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Nashville Short Term Rental Regulation: A Guide For Airbnb Hosts

Nashville, Tennessee

What are short term rental (Airbnb, VRBO) regulations in Nashville,Tennessee?

The short-term rental (Airbnb, VRBO) regulations in Nashville, Tennessee require property owners to obtain permits from the Metro Codes Department before listing their properties on platforms like Airbnb and HomeAway2.

There are two types of permits in Nashville:

owner-occupied and non-owner occupied, each with specific rules and regulations2.

Owner-occupied permits are for hosts who reside in the rental property, while non-owner occupied permits are for those who do not live on the premises2. Hosts must comply with safety requirements, such as installing smoke alarms, adhering to maximum occupancy limits, and having a responsible party available 24/73. Additionally, hosts are required to remit business, sales, and hotel occupancy taxes to the city and state2. Permits must be renewed annually to stay compliant with the law, and operating under an expired permit can result in a one-year prohibition from obtaining a new permit2.

In Nashville, hosts must navigate the complex world of short-term rental regulations to legally list their properties on platforms like Airbnb3. Understanding the differences between owner-occupied and non-owner occupied permits is crucial, as each type has its own set of requirements and application processes3.

Non-owner occupied permits are only permitted in specific non-residentially zoned areas, as listed in the District Land Use Table2. Hosts must adhere to building and fire safety codes, install smoke alarms, follow maximum occupancy rules, and have a responsible party available 24/7 to ensure guest safety and compliance with regulations3.

Overall, Nashville's short-term rental regulations aim to ensure the safety, quality, and compliance of properties listed on platforms like Airbnb and VRBO, emphasizing the importance of obtaining the necessary permits, adhering to safety requirements, and fulfilling tax obligations to operate legally within the city.ShareRewrite

Starting a Short Term Rental Business in Nashville

Establishing a short-term rental business in Nashville is a multi-faceted process that requires meticulous attention to the city's regulatory framework. Property owners must first obtain the necessary permit from the Metro Codes Department, regardless of whether they manage the property themselves or work with a property management company.

This permit is essential for legal operation, and failure to comply can result in severe penalties, including lengthy waiting periods of up to a year or more before being eligible to obtain a permit. This underscores the importance of understanding and adhering to Nashville's STR rules from the very beginning of the business venture.

Short Term Rental Licensing Requirement in Nashville

Nashville's short-term rental regulations distinguish between two distinct permit types: owner-occupied and non-owner occupied. Owner-occupied permits are intended for hosts who reside in the rental property, while non-owner occupied permits are for those who do not live on the premises.

Each permit category comes with its own set of rules and regulations that hosts must meticulously follow to maintain legal operation. This dual-permit system reflects the city's nuanced approach to regulating the short-term rental market, taking into account the unique circumstances of different property types and ownership structures.

Required Documents for Nashville Short Term Rentals

To obtain a short-term rental permit in Nashville, hosts must provide a comprehensive set of documents, including a detailed floor plan of the property, proof of liability insurance, and evidence of notification to adjacent property owners.

For owner-occupied permits, hosts must also furnish documentation confirming their primary residence, such as a driver's license, voter registration, or utility bill.

Non-owner occupied permit applicants must complete an affidavit form. Ensuring the timely submission of these required documents is crucial for the permit approval process, as any missing or incomplete information can delay or even jeopardize the application.

Nashville Short Term Rental Taxes

In addition to securing the appropriate permit, short-term rental hosts in Nashville are responsible for collecting and remitting applicable taxes, including the city's hotel/motel tax and state sales tax.

Failure to comply with these tax obligations can result in further penalties and legal consequences, underscoring the importance of maintaining accurate financial records and timely tax payments.

Hosts must be diligent in understanding and fulfilling their tax responsibilities to avoid any potential issues with the authorities.

Nashville-wide Short Term Rental Rules

Nashville's short-term rental regulations extend beyond the permit requirements, encompassing various safety and operational standards that hosts must adhere to. These include the installation of functioning smoke alarms, adherence to maximum occupancy limits, and the availability of a responsible party 24/7 to address any issues that may arise.

Additionally, compliance with all applicable building and fire safety codes is mandatory to ensure the well-being of guests and the property's occupants. Hosts must be proactive in understanding and implementing these safety measures to maintain a safe and compliant short-term rental operation.

Does Nashville Strictly Enforce STR Rules?

Based on discussions on real estate forums like Bigger Pockets, Nashville appears to be relatively strict in enforcing its short-term rental regulations. Some hosts have reported facing penalties for operating without the proper permits or violating other rules, indicating the city's commitment to upholding its STR guidelines.

However, Nashville also recognizes the value of short-term rentals, as evidenced by the designation of specific zoning districts where non-owner occupied permits can be issued, suggesting a balanced approach to regulation.

This nuanced stance reflects the city's efforts to strike a balance between promoting the short-term rental industry and ensuring the safety and quality of these accommodations.

How to Start a Short Term Rental Business in Nashville

Launching a short-term rental business in Nashville involves a methodical, step-by-step process:

  • Determine if your property is eligible for an owner-occupied or non-owner occupied short-term rental permit by reviewing the city's regulations and zoning requirements.
  • Gather the required documentation, including a detailed floor plan, proof of liability insurance, and evidence of notification to neighboring property owners.
  • Submit the permit application through the Nashville Metro Codes Department's online platform or in-person, ensuring all information is accurate and complete.
  • Familiarize yourself with the applicable tax requirements, such as the hotel/motel tax and state sales tax, and establish a system for timely collection and remittance.
  • Comply with all safety and occupancy requirements, including the installation of smoke alarms and adherence to maximum guest limits, to ensure the well-being of your guests and the property.
  • Manage the short-term rental operation in strict accordance with Nashville's regulations to avoid potential penalties and maintain the integrity of your business.

Who to Contact in Nashville About Short Term Rental Regulations and Zoning?

For inquiries regarding short-term rental regulations and zoning in Nashville, individuals can reach out to the Metro Codes Department. The department can be contacted via email at [email protected] or by phone at 615-862-7190. The department's staff can provide guidance on the permit application process, regulatory requirements, and any zoning-related questions.

They can also offer insights into the city's enforcement practices and help hosts navigate the complex regulatory landscape.

What do Airbnb Hosts in Nashville on Reddit and Bigger Pockets Think About Local Regulations?

Discussions on real estate forums like Bigger Pockets reveal a mix of perspectives from Airbnb hosts operating in Nashville. Some hosts have expressed frustration with the city's strict enforcement of short-term rental rules, citing challenges in obtaining permits and navigating the regulatory landscape. They have highlighted the difficulties in complying with the various requirements, which can be time-consuming and burdensome, potentially impacting the profitability and viability of their short-term rental businesses.

On the other hand, other hosts have acknowledged the benefits of Nashville's regulations, recognizing that they help maintain the quality and safety standards of short-term rentals in the city. These hosts believe that the regulations, while stringent, ultimately contribute to a more sustainable and responsible short-term rental market, which can be beneficial for both hosts and guests. They appreciate the city's efforts to strike a balance between promoting the industry and ensuring the integrity of the accommodations.

Overall, the opinions of Airbnb hosts in Nashville on platforms like Reddit and Bigger Pockets reflect the complex and nuanced nature of the city's short-term rental regulations. While some hosts may find the rules overly restrictive, others appreciate the role they play in ensuring the integrity of the STR industry in Nashville.

This diversity of perspectives highlights the need for hosts to thoroughly understand and adapt to the local regulatory environment to succeed in the short-term rental market.ShareRewrite

Reveal your property’s rental profitability

Buy this property and list it on Airbnb.