Is La Follette, Tennessee Good for Airbnb Investment?

Proceed only after confirming the address is inside La Follette, the zoning district permits the proposed use, and the City approves the short-term rental certificate.

• Ask Codes to verify municipal jurisdiction and zoning in writing.
• Confirm the dwelling has lawful occupancy and required life-safety features.
• Model taxes, insurance, utilities, maintenance, and reserves before setting a purchase price.

The City short-term rental policy requires an application and certificate before operation, with review by the Board of Mayor and Aldermen.

• Obtain the current application and checklist from the Codes Department.
• Do not advertise or accept stays until the certificate is issued.
• Confirm renewal, transfer, and change-of-ownership procedures directly with the City.

Ordinance 2022-05 amended zoning rules for short-term rentals in R-1 and R-2 districts, so parcel classification and current conditions need written confirmation.

• Verify the parcel on the current zoning map.
• Ask whether the proposal is permitted, conditional, or requires a hearing.
• Review setbacks, parking, signs, and any site-plan conditions.

The City application states that a business location must lie within city limits and comply with municipal codes, zoning laws, and ordinances.

• Confirm City and Campbell County business-license requirements.
• Track Tennessee business-tax thresholds and minimal-activity rules.
• Keep the rental certificate, licenses, and tax accounts under the correct operator.

The City Codes Department administers building permits and inspections; the rental checklist should be reconciled with the property layout before closing.

• Verify permits and certificates for additions, decks, bedrooms, and conversions.
• Confirm smoke alarms, carbon-monoxide alarms, exits, guards, and address visibility.
• Budget corrections identified by Codes before opening.

The City policy and certificate govern operation, while nuisance, parking, occupancy, and emergency-response expectations can affect a property’s practical capacity.

• Use the approved occupancy and parking limits in listings and house rules.
• Maintain a responsive local contact and documented complaint process.
• Keep guest instructions aligned with City restrictions and private covenants.

Tennessee treats qualifying vacation lodging as taxable for sales, local occupancy, and business-tax purposes, with responsibility varying by stay length and booking channel.

• Register appropriate accounts before direct bookings.
• Reconcile marketplace-collected amounts against direct-booking liabilities.
• Confirm current City and Campbell County occupancy-tax rates and filing destinations.

Campbell County and Tennessee property records support diligence but do not replace a survey, title work, or a zoning determination.

• Match the deed, parcel ID, address, boundaries, and assessed improvements.
• Check easements, access, liens, and recorded private restrictions.
• Compare actual improvements with permits and assessment records.

Mountain terrain, drainage, flood exposure, access, septic or sewer capacity, and utility reliability require property-level review.

• Check FEMA mapping and ask the local floodplain administrator about the parcel.
• Inspect slopes, drainage, retaining walls, driveway access, and emergency routes.
• Confirm water, sewer or septic, power, internet, and backup plans.

A defensible offer includes regulatory, safety, tax, insurance, utility, repair, and reserve costs rather than assuming booking income will absorb them.

• Price permit, license, inspection, and professional-service costs.
• Obtain insurance terms for the intended rental use before closing.
• Stress-test lawful nightly-rate scenarios with downtime and repair reserves.