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Council approves short-term rental ordinance, delays decision on Parkridge overlay

The plans would triple the size of the existing historic overlay in the neighborhood directly north of Magnolia Avenue, which contains almost 2,000 homes and apartments.

Knoxville residents who use their property for short-term rentals through companies like Airbnb will have a year to adjust to new city guidelines after the Knoxville City Council approved an ordinance regulating the practice Tuesday night.

The new ordinance requires Airbnb and VRBO owners to live on the property they're renting. The council passed the ordinance on a second reading.

MORE: Knoxville council once again considers Airbnb-type regulations

The ordinance takes effect Jan. 2. Property owners who don't live in the home they're renting out will be able to obtain a special permit that will give them one year to adhere to the new measure.

Knoxville City Council meeting. Nov. 21, 2017.

Also on Tuesday, the council postponed a decision on expanding the Parkridge historical district.

The plans would triple the size of the existing historic overlay in the neighborhood directly north of Magnolia Avenue, which contains almost 2,000 homes and apartments.

Those in favor of the expansion say it is meant to protect the historic character of the area.

Knoxville Mayor Madeline Rogero called for the plans to be delayed last week, saying discussions around the proposed expansion have become "heated," and have "amplified rather than allayed fears about the possible impact on low-income residents and property owners in the neighborhood."

During their meeting Tuesday night, council members decided to postpone any decisions on a proposed ordinance to expand the historic overlay. They did not set a specific date for the future discussion.

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