Nestled in the heart of Tennessee, Nashville is a vibrant city that is known for its music scene, and it has been dubbed the “Music City.” The city is home to numerous recording studios, music venues, and country music museums. In addition to its musical heritage, Nashville is also known for its food. The city boasts a wide variety of restaurants, from casual diners to upscale eateries. And no visit to Nashville would be complete without sampling some of the local cuisine, which includes such specialties as hot chicken and Southern-style barbecue. Whether you’re looking for live music, good food, or a taste of history, Nashville has something to offer everyone.
If you're thinking of investing in a rental property, Nashville is a great option. The city has seen a boom in short-term rentals in recent years, and as a result, there is high demand for well-located and well-appointed properties. Davidson County has strict regulations regarding short-term rentals, but these are relatively easy to comply with if you use a reputable property management company. Investing in a rental property in Nashville can be a wise decision that provides you with a good return on investment. In this blog post, we'll walk you through how to get a short-term rental permit in Nashville and provide some helpful tips along the way. Let's get started!
To post your unit or home on a short-term rental site, you are legally required to obtain a permit from Nashville’s Metro Codes Department. While the process may seem overwhelming at first, with a little bit of time, research, and proper documentation, you’ll be ready to rent in no time. The first thing to keep in mind is that there are two types of short-term permits (STRPs) in Nashville. Depending on your situation, you’ll apply for either an owner-occupied or a non-owner-occupied permit.
According to https://www.nashville.gov/departments/codes/short-term-rentals/apply-short-term-rental-property-permit there was a process change that went into effect on March 1, 2022.
The effective change states: "In an effort to streamline the process for obtaining a short-term rental permit, and in order to continue protecting the health and safety of short-term rental tenants, effective March 1, 2022, the Nashville Fire Marshal’s office will no longer conduct inspections on single and two-family homes. Instead, short-term rental permit applications in these homes must include a certification from a state-licensed architect, engineer, or home inspector that the home complies with Metropolitan Code of Laws § 6.28.030.A.5.b and § 6.28.030.B.5.b. No permit will be issued without this certification."
The Metropolitan Code requires that all applicants for a permit must provide proof of payment of all taxes due, including property taxes and, for permit renewals, all applicable room, occupancy, and sales taxes required by state law. To avoid delays in processing your application, please be sure to have your tax records in order before submitting your application.
You can find out more information by clicking this link, which will take you to the Metropolitan Trustee's office.
The second step to obtaining your short term rental permit is to provide a floor plan that is either official or hand drawn. The floor plan should include all rooms, the location of windows, doors, and smoke detectors. Remember, smoke detectors are required in any area that would be used for sleeping. Also, there is a maximum of four sleeping rooms for a short term rental property. If you have more rooms than that you do not qualify for a short term rental permit.
Step three is showing proof of liability insurance. Liability insurance includes fire, hazard, and liability insurance. The coverage should have limits in place to not have less than one million dollars per occurrence.
Note: Some listing companies (such as airbnb or vrbo) may offer homeowners the appropriate insurance that meets requirements.
In order to apply for a permit, the applicant must provide a notarized affidavit confirming that all of the information provided during the application process is accurate and true. If the owner of a property wants to use a property manager (like Chady) or rental company to apply for the permit on the homeowner's behalf, they must fill out and sign this notarized affidavit authorizing the third party. By signing this affidavit, the property owner is taking responsibility for ensuring that all of the information provided in the application is accurate and up-to-date. This helps to ensure that the city has accurate records of all short-term rental properties in operation and that these properties are being operated in compliance with all applicable regulations.
Click here for the notarized affidavit form for Owner occupied applicants
Click here for the notarized affidavit for Non-owner occupied applicants
Click here for the notarized affidavit for the third party
To continue the process of obtaining your short-term rental permit, as an owner, you are required to notify your adjacent property owners. For each adjacent property, this proof can be done in multiple ways. Here are the ways that this portion can be accomplished: the form of a signature from the owner, a signed receipt for U.S. registered or certified mail addressed to the owner, or notice from the U.S. Postal Service that registered or certified mail was refused or not timely accepted. If the adjacent property is owned by the Metro Government, notification is not required. This requirement helps to ensure that all affected parties are aware of the proposed project and have an opportunity to provide input. In turn, this helps to create a more open and transparent process that leads to better outcomes for everyone involved.
Click this link to access:
Step seven is having the Homeowners Association statement. The Homeowners Association statement is divided into two sections. The first section is having the applicant provide a statement confirming having a short-term rental will not violate their Homeowners Association Agreement, codes, restrictions, or bylaws. The second section is to have the owner provide proof of someone that can be a local responsible party. This responsible party has to be twenty-five mile radius of a short-term rental property. This second section requires the name, address, email, and phone of the local responsible party.
Click here to fill out the Homeowners Association and Contact Information form
When applying for an owner-occupied permit, the property owner must show proof of residence with two forms of documentation. These forms must include the address of the residence in question and can be one of the following: a Tennessee driver’s license, another state ID card, Davidson County voter registration card, pay stub, work ID or badge, IRS W2 form, or bank statement. Utility bills will unfortunately not suffice as proof of residence. However, with any of the aforementioned documents, the residency will be successfully established and the permit can be granted.
When you have collected all of the forms that you need, the final step is submitting your application for review. To do this you will put all of your documents into a singular PDF file and send the PDF file to [email protected] along with your contact info. Once you do this your application will be placed under review.
Once your application is reviewed and accepted there are a few things to note to remember. First, if you are one or two-family dwelling you will need to follow the effective process change with getting a certification. If you are are multifamily dwelling you will need to schedule an inspection with the Nashville Fire Department with using this email: [email protected].
When emailing include your temporary permit number, address, phone number, and permit number. Once the inspection is completed and approved by the Fire Marshal, you must pay a $313 permit fee before you can get your official permit. When you get your permit you are now allowed (and required) to post your short term rental property online.
Once 365 days have passed you are required to renew your short term rental property. Click here to renew your property annually.
Applying for a short-term rental permit in Nashville is a relatively simple process, but remember the few things listed above. Be sure to allow yourself plenty of time to complete the application and gather all the required documents. If you have any questions along the way, reach out to Chady Property Management for assistance. With these tips in mind, you'll be well on your way to securing your permit and welcoming guests into your home!
