Is Airbnb legal in Nashville?

Nashville Airbnb Regulations Overview (2023)

As one of the most popular tourist destinations in the United States, Nashville is home to a rapidly growing short-term rental market, particularly through platforms like Airbnb. However, to operate legally, hosts must navigate a comprehensive set of regulations established by the city.

Key Permit Types

In Nashville, short-term rental properties (STRPs) require specific permits issued by the Metro Codes Department. There are two main types of permits:

1. Owner-Occupied Permits: These are for property owners who rent out a portion of their residence. The property must have a maximum of four sleeping rooms, and the owner must reside on-site or in an adjacent unit. There are guest limits based on the number of sleeping rooms.

2. Non-Owner Occupied Permits: These permits are for properties not occupied by the owner during rentals. Such properties must also have no more than four sleeping rooms. Notably, new non-owner occupied permits can only be issued in defined non-residentially zoned areas, making location a critical factor for potential hosts.

Application Process

To list an Airbnb legally, hosts must complete the permit application process within 90 days, pay the necessary fees, and submit the required documentation, including:

• Proof of liability insurance
• Notification to adjacent property owners
• A floor plan of the property

Permits are valid for one year and can be renewed within a 30-day grace period post-expiration, provided no complaints have been lodged against the property.

Safety and Compliance

Hosts must adhere to safety regulations, which include:

• Meeting building and fire safety codes
• Installing smoke alarms in critical areas
• Ensuring maximum occupancy limits are not exceeded (no more than twice the number of sleeping rooms plus four).

Tax Responsibilities

Short-term rental hosts are obligated to collect and remit various taxes, including state sales tax, hotel/motel tax, and business tax. The city has a structured tax registration process to ensure compliance.

Navigating Zoning and Local Rules

Hosts must familiarize themselves with local zoning laws, which can restrict short-term rentals in certain areas. Additionally, compliance with the rules established by homeowners associations (HOAs) or lease agreements is vital, as these can impose further restrictions.

Penalties for Non-Compliance

Failure to comply with Nashville’s Airbnb regulations can lead to substantial fines (up to $50 per violation per day) and possible revocation of the STRP permit, alongside a year-long waiting period for reapplication.

Stay Informed

Hosts are encouraged to regularly check official government websites and local associations, such as the Nashville Area Short Term Rental Association, for updates on regulations to maintain compliance and ensure a successful Airbnb operation.

In conclusion, understanding and adhering to Nashville's short-term rental regulations is essential for anyone looking to capitalize on the city's vibrant rental market while avoiding legal pitfalls.