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

Yes, short-term rentals are explicitly allowed in Clarksville, TN, but they are heavily regulated. The City of Clarksville has established a comprehensive permitting system for short-term rentals through Ordinance 1-2020-21, which took effect on September 3, 2020. Short-term rentals are defined as properties that are listed and booked through a hosting platform for consideration and for less than 30 days at a time.

Short-term rental operators within Clarksville city limits must obtain a Short-Term Rental Unit Operating Permit before legally operating their properties. The city has implemented this regulatory framework to balance the interests of property owners who want to rent their properties short-term with the need to protect neighborhood character and ensure public safety.

How to Start a Short-Term Rental Business in Clarksville, TN

Step 1: Verify Property Eligibility

• Confirm your property is located within Clarksville city limits (properties outside city limits in Montgomery County may have different requirements)
• Ensure your property zoning allows for short-term rental use
• Check with homeowners association, condo association, or other private agreements that may restrict STR operations
• Verify you have proper insurance coverage for STR operations

Step 2: Obtain Required Business Licenses

• Apply for a City of Clarksville business license
• If operating as a business entity, ensure good standing with Tennessee Secretary of State
• Register with Tennessee Department of Revenue for tax collection purposes

Step 3: Complete STR Operating Permit Application

• Submit completed Short-Term Rental Unit Operating Permit Application to City of Clarksville Department of Finance and Revenue
• Pay $150 non-refundable application fee
• Provide all required documentation (see Required Documents section below)

Step 4: Schedule and Pass Required Inspections

• Fire and life safety inspection by Clarksville Fire Rescue Department
• Building safety inspection by Building and Codes Department
• Address any deficiencies and pass re-inspections if necessary

Step 5: Display Permit Number and Begin Operations

• Receive your Short-Term Rental Unit Operating Permit with registration number
• Display permit number prominently on all advertisements and listings
• Begin operations in compliance with all regulations

Required Documents, Permits, Licenses, and Guidelines

Required Documents for STR Operating Permit Application:

1. Proof of Ownership - Deed recorded in Montgomery County Register of Deeds office
2. Proof of Insurance - Current insurance policy covering STR operations
3. Proof of Payment of All Taxes Due - Evidence that all city, county, and state taxes are current
4. Site Plan - Using forms provided by the city, including:
   • Square footage of the STR unit
   • Number of bedrooms and bathrooms
   • Number of floors with habitable space
   • Number of exterior doors
   • Designated parking spaces
5. Affidavit of Life Safety Compliance - Certification of required safety equipment
6. City and County Business License - Both licenses required
7. Local Contact Person Information - Must be available 24/7
8. Hosting Platform Information - Names and websites where STR will be advertised

Life Safety Equipment Requirements:

• Smoke Alarms: UL 217 standards, inside sleeping rooms, outside sleeping rooms within 15 feet, on each story including basements
• Carbon Monoxide Detectors: Within 15 feet of all bedroom doors
• Fire Extinguisher: At least one operational fire extinguisher on premises
• All equipment must be functional and test properly

Required Permits and Licenses:

• City of Clarksville Business License
• Montgomery County Business License
• Short-Term Rental Unit Operating Permit ($150 application fee)
• Annual Renewal Permit ($120 renewal fee)

Specific Regulations for Short-Term Rentals

City of Clarksville Regulations:

Operational Requirements:

• Maximum Occupancy: Cannot exceed limits specified in operating permit
• Age Requirement: Principal renter must be at least 18 years old
• No Commercial Use: STR cannot be used for on-site business or commercial purposes
• Food Service: No food preparation or service to guests for consideration
• Contact Information: Local contact person name and phone must be posted in STR unit
• Noise Regulations: Must comply with city noise ordinances, typically quiet hours 10 PM - 7 AM
• Parking: Minimum one parking space per bedroom offered for rent

Safety and Compliance Standards:

• Advertising: Permit number must be clearly displayed on all advertisements
• Inspections: City reserves right to inspect between 8 AM - 5 PM or during rental periods
• Tax Compliance: Must collect and remit all applicable taxes (hotel/motel, sales, property taxes)
• Life Safety Equipment: All required safety equipment must be functional and maintained

Permit Restrictions:

• Non-Transferable: Permits cannot be sold, lent, leased, or transferred
• Property-Specific: Each permit applies to only one STR unit
• Personal Use: Permission is limited to the owner to whom permit was issued
• Termination: Permit terminates immediately upon property transfer

Montgomery County Regulations:

• County-level regulations primarily focus on tax collection
• Hotel/motel taxes are collected by Tennessee Department of Revenue and remitted to Montgomery County Trustee
• No separate county permit required beyond state tax registration

State of Tennessee Regulations:

• Public Chapter 787 (signed July 15, 2020): Requires short-term rental marketplaces to collect and remit local occupancy taxes beginning January 1, 2021
• Tennessee Department of Revenue serves as collecting agency for occupancy taxes
• Short-term rentals are subject to sales tax and applicable local taxes
• State law provides certain exemptions for properties being used as STRs prior to local ordinance enactment

Exemptions from Registration:

The following are exempt from STR registration requirements:

• Individual operating only one STR unit
• Individual operating and listing only one single room in an owner-occupied dwelling unit
• Individual operating a STR unit for less than six months out of any calendar year

Enforcement and Penalties

Violations and Penalties:

• Operating Without Permit: $50 per day fine, deemed public safety hazard
• Unauthorized Permit Transfer: $50 per day fine
• Public Nuisance Violations: Adjudicated in Clarksville City Court
• False Information on Application: Subject to perjury charges under TCA § 39-16-504

Permit Revocation:

Permits may be revoked for:

• Providing false information on application
• Threat to public health or safety
• Violations of chapter provisions or other applicable laws
• Three or more violations of generally applicable local laws (for pre-existing STRs)

Appeal Process:

• Permit suspensions/revocations can be appealed to Board of Adjustments and Appeals within 20 days
• Board hearing within 20 days of appeal filing
• Decision subject to judicial review in Circuit or Chancery Court

Contact Information

City of Clarksville Departments:

Department of Finance and Revenue (STR Permits)

• Address: One Public Square, First Floor, Clarksville, TN 37040
• Mailing Address: P.O. Box 928, Clarksville, TN 37041
• Phone: (931) 645-7436
• Email: Contact through permits department

Permits Team

• Phone: (931) 645-7437
• Responsible for processing STR applications and permits

Building and Codes Department

• Phone: (931) 645-7436
• Conducts building safety inspections

Fire and Rescue Department

• Conducts fire and life safety inspections

Montgomery County:

County Trustee

• Address: 350 Pageant Lane, Suite 101-B, Clarksville, TN 37040
• Phone: (931) 648-5717
• Email: countytrustee@mcgtn.net
• Hours: Monday-Friday, 7:30 AM - 4:30 PM

State of Tennessee:

Department of Revenue

• Phone: (615) 253-0600
• Website: www.tn.gov/revenue
• Handles state tax registration and collection for STRs

Source Links

• Montgomery County Trustee - Short-Term Rentals
• City of Clarksville Permits
• Short-Term Rental Unit Permit Application
• Airbnb Help - Clarksville, TN Rules
• Ordinance 1-2020-21 (Full Text)

Important Note: This guide is based on current regulations as of the provided sources. Short-term rental regulations can change, and investors should verify current requirements with the City of Clarksville before making investment decisions. Consider consulting with local legal counsel familiar with Clarksville's STR regulations for personalized advice.