Can an HOA Restrict Rentals in Tennessee?

What Tennessee law says

Tennessee takes a contract-friendly approach: courts strongly enforce HOA declarations as written, and associations may adopt leasing restrictions — including outright bans on short-term rentals, rental caps, minimum lease terms, and whole-unit-only rules — through their recorded governing documents. The 2018 Short-Term Rental Unit Act expressly preserves an HOA's right to prohibit Airbnbs and similar rentals in its documents, even as it limits what cities and counties can do.

The legislature drew a line in 2021 for long-term rentals. Under Tenn. Code Ann. §§ 66-27-701 through -705, 'long-term rental property' means a single-family home leased for 180 or more consecutive days. If an HOA amends its declaration on or after May 1, 2021 to prohibit — or 'effectively prohibit' — long-term rentals, every owner keeps a vested right to continue using the property as a long-term rental until the owner transfers it (§ 66-27-703). Amendments of this kind also trigger strict recordkeeping: the association must document the ballot language, proof of mailing, quorum, and final vote count (§ 66-27-702).

Condominiums face an even higher bar. The Tennessee Condominium Act of 2008 provides that no declaration amendment may prohibit the leasing of a unit without the consent of all affected unit owners — meaning a condo rental ban added by amendment needs unanimous buy-in from those it affects. Separately, business-entity owners of HOA property must notify the association within 30 business days of contact changes or ownership transfers (§ 66-27-704).

• Tenn. Code Ann. §§ 66-27-701 to -705 — Defines 'long-term rental property' (180+ day leases) and gives owners a vested right to keep renting when an HOA amendment on/after May 1, 2021 prohibits or effectively prohibits long-term rentals.
• Tenn. Code Ann. § 66-27-702 — Requires HOAs to keep detailed voting records (ballot language, mailing proof, quorum, vote count) for amendments affecting long-term rentals.
• Tenn. Code Ann. § 66-27-704 — Business-entity owners of HOA property must notify the association of contact-information changes or ownership transfers within 30 business days.
• Tennessee Condominium Act of 2008, declaration-amendment provision — No amendment may prohibit the leasing of a unit without the consent of all affected unit owners.

What HOAs in Tennessee can and can’t do

HOAs generally can:

• Ban short-term rentals (Airbnb/VRBO) outright through governing documents — expressly preserved by the 2018 Short-Term Rental Unit Act
• Impose rental caps (e.g., Lenox at Brier Creek's 20%) and waiting lists
• Set minimum lease terms (6 or 12 months are common in Tennessee communities)
• Require written leases, owner notice to the board, and rental permits before leasing begins
• Restrict leasing to whole-unit residential use with no subletting or transient occupancy

Limits under Tennessee law:

• Use a post-May 1, 2021 amendment to stop a current owner from long-term renting — the owner has a vested right to continue until transfer (§ 66-27-703)
• 'Effectively prohibit' long-term rentals through backdoor means (prohibitive fees, endless waitlists) aimed at compliant owners
• For condominiums, add a lease-prohibiting amendment without the consent of all affected unit owners

Things to know in Tennessee

• 'Effectively prohibit' is defined in the statute (§ 66-27-701) — an HOA that acts or fails to act so that a compliant owner cannot use the home as a long-term rental triggers the same vested-right protection as an outright ban.
• The 2021 protection is amendment-triggered: it applies to amendments enacted on or after May 1, 2021 (§ 66-27-705). A pre-existing ban in the original declaration is not covered.
• Tennessee courts read declarations strictly as contracts: in Pandharipande v. FSD Corp. (Tenn. Ct. App. 2022), the court enforced a 30-day minimum lease and the original 'single family residence' covenant against an STR operator.
• A cap still requires the right vote — Tellico Village's board has noted that imposing a rental cap would require a 67% member vote under its documents.

Rental rules we’re seeing in Tennessee

Real examples from the HOA411 database:

• Lenox at Brier Creek, Nashville — Leasing Rules & Regulations impose a 20% rental cap, a 12-month minimum lease, entire-lot-only leasing, and no hotel or transient use — rentals are permitted within those limits.
• Tellico Village, Loudon — The Declaration requires a written lease of at least 6 months with a copy to the association plus an ACC rental permit before any rental begins; the POA board states there is currently no rental cap, and adding one would require a 67% member vote.
• Farragut Commons, Knoxville — The official HOA homeowner guide permits rentals with a written lease of at least 6 months and owner notice of renter info to the treasurer; buying solely for investment is discouraged but rentals are not banned.
• Fox Run, Farragut — The 2023 Amended and Restated CC&Rs allow residential rentals (not deemed a commercial business) but prohibit short-term rentals under 6 months and require owners to notify the board within 30 days of renting or changing renters.
• Providence, Mt. Juliet — Rentals are permitted subject to a 10% rental cap per section, per an MLS listing remark (listing-reported; specific cap language not yet verified in the recorded documents).

Frequently asked questions

Can my Tennessee HOA ban me from renting my home long-term?

If the ban came through an amendment adopted on or after May 1, 2021, no — at least not while you own it. Tenn. Code Ann. § 66-27-703 gives you a vested right to continue long-term renting (180+ day leases) until you transfer the property. A ban written into the original declaration before you bought is a different story.

Can a Tennessee HOA ban Airbnb?

Yes. The 2018 Short-Term Rental Unit Act limits cities and counties from banning STRs outright, but it expressly preserves an HOA's right to prohibit them in its governing documents. Most Tennessee communities that restrict rentals draw the line at short-term stays first.

What counts as 'effectively prohibit' under Tennessee law?

The statute defines it as acting — or failing to act — so that a compliant owner cannot use the property as a long-term rental. A cap set at an absurdly low number, a permanent waitlist, or prohibitive leasing fees could qualify, triggering the same vested-right protection as a written ban.

Can a Tennessee condo association add a rental ban by amendment?

Not without the consent of all affected unit owners. The Tennessee Condominium Act of 2008 bars any amendment that would prohibit the leasing of a unit unless every affected owner agrees — a much higher bar than a normal majority amendment vote.

Does the 2021 law help me if I buy a home that already has a rental ban?

No. The vested-right protection (§§ 66-27-701 to -705) applies only to amendments enacted on or after May 1, 2021. A rental ban already in the recorded declaration when you buy binds you from day one.

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General information only, not legal advice. HOA rules change — confirm directly with the HOA or a Tennessee attorney before buying or leasing.