Short-Term Rentals in Clarksville, TN

Every city handles short-term rentals a little differently. In Clarksville, Tennessee, there are 3 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.

Taxes & Fees

Every Clarksville short-term rental owner has to pay the hotel/motel tax, sales tax, gross receipts tax, and standard property and income taxes assessed by the city, Montgomery County, the state, and the federal government under Sec. 5-311(b), and has to acknowledge that tax obligation in writing before the city will even accept a permit application.

Key details: Taxes owed: hotel/motel, sales, and gross receipts tax. Written acknowledgment: required with every application, Sec. 5-304. Business license: required before permit application accepted. Renewal condition: proof of all taxes paid, Sec. 5-306. Tax levels: city, county, state, and federal.

Failing to comply with the tax obligations acknowledged under Sec. 5-304(a)(1) is a violation of the short-term rental chapter under Sec. 5-309(a), which requires compliance with all applicable city, state, and federal laws; the code official can suspend or revoke the operating permit for noncompliance, and a renewal application under Sec. 5-306 must include proof of payment of all taxes due before the permit can be renewed.

Short-Term Rental Permits

It's unlawful to operate or advertise a short-term rental in Clarksville without an operating permit under Sec. 5-303. Owners apply to the Department of Finance and Revenue with a life-safety affidavit, local contact information, and a $150 non-refundable processing fee, then pass separate fire and building inspections before the city issues a one-year permit.

Key details: Permit required: before operating or advertising, Sec. 5-303. Application fee: $150, non-refundable, no proration. Renewal fee: $120, due 30 days before expiry. Inspection window: fire and building, 15 days each. Permit term: one calendar year.

Operating or advertising a short-term rental without a valid permit is deemed a public safety hazard under Sec. 5-309(b), and the city can issue a civil citation to the owner or local contact person, adjudicated in Clarksville City Court. A revoked permit carries a one-year wait before the owner can reapply, and reapplication requires paying the full permit fee again.

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.

Occupancy Limits

A Clarksville short-term rental can't host more transient guests than the maximum occupancy printed on its operating permit under Sec. 5-311(d), and owners can't rent to two separate parties at once even if the house could otherwise fit both. The fire and rescue department sets that occupancy number during the required life-safety inspection.

Key details: Occupancy cap: set on the operating permit itself. Set by: fire department during inspection, Sec. 5-305(b). Simultaneous rentals: to separate parties barred. Smoke alarm: every sleeping room and story. CO detector: within 15 feet of bedrooms.

Exceeding the permitted occupancy or renting simultaneously to separate parties violates Sec. 5-311(d) and is treated as a violation of the operating permit; the code official can suspend or revoke the permit under Sec. 5-309(e), and a revoked permit carries a one-year wait, full fee, and new inspection before the owner can reapply.

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.