Executive Overview

Short-term rentals are EXTREMELY LIMITED in Millington, TN. The city has adopted one of the most restrictive STR frameworks in Tennessee, allowing STR operations only for properties that were actively operating as short-term rentals for at least six months within the twelve months preceding the effective date of the ordinance (April 2024). New STR operations are effectively prohibited across all zoning districts.

This guide provides a comprehensive analysis of Millington's short-term rental regulations based on Ordinance 2024-5 and related municipal code provisions.

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1. Are Short-Term Rentals Allowed in Millington, TN?

Direct Answer: NO for new operations; VERY LIMITED for existing operations.

Millington has implemented a restrictive "grandfathering" approach to short-term rentals:

• New STR operations are PROHIBITED in all zoning districts (Agricultural, Residential R-0 through R-5, PRD, R-LL, Commercial B-1/B-2, P-C, O, Industrial M-1/M-2/M-3, Military, Flood Hazard, Airport restrictions, and Old Town District)

• Existing STR operations may continue ONLY if they meet the "grandfathering" criteria:

  • The property was "held out to the public for use as a short-term rental unit"
  • The owner/agent remitted taxes for renting the unit covering at least six (6) months within the twelve-month period immediately preceding the ordinance's effective date

• Key Date: April 2024 (when Ordinance 2024-5 took effect)

Investment Implication: The window for establishing new STR operations in Millington closed permanently in April 2024. Only properties with a documented STR history meeting the six-month tax remittance requirement within the preceding 12 months may continue operating with proper permits.

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2. How to Start a Short-Term Rental Business in Millington

Step 1: Verify Eligibility

CRITICAL: Confirm your property meets the "grandfathering" criteria:

• Property was operating as STR for minimum 6 months during April 2023 - April 2024
• Tax remittance records exist for the qualifying period
• Property was "held out to the public" as STR during this timeframe

Step 2: Obtain Required Permits

Mandatory Permit: Submit annual Short-Term Rental Permit application to City Clerk Annual Fee: $250.00

Step 3: Complete Application Process

Detailed requirements listed in Section 3 below

Step 4: Designate Local Agent

Must identify and maintain a local agent responsible for 24/7 operations and city communications

Step 5: Maintain Ongoing Compliance

Continuous compliance with all operational, tax, and regulatory requirements

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3. Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

1. Short-Term Rental Permit (Mandatory)

• Issuing Authority: City Clerk
• Annual Fee: $250.00
• Application Deadline: Annual renewal required

2. Business License

• Required for all commercial operations
• Must be current and valid

3. Hotel/Motel Tax Certification

• Must register under Tennessee Code Annotated §67-4-1401 et seq.
• 3% Millington Hotel/Motel Tax applies

Required Application Documents

A. Basic Information

• Owner name, address, telephone, email
• Designated agent contact information (24-hour availability)
• Property address for STR operation

B. Legal and Financial Documentation

• Business License Number
• Hotel/Motel tax certifications/numbers
• Proof of current property ownership
• Insurance proof indicating STR use

C. Operational Documentation

• Sworn acknowledgment of chapter requirements review
• Sworn affidavit of compliance with all city ordinances
• Written exemplar rental agreement (see requirements below)

D. Site and Operational Plans

• Site plan showing property, building(s), guest access
• Description of rental area (entire property, guest cottage, portion of house)
• Number of bedrooms (maximum 4 permitted)
• Maximum occupancy calculations
• Parking spaces allocated
• Days of operation
• Trash handling method and occupant communication plan

Mandatory Rental Agreement Provisions

The exemplar rental agreement must include:

• Occupant agreement to abide by all chapter requirements and city/state/federal laws
• Acknowledgment of noise ordinance compliance
• Agreement that violations may result in immediate termination and eviction
• Maximum occupancy acknowledgment and parking location

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4. Specific Regulations

Zoning Restrictions

PROHIBITED in ALL districts:

• Agricultural (A)
• Residential: R-0, R-1, R-2, R-3, R-4, R-5
• Planned Residential (PRD)
• Residential Large Lot (R-LL)
• Commercial: B-1, B-2, P-C
• Office/Commercial (O)
• Industrial: M-1, M-2, M-3
• Military Zone (MT)
• Flood Hazard (FH)
• Airport Height Restriction (AHR)
• Old Town (OT)

Operational Limits

Bedroom Restrictions:

• Maximum 4 sleeping rooms per unit
• No uninhabitable structures (garages, barns, sheds)

Occupancy Calculations:

• 2 persons per bedroom up to 140 square feet
• For bedrooms over 140 sq ft: area divided by 70 square feet
• Must post occupancy limits conspicuously inside unit

Minimum Stay Requirements:

• No rentals less than 24 hours
• No compensation for stays under 24 hours

Parking Requirements

• Adequate on-site parking required
• City determines adequacy based on maximum occupancy
• Must be identified in application and notification to neighbors

Agent Requirements

• Designation of natural person over age 18 (owner may serve)
• Must be available 24/7 for problems
• Must appear within 2 hours of city notification
• Must receive and accept service of violations/notices
• Monitor compliance with all laws, including hotel/motel tax
• Only one agent per property at any time
• Change notification required within 5 business days

Neighbor Notification Process

Before Initial Permit Issuance:

• Notify all record property owners adjacent to proposed STR
• Provide: property address, parking location, maximum occupancy, exemplar rental agreement, owner and agent contact information
• Provide proof of notification to city

Hearing Process:

• Objections/appeals heard by Board of Mayor and Aldermen
• Hearing within 45 days of application submission
• Review based on health, safety, and building code compliance

Tax Obligations

Required Collections and Remittances:

• State sales tax
• City hotel/motel tax (3%)
• All other applicable state and local taxes
• Monthly reporting to City Clerk by 20th of each month

Inspection and Maintenance Standards

• Must meet all zoning, housing, building, health, electrical, gas, plumbing, and life safety codes
• Owner responsible for regular inspections
• Proper maintenance required for continued compliance

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5. Enforcement and Penalties

Civil Penalties

• $50 per violation
• Each day of continued violation = separate offense
• Covers operation without permit, code violations, etc.

Permit Ineligibility Triggers

Property becomes ineligible for STR permit if:

• Sold or transferred after qualifying as "existing STR"
• Ceases STR use for 30+ continuous months
• Found in violation of local ordinance/state law 3+ separate times

Agent Performance Standards

• Failure to appear within 2 hours for 2+ complaints may result in penalties/revocation
• Not required to act as peace officer or place themselves in danger

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6. Contact Information

City Clerk (Permit Applications)

• Karen Findley, City Clerk
• Phone: (901) 873-5703
• Address: 7930 Nelson Street, Millington, TN 38053
• Email: kfindley@millingtontn.gov

City Hall Main Contact

• Phone: (901) 873-5703
• Address: 7930 Nelson Street, Millington, TN 38053
• Website: www.millingtontn.gov

Millington Police Department (Enforcement)

• Phone: (901) 873-7700

Planning and Zoning Department

• For zoning compliance questions
• City Hall - Phone: (901) 873-5703

State of Tennessee (Tax Registration)

• Department of Revenue: (615) 253-0600
• Hotel/Motel Tax registration through state system

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7. Source Documents and Links

Primary Ordinance:

• Millington Ordinance 2024-5 - Complete STR regulations (April 2024)

Earlier Ordinance:

• Millington Ordinance 2023-16 - Initial STR prohibition (December 2023)

Municipal Code:

• Millington Municipal Code - General city regulations

City Website:

• City of Millington Official Website

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Investment Conclusion

High-Risk Investment Environment: Millington's STR regulations represent one of Tennessee's most restrictive frameworks. With new STR operations prohibited and existing operations facing stringent grandfathering requirements, the market for new investment is effectively closed.

Key Risk Factors:

• No pathway for new STR establishment
• Existing operations face potential permit revocation for violations
• Strict agent requirements and local presence mandates
• Heavy compliance burden with limited revenue potential

Recommendation: Consider alternative Tennessee markets with more permissive STR regulations for new investments. Existing Millington STR properties may represent acquisition opportunities but require careful due diligence on permit eligibility and compliance history.