Short Term Rentals in Nashville.
Short term rentals have been on the rise for years in Nashville, and are oftentimes huge sources of income for property-owners. That being said, Nashville has responded to this influx with a lot more regulations surrounding STRs, understandably so. There’s two types of short-term rentals - owner occupied and non-owner occupied. The NOO STRs are fewer and further between, and significantly more expensive. The OO STRs are more common and are more affordable. If you’re looking for a STR property in Nashville, here are some boxes that should be checked as you investigate different investment opportunities:
Check Local Zoning Laws: Nashville has specific zoning laws that dictate where short-term rentals are allowed. You can start by checking the Metropolitan Government of Nashville and Davidson County's zoning regulations on their website or contacting the local zoning office. These are ever-changing, so keep that in mind.
Review Short-Term Rental Regulations: Nashville has regulations specific to short-term rentals, including registration requirements, safety standards, and occupancy limits. The Nashville Office of Business Affairs and the Metropolitan Development and Housing Agency (MDHA) are key sources of information.
Verify Registration Requirements: In Nashville, short-term rental properties often need to be registered with the city. Verify whether the property is registered or if it meets the criteria for registration. This information is usually available through the city's business license or short-term rental registration portal.
Check for Permits and Licenses: Confirm that the property has the necessary permits and licenses to operate as a short-term rental. This includes ensuring it meets safety and health codes, such as having smoke detectors and proper exits.
Consult the Homeowners' Association (HOA): If the property is in a community with an HOA, check their rules and regulations. Most HOAs have restrictions or outright bans on short-term rentals.
Contact the Property Owner or Manager: If you're interested in a specific property, contacting the current owner or property manager can provide clarity on whether it’s approved for short-term rentals. In many cases around Nashville, properties operating as STRs are in zones that no longer allow them; however, they were grandfathered in. In some cases, the LLC of the current owner can be purchased in order to keep the ‘grandfathered’ STR operating with a property transfer.
Seek Professional Advice: Consider consulting with a real estate agent with Nashville's short-term rental laws. We can offer detailed insights and help ensure compliance with all regulations. Don’t hesitate to reach out if you are looking for an investment property or have a general question about the market.
All that being said, with the quickly-changing regulations and laws, it’s important to invest in properties that could cash flow as long term rentals or that are gaining equity quickly. You never know what will happen…
