Comprehensive Guide to Short-Term Rental Laws in Nashville, TN

Written By Jack Costigan

Operating a short-term rental property (STRP) in Nashville, Tennessee, involves navigating a comprehensive set of laws and regulations designed to balance the interests of property owners, guests, and the local community. This guide provides an in-depth overview of the key legal requirements and considerations for STRP operators in Nashville.

Understanding Short-Term Rental Property (STRP) Permits

In Nashville and Davidson County, any property owner intending to rent out their property on a short-term basis (less than 30 consecutive days) must obtain a permit from the Metro Codes Department prior to listing the property on platforms like Airbnb or HomeAway. (Metro Nashville)

Types of STRP Permits

Nashville offers two distinct types of STRP permits:

1. Owner-Occupied Permit

This permit applies to properties where the owner permanently resides on-site. The owner may rent out a portion of their home or the entire property when temporarily absent. To qualify:

  • The owner must be a natural person (LLCs, corporations, trusts, etc., are ineligible).

  • The owner must provide documentation proving owner-occupation.

  • Only one permit per lot is issued in single-family and two-family zoning districts.

  • For two-family units, both must be owned by the same person, with one unit serving as the primary residence.

2. Non-Owner Occupied Permit

This permit is for properties where the owner does not reside on-site. New non-owner occupied STRP permits are only permitted in certain non-residentially zoned areas, as listed in the District Land Use Table. Other key restrictions include:

  • No new permits are issued in AR2A, R, RS, or RM zones.

  • Existing permit holders in these zones may renew, but permits are not transferable upon property sale.

  • Permits for properties within Specific Plan (SP) or Planned Unit Developments (PUD) are issued only if explicitly allowed.

Permit Application Requirements

To apply for an STRP permit, applicants must provide the following:

  • Proof of Payment of All Taxes Due – Property taxes, and for renewals, all applicable room, occupancy, and sales taxes.

  • Detailed Floor Plan – Must be certified by a state-licensed architect, engineer, or home inspector.

  • Proof of Liability Insurance – At least $1 million per occurrence.

  • Notarized Affidavit – Confirming that all provided information is accurate.

  • Proof of Notification to Adjacent Property Owners – Either through signed statements or mailed notification letters.

  • Homeowners Association (HOA) Compliance Statement – Verifying the STRP does not violate HOA agreements.

  • Responsible Party Information – Must reside within 25 miles of the STRP.

  • Proof of Residence (Owner-Occupied STRPs Only) – Four documents such as a Tennessee driver's license, voter registration, tax forms, or insurance documents.

Applications are submitted online via Metro Codes Department.

Zoning Regulations

Zoning laws in Nashville play a crucial role in determining where STRPs can operate:

  • Owner-Occupied STRPs – Allowed in all residential districts, except NS (No STR) zones.

  • Non-Owner Occupied STRPs – Allowed only in certain non-residential zones.

Prospective operators should review the Metro Nashville District Land Use Table to determine zoning eligibility.

Operational Requirements

Once permitted, STRP operators must adhere to several operational requirements:

1. Safety and Fire Code Compliance

  • Smoke alarms in every bedroom and on each level.

  • Fire extinguishers in accessible locations.

  • Clearly marked emergency exits and posted egress plans.

2. Parking and Street Visibility

  • No RVs, buses, or trailers may be parked in conjunction with STRP use.

  • Guests must use designated parking spaces and not obstruct neighbors.

3. Noise and Conduct Restrictions

  • No excessive noise between 11:00 PM and 7:00 AM.

  • No large parties or unauthorized events.

4. Maximum Occupancy Limits

  • No more than twice the number of sleeping rooms plus four guests.

5. Responsible Party & Contact Information

  • A responsible party must be available 24/7 and live within 25 miles.

Failure to comply can result in fines, permit revocation, and bans on future permits.

Tax Obligations

STRP owners are responsible for collecting and remitting:

  • Sales Tax – 7% state tax plus local rates.

  • Hotel Occupancy Tax – 6% of listing price.

  • Business Tax – Registration required if annual income exceeds $10,000.

Taxes must be remitted quarterly to avoid penalties.

STRP Permit Renewal & Transfers

  • Permits must be renewed annually.

  • Expired permits require a one-year waiting period before reapplication.

  • Permits are non-transferable upon sale or ownership changes.

Penalties for Violations

1. Fines & Revocation

Violations can result in:

  • Fines of up to $500 per violation.

  • Permit revocation for one year.

  • Legal action from Metro Nashville authorities.

2. Violations That Lead to Immediate Revocation

  • Operating without a valid permit.

  • Exceeding occupancy limits.

  • Hosting unauthorized events.

  • Failing to pay applicable taxes.

How to Stay Compliant

To avoid penalties, STRP owners should:

✅ Obtain and renew permits annually

✅ Follow zoning and operational guidelines

✅ Pay all taxes on time

✅ Ensure all guests follow conduct rules

✅ Stay updated on new STRP laws

Final Thoughts: Is Running an STRP in Nashville Worth It?

While short-term rentals in Nashville offer strong income potential, the regulatory environment is strict and evolving. STRP operators must stay informed, follow legal guidelines, and maintain compliance to operate successfully.

For the latest updates on STRP regulations, visit the Metro Nashville STRP Page.

Jack Costigan
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