Collierville, TN Accessory Structures: ADU Rental Restrictions (2026)

Collierville Code of Ordinances § 151.024(M) sets supplemental standards for accessory residential uses in conjunction with a principal residential use. The definition in § 151.003 describes the use as a second home or dwelling on the same lot as a primary, usually larger, home, also known as granny flats, carriage houses or secondary dwellings, with a kitchen complete with cooking facilities, at least one bathroom, and sleeping and living arrangements.

Two items control what an owner can do with the unit once it is built. Item (10) bars leasing or renting the unit for tenancies of less than 30 days, which removes nightly and weekend short-term rental. It also bars renting to more than 11 different individuals in any calendar year, so even long tenancies are capped by the number of different occupants across the year. Item (9) bars selling the unit apart from the principal structure.

Both items carry the same paperwork step. Proof of deed restrictions to this effect must be provided prior to the issuance of building permits. The restriction is therefore recorded against the property before construction starts, not discovered after a listing goes live.

The rental limits sit inside a package of conditions that also decide where a unit can exist. Under item (1) the use or structure must be located within Special Areas 3, 4, 5, 6, 8, and 9 of the Downtown Collierville Small Area Plan. Item (4) sets the size at no less than 400 square feet and no more than the lesser of 800 square feet or 50% of the gross floor area of the principal dwelling unit, and item (5) allows one per lot. A separate rule in § 151.025(B)(1) exempts accessory residential housing from the general accessory-use section because other provisions regulate it, which is why § 151.024(M) is the governing text.