Overview: Are Short-Term Rentals Allowed in Centerville, TN?

Yes, short-term rentals are allowed in Centerville, Tennessee. However, the regulatory framework operates on multiple levels: statewide Tennessee regulations apply, Hickman County zoning regulations govern areas outside the municipal corporation, and any city-specific ordinances would apply within Centerville's corporate limits. The state of Tennessee explicitly prevents local governments from prohibiting short-term rental use entirely, though they may regulate for health and safety purposes through the least restrictive means.

How to Start a Short-Term Rental Business in Centerville

Starting a short-term rental business in Centerville requires navigating multiple regulatory layers. The process begins with verifying zoning compliance, as Hickman County's zoning resolution governs areas outside the municipal corporation while city zoning would apply within corporate limits.

State-Level Foundation: Tennessee's Short-Term Rental Unit Act (SB1086) provides the foundational legal framework, defining STRs as residential dwellings rented for less than 30 continuous days. This law applies statewide and cannot be overridden by local ordinances.

Local Compliance Path:

1. Zoning Verification: Confirm your property location falls within allowable zoning districts for STR use
2. Business Licensing: Obtain both Hickman County and Centerville business licenses
3. Permit Acquisition: Secure appropriate STR permits based on occupancy type
4. Insurance Setup: Establish minimum liability coverage as required by state law
5. Tax Registration: Register for all applicable taxes (sales, occupancy, income)
6. Safety Compliance: Ensure property meets all health and safety requirements

Required Documents, Permits, Licenses, and Guidelines

State Requirements (Tennessee SB1086):

• Liability insurance minimum $500,000 (unless marketplace provides equivalent coverage)
• Fire suppression systems: smoke alarms, carbon monoxide detectors, fire extinguishers
• Compliance with statewide safety standards

Local Licensing Requirements:

• Hickman County Business License: Required for unincorporated areas
• Centerville City Business License: Required within city limits
• Short-Term Rental Permit: Application with property-specific documentation
• Property Documentation: Proof of ownership, site plans, floor plans
• Personal Identification: Government-issued ID, Federal EIN, SSN or ITIN
• Insurance Verification: Evidence of required coverage levels
• Safety Compliance Forms: Life safety verification as required by local codes

Application Documentation: Based on Tennessee statewide practices and Hickman County zoning requirements:

• Completed permit applications for applicable jurisdiction
• Certified floor plans showing all rooms with walls, doors, windows, and safety equipment locations
• Site plans meeting Hickman County plot plan requirements
• Neighborhood notification documentation where required
• Proof of property tax payment and good standing
• Safety equipment installation verification
• Fee payment confirmation

Specific Regulations by Jurisdiction

Tennessee State Regulations (SB1086)

Definition: Residential dwellings including single-family and multi-family units rented for less than 30 continuous days, excluding hotels, tourist courts, and motels.

Mandatory Requirements:

• Maintain liability insurance of at least $500,000
• Install and maintain fire sprinklers, smoke alarms, and carbon monoxide alarms
• Comply with all applicable building and fire safety codes

Local Authority Limitations: Local governments cannot prohibit STR use entirely but may regulate for health and safety through least restrictive means.

Hickman County Regulations (Unincorporated Areas)

Zoning Framework: The 2023 Hickman County Zoning Resolution applies to all areas outside the Centerville municipal corporation.

Key Zoning Considerations:

• Residential Districts: STR use subject to principal use restrictions in districts R-1, R-2
• Commercial Districts: Limited STR use as accessory to permitted commercial uses in C-1, C-2
• Agricultural Districts: A-1 district may permit STR use with special exceptions
• Accessory Use Rules: STR operations must comply with accessory use regulations in Section 2.070

Special Use Provisions:

• Temporary use permits required for certain STR arrangements under Section 3.030
• Home occupation regulations (Section 3.070) may apply to small-scale STR operations
• Commercial campgrounds and tourist accommodations have separate regulatory pathways

Development Standards:

• Plot plan requirements for multi-unit structures under Section 2.080
• Off-street parking minimums: 2 spaces per dwelling unit for residential STRs
• Buffer strip requirements for commercial STRs adjacent to residential areas
• Setback and height limitations based on underlying zoning district

Centerville Municipal Regulations

Note: No specific Centerville short-term rental ordinances were found in the provided content. The city operates under state regulations unless city-specific ordinances have been enacted.

Municipal Authority: Centerville would have authority to regulate STRs within city limits through city ordinances, subject to state preemption limitations. Without specific city ordinances identified, operations would follow state guidelines and general municipal business licensing requirements.

Tax Obligations:

• State Sales Tax: Approximately 9.25%-9.75% combined state and local rates
• Hickman County Hotel Occupancy Tax: Varies by jurisdiction
• Income Tax: Federal and state income tax obligations apply to STR income

Contact Information for Local Authority

Hickman County Planning and Zoning

Physical Address: 114 N. Central Ave, Ste. 101, Centerville, Tennessee Primary Contact: Office of Planning and Zoning Functions: Zoning compliance verification, building permits, special exception permits Website: Hickman County Government

Centerville Municipal Government

Note: No specific contact information for Centerville STR oversight was provided in the content sources.

State-Level Resources

Tennessee Short-Term Rental Unit Act (SB1086): Available through Tennessee General Assembly State Fire Marshal's Office: Plan approvals for structures over 3 stories per Hickman County requirements

Important Regulatory Considerations

Pre-Existing Operations: Properties operating as STRs before specific regulatory dates may have different compliance requirements under grandfathering provisions.

Multi-Level Compliance: Properties near municipal boundaries may require coordination between city and county authorities.

Zoning Classification: STR use must align with underlying zoning district principal and accessory uses as defined in Hickman County Resolution Article IV.

Temporary Use Permits: Certain STR arrangements may require temporary use permits under Hickman County Section 3.030, particularly for seasonal or event-based operations.

Source References

• Tennessee Short-Term Rental Laws: www.gosummer.com/post/tennessee-short-term-rental-laws
• Nashville STR Regulations (State Context): www.airbnb.com/help/article/979
• Hickman County Zoning Resolution 2023: hickmancountytn.gov/images/uploads/content_files/zoning_resolution_2023.pdf

Legal Compliance Advisory: Regulations evolve and this guide reflects available information at the time of compilation. Investors should verify current requirements with local authorities and consider legal consultation for complex compliance scenarios.