Sevier County STR Permits: A Simple Owner's Guide

Thinking about buying a Smoky Mountains cabin to rent on a short-term basis? The permit rules in Sevier County can feel confusing, especially when city lines cut through neighborhoods and each area has its own process. You want clear steps, simple answers, and confidence that your property is set up to operate legally and safely. In this guide, you’ll learn exactly how to identify your jurisdiction, what permits and documents you need, how taxes work, and what to expect after you start hosting. Let’s dive in.

STR basics in Sevier County

Short-term rentals are typically homes, cabins, or condos offered for stays under 30 days. If you plan to host, you will likely need to register or obtain a permit with the city or county where the property sits. Long-term rentals of 30 days or more are usually treated differently.

Keep in mind that hotels, motels, and traditional bed and breakfasts follow different licensing paths. If your property is within an HOA, the community’s covenants can limit or even prohibit short-term rentals regardless of what the city or county allows.

City vs county: find your jurisdiction

Your first step is to confirm whether the property is inside a city or in unincorporated Sevier County. Rules, fees, and inspections often differ between:

• Gatlinburg city limits
• Pigeon Forge city limits
• Sevierville city limits
• Unincorporated Sevier County

Tourism-heavy areas like Gatlinburg and Pigeon Forge often have stricter oversight, including registration and inspections. Unincorporated areas follow county-level planning and zoning. To confirm where a parcel sits, use property lookup tools or call the county or city planning office directly. Getting jurisdiction right determines which forms, inspections, and taxes you will follow.

What zoning and HOAs allow

Once you know your jurisdiction, verify zoning for the parcel. Some districts allow STRs by right, while others require a special or conditional use approval. Tourist overlays may apply in certain corridors.

Next, review any recorded covenants and HOA rules. HOAs can set their own standards, including minimum stays, guest registration, parking limits, or complete prohibitions on short-term rentals. HOA rules are enforced privately and are separate from city or county permits. You need both sets of approvals to operate without issues.

Permit steps: start to finish

Use this simple, file-ready path to move from purchase to compliant operation:

1) Confirm jurisdiction

• Verify whether the parcel is inside Gatlinburg, Pigeon Forge, Sevierville, or unincorporated Sevier County.
• Call the planning department for a definitive answer if the boundary line is unclear.

2) Check zoning and use permissions

• Identify the zoning district and any overlay.
• Confirm that short-term rentals are allowed and whether you need a special or conditional use.

3) Get the current STR application

• Request the latest forms, checklist, and fee schedule from the correct office.
• Review the ordinance text for definitions, occupancy rules, parking standards, and posting requirements.

4) Review HOA or CCRs

• Obtain recorded covenants and written HOA policies.
• Confirm any rental restrictions, minimum lengths of stay, guest rules, and approval steps.

5) Compile your application packet

• Owner details and a 24/7 local contact person.
• Proof of ownership, such as a deed or tax bill.
• Floor plan to support occupancy calculations.
• Parking plan that shows required off-street spaces.
• Waste and recycling plan that fits local service and wildlife safety.
• Proof of appropriate insurance coverage for STR use.
• Fire and life safety documentation, including detectors and extinguishers.
• Business license or tax registration numbers if required.
• Application fee payment.

6) Schedule required inspections

• Fire marshal inspection to verify safety equipment and egress.
• Building or codes inspection if your jurisdiction requires it.
• Health department review if your operation includes regulated amenities.

7) Obtain your permit and post required info

• Keep the permit or registration certificate on site.
• Post the local emergency contact and permit number inside the unit.
• Include the permit number in your online listings if required.

8) Register for taxes

• Register for state and local sales taxes, plus any local occupancy or tourism taxes.
• Learn your filing frequency and remittance method.

9) Keep records and renew on time

• Maintain guest logs, tax filings, inspection reports, and proof of insurance.
• Renew annually if your jurisdiction requires it and update any contact or safety information.

10) Monitor rule changes

• Ordinances and enforcement practices can change. Re-check requirements periodically.

Safety and inspections

Safety is a top priority in mountain markets. You should expect requirements such as:

• Working smoke detectors and carbon monoxide alarms
• Clearly marked exits and unobstructed egress
• Accessible fire extinguishers and a posted evacuation plan
• Occupancy limits that match bedrooms and square footage
• Parking rules that avoid blocking roads and emergency access
• Noise and nuisance standards, often including quiet hours
• Wildlife-aware trash handling to avoid attractants

In many cases, the local fire marshal will verify these items during an inspection. Keep documentation current and test devices regularly.

Taxes and business licensing

Short-term rentals typically owe several taxes:

• State sales tax
• Local option sales or similar local taxes
• Local occupancy, room, or tourism taxes

You may also need a city or county business license. Registration and remittance schedules vary by jurisdiction and sales volume. Set calendar reminders to file on time. Nonpayment can trigger penalties and interest, and repeated issues can lead to enforcement actions.

Insurance that actually covers you

Many standard homeowner policies limit or exclude coverage for frequent short-term rental use. To protect your asset and guests, confirm with your insurer that your policy allows STR activity. Consider:

• A short-term rental endorsement for your homeowner policy
• A commercial, landlord, or host policy with higher liability limits
• Coverage for guest-caused damage and loss of income if available

Adequate insurance is part of operating responsibly and can be required by your permit or HOA.

Renewals and ongoing compliance

Many municipalities require annual renewal. Renewals often include a fee, a confirmation of current contact information, and a statement that taxes and safety measures are up to date. Missing a renewal can lead to fines or a suspended permit, so track your dates and keep your documents organized.

Common pitfalls to avoid

• Skipping the jurisdiction check. City boundaries are not always obvious. Confirm before you apply.
• Overlooking HOA rules. An HOA restriction can override your business plan. Review covenants early in due diligence.
• Assuming your insurance covers rentals. Get written confirmation and the right endorsements or policies.
• Ignoring occupancy limits. Advertise and operate within posted limits to avoid violations.
• Missing tax registration. Register before you accept bookings and put filing reminders on your calendar.

Quick owner checklist

• Confirm city vs county jurisdiction
• Verify zoning and whether STRs are allowed
• Review HOA and recorded covenants
• Request the current STR application and fee schedule
• Prepare safety, parking, and waste plans
• Obtain proper STR insurance
• Register for state and local taxes
• Complete required inspections
• Post permit and local contact details in the unit and listings
• Renew annually and keep thorough records

Your next step

If you have a specific property in mind, you do not need to figure this out alone. A local expert can help you confirm jurisdiction and zoning, read HOA covenants, map out the permit path, and connect you with inspectors, managers, and vendors. Ready to move from research to action? Reach out to Michele for clear next steps tailored to your address.

Schedule a consultation with Michele Harrill to review zoning, HOA rules, permit steps, and taxes for your property.

FAQs

Do all Sevier County properties need an STR permit?

• It depends on whether the property is inside a city or in unincorporated county land and on the local ordinance and zoning for that parcel.

Who enforces short-term rental rules in Sevier County?

• City or county planning and codes, the local fire marshal for safety, and HOAs for private covenants; tax authorities enforce tax compliance.

How long does the STR permit process take?

• Timelines vary by jurisdiction, but you should plan for application review, any inspections, and processing that can range from days to a few weeks.

Are there occupancy limits for STRs in this area?

• Many jurisdictions set occupancy limits based on bedrooms or square footage, so verify the limit and include it in your house rules and listings.

Can an HOA ban short-term rentals even if the city allows them?

• Yes. HOA covenants can restrict or prohibit STRs regardless of local permits, and they are enforceable as private rules.

Do I need a local contact for my STR?

• Many ordinances require a 24/7 local agent or contact who can respond to issues, so be prepared to list a local phone number and name.