Why Your STVR Certificate Could Be Valuable Even if Not Used

Chattanooga, Tennessee’s popularity as a tourist destination continues to rise, thanks to its scenic

beauty, outdoor adventures, and vibrant cultural scene. As more travelers flock to the area, short-

term vacation rentals have become a coveted way to earn extra income and capitalize on the

city’s booming tourism. However, these rentals are heavily regulated, and securing a Short-Term

Vacation Rental (STVR) certificate be challenging. If you already hold an owner-occupied

(Homestay) or non-owner occupied (Absentee) certificate, the annual $550 renewal fee may feel

steep, but there are compelling reasons to keep it active.

Chattanooga enforces strict zoning for new STVR licenses. In many neighborhoods, due to

zoning changes, getting approved can be challenging or impossible. Letting your certificate lapse

could mean losing your spot in this restricted market, forcing you to reapply under potentially

even stricter conditions. Maintaining a valid STVR certificate ensures you can continue renting

legally and flexibly, whether you plan to host guests year-round or only occasionally. It also

eliminates the headaches of re-submitting paperwork, undergoing new inspections, and risking

denial should quotas fill up or regulations tighten further.

An existing STVR certificate adds real value to your property. In a thriving real estate scene, a

home that can legally be rented on a short-term basis is highly attractive to potential buyers,

especially those interested in generating side income. If you ever decide to sell, offering a

property with an active license can give you a competitive edge, driving up demand and

potentially commanding a higher asking price. Even if you do not rent your space regularly,

having the option to bring in revenue on short notice—such as to offset mortgage payments or

finance a trip—provides welcome financial flexibility.

Another advantage is certificate transferability, which allows you to transfer a valid STVR

certificate to another applicant (though not to a different property). If you sell or otherwise

change ownership, the new owner can submit the STVR Certificate Transfer Form via email to

stvr@chattanooga.gov along with valid identification, proof of ownership or lease, proof of

insurance, and a City of Chattanooga business license. This transferability further enhances your

home’s marketability, sparing the buyer from navigating Chattanooga’s stringent STVR

application process and letting them continue renting the property right away.

Ultimately, the $550 renewal fee may seem like a nuisance if you’re not renting out your space

all the time, but it is a relatively small price to preserve a valuable asset in an increasingly

regulated market. Keeping your STVR certificate active means you stay compliant with city

rules, retain the flexibility to earn income as needed, and maintain an attractive selling point

should you ever put your property on the market. In a city where new licenses are hard to come

by, renewing your owner-occupied STVR certificate is an investment that can pay off in both

peace of mind and property value.

Our real estate team has extensive experience, both as STVR owners and as agents, assisting

buyers and sellers with their STVR properties. If you would like more help in understanding how

your current certificate is valuable or about the certification process, reach out to a team member

today.