State Government Moves to Pass Short Term Unit Act

State government moves to pass the “Short Term Rental Unit Act.” The act restricts local government’s ability to ban short term rentals that are already legally active.

Rep. Cameron Sexton introduced the act to the House. 

“I believe that individuals in Tennessee have the right to use their property as they see fit,” Sexton said. “Short term rental bill would allow individuals to use their property to host other individuals into the area, to use their home or property as a welcoming mat for tourism in the communities they are located.” 

The bill was made in response to local governments banning short term rentals, such as AirBnBs, in residential areas. Sexton said the state wants to protect those who were already running permitted short term rentals while also giving local government power to decide in the future.

“We are not going to take away what they have already done locally in Cookeville per say,” Sexton said. “But we are trying to make sure we protect the grandfathering of people who have been doing it legally prior to them prohibiting or restricting the usage.” 

In response to opposition, Sexton said he does not believe the bill is an overstep in legal jurisdiction.

“I think we still empower the homeowner associations through their covenant to prohibit short term rental properties in those areas. We still allow the  locals to prohibit it if they want to,” Sexton said. “What we are arguing about is it someone’s right to stop, when they were doing it legally, just because the city declared it illegal and doesn’t want them to do it anymore.” 

The State Conference Committee will meet on Monday to review the bill. Sexton said they will hopefully move it to a vote on Monday.