Tennessee: A “residential use only” restriction on restrictive covenant prohibits short term rentals, like AirBNB

In the April, 2022 decision, Pandharipande v. FSC Corp, the Tennessee Court of Appeals held that the real property was subject to a declaration of restrictions and an amendment. The first prohibited non-residential renting and the amendment prohibited leasing for less than 30 days.

The case relied on an older case where a real property was being used like a hotel; that was stipulated to. The Court said this distinction didn’t matter.

The case is likely to be appealed to the Tennessee Supreme Court.

The case is here and you can watch the oral argument here.