If you’re a Nashville property owner hoping to make a foray into the vacation market, then congratulations! Here are 5 Nashville short term rental laws you need to know.
The city was included in Forbes’ 2019 “10 Best Bang-for-the-Buck Vacation Destinations” list, and the projected U.S. vacation rental revenue for 2019 is over $57 billion, so this is an opportune time to break into the business. As you move forward in this exciting venture, it’s important to keep the following short-term rental rules and regulations in mind.
1. Owners of short-term rental properties are legally required to obtain an operating permit from the Metro Codes Department before they can post on websites such as Airbnb, VRBO and HomeAway. Never list a property or unit online until you have received a permit, or you will be ineligible to apply for a permit for the next year. Even if you think you’re just being proactive and getting ahead of the game by posting your space online, don’t do it!
If the city catches wind of any illegally operating Airbnb vacation rentals, the property owners are sent an initial violation notice and are subsequently fined $50 day.There are two types of STRP permits in Nashville: owner-occupied and non-owner occupied.
Owner-occupied permits are for people who permanently reside at the property. Entities like LLCs, corporations, trusts, partnerships, and joint ventures are ineligible for owner-occupied permits. The permit includes the rental of an entire dwelling unit to a single party of individuals, or if only part of the unit is being rented, it includes at least one sleeping room and a bathroom. The documentation of primary residence address must match the deed as recorded with the Davidson County Clerk's office. Only one permit can be issued per lot in single-family and two-family zoning districts, and the property ownership of two-family units cannot be divided. jasaseo.link
Non-owner-occupied permits are—yep, you guessed it—properties not occupied by the owner as a principal residence. Rentals are limited to a single party of individuals, and ownership information on the application must match the deed as recorded with the Davidson County Clerk's office. New non-owner occupied permits aren’t allowed in residential zones. Existing permit holders in these zoned districts are grandfathered under Tennessee law and may be eligible for permit renewal, but they won’t be allowed to transfer those permits when they sell their properties.
The latest hot topic in the Nashville short-term rental laws and general industry is the new Tennessee law BL2019-1633, which eliminates multi-family zoning from the list of non-owner occupied permit zones. The bill limits new non-owner-occupied rentals to commercial areas of Nashville — effectively barring them in residential zones. The ban will officially take effect October 1, 2019, so those currently in the process of building projects can finish their developments. Short-term rental properties with live-in owners won't be affected.
2. A short-term rental property is legally defined as a residential dwelling unit with a maximum of four sleeping rooms. This property must be used or advertised for transient occupancy by guests. These units cannot be rented out to the same occupant for more than 30 consecutive days.
3. There is a maximum number of 12 occupants for short-term rentals, and the principal renter of this unit must be at least 21 years old. The permit holder is responsible for the guests of the property, and all visitors need to abide by the city’s applicable noise restrictions and waste management provisions. Short-term rental operators cannot be compensated by a guest who occupied the unit for less than 24 hours.
4. If the property’s ownership changes, the permit will be cancelled. You’re in charge of renewing your permit before it expires, which is 365 days after its initial issue date.
5. Owners are required to collect and remit all hotel occupancy taxes as well as sales tax. In addition, depending on the property’s revenue, you may be required to obtain a business tax license. The chart below serves as a general guide, but for more specific information, click here.
If you’re overwhelmed by these rules and regulations, we’re here for you! Chady Property Management is a seamless turn-key vacation rental property management for Airbnb, VRBO, Bookings.com, and more.
We can help you get the right permit and provide you with many other services, including property syndication, cleaning, and tax management. Reach out to us today to learn more or get started.
From bachelor parties and weddings to music festivals and sports games, there are countless reasons for people to visit Nashville. With over 15 million tourists flocking to Music City from all around the globe, there’s no better time to be an Airbnb host.
These millions of tourists need a place to stay, and many people prefer booking a cozy Airbnb over a hotel room because it allows for a more authentic experience. 64.5% of travelers use listing sites like Airbnb to find their vacation rental, and it’s projected that by 2020, vacation rentals will topple the hotel industry.
Here are 10 Airbnb management tips to help you navigate being a host in Nashville.
A crucial aspect of managing your Nashville Airbnb is making sure you’re in compliance with the city’s laws and permit rules. For more information, visit Nashville’s Metro government website. You’ll find answers to frequently asked questions and details about BL2017-608, the current law that governs short-term rental properties in Nashville and Davidson County as well as links to the ordinances that preceded it.
You worked hard to make your Airbnb look amazing, so you need to show it off accordingly. High-quality snapshots of your space make all the difference to users as they scroll through Airbnb’s offerings: photos are one of the top reasons guests choose to book. You can really amp up your listing with clear, bright, well-lit professional pictures that capture all the great qualities your dwelling offers. Plus, they can help bring more revenue, as hosts with professional photos earn 40% more on average than those without.
As a host, you must embrace the unexpected and be prepared for anything. Flight delays, last-minute cancellations, and random requests from guests are all part of the territory. Whether someone locked themselves out of the house or they’re panicking because they broke the dishwasher, you should always stay calm and have a back-up plan in place. Have an extra key hidden in a lockbox somewhere on your property for emergency situations, and make sure customers have multiple ways to contact you.
Strong, solid communication makes the entire experience better for both you and travelers. Responding to requests within 24 hours will boost your ranking in Airbnb’s search feature, but we recommend replying even faster. Airbnb users have come to expect a rapid response when they reach out, as 63% of hosts reply to guests within 60 minutes of receiving their inquiry. Having a quick response time to answer questions and concerns will put guests at ease and boost your chances of satisfying the customer.
If you really make the Airbnb feel like someone’s home away from home, they’ll be more likely to have a better stay and give you a higher rating. A clean, welcoming interior space will inspire visitors and make them want to stay forever! Flowers, candles, and bright artwork spice up rooms, while Nashville-themed knick-knacks, books, and magazines serve as a reminder of just how special the city is and also help educate visitors on local history and hot spots.
Traveling can be a stressful experience, so anticipating visitors' needs can help make their trip smoother and easier. Thoughtful touches like providing guests with extra towels, blankets, and detailed instructions for operating the thermostat, TV, and other electronic devices are all ways to make customers feel special. Stock up on Band-Aids, extra toilet paper, soap, and travel-sized toiletries in case your guests forgot to pack something—it’ll save them a trip to the store, which will be greatly appreciated.
If you can pinpoint a target audience, it’s much easier to cater to their needs. For example, you might focus on getting business from millennials, as they value experiences more than materials, which means they’re more likely to spend their money on traveling than any other generation. In addition, they typically choose vacation rentals like Airbnbs instead of hotels. Millennials prefer to use their phones or other digital devices to book their travel plans – in fact, they make up 40% of online travel bookings. Appeal to this audience by responding quickly to their email inquiries, equipping your space with high-speed Internet and entertainment options like Netflix and Hulu, and go the extra mile by leaving a recommendation list of your favorite restaurants, bars, and other local places.
If you’re a new host, your goal is to get bookings and show potential customers that you’re trustworthy. If possible, be flexible with check-in and check-out times for guests’ convenience. If you’re comfortable, it’s recommended that you choose the flexible cancellation policy option. This promotes your bookings, and if guests cancel, they will only lose the Airbnb fees. This shows customers you're willing to accommodate their needs, which will help them trust you while you build your reputation and experience.
Sometimes things don’t go according to plan, which is okay! To request funds from a guest or issue a refund, check out Airbnb’s Resolution Center. You have up to 60 days after a reservation's check-out date to submit a request for non-security deposit related issues. If you want to make a claim on your security deposit, you should submit your request within 14 days of your guest’s check-out date or before the next traveler checks in, whichever comes first.
Chady Property Management provides seamless turn-key vacation rental property management. We optimize your listings to appear on many platforms so you receive top dollar for your rental. It’s stress-free, so you can focus on more important things in your life while we handle all the logistics. Our services include communications, check-ins, cleaning, linen, taxes, restocking and more! Learn more today by visiting ChadyPM.com.
