Waterfront ROI Under TVA & County Rules

Are you eyeing a Chickamauga Lake property and wondering how the rules on docks and short-term rentals will shape your returns? You are not alone. Waterfront can command a premium, but only if you understand the Tennessee Valley Authority’s shoreline rules and Hamilton County’s short-term rental requirements. In this guide, you will see how these regulations affect revenue, costs, timelines, and risk so you can model ROI with confidence. Let’s dive in.

What TVA rules mean for ROI

TVA owns and manages Chickamauga Lake’s shoreline and controls what you can build on or near the water. Their Shoreline Management Program sets standards for private docks and other facilities. County zoning cannot override TVA, so your water access plan must fit TVA’s rules first.

Permits and timelines

A private dock on a TVA reservoir generally needs a TVA permit or license. Reviews can take weeks to months depending on site conditions and complexity. That timeline affects your time to revenue, so you should budget holding costs during the approval period.

Dock size, slips, and footprint limits

TVA rules limit dock dimensions, the number of slips, and how far a structure can extend from shore. Fewer slips or a smaller footprint can reduce the renter appeal for boat owners, which can lower achievable nightly rates and peak-season occupancy.

Shoreline classification and site conditions

TVA classifies shoreline by use and environmental sensitivity. Standards vary with classification, slope, navigation needs, and existing uses. You should request parcel-specific guidance from TVA before you assume any dock size or configuration in your model.

Approval conditions and transfer

TVA approvals can include conditions like maintenance obligations, seasonal removal, or restoration if a permit is revoked. Some approvals may require action at ownership transfer. These items create exit costs and resale risk that belong in your pro forma.

Fees and ongoing obligations

Expect permit fees and recurring compliance obligations such as inspections and maintenance standards. Build a maintenance reserve and an annual compliance line into your operating budget.

Hamilton County STR basics

In unincorporated Hamilton County, and in municipalities like Chattanooga, short-term rentals are regulated through permits, inspections, and operating rules. Georgetown may be unincorporated, so verify jurisdiction for the exact property address.

Registration and renewals

Most STR setups require registration and periodic renewal. Add application and renewal fees, plus lead time, to your upfront and recurring costs. You may need to wait for approval before taking bookings.

Safety, inspections, and local contact

Rules often require safety equipment such as smoke and carbon monoxide alarms and may include inspections. Some programs require a local contact or manager, which adds a fixed monthly cost or a management fee.

Occupancy, parking, and nuisance rules

Occupancy caps and parking limits influence the size of groups you can host and the revenue per booking. Noise and complaint-driven enforcement can lead to fines or forced listing pauses, so include a contingency reserve.

Taxes and zoning

Transient occupancy taxes reduce net revenue and require proper registration and remittance. Zoning or overlay districts can cap STR density or restrict where STRs are allowed. If STR rules are tight, mid-term leasing of 30 days or more may be treated differently.

How rules change your numbers

Regulatory friction affects both revenue and expenses. Modeling these effects upfront helps you avoid surprises and set realistic expectations.

Revenue impacts to model

• Waterfront premium depends on dock quality. Model separate ADR scenarios for full dock access, limited access, and no private dock.
• Peak-season occupancy is sensitive to boating access. Fewer slips can reduce bookings from boat-owning groups.
• Occupancy caps limit per-booking revenue from large groups.
• If STR rules are restrictive, model a mid-term scenario with separate ADR and occupancy assumptions.

Expense impacts to include

• One-time compliance costs for TVA permits, dock modification, and STR safety retrofits.
• Ongoing dock maintenance, seasonal removal or storage if required, and inspections.
• Permit and license fees, insurance premiums for waterfront and STR operations, and management or local contact fees.
• Transient occupancy taxes and a contingency for fines or corrective actions.

Timing and exit considerations

• Permit and registration timelines delay revenue. Carry mortgage, insurance, and taxes through the pre-revenue period.
• TVA approvals tied to ownership can complicate resale. Model potential sale discounts or a longer marketing period.

Short-term vs mid-term: which fits your plan

Short-term rentals can outperform when you have high-quality water access that supports higher ADRs and strong peak-season occupancy. That performance depends on your ability to secure a compliant dock footprint and meet local STR rules.

Mid-term rentals can shine when STR rules are restrictive or when dock capacity is limited. Corporate and contractor tenants may value privacy and indoor amenities more than multiple boat slips. Consider mid-term as a lower-friction path if permitting timelines stretch or if STR caps limit your options.

Modeling checklist for Georgetown waterfront

Use this due diligence list and variable set before you write your investment case.

Pre-acquisition verification

• Confirm TVA shoreline classification and obtain copies of any existing TVA dock permits or licenses.
• Confirm jurisdiction and request the current STR ordinance, application materials, fee schedule, and inspection requirements.
• Verify riparian rights, recorded easements, and any shared dock agreements.
• Check FEMA flood maps and local floodplain rules that could affect building or safety requirements.

Revenue inputs

• ADR scenarios: baseline non-waterfront, waterfront with full dock, waterfront with limited dock.
• Occupancy seasonality by month and the impact of dock capacity on peak demand.
• Maximum permitted occupancy and any parking-related limits.
• Transient occupancy tax rates and remittance timing.

Expense inputs

• One-time compliance: TVA applications, dock modifications, and STR safety retrofits.
• Ongoing compliance: renewals, inspections, and monitoring.
• Dock operations: maintenance reserve, seasonal removal and storage if applicable.
• Insurance increments for waterfront and STR liability.
• Management or local contact fees and a contingency reserve for fines or retrofits.

Timing and sensitivity

• Permit lead time of weeks to months and the resulting delayed revenue start.
• Transfer conditions that may affect resale and marketing time.
• Scenario ranges for ADR and occupancy, plus capital cost escalation to identify break-even thresholds.

Practical scenarios to test

• Full access dock scenario: Multi-slip configuration within TVA footprint limits, high seasonal ADR, higher O&M and insurance.
• Limited access dock scenario: Single slip or short dock, moderate ADR uplift, lower attraction for larger boating groups.
• No private dock scenario: Water views or shared access only, lower ADR uplift, potentially better fit for mid-term tenants.

For each scenario, model conservative, base, and optimistic cases. Test ADR and occupancy up or down by meaningful ranges and include capital cost contingencies, especially for dock construction or modification.

Risk factors and how to mitigate

• Permit denial or strict conditions: Obtain TVA site-specific guidance and existing permits before closing. Treat permits as a hard condition.
• Neighborhood sentiment and complaints: Understand local enforcement patterns. Set clear house rules and invest in noise monitoring if allowed by policy.
• Environmental constraints: Steep banks, erosion, or protected areas can change your dock plan. Get contractor input early.
• Liability for water activities: Secure appropriate insurance and implement renter water-use policies to reduce risk.

Next steps for investors

• Request TVA shoreline classification and any existing dock permits for the parcel you are evaluating.
• Contact Hamilton County Planning and the tax office to confirm STR rules and occupancy tax registration steps.
• Pull local comps segmented by private dock availability and slip count, and note reviews that mention boating access.
• Get bids from dock contractors and speak with local managers who operate lakefront rentals to ground your cost assumptions.
• Build your model with delay-to-revenue, compliance capex, insurance increments, and a contingency reserve.

Ready to evaluate a specific Georgetown shoreline address or compare scenarios before you write an offer? Our team blends local market insight with construction-savvy guidance to help you model the numbers clearly and negotiate with confidence. If you want a property-specific read on value and feasibility, reach out to The Smith Team.

FAQs

How TVA permits affect time to first booking in Georgetown

• TVA review times vary by site and complexity, so budget several weeks to a few months before you can count on revenue.

Whether you can rely on an existing dock at purchase

• Only if there is a documented TVA permit or license in the file. Unpermitted docks may require removal or retroactive permitting, which adds cost and delay.

How Hamilton County treats mid-term rentals vs STRs

• Many jurisdictions distinguish stays under 30 days from 30-plus day leases. Verify the local ordinance. Mid-term can reduce regulatory friction but may change demand and ADR.

Budgeting for dock capex and annual maintenance

• Costs vary with dock type, length, and site conditions. Obtain local contractor bids and include seasonal removal or reinforcement if required.

Whether limited dock capacity still supports a waterfront premium

• Often yes. The size of the premium depends on views and access quality. Expect lower uplift than properties with larger or multiple-slip docks.