Thinking about turning a Rogersville property into a short-term rental? You are not alone. With the town’s small-town charm and access to East Tennessee, STRs can work here if you know the rules, taxes and risk controls. In this guide, you will learn how Tennessee’s laws apply, what Rogersville owners should verify locally, how taxes get handled, and the safeguards smart hosts put in place. Let’s dive in.
Start with the rules
Before you buy or list, make sure the use is allowed for your specific address. Tennessee’s Short-Term Rental Unit Act sets the statewide framework and includes a legacy provision that can protect existing STRs when new rules appear. You can review the municipal summary of the act through the University of Tennessee’s Municipal Technical Advisory Service for context on what cities can and cannot do under state law. See the MTAS summary of the Short-Term Rental Unit Act for details.
State framework and legacy protection
State law limits certain local bans and recognizes a “legacy” or grandfathering concept for units that were operating before new restrictions took effect. For the statutory backdrop, you can also review the Tennessee Code Title 13 chapter that covers municipal zoning and the STR Unit Act.
- Read the MTAS summary of the Short-Term Rental Unit Act: MTAS summary
- Explore the Tennessee Code reference: Tennessee Code Title 13 overview
Local zoning, historic district and HOAs
Rogersville applies its own zoning and land-use rules. If a property sits in the Rogersville Historic District, design review and exterior changes can be subject to local standards that may add steps to your STR setup. Learn more about the district’s context here: Rogersville Historic District.
If the home is in an HOA or condominium, the association’s documents may prohibit or limit STRs. Tennessee law allows HOAs and condos to restrict rentals, so always review the declaration and rules before you close or list.
Practical note: there is no single statewide “one stop” permit. You should confirm requirements with Town of Rogersville planning or codes, Hawkins County offices, and any HOA or historic-preservation body that covers the property.
Understand Tennessee taxes and registrations
Short stays are taxable in Tennessee. The state treats STR bookings as taxable sales, and many platforms collect tax for you. Your responsibilities depend on how guests book and your gross receipts.
Sales tax and marketplace collection
For marketplace bookings, platforms that meet Tennessee’s definition generally collect and remit state sales tax and, in many cases, local occupancy taxes to the Tennessee Department of Revenue. You should keep the platform’s tax reports as proof of what was collected and remitted. For direct bookings, you are responsible for registering, collecting and remitting. Review the Department of Revenue’s guidance on short-term rental reporting and marketplace rules: Tennessee short-term rental tax guidance.
Local occupancy taxes
Cities and counties may impose their own lodging taxes. Tennessee’s system routes marketplace-collected occupancy taxes through the Department of Revenue, which then distributes funds to local governments. To confirm whether Hawkins County or the Town of Rogersville currently levies an occupancy tax and what rate applies, check the Department’s local occupancy tax resources and contact the local offices before you list. Start here: Local occupancy tax overview.
Business tax and local licenses
Depending on your gross receipts and local rules, you may need to register for Tennessee business tax and obtain a local business license. Marketplace collection of sales or occupancy taxes does not remove these obligations. The Department of Revenue’s STR guidance explains registration and filing. Keep detailed records and confirm thresholds with local licensing offices.
Federal tax rules that affect STRs
Short-term rentals can be taxed in different ways at the federal level, depending on how you use and operate the property.
Personal use and expense allocation
If you or your family use the property personally, the IRS applies specific tests that determine how you report income and allocate expenses. IRS Publication 527 explains the “14-day” and “10 percent” rules and how to split expenses between rental and personal use. Review: IRS Publication 527.
Schedule E vs. Schedule C
Most rental income is reported on Schedule E. If your average guest stay is 7 days or less, or 30 days or less when you provide significant personal services, the IRS may treat the activity as a trade or business. In that case you report on Schedule C and net earnings may be subject to self-employment tax. See Publication 527 and Publication 925 for passive activity and participation rules: IRS Publication 925.
Insurance, safety and risk controls
Protecting your asset and your guests is essential. Platform protections are helpful, but they are not insurance.
Insurance coverage
Standard homeowners policies often exclude business activity. Many carriers require a short-term rental endorsement or a dedicated vacation-rental or commercial liability policy. Platform programs can have limits and exclusions. Talk to your insurer before you list and request documentation of coverage. Learn more about common gaps here: Homeowners insurance and Airbnb.
Safety and code compliance
Tennessee law includes smoke alarm and carbon monoxide detector requirements for residential properties. As an operator, you should verify working detectors, fire extinguishers, clear exits and up-to-date maintenance logs. Local officials may inspect or enforce these standards. For background, see Tennessee’s health and safety code reference: Tennessee Title 68 safety provisions.
Operational controls that work
- Post clear house rules and max occupancy. Require guest acceptance.
- Provide a 24/7 local contact who can respond to issues.
- Use ID verification, reservation screening and minimum-stay settings.
- Consider noise monitoring devices that do not record audio.
- Keep maintenance and inspection checklists with dates and signatures.
- Maintain booking, tax and insurance records for audits and claims.
Market reality in Rogersville
Rogersville is a small market with limited STR supply, so returns tend to be modest and seasonal. Expect demand to track local events, historic-district tourism and regional travel patterns rather than big-city year-round occupancy. Before you underwrite a deal, compare recent listing performance around your address, and stress test your numbers with conservative occupancy and average daily rate assumptions.
Step-by-step launch checklist
- Zoning and use
- Verify permitted use with Town of Rogersville planning or codes.
- Check if the property sits in the Rogersville Historic District and learn the implications: Historic District overview.
- Review HOA or condo rules for STR restrictions.
- Taxes and licenses
- Confirm what your platform collects and keep its tax reports: TN STR tax guidance.
- Determine whether a local occupancy tax applies in Rogersville or Hawkins County: Local occupancy tax resources.
- Register for business tax and local licenses if required.
- Safety and insurance
- Secure STR-appropriate insurance in writing: Insurance overview.
- Install and test smoke and CO detectors and document checks: TN safety code reference.
- Accounting and operations
- Use a separate bank account and track personal-use days: IRS Publication 527.
- Set house rules, guest screening and a local emergency contact.
Ready to evaluate a Rogersville property for short-term rental potential? Tap a local advisor who knows the rules, the neighborhoods and the numbers. If you want a clear path from due diligence to compliant launch, reach out to Matt Fleenor for a practical, data-informed plan.
FAQs
What Tennessee laws govern short-term rentals?
- Tennessee’s Short-Term Rental Unit Act sets statewide guardrails, including a legacy provision, while allowing local zoning, licensing and safety rules. You can review a municipal summary here: MTAS summary.
Do Airbnb and VRBO collect my Rogersville taxes?
- For marketplace bookings, platforms generally collect and remit state sales tax and often local occupancy tax to the Tennessee Department of Revenue, but you must keep platform reports and handle taxes on direct bookings: TN STR tax guidance.
Does Rogersville or Hawkins County have a lodging tax?
- Local occupancy taxes vary by city and county in Tennessee; use the Department of Revenue’s resources and contact local offices to confirm whether a county or municipal tax applies to your address: Local occupancy tax resources.
How does personal use affect my STR taxes?
- If you use the property personally, IRS Publication 527 explains the 14-day and 10 percent tests that control how you report income and allocate expenses for vacation homes: IRS Publication 527.
What insurance should a Rogersville host carry?
- Many homeowners policies exclude business activity; hosts typically need a short-term rental endorsement or a dedicated vacation-rental policy, and platform protections are not a substitute: Insurance overview.
