Vacation Lodging Service

Greater Nashville REALTORS® is excited to announce that we are now offering in-person Vacation Lodging Service (VLS) pre-licensing and continuing education courses.

What is Vacation Lodging Service?

Vacation Lodging Service (VLS), as defined by the Tennessee Real Estate Commission (TREC) is the business of providing the services of management, marketing, booking and rental of residential units owned by others as sleeping accommodations furnished for pay to transients or travelers staying not more than 14 days.

TREC requires every VLS to have a VLS firm license, as well as a licensed Designated Agent. TCA Section 62-13-104 was amended on June 30, 2010, to specify the requirements for VLS firm licenses and VLS Designated Agent licenses. Businesses engaging in VLS activity without a proper license are subject to civil penalties.

To open a new VLS firm, you must:

1. Complete the VLS application and submit it along with the $90 VLS Firm license fee.
2. Obtain and submit with the application a current zoning letter issued by your local planning commission indicating that a Vacation Lodging Service can be located and operated at the business address. If your local jurisdiction does not have zoning regulations, submit a letter from your local county or city mayor confirming that the jurisdiction does not have zoning regulation.

To become a VLS Designated Agent, you must:

1. Complete the required 8-hour Vacation Lodging Service pre-licensing course.
2. Complete the VLS Designated Agent application, and submit it along with the $90 VLS Designated Agent license fee and the Vacation Lodging Service course completion certificate.

Both licenses are issued for two years and expire on the same date, which is 2 years from the date the licenses were issued. Both licenses must be renewed at the same time.

• In order to renew the VLS firm license, you must pay the $90 VLS firm license renewal fee.
• In order to renew the VLS Designated Agent license, the Designated Agent must complete 8 continuing education hours. These hours can include the 8-hour VLS course. Or, they may also include any TREC-approved real estate continuing education courses.

Important VLS Facts

• VLS firms are not required to have a licensed real estate broker supervise the business.
• Both the VLS Firm license and the VLS Designated Agent licenses expire on the same date.
• If a VLS Designated Agent leaves a firm, the firm must notify TREC within 10 days, and the firm has 60 days to notify TREC of the name of the new VLS Designated Agent.
• If a VLS Designated Agent leaves a firm, the VLS Designated Agent’s license immediately expires, since they are no longer affiliated with that firm. 
• A VLS Designated Agent may serve as a designated agent for multiple offices of the same VLS Firm within a 50-mile radius of the principal office of the firm.
• A VLS Designated Agent may not serve as a designated agent for multiple VLS firms.
• TREC has the power to assess fines ranging from $50-$1,000 and/or other disciplinary action (such as suspending or revoking licenses) for each separate violation of the statutes or rules contained within T.C.A. § 1260-07.

VLS FAQs

I am already licensed by TREC as a real estate affiliate broker/broker. Do I still need a VLS license?

Yes, if you are “…providing the services of management, marketing, booking and rental of residential units owned by others as sleeping accommodations furnished for pay to transients or travelers staying not more than 14 days” as defined by TREC.

I already have a VLS (firm or designated agent) license. Do I still need a real state affiliate broker/broker license?

Yes, if you are performing, offering, attempting to perform or agreeing to perform any single act defined in TCA § 62-13-102.

When does my VLS license expire?

Both the VLS Firm license and the VLS Designated Agent license expire two years from the date they were issued.

What if our VLS Firm’s Designated Agent leaves our firm?

• If a VLS Designated Agent leaves a firm, the firm must notify TREC within 10 days, and the firm has 60 days to notify TREC of the name of the new VLS Designated Agent.
• If a VLS Designated Agent leaves a firm, the VLS Designated Agent’s license immediately expires, since they are no longer affiliated with that firm.

How many continuing education hours do I need to renew my VLS Designated Agent license?

8 hours and may consist of any TREC-approved real estate continuing education course.

I’m an affiliate broker/broker and am interested in completing the 8-hour VLS course. Will I receive CE credit that will count toward my affiliate broker/broker license renewal?

Yes. However, a VLS course may be completed for either CE credit OR pre-licensing credit. A student may not receive both.

Where can I learn more about the Tennessee Real Estate Commission’s rules regarding Vacation Lodging Services?

T.C.A. § 1260-07