Short Term Rentals
Short Term Rental Permits
The law requires that anyone in Nashville and Davidson County wishing to rent a property on Short Term Rental Property (STRP) websites such Airbnb and VRBO must receive a permit from the Metro Codes Department prior to listing. Metro has determined that not all short-term rentals are created equal. Let's review the two different types of STR permits Nashville has to offer.
Owner Occupied (00)
Metro Nashville gives the following guidelines for what qualifies as an Owner-Occupied Short-Term Rental:
- Owner-occupied residence or on a lot with an owner-occupied residence
- Includes the rental of an entire dwelling unit to a single party of individuals, or
- If only part of the unit, includes at a minimum on sleeping room and a bathroom, and is limited to a single party of individuals.
- Owner-occupied status must be confirmed by two documents showing that the owner in fact occupies this as their primary residence. Acceptable documents may include a Tennessee driver's license, State of Tennessee ID card, Davidson County voter registration card, pay stub, work ID or badge, IRS W2 form, or bank statement.
- Such documentation of primary residence address must match the deed as recorded with the Davidson County Clerk's office.
- To qualify for an owner-occupied permit, the owner of the property must permanently reside at the property and be a natural person or persons. LLCs, corporations, trust, partnerships, joint ventures and other entities are ineligible for owner-occupied permits.
- Only one permit shall be issued per lot in single-family and two-family zoning districts
- The property ownership of two-family units cannot be divided. They shall be owned by the same person and one of the two units shall be the primary residence of the owner. Two-family units can include detached duplexes divided under a Horizontal Property Regime (HPR)
- Permits for Specific Plan (SP) zoned properties or properties within a Planned Unit Development (PUD), email@example.com or (615) 862-7190.
- Owner-occupied permits are the best option for individuals that permanently reside in the home where they want to operate a vacation rental. Since the ownership entity of the real estate must be in the owner’s actual name (and not an entity such as an LLC), it largely excludes short-term rental investors. New legislation continues to come out because neighborhoods are tired of having to deal with travelers & tourists. These permits are intended for residential neighborhoods where the short-term rental aspect of the property will be supplementary to its primary use as a home.
Non Owner Occupied (N00)
Here are Metro Nashville's guidelines as to which properties may qualify for non-owner occupied permits:
- Are not owner-occupied or on a lot with an owner-occupied principal residence.
- Rentals are limited to a single party of individuals
- Ownership information on the application must match the deed as recorded with the Davidson County Clerk's office
- New non owner-occupied permits will only be issued as a use permitted with conditions (PC) in MUN and MUN-A, MUL and MUL-A, MUG and MUG-A, MUI and MUl—A, OG, OR20 through OR40-A, ORI and ORl—A, CN and CN-A, CL and CL—A, CS and CS-A, CA, CF, DTC North, DTC South, DTC-West, DTC Central, SCN, 800 and SCR zoning districts. UPDATE: Pursuant to BL2019-1633, new permits in RM zones will no longer be issued effective January 1, 2022. Such documentation of primary residence address must match the deed as recorded with the Davidson County Clerk's office.
- Permits for Specific Plan (SP) zoned properties or properties within a Planned Unit Development (PUD) will be issued only if allowed by the SP or PUD. Please contact the Metro Planning Commission for questions regarding the conditions of the SP or PUD, firstname.lastname@example.org or (615) 862-7190
- New not owner-occupied permits are not permitted in AR2A, R, or RS zoned properties. Existing permit holders in these zoned districts may be eligible to apply for renewals, but those permits are not transferable if the property is sold or transferred.
- Perhaps the most popular STR permit, the city of Nashville constantly has changes to rules and regulations of the NOO STR Permits. All zoning that permits non-owner occupied short-term rentals is commercial. Metro decided to allow NOOs in commercial zoning where the city intended businesses to be operated. Many investors have moved to building or buying their short-term rentals in commercially zoned areas not only because of government regulation, but also because these areas can be attractive for guest since they are near the city's hot spots and attractions.
Need help in understanding Nashville's STR Rules and Regulations?
Need help finding a property that fits the short term rental permit requirements you need?
Contact Caroline Keenan today and we will be happy to help you with your next investment!