What You Need to Know About Short Term Rental Property (STRP)
I bet you have.
Considering Nashville’s current popularity, renting your home for a few days a month seems pretty enticing.
Short term rental can be lucrative, but there is more to it than just slapping together an on line posting.
WHAT YOU NEED TO KNOW.
(For more information, check out the surprisingly easy to read Metro STRP website)
First you need a permit. Yes, really. I know your neighbor/ mother-in-law/best friend/ dog walker doesn’t have a permit for their short term rental property, but do you want to be a good citizen or a cheat?
Metro started accepting permit applications in March of this year. Enforcement to have a permit began on July 1.
A short term rental property is defined as “a residential dwelling unit containing not more than four sleeping rooms that is used and/or advertised for rent for transient occupancy…” Rental period is more than 24 hours and less than 30 days. Owner occupied or non-owner occupied properties.
As of this writing, you have to apply for a permit in person. Metro Codes Dept, 800 2nd Ave S.
BRING WITH YOU
- Contact information
- Floor plan
- Location of smoke alarms
- Proof of insurance
- Proof that you’ve informed your neighbor with whom you share a common wall of your intent (if applicable)
- Proof of residency (owner occupied property only)
- $50 fee
This is why every house in Germantown isn’t on aribnb. As a way to keep your neighborhood from turning into Daytona Beach, the powers that be in Davidson County have capped the number of permits issued.
The limitation is 3% of the single family or detached two family residential units within each census tract. (The cap only applies to non-owner occupied units.)
It’s easy to check permit availability on the handy map on the metro website. For example, when I last checked there were 43 permits available in my neighborhood, but none in parts of Germantown.
Pay the Government
- Hotel occupancy tax (a/k/a tourist accommodation tax)
- 6% of the fee plus $2.50 per night
- Business license fee and annual business tax
- Sales Tax
Follow the Rules
There are lots of rules, among them no feeding your guests! So skip the welcome basket of homemade cookies! (I consider this a plus actually.)
Is The License Transferable?
So if you are considering buying that darling property that gets rave reviews on airibnb, know the permit doesn’t convey with the property.
This is not too much of a problem if you plan to live in the house, as owner occupied properties are not subject to the 3% cap. But if you are buying an investment property, you should check the permit availability before you put in an offer.
Can Someone Manage The Process and The Property For Me?
If this sounds like waaaay too much work, you can hire someone to manage your STRP.
One such company is Austin, TX based TurnKey Vacation Rentals which opened a Nashville office less than a year ago. TurnKey will take care of it all –on-line marketing, property management, and the guest experience.
For more information check out their website or contact local manager Bobby Bruecken 615.525.7962 email@example.com.
(all photos courtesy of and listings from TurnKey Vacation Rentals)