Rise of short-term rentals in Greene Co. prompt city, county leaders to look deeper into regulations

GREENEVILLE, Tenn. (WJHL) — Short-term rental properties have been increasing all over Greene County. Greeneville City Mayor Cal Doty says there are at least 200 active now.

Mayor Doty told News Channel 11 that he believes there is a need for more short-term rental properties, but regulating them can be a challenge. The city recently started looking into this, too.

“The Greene County Partnership actually went on the VRBO and Airbnb and just tried to locate all of the properties in Greeneville and Greene County,” said Doty. “We’re working with Airbnb and the VRBO to make sure that we’re collecting all of the sales taxes and the hotel/motel taxes that are generated by these properties.”

Most people who invest in short-term rental properties go through companies like Airbnb and VRBO. Kathrine Hackler owns the Pearl Street Hideaway Airbnb in Greeneville. She said when you sign up on the website, it automatically takes out taxes that benefit the city.

“Airbnb calls it an occupancy tax others might be familiar with a hotel motel tax, but that occupancy tax is paid, automatically booked into every booking to be sure that you’re compliant with city taxes,” said Hackler.

But Doty said for short-term rental property owners who don’t use these websites and use more traditional forms of booking, paying taxes could go unnoticed.

“I think we’re going to have to consider all of the ramifications of having short-term rentals,” said Doty. “Some of the things that we’re going to have to look at is can they be in any neighborhood? Do we need to have restrictions on the locations where they’re allowed? It’s just another activity that we need to consider as we’re working on new ordinances.”

Although these properties are hard to regulate, Mayor Doty says they can benefit the city and county.

“Having visitors here could encourage them to come back or to come and live here permanently, visitors are a great revenue resource for us,” said Doty.

The Greene County Planning Commission has proposed revised regulations for short-term rental properties, which will be presented to the Greene County Commission.

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