Owner Occupied (OO)
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 one 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, trusts, 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) 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, email@example.com or 615-862-7190.
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.
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