Short-term vacation rentals in unincorporated parts of Hamilton County would receive regular inspections under a new set of rules going in front of the County Commission this week.
Commissioner Joe Graham, R-Lookout Valley, has been working with Commissioner Gene-o Shipley, R-Soddy-Daisy, on the update during the past several months. He said during the commission's agenda review meeting Wednesday that the units are sparsely regulated in Hamilton County.
"Right now, the people that are doing it — there's no inspection," Graham said. "It's the Wild Wild West. There's nothing being done. There's no rules. So now we're going to have a proper inspection."
Under the proposed requirements, the county would charge a $750 application fee for new rentals, which would include $250 for an initial inspection. If the owner fails that inspection, a $250 fee would be charged for each additional visit required to bring the residence into compliance. Permits are good for one year, according to the resolution. Renewing a permit would also cost $750.
The fees are based on the cost of conducting inspections and would also cover the price of new compliance software.
"The Hamilton County taxpayer will not be burdened with any expense whatsoever for somebody else wanting to do a short-term vacation rental," Graham said.
Properties would require approval from by the Hamilton County Building Inspection Department, the Hamilton County fire marshal and the Hamilton County Groundwater Department if the property has a septic system. A separate fee would be charged for an inspection by the Groundwater Department.
There are 31 permitted short-term vacation rentals in unincorporated parts of the county, and Graham estimated there are between 75-100 additional illegally-operated rentals that don't have a permit.
Under the proposed rules, the county would also cap the number of guests allowed to stay at a home based on the number of bedrooms. The property must also have enough spots for guests to be able to park at the residence and not on the street.
(READ MORE: New vacation rental rules in the works after failure at Chattanooga City Council)
"If you don't have the parking, if you don't have the sewer, if you don't have the infrastructure, your certificate is going to reflect that," Graham said. "And it's going to be based on how many people can stay there with all these ingredients involved."
The county would require owners to post a sign outside listing their contact information. If a short-term vacation rental has caused a disturbance to neighbors or resulted in multiple incidents with law enforcement, officials would be able to deny the renewal of a permit. Owners would have the right to challenge that decision in front of an appeals board.
Additionally, the county is looking at recruiting a company called Granicus, which has also been working with the city of Chattanooga, to tabulate all the illegally operated short-term vacation rentals in the county. Those owners would receive a letter notifying them that they're out of compliance with county rules. Graham said their services would cost an estimated $8,000 to $9,000 for an entire year.
Under a new set of zoning rules the commission will consider Wednesday, the properties would be allowed in all zones except manufacturing.
(READ MORE: Property owners form group to oppose Chattanooga's proposed vacation rental rules)
Under existing regulations, rentals are allowed by special permit in all residential zones except single family residential districts. The permit requires units have no signage out front, that they can't be rented for large group events and that there be no more than five bedrooms. The county allows vacation rentals by right in multifamily residential districts.
Hamilton County has had a moratorium on short-term vacation rentals in unincorporated areas since October, which commissioners put in place to give them time to consider updates to their rules. It is set to expire April 20.
The Hamilton County Commission will meet at 9:30 a.m. Wednesday in its fourth floor chambers at the Hamilton County Courthouse, 625 Georgia Ave.
"I think we have been as fair both ways as we could for the host as well as the neighborhoods," Shipley told his colleagues Wednesday. "It's a good start."
Contact David Floyd at dfloyd@timesfreepress.com or 423-757-6249.