The town of Signal Mountain plans to start charging fees for short-term vacation rental permit applications and renewals, as well as increasing the penalties for operating without a permit.
Town Manager Matt Justice said the town now has a $500 penalty fee for operating without a permit, but no fee to apply for or renew a permit.
“Short-term rentals, especially if it’s a full home, require a lot of manpower to pretty much go in and do a commercial-type inspection,” he said, as to why staff recommends implementing application fees for permits.
According to a report from staff, the inspection process takes about 10 hours per rental unit.
The council decided at its March 23 work session to set the application fee at $300 and the annual renewal fee at $150. For operating without a permit, it decided to increase the penalty to $3,000 for the initial violation, plus an additional $500 per day of noncompliance.