Nashville Short-Term Rental Regulations

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Permit & Licensing

Short Term Rental Property (STRP) - Owner-Occupied Permit

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Short Term Rental Property (STRP) - Not Owner-Occupied Permit

This permit type does not require primary residence.

Application Process

Apply to Metro Codes Department. Application must include: owner/responsible party contact info (within 25 miles), proof of insurance ($1M liability), proof of notification to adjacent property owners, 4 documents proving owner-occupancy (2 from Group A, 2 from Group B), HOA/condo compliance statement, proof of tax payment. Applications valid for 90 days. Principal renter must be 21+.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 15.25% of gross rental income.

Collection: Permit holder responsible for collecting and remitting all applicable room, occupancy, and sales taxes. Short-term rental unit marketplaces must remit occupancy tax to the TN Department of Revenue (since Jan 1, 2021), unless they have contracts with local governments to remit directly.

Filing: Monthly, due by the 20th of each month

Rental Limits

Nashville does not impose an annual cap on the number of nights you can rent. Each individual stay must be 30 consecutive days or fewer per stay.

Occupancy & Density Limits

Maximum occupancy is twice the number of sleeping rooms plus four. No more than 4 sleeping rooms per STRP. Simultaneous rental to more than one party under separate contracts not allowed.

Zoning & Restrictions

Permitted as accessory use in all residential zoning districts except NS districts. Only one permit per lot in single-family and two-family zoning districts. Owner must be a natural person (not LLC, corporation, partnership, or trust).

Insurance & Safety

Insurance

Operators must maintain at least $1,000,000 liability per occurrence in insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• Approved smoke alarms meeting UL 217 standards required in all sleeping areas, in every room in the path of egress from sleeping area to exit door, and in each story including basements. Must meet all applicable state and local building and fire safety codes.

Penalties for Non-Compliance

$50 fine per day for operating without a permit. 1-year waiting period if determined to have operated without a permit. 6-month waiting period for failure to renew. 3-year waiting period upon court finding of operating without a permit. Permit may be revoked after 3 violations of Metro Code.

Platform Requirements

Any advertising on any internet website must prominently display the permit number or include an image of the permit with legible permit number. Owner-occupied STRPs shall not advertise availability of entire/whole home for STRP use (with limited exceptions).

Compliance Checklist

Follow these steps to legally operate a short-term rental in Nashville:

1. Determine your permit type. Nashville has 2 permit types. Identify which applies to your property (Short Term Rental Property (STRP) - Owner-Occupied Permit, Short Term Rental Property (STRP) - Not Owner-Occupied Permit).
2. Meet safety requirements. Approved smoke alarms meeting UL 217 standards required in all sleeping areas, in every room in the path of egress from sleeping area to exit door, and in each story including basements. Must meet all applicable state and local building and fire safety codes.
3. Obtain liability insurance. $1,000,000 liability per occurrence minimum.
4. Apply for your STR permit. Submit application + $313 fee. See permit types above to determine which applies.
5. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
6. Display your permit number. Include your permit/license number in all listings and advertisements.
7. Collect and remit taxes. 15.25% on all bookings.
8. Renew annually. $313 renewal fee.