As Nashville continues to grow in popularity as a top travel destination, vacation rentals have become an attractive option for both property owners and visitors. However, the city has established strict laws and regulations to maintain balance between short-term rentals (STRs) and residential communities. If you own or are considering investing in a vacation rental property in Nashville, understanding these rules is crucial to avoid fines and keep your business running smoothly.
Understanding Nashville’s Short-Term Rental Property (STRP) Laws
Nashville defines short-term rental properties (STRPs) as residential properties rented for less than 30 days at a time. These properties fall into two main categories:
- Owner-Occupied STRPs: Homes where the property owner lives on-site and rents out a portion of their residence.
- Non-Owner-Occupied STRPs: Investment properties or second homes where the owner does not reside.
The Metro Nashville government has placed stricter regulations on non-owner-occupied STRPs, especially in residential areas, to address community concerns about noise, safety, and neighborhood disruption.
Key Vacation Rental Laws in Nashville
- Permit Requirements:
- All vacation rentals must obtain a permit from the Metro Codes Department.
- Permits are valid for one year and must be renewed annually.
- Renting a property without a permit can result in significant fines and a ban from obtaining future permits.
- Zoning Restrictions:
- Non-owner-occupied STRPs are prohibited in certain residential zones (R, RS, and RM zones).
- They are permitted in areas zoned for multi-family, mixed-use, or commercial purposes.
- Owner-occupied STRPs have more flexibility but must still adhere to noise and occupancy rules.
- Occupancy Limits:
- Nashville limits vacation rentals to a maximum of 12 guests or twice the number of sleeping rooms, whichever is less.
- The goal is to prevent “party houses” and ensure rentals remain respectful of neighbors.
- Notification Requirements:
- Owners must notify neighbors within a 100-foot radius of the property when applying for a permit.
- Signage with the rental permit number must be posted on the property’s exterior.
- Taxes and Fees:
- STRP owners must collect and remit hotel/motel taxes (6%) and sales taxes (9.25%).
- Failure to pay taxes can result in penalties and revocation of permits.
Recent Updates for 2025
Nashville continues to refine its STRP laws, with the latest 2025 updates focusing on stricter enforcement and additional community feedback. Key changes include:
- Enhanced Inspections: Properties may be subject to surprise inspections to confirm compliance with safety codes.
- Stronger Penalties: Repeat offenders may face higher fines or permanent bans from operating vacation rentals.
- Online Listings: Platforms like Airbnb and Vrbo must display permit numbers, and non-compliant listings risk removal.
Tips for Vacation Rental Owners in Nashville
To stay compliant and run a successful vacation rental business, consider these tips:
- Secure Your Permit Early: The application process can take time, so apply well before listing your property.
- Understand Your Zoning: Double-check your property’s zoning to confirm whether it qualifies for owner-occupied or non-owner-occupied status.
- Maintain Detailed Records: Keep organized records of bookings, taxes, and guest communications.
- Be a Good Neighbor: Proactively address noise concerns, set clear house rules, and foster positive relationships with surrounding residents.
Partner with Chady Property Management
Navigating Nashville’s vacation rental laws can be overwhelming, but you don’t have to do it alone. At Chady Property Management, we specialize in managing short-term rentals, ensuring your property remains compliant while maximizing your revenue. From securing permits to handling guest relations, our team takes the stress out of property management so you can focus on growing your investment.
Ready to streamline your vacation rental business? Contact us today to learn how we can help you succeed in Nashville’s dynamic short-term rental market.