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What Is Considered A Short-Term Rental In Nashville, TN?

What Is Considered A Short-Term Rental In Nashville, TN?

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In the last few years, short-term rentals have become one of the most preferred dwellings for travellers. They are more homely and flexible compared to traditional hotel rooms. Like other states, the Nashville real estate market also thrives in this sector by providing tourists with affordable and diverse housing options.

Besides short-term rentals benefiting travelers, they are also a perfect investment for property owners. The returns might be high, especially during the holiday seasons, and you can choose when to rent and when not to. While having Nashville rental houses might be profitable, here are guidelines that make such a property to be considered a short-term rental unit.

A Single Party Must not Occupy he Short Term Rental Unit for More than 30 Days

In Nashville, TN, a short-term rental is a property which an individual rents out for less than thirty days. These dwellings might be high-end or typical dwellings like villas, condos, homes, or apartments. Some offer full services, like hotels which may include cleaning services and meals upon request.

A Short-Term Rental Must Have a Permit

A permit is another factor that makes a property a short-term rental, a common guideline many investors still ignore. Therefore, before marketing it on various sites such as Airbnb and VRBO, it is crucial to acquire a permit from the Metro Codes Department. If not, you can receive a violation notice followed by a $50, after which you will not be eligible to get one in the next year.

Furthermore, you need to know that there are two types of short-term rental operating permits that Nashville offers to property owners: Owner Occupied Permits and Non-Owner-Occupied permits.

Owner Occupied Permits

These permits are ideal for owners living in the same property if they are looking to operate a short-term rental. The licenses are for houses situated in residential areas that host travelers in addition to being home.

For example, you might decide to turn your studio basement into a short-term rental or rent out your whole house while traveling. However, Metro Nashville cannot issue owner-occupied permits to corporations, joint ventures, or partnerships because the entity must correspond with the property owner’s name.

With that said, the following are some of the guidelines stated by Metro Nashville for a property to qualify as an owner-occupied short-term rental unit:

  • The owner must occupy the residence.
  • It consists of renting an entire property to one party of travelers.
  • Only a part of the unit is a short-term rental, and it should include a bathroom and a sleeping room, also restricted to one group of individuals.
  • The owner-occupied aspect is to be established through either of these two documents; pay stub, work ID, bank statement, voter registration card, driver’s license, or IRS W2 form.
  • The deed must match the owner’s residence address documentation as documented in the Davidson County Clerk’s office.
  • The property owner must be a natural person, not a company or partnership.
  • Only one owner-occupied permit is given in a lot of single families.
  • If one residence has two families, the permit is to be owned by one party since Metro Nashville cannot split it.

Non-Owner Occupied Permit

Metro Nashville offers these kinds of permits for short-term rental units that are not the primary residence of the property owners. They sit in commercial-zoned areas which are near city centers. Such properties have also attracted many investors because they attract travelers who want to stay near busy neighborhoods close to restaurants, bars, and other recreational amenities.

Nevertheless, here are the guidelines as per Metro Nashville that qualify a property to be a non-owner-occupied unit:

  • Such a short-term rental unit is not a permanent residence of the owner.
  • The occupancy is restricted to one group of individuals.
  • The deed must align with the ownership information based on Davidson County Clerk’s official documentation.
  • Only permitted zones to get Owner-occupied permits are as per Metro Nashville.
  • Permits for short-term rental units within Specific Plan zone properties or Planned Unit Development are given only when such plans allow it.
  • The department cannot issue Owner-occupied permits in RS, R, and AR2A zones. However, property owners with such permits may renew if only they are the original holders.

Considering you must get these two permits, applying for them might seem challenging for the first time. However, the process might be more straightforward if you have the necessary documents. Also, preparing well for the zoning examiner is essential to ensure you kick-start your short-term rental investment within the shortest time possible.

A Short-Term Rental Unit Must have a Maximum of 12 guests at a time

Whether using an occupied or non-owner permit, your property cannot exceed four sleeping rooms or occupy more than 12 individuals. Also, the primary rental must be 21 years and must adhere to the city rules and regulations. Furthermore, you are responsible for the occupants regarding waste management guidelines and noise restrictions.


The demand for short-term rentals in Nashville, TN, will continue to rise based on the current traveler’s trend. It creates an excellent opportunity for investors to join this wagon due to the huge profits involved. However, understanding the world of short-term rentals might be challenging for property owners. Luckily, this guide has all the information on what makes a property a short-term rental unit.

Uneeb Khan
Uneeb Khan
Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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