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New Ordinance To Regulate Short-term Rentals Is Announced By Memphis

Memphis's public works director, Robert Knecht, aims to manage Airbnbs by implementing local measures to distinguish between legitimate and improper uses of residential properties, despite state laws limiting such activities. (Photo: The Longmont Leader)

A new ordinance has been introduced in Memphis, Tennessee, to address the growing concern over residential properties being used as temporary lodging.

Short-term rental operators are exempt from registration unless the property has been sold or not used for 30 months. (Photo: Traverse Legal)

According to Celeb Magazine, in order to address the growing concern over residential properties being used as short-term rentals via Airbnb, Memphis, Tennessee, has introduced a new ordinance. This ordinance, which took effect on July 1, requires that homeowners who wish to rent out their residences obtain a permit.

Director of Public Works for the City of Memphis, Robert Knecht, outlined the justification for this regional adjustment. While state laws impose some restrictions, he pointed out that the city was trying to put local measures into place to better manage what is known as Airbnbs.

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This initiative’s main goal is to distinguish between proper and improper uses of residential properties. According to Knecht, some people are using these properties for things besides just staying there.

Furthermore the Action News 5 added, Knecht emphasized that by engaging in such activities, renters might unintentionally break zoning laws and break the law.

Property owners who wish to rent out their residences must register their short-term rentals by the new ordinance. They must pay an initial fee of $300 per property for the permit, and an annual renewal fee of $150.

The registration requirement does not apply to current short-term rental operators, however, unless their property has been sold or hasn’t been used for rentals for 30 months.

According to a source in the Memphis Airbnb industry who spoke with CELEB, failure to pay property taxes will result in jail time. Homeowners want to sell in a down market because of the new permit regulation to avoid fines and possible jail time.

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