a direct result of the rental, a court finds the unit in violation of a generally applicable local law three or more separate times and no appeal rights remain.[1] The city has the burden of proving the violations came from the rental.[1]

Complaints

The compliance section says complaints are resolved under state law and city ordinances on public nuisances, vehicles and traffic, health and safety, and public peace, morals and welfare.[1]

Pending amendment

Ordinance No. 5980 would amend the compliance section to detail enforcement against rentals reported as a public nuisance.[2] It was on the Oct 6, 2026 council agenda for third and final reading, held over from Sept 1 and Sept 15, and we did not find the vote result.[2]