City staff and a legal consultant told the City Council how Knoxville enforces its short‑term rental ordinance, how the city verifies owner residency and what legal limits it faces. Donna Dyer and Cheryl Ball described two permit types: a type‑1 operating permit for owner‑occupied units and a type‑2 permit for non‑owner‑occupied properties. The city’s counts were nearly even: 203 type‑1 permits and 197 type‑2 permits in the current inventory, as staff reported.

The city requires an annual renewal for short‑term rental permits, which includes resubmitting residency documentation and a signed affidavit. Cheryl Ball said the renewal process and affidavit were added after a prior council workshop and must be completed each year; there is a $50 renewal fee. Ball said the affidavit requires owners to attest that the rental is their primary residence. When neighbors raise complaints, the city’s contractor Host Compliance monitors online platforms and the city also maintains a hotline listed on the short‑term rental web page. Ball provided the contractor’s hotline number: (865) 337‑8275.

Legal limits and enforcement options: Stephanie O’Hara, a legal consultant with MTAS, explained the difficulty of proving residency fraud. “Residency is just a really hard thing to prove,” she said, noting that a court‑level action such as a declaratory‑judgment suit would likely be needed if staff were to challenge residency on the basis of falsified documents. Staff also noted state law limits and preemption: West and others said a state law that went into effect in January preempts some local ordinance provisions, constraining enforcement options and requiring careful legal steps to revoke permits. Chad West said revocation of a permit is available in limited circumstances, for example after repeated violations: “there’s only revocation if they have 3 violations,” he said.

How enforcement typically works: staff described a three‑notice process for noncompliant listings identified by Host Compliance, after which the city may issue a citation. Staff told council members that citations for short‑term rental violations have been rare since January 2024 and that many cases resolve when owners convert to long‑term rentals or otherwise come into compliance.

Ending: Council members pushed staff to continue using the annual affidavit and Host Compliance monitoring and asked staff to provide follow‑up information on whether the renewal and affidavit process is reducing nonowner residency violations. Staff said they will provide additional monitoring data on renewal compliance and enforcement outcomes on request.