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Roane County adopts short-term rental rules, grandfathering compliant operators
Summary
The Roane County Commission unanimously adopted regulations for short-term rentals designed to permit and govern operations; a grandfathering clause protects operators who have paid required taxes but lease and enforcement questions remain.
The Roane County Commission on Aug. 25 adopted a resolution setting permitting and operational rules for short-term rental (STR) units across the county, including a grandfathering provision for operators who have been in tax compliance.
The measure, moved by Commissioner Cunningham and seconded by Commissioner Gann, passed without opposition. The county attorney explained the rule will allow units that “have been paying all required taxes, which would include hotel motel for 6 of the past 12 months,” to remain grandfathered until the property is sold, ceased use for 30 continuous months, or the owner violates local laws or regulations.
Why it matters: The ordinance establishes a formal licensing and permitting structure and clarifies who is eligible for grandfather status. Commissioners asked staff to provide related lease information for county properties tied to tourism operations as part of implementation oversight.
County staff and commissioners discussed specific implementation items during debate. Commissioners asked whether existing short-term rental operators would be treated as permanent permit-holders; the county attorney said compliant operators are grandfathered but must meet the tax and continuous-use conditions to retain that status. Commissioners also requested staff to pull lease documents, specifically for Caney Creek Marina and associated campgrounds, to confirm expiration and renewal history before enforcement changes are implemented.
What’s next: The resolution takes effect as adopted; staff will identify and report back on relevant leases and the county’s process for administering permits and enforcement. The clerk recorded the motion as carried unanimously.
