Short-term rentals properties (STRPs) have become increasingly popular in recent years. Nashville is capitalizing on this market with more diverse and affordable rental options, 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 and consistently outperform hotel occupancy numbers. As one of the first markets to take advantage of this growing housing trend, it may be time to take a closer look. How can we help you meet your STR and investment goals?
In Nashville and Davidson County, the law requires that anyone wishing to rent a property on Short Term Rental Property (STRP) websites such Airbnb and HomeAway 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.
The fastest way to determine which short-term rental permit your property qualifies for is to enter your address on the Metro Parcel Viewer. On the top right-hand corner of the page, you’ll find a magnifying glass symbol. Click that symbol and select “Address or Intersection.”Type in your property’s address and hit “Search.” After your property’s information has been pulled, you’ll see several tabs on the left-hand side. Select “Zoning History.” If your property has one of the NOO zonings listed above, you’ll qualify for a non-owner occupied permit. If your property does not have one of those zonings, you may only qualify for an owner-occupied permit.
Metro Nashville gives the following guidelines for what qualifies as an Owner-Occupied Short-Term Rental.
Owner-occupied permits are the best route 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), it largely excludes short-term rental investors. New legislation came about because neighborhoods were 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 ancillary to its primary use as a home.
Here are Metro Nashville’s guidelines as to which properties may qualify for non-owner occupied 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 guests since they are near the cities hot spots and attractions.
There are multiple steps in the process for receiving a Short Term Rental Property (STRP) permit. Being prepared before you meet with a zoning examiner to start the application process can greatly reduce delays or repeat trips to the Development Services Center. DO NOT list a property or unit online until you have received a permit, or you will be ineligible to apply for a permit for one year.
Download the full short term rental property checklist HERE
Requirements for operating a Short Term Rental Property (STRP) include but are not limited to:
If you would like assistance with completing your permit application or managing your property, Six1Five Living recommends working with a reputable Property Management company like Turnkey Vacation Rentals.