Short-term rentals in Clarksville, explained properly.

It is unlawful to operate or advertise any short-term rental unit in the City of Clarksville without the permit. Each permit covers one short-term rental unit and is separately numbered. Applications go to the Clarksville Department of Finance and Revenue. The grandfather provision is described in the next row.

Sec. 5-303(b) follows Tenn. Code Ann. §§ 13-7-602 to 13-7-604: a property that the owner was using as a short-term rental before the City Council enacted the chapter (Ordinance 1-2020-21, September 3, 2020) is outside the chapter and may continue without securing a permit. The state definition of "used as a short-term rental unit" decides whether a property qualified. The state statute itself was not read from an official current source for this page.

Sec. 5-304(b) limits the permit to the owner of the short-term rental unit. Where a business entity or trust owns the property, the application names the individual responsible for the ownership, and an entity must show valid status with the Tennessee Secretary of State. The local contact person may be the owner or the owner's agent.

Hotels, inns, motels, boarding houses, bed and breakfast establishments approved under the Clarksville Zoning Ordinance, campgrounds, recreational vehicles and campers, health care facilities licensed by the state, government-owned dwelling units and dwelling units rented to the same occupants for more than 30 continuous days are outside the definition.

The $150 administrative processing and inspection permit fee goes to the Clarksville Department of Finance and Revenue with the application. There is no proration of fees. The amount is set in Sec. 5-304(d) of the code as enacted by Ordinance 1-2020-21 (September 3, 2020); a separate City fee schedule was not read. Reapplying after a revocation requires the full fee.

A renewal application goes to the Department of Finance and Revenue with the $120 processing fee and must include an updated acknowledgement of rules, an updated life safety affidavit, updated local contact and owner information, an updated confirmation regarding private agreements, an updated proof of insurance and proof of payment of all taxes due. Renewal triggers a new fire and building inspection. After the permit expires the holder forfeits the right to renew and must reapply for a new permit. The renewed permit is valid for one calendar year from the date of issuance.

The application is made under oath and notarized, and is not complete until every item on the City's form is supplied. The acknowledgement covers the chapter's rules and the owner's duty to pay hotel/motel taxes levied by the City, Montgomery County and the State of Tennessee. The site plan shows the dwelling, bedrooms and their sizes, designated off-street parking spaces and the maximum number of vehicles for overnight occupants. Submitting the application also consents to inspections by Clarksville Fire Rescue and the Department of Building and Codes between 8:00 a.m. and 5:00 p.m. or while the unit is rented.

After the application is complete and the fee paid, the Department of Finance and Revenue sends it to Fire and Rescue and to Building and Codes. Fire and Rescue sets the maximum occupancy of transient guests. The Department of Building and Codes decides within 15 days after the later inspection is passed. A denial is explained in writing within 5 days. On approval, the Department of Finance and Revenue notifies the applicant and issues the permit within 5 days; the permit states the maximum occupancy.

Permission to operate is personal to the owner who received the permit. Any unauthorized transfer or attempt to transfer automatically voids the permit, and the transferor and transferee may each be cited. Each unauthorized transfer or attempt is a separate violation with a penalty of $50 per day.

The fire and rescue department determines the maximum occupancy of transient guests during the fire and life safety inspection, and the permit specifies it. The figure is set unit by unit, so check the permit for the number.

Sec. 5-311(d) places this prohibition next to the maximum occupancy limit.

Alarms and the extinguisher must be installed to manufacturer specifications and work when tested. Operating without them is unlawful. The owner's affidavit lists the number and room location of the equipment, and the equipment is subject to inspection.

Advertising covers any electronic or non-electronic forum used to promote the availability of the unit. It is unlawful to advertise without the permit number displayed.

The local contact may be the owner or the owner's agent and must be able to take the remedial action needed to resolve complaints. If the contact is not the owner, the application gives the contact's name, addresses, email and phone. The name and telephone number of the contact must be conspicuously posted in the unit.

Sec. 5-311(g) states the requirement for each short-term rental unit. The application's site plan shows the designated off-street parking spaces and the maximum number of vehicles allowed for overnight occupants.

The age rule applies to the principal renter (transient guest). The business-use rule applies during any rental period.

A prohibition against making loud noise in a way that disturbs the quiet, comfort or repose of neighbouring property owners must be included in the unit's rules and in the rental lease agreement.

The acknowledgement covers any home owners association agreement or bylaws, condominium agreement, covenants and restrictions, mortgage agreement, insurance contract or other contract limiting the use of the unit, and is made under oath and notarized. Sec. 5-310 says the City has no duty to decide whether a permit or the rental use is allowed under those private agreements.

Any violation of the chapter is declared a public nuisance, and the owner, the occupants or the local contact person may receive a civil citation. The fine amount for citations under the chapter other than unauthorized permit transfer ($50 per day) was not read.

A complaint triggers written notice by registered mail to the owner, an investigation and inspection, and 20 days for the owner to respond; the permit may be suspended or revoked if the complaint is supported by a preponderance of the evidence. The chief of police, fire chief or code official may suspend a permit immediately in an emergency, with a board hearing within 5 calendar days (up to 10 on the owner's written request) and no more than 10 calendar days of suspension without a hearing.

A hearing date is set within 20 calendar days of the appeal. The board's decision is the final administrative decision, subject to judicial review in Circuit or Chancery Court. The suspension or revocation stays in effect while an appeal is pending.

Sec. 5-312 adds that the chapter may be suspended in whole or in part during a lawfully declared state of emergency, including a temporary prohibition on renting by a permit holder, to the extent federal and state law allow.

The application includes an acknowledgement of the hotel/motel tax duty, and a renewal needs proof of payment of all taxes due. The state sales tax and local occupancy tax rules appear in the Tennessee rows on this page; the City and County hotel/motel tax rates were not read.

Renting a home, cabin, condominium or room for lodging is subject to Tennessee's 7% state sales tax and the local sales tax rate where the rental is located. The Tennessee Department of Revenue administers both. Sales tax is charged on the full price of the stay, including required fees such as cleaning and booking fees.

Tennessee sales tax does not apply to a room or home rented to the same person for 90 or more continuous days. Local occupancy taxes apply only to short-term rental units rented for 30 days or less and stop applying on day 31; for rental agreements made, renewed or amended on or after July 1, 2025, occupancy tax collected on days 1 to 30 is not refunded.

The Tennessee Department of Revenue says property owners and property management companies with over $100 a month in taxable sales must register with the Department and collect and remit sales tax. If you list only through an online platform that is a marketplace facilitator, the platform collects and remits sales tax on those bookings and you should keep records showing the rentals went through it. Bookings you take directly, outside a platform, are your responsibility.

Online platforms that are marketplace facilitators collect and remit Tennessee sales tax on bookings made through them. Since January 1, 2021, short-term rental platforms have also collected local occupancy taxes on their bookings and paid them to the Department of Revenue, so the owner does not collect local occupancy tax on those bookings.

Many Tennessee cities and counties charge their own occupancy tax on short-term rental stays. For bookings you take yourself (not through a platform), you collect it and pay it directly to the local government where the rental is, not to the state. The Department of Revenue advises every owner, including those who rent only through platforms, to contact the local officials, because there may be local reports or requirements.