Clarksville's Short-Term Rentals: The Rules That Matter

Every city handles short-term rentals a little differently. In Clarksville, Tennessee, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Insurance Requirements

Clarksville's short-term rental ordinance does not set a city-mandated liability coverage minimum. Operators must acknowledge that their existing insurance contract permits short-term rental use, and renewal applications must include updated proof of insurance under Title 5, Chapter 3.

Key details: City Liability Minimum: Not specified in Title 5, Ch. 3. Application Acknowledgment: Insurance contract compliance (§5-304(a)(6)). Renewal Requirement: Updated proof of insurance (§5-306). City Enforcement of Policies: None - private contracts (§5-310). State Framework: T.C.A. §13-7-602 et seq..

Failing to provide updated proof of insurance at renewal under Section 5-306 may result in denial of the renewal and forfeiture of the Operating Permit, requiring a new application. Operating after permit expiration is treated as operating without a permit under Section 5-309(b) and is deemed a public safety hazard, subject to civil citations in Clarksville City Court. Misrepresenting insurance status on the application can support permit revocation under Section 5-309(e).

If you are coming from a city with tighter rules, you will find Clarksville gives residents more flexibility on insurance requirements.

Occupancy Limits

Clarksville sets each short-term rental's maximum occupancy individually through a fire and life safety inspection, with the cap printed on the Operating Permit. The ordinance prohibits simultaneous rental to multiple parties under separate contracts and requires at least one parking space per bedroom offered.

Key details: Code Section: Title 5, Ch. 3 §5-311(d). How Cap Is Set: Fire Rescue inspection per §5-305(b). Cap Location: Printed on Operating Permit. Multiple Parties: Simultaneous separate contracts prohibited. Minimum Renter Age: 18 years (§5-311(e)).

Exceeding the occupancy listed on the Operating Permit, renting to multiple parties simultaneously, or operating without a permit is a violation of Title 5, Chapter 3 enforced by Code Enforcement under Section 5-309. Civil citations are adjudicated in Clarksville City Court, and repeated violations can lead to suspension or revocation of the Operating Permit by the Code Official.

Permit Requirements

Clarksville requires short-term rental operators to obtain a permit under Chapter 3, Title 5 of the City Code. Properties must meet safety standards and operators must register with the city. A local contact person is required.

Key details: Code Section: Title 5, Ch. 3. Permit: Required, annual renewal. Safety Inspection: Required before permit. Local Contact: Must be designated. Listing: Must display permit number.

Operating without a permit may result in fines and cease-and-desist orders. Properties failing safety inspection cannot operate until deficiencies are corrected.

Noise Rules

STR guests in Clarksville must comply with the city's noise ordinance. Operators are responsible for informing guests about quiet hours and noise rules. Repeated noise violations may lead to STR permit revocation.

Key details: Quiet Hours: 10 PM–7 AM. Operator Duty: Must inform guests of rules. Tracking: Violations tracked by property. Penalty: Fines and possible permit revocation.

Noise violations by STR guests are attributed to the property. Repeated complaints may result in fines and permit revocation.

Taxes & Fees

Clarksville STR operators must collect and remit hotel/motel occupancy tax on rental income. Tennessee state sales tax also applies. Operators must register with the Tennessee Department of Revenue.

Key details: Local Tax: Hotel/motel occupancy tax. State Tax: Tennessee sales tax. Registration: TN Dept. of Revenue. Filing: Monthly.

Failure to collect and remit taxes results in penalties, interest, and back-tax assessments from the state and city.

This is one of the stricter rules in Clarksville's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Parking Rules

STR guests in Clarksville must use available off-street parking. Operators must provide parking instructions to guests. On-street parking follows standard city rules. Parking on unapproved surfaces is prohibited.

Key details: Off-Street: Guests should use available spaces. Unapproved Surfaces: Parking on grass/dirt prohibited. Operator Duty: Provide parking instructions. Street Parking: Subject to city rules.

Parking violations result in citations. Parking on unapproved surfaces is a code enforcement violation with fines.

The Bottom Line

Clarksville's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Clarksville is broadly strict or permissive.

Keep in mind that Clarksville can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.