Cleveland, Tennessee

Cleveland, TN formally authorized short-term rentals under an ordinance passed by City Council on October 23, 2023. Operating an STR without a city permit is a violation of that ordinance.

Operators must apply for an annual operating permit at a cost of $300, renewable each year. A life-safety inspection is required before a permit is issued. Operators must provide detailed ownership and contact information, carry qualifying insurance, and comply with a nuisance provision protecting neighboring properties.

The ordinance is explicitly location-neutral: the city’s Planning Director described the framework as regulating ‘how they operate, not where they operate.’ STRs are allowed in most residential zones with no broad geographic ban.

Occupancy is capped at approximately two guests per bedroom plus four additional persons, with a maximum of about 12 total occupants. Principal renters must be 21 or older.

There is no owner-occupancy or primary-residence requirement and no cap on annual rental nights.

On taxes, STR stays are subject to Cleveland’s 4% hotel and motel tax (approved May 2023) plus Bradley County’s 7% lodging tax, for a combined lodging tax of 11%, on top of state and local sales tax of approximately 9.25 to 9.75%. Operators must register and remit the combined 11% lodging tax to the appropriate authorities.

Investors should confirm current permit fee, renewal terms, and tax registration requirements directly with the City of Cleveland Planning Department, as the regulatory framework was adopted relatively recently.