Airbnb Rental Laws and Regulations Nashville, TN

How does Nashville, TN define a short-term (Airbnb) rental (STR)?

• An owner-owned or non-owner-owned property that is rented to no more than one single party of individuals. 
• A type of transient lodging property that is rented for periods of less than thirty days at one time. 

Please note that in the following information, we use the terms “Vacation Rental” and “Short-Term Rental” synonymously. 

Source: Nashville STR Property Types

Can investors own more than one vacation rental property in Nashville, TN? 

Yes, investors can own multiple vacation rental properties in Nashville, TN, as there are no specific limitations on the number of vacation rental properties an investor can own in the city. 

Source: YouTube Short Term Rental Video Assistant

Does Nashville, TN have any zoning restrictions for STRs?

In Nashville, TN, only one permit is allowed per lot in single-family and two-family zoning districts. Permits for non-owner-occupied rentals are only issued in specific zoning districts, while certain zoning districts do not permit new non-owner-occupied permits. Existing permits in restricted zoning districts may be eligible for renewals but are not transferable upon property sale or transfer. Contact the Metro Planning Commission for questions about specific plans or planned unit development conditions.

Source: YouTube Short Term Rental Video Assistant

In Nashville, TN can an investor own and operate their Airbnb property as a business entity? 

Yes, in Nashville, TN, an investor can own and operate their Airbnb property as a business entity. There are no specific restrictions preventing investors from using a business entity, such as an LLC (Limited Liability Company), to own and operate an Airbnb property in the city.

Source: Nashville STR Property Types

In Nashville, TN, can investors register accessory dwelling units (ADU), duplexes, and multifamily homes as Vacation Rentals?

In Nashville, TN, investors can register accessory dwelling units (ADUs), duplexes, and multifamily homes as vacation rentals. These types of properties are eligible for registration and operation as short-term (Airbnb) rentals, subject to compliance with applicable regulations and licensing requirements.

Source: YouTube Short Term Rental Video Assistant

What is Nashville, TN requirement for obtaining a Vacation Rental License?

To obtain a Vacation Rental License in Nashville, TN, applicants must follow an online process and submit the permit application for review. The application process requires several steps and documentation:

• Complete the appropriate checklist for either owner-occupied or not-owner-occupied Airbnb rental property applications.
• Provide ownership information that matches the recorded deed with the Davidson County Clerk’s office.
• For single and two-family homes, include a certification from a state-licensed architect, engineer, or home inspector stating compliance with specific sections of the Metropolitan Code of Laws.
• Show proof of liability insurance with coverage limits of at least one million dollars per occurrence.
• Submit a notarized affidavit confirming the accuracy of the provided information.
• Notify adjacent property owners in writing and provide proof of notification.
• Complete a homeowners association statement and provide responsible party information.
• Show proof of residence for owner-occupied permits.
• Compile all application documents into a single PDF and email them to the designated address for review.
• Schedule a Fire Marshal inspection for multifamily dwellings, while single and two-family homes require the certification mentioned in step 3.
• Pay the $313 permit fee once the inspection has been completed and approved

Source: Nashville STR Permit Info

What are the costs associated with a Vacation Rental License in Nashville, TN?

The cost associated with a Vacation Rental License in Nashville, TN is a $313 permit fee.

Source: Nashville STR Permit Info

Does Nashville, TN have Vacation Rental occupancy limits?

In Nashville, TN, there are occupancy limits for vacation rentals. A single party of individuals is generally allowed to occupy a vacation rental property. However, it’s important to note that specific occupancy limits may vary based on factors such as the size of the property and any additional regulations or guidelines set by the city or homeowners association.

Source: Nashville STR Property Types

Does Nashville, TN require an inspection for investors to obtain an STR license? What are the physical and structural requirements for a vacation rental?

In Nashville, TN, effective March 1, 2022, the Nashville Fire Marshal’s office no longer conducts inspections on single and two-family homes for Airbnb rental permit applications. Instead, applicants for permits in these types of homes must provide a certification from a state-licensed architect, engineer, or home inspector. This certification confirms that the home complies with the applicable sections of the Metropolitan Code of Laws. Without this certification, a permit will not be issued. It’s important to note that this inspection requirement change only applies to single and two-family homes, while multifamily structures still require inspection by the Fire Marshal. 

Source: Nashville STR Permit Info

Does Nashville, TN have any responsible agent requirements?

Yes, in Nashville, TN, there are responsible agent requirements for short-term rental properties. For non-owner-occupied properties, which are those where the owner does not live on the property and uses it solely for rental purposes, a responsible agent must be designated. The responsible agent is a person or business that resides within a 25-mile radius of the property and is responsible for addressing maintenance and other issues that may arise during the rental period. The contact information of both the owner and the designated responsible agent must be provided as part of the permit application process. 

Source: Nashville STR Permit Info

Does Nashville, TN have specific insurance requirements for a Vacation Rental?

Yes, Nashville, TN has specific insurance requirements for vacation rentals. Applicants are required to provide proof of insurance that demonstrates homeowner’s fire, hazard, and liability coverage. The liability coverage should have limits of no less than one million dollars per occurrence. In some cases, the listing company, such as Airbnb, may offer insurance coverage that meets these requirements. In such instances, the applicant can provide their profile page on the listing platform as proof of coverage. 

Source: Nashville STR Permit Info

What are the duration and renewal terms of a Nashville, TNVacation Rental license?

In Nashville, TN, Vacation Rental permits have a duration of 365 days. They are valid for one year from the date of issuance. To maintain compliance with the law, permits must be renewed annually. It is the responsibility of the permit holder to ensure timely renewal to continue operating the vacation rental property legally.

Source: Nashville STR Permit Info

In Nashville, TN, do Airbnb and VRBO remit taxes on the host’s behalf? Are there any taxes that the host must track and pay directly to Nashville, TN?

Yes, in Nashville, TN, Airbnb is under contract with the State of Tennessee’s Department of Revenue to collect local occupancy taxes on behalf of the hosts. As per the contract, Airbnb is responsible for directly paying these taxes to the state. The State of Tennessee then handles the submission of tax payments to the Metropolitan Government of Nashville and Davidson County. Hosts utilizing these platforms are not required to track or directly pay these taxes to Nashville, as Airbnb handles the tax collection and remittance process on their behalf.

Source: Airbnb Nashville Info

Who should I contact if I have questions regarding Nashville, TN  Vacation Rentals?

Metro Nashville Department of Codes and Building Safety: (615) 862-6500 or [email protected]

Are there any new laws and regulations that the city is requiring?

No, at the time that Get Chalet compiled this info there were no laws or regulations that Nashville is requiring.