Overview: STR Regulations Status

Yes, short-term rentals are explicitly allowed in Cordova, TN with proper permitting and compliance with local regulations. Cordova operates under the same regulatory framework as Memphis, as it is located within Shelby County and falls under the City of Memphis jurisdiction for most municipal services. The city has established a comprehensive permitting system for short-term rentals, with specific requirements for new operators while providing a pathway for existing operators to continue operations.

How to Start a Short-Term Rental Business in Cordova

Step 1: Initial Assessment and Planning

Before purchasing or listing your Cordova property, conduct a thorough zoning review to ensure the property is eligible for short-term rental operations. Memphis's zoning regulations govern where STRs can legally operate, and properties must conform to designated zoning classifications.

Step 2: Business License Acquisition

All businesses operating within Shelby County must obtain a business license. For Cordova properties within Memphis city limits, you'll need:

• City of Memphis business license ($15 fee)
• Shelby County business license ($15 fee)

Step 3: Short-Term Rental Permit Application

Apply for your STR permit through the official Memphis platform:

• Portal: Develop901.com
• Initial Application Fee: $300
• Annual Renewal Fee: $150
• Application Timeline: Ensure submission before beginning operations

Important Note for Existing Operators: Properties that were operating as STRs prior to July 1, 2023, are grandfathered and do not require permits unless sold or inactive for 30 months.

Step 4: Insurance and Safety Compliance

Secure appropriate liability insurance coverage for your short-term rental operation. Consider comprehensive policies that cover property damage, guest injuries, and business interruption.

Required Documents, Permits, Licenses, and Guidelines

Business Licensing Requirements

1. Business License Application

   • Filed through Shelby County Clerk's Office
   • Combined City/County license for Memphis locations
   • Annual renewal required

2. Short-Term Rental Permit

   • Primary application through Develop901.com
   • Proof of property ownership or lease agreement
   • Property compliance verification with zoning requirements

3. Certificate of Use and Occupancy

   • Required for businesses in commercial areas
   • Issued by Shelby County Construction Code Enforcement Office
   • Ensures compliance with 2012 Building Code Local Amendments

Documentation Checklist

• Property deed or lease agreement
• Business license applications (City and County)
• STR permit application
• Insurance policy documentation
• Property compliance certificates
• Emergency contact information for property manager or owner

Safety and Operational Guidelines

• Properties must comply with local fire safety codes
• Emergency contact information must be posted in rental units
• Properties must meet occupancy standards
• Quiet hours and noise ordinance compliance required
• Proper waste management and recycling procedures

Specific Regulations by Jurisdiction

City of Memphis Regulations (Applies to Cordova)

Permitting Requirements:

• Mandatory permit for new STR operations post-July 1, 2023
• Application fee: $300 (non-refundable)
• Annual renewal: $150
• Grandfathered status for existing operators prior to ordinance implementation

Operational Standards:

• Maximum occupancy: 4 sleeping rooms per unit
• Maximum rental period: 30 continuous days
• Principal renter must be 18 years or older
• LLC ownership permitted

Zoning Compliance:

• Properties must conform to designated zoning classifications
• Residential zoning requirements must be maintained
• No commercial use violations allowed

Penalty Structure:

• Operating without permit: $50 per day per unit fine
• Zoning violations: Subject to municipal fines
• Non-compliance may result in permit revocation

Shelby County Requirements

Business Tax Classification:

• All STR operations classified as business entities
• Subject to gross receipts reporting to Tennessee Department of Revenue
• Annual business tax filing required

Certificate of Occupancy:

• Required for commercial-area properties
• Ensures building code compliance
• Issued through Construction Code Enforcement Office

State of Tennessee Regulations

Tax Obligations:

• State sales tax collection and remittance required
• Local sales taxes applicable to Memphis area
• Transient occupancy taxes (hotel/tourist accommodation taxes)
• Privilege tax for business operations

Professional Licensing:

• Some property management activities may require professional licenses
• Tennessee Department of Commerce and Insurance oversight for certain services

Reporting Requirements:

• Annual gross receipts reporting to Tennessee Department of Revenue
• Business closure procedures with final tax returns within 15 days

Local Authority Contact Information

Primary STR Regulatory Contacts

City of Memphis - Division of Public Works

• Phone: 901-636-6500
• Address: 125 N Main Street, Memphis, TN 38103
• Hours: Monday-Friday, 8:30 AM - 5:00 PM
• Website: memphistn.gov/public-works

Memphis Permits Office

• Phone: 901-636-6500
• Website: memphistn.gov/permits-office
• Services: Beer, dance, massage, taxi, carriage, limousine, wrecker, and retail liquor permits

Shelby County Clerk's Office - Business Licensing

• Phone: 901-222-0100
• Website: shelbycountytn.gov
• Services: Business license applications and renewals

Shelby County Business Tax Division

• Phone: 901-222-0100
• Services: Business tax classification and payments

Tennessee Department of Revenue

• Phone: 615-253-0600
• Website: tn.gov/revenue
• Services: State tax filing and business registration

Enforcement and Compliance Contacts

Code Enforcement

• Phone: 901-636-6500
• Purpose: Zoning violations and property compliance

Memphis Police Department (Non-Emergency)

• Phone: 901-545-4237
• Purpose: Noise complaints and guest disturbances

Memphis Fire Department

• Phone: 901-636-7500
• Purpose: Fire safety inspections and compliance

Additional Resources and Support

Online Resources

• STR Permit Application Portal: Develop901.com
• Memphis Code of Ordinances: municode.com/tn/memphis
• Shelby County Business Portal: shelbycountytn.gov
• Tennessee Secretary of State Business Search: tnbear.tn.gov

Professional Services

• Legal Advisors: Local legal counsel specializing in real estate and zoning
• Tax Consultants: Professionals familiar with Tennessee business tax obligations
• Property Management Companies: Local firms experienced with STR regulations
• Insurance Providers: Specialized short-term rental insurance products

Source Links

1. Airbnb Short-Term Rental Laws and Regulations in Memphis - 2025
2. New Memphis Ordinance Targets Short-Term Rentals
3. Tennessee STR Regulations - STRProfitMap
4. Memphis Licenses and Permits

Investment Considerations

Market Dynamics:

• Cordova shows active STR listings with median revenue of $33,900
• Market benefits from Memphis metropolitan area tourism and business travel
• Competition exists but remains manageable for well-managed properties

Financial Planning:

• Initial setup costs: ~$330 ($300 permit + $30 combined business licenses)
• Annual operating costs: ~$150 permit renewal + business license renewals
• Consider insurance costs, property management fees, and maintenance reserves

Regulatory Risk:

• Memphis STR regulations are relatively new and may evolve
• Stay informed about potential ordinance amendments
• Maintain compliance to protect investment value

Success Factors:

• Location within approved zoning areas
• Professional property management
• Comprehensive insurance coverage
• Active monitoring of regulatory changes
• Strong guest communication and house rule enforcement

This regulatory framework provides a clear pathway for legitimate short-term rental operations in Cordova while maintaining neighborhood stability and ensuring safety standards. Compliance with all requirements is essential for sustainable investment success.