Short Term Rentals

Short Term Rentals

Nashville Short-term rental (STR) properties have become increasingly popular in recent years. Nashville is capitalizing on this market with more diverse and affordable rental options from hotels, great for travelers and tourists. Homeowners greatly benefit as well by having the option to list their property as a full-time or part-time vacation rental on user-friendly sites like Airbnb & VRBO.

Data coming out of Nashville reveals that STRPs have seen substantial month-to-month performance growth. Interested in learning more about STR options and opportunities We know numerous OFF MARKET Short Term Rental Options and we would love to share those opportunities with you. Contact us today!

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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), planningstaff@nashville.gov 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, planningstaff@nashville.gov 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.