Nashville Area Short Term Rental Association
 

Frequently Asked Questions

 
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Permits

Do I need a permit?

Any home (or portion of a home) being rented for less than 30 days, regardless of whether or not the owner lives on the property, is considered a short-term rental (STR) and a permit is required. You can read more about this on Metro Nashville's website »

What is required to get an STR permit?

There are multiple steps in the process of applying for and receiving a short term rental permit in Nashville. Refer to Metro Nashville's website for the comprehensive details on obtaining a permit »

Are there still types 1, 2, and 3 when it comes to permits?

No. With the passing of Ordinance BL2017-608, there are only Owner Occupied (OO) and Non Owner Occupied (NOO) short term rental propeties and permits. All requirements pertaining to OO and NOO permits can be found within the legislation, which you can accesshere »

What are the zoning requirements for Owner Occupied and Non Owner Occupied permits?

Plesae refer to Ordinance BL2017-608 (specifically sections 3 and 4) for details regarding zoning requirements. You can read the law here »

Taxes

What kind of taxes do I have to pay?

STR owners are required to remit business, sales, and hotel occupancy taxes to the city and state. Nashville's Office of the Treasurer website has detailed instructions on how to properly register and remain compliant in regards to taxes »

Doesn't Airbnb take care of the taxes for me?

Airbnb collects and remits general sales and use tax for Davidson County and the state of Tennessee. Despite their use of the phrase "Occupancy Taxes", they do not actually take care of hotel occupancy (or business) taxes and you are still responsible for remitting those according to local requirements. Also, this sales and use tax arrangement is with Airbnb only. If you accept bookings directly or via any other online platform (VRBO, HomeAway, Expedia, etc.), you are responsible for remitting all required taxes on your own. Consult the city's detailed instructions here »

Where do I apply for an account number in order to file hotel occupancy taxes?

You can apply for this online here »

How do I submit hotel occupancy taxes?

Hotel occupancy taxes are due on the 20th of each month for the month prior. The form to complete and submit with your payment each month can be found online here »

Property Management

What do I need to know when looking for a property manager?

The most crucial criteria to look for is that the firm and/or individual you hire is fully licensed. In the state of Tennessee, anyone who manages, cares for, markets, and/or collects/disperses rental revenue from a short-term rental property owned by someone else is required to have a VLS (Vacation Lodging Service) license in order to operate. Both the firm and the designated agent (the responsible party) within that firm are required to have valid VLS licenses. These licensures are overseen and required by the Tennessee Real Estate Commission.

Read more about what constitutes a Vacation Lodging Service here »

Read more about designated agents here »

What's the big deal about the VLS license?

If a management company or an individual managing others' properties is found to be operating without a license, they are liable to be fined $1,000 per property and may receive an immediate order to cease all operations. This would cause you to lose all your future reservations and revenue. Not a risk worth taking!

My friend is just going to help manage my property. They don't need a VLS license do they?

Yes. They do. The Tennessee Real Estate Commission requires this of anyone who manages, cares for, markets, and/or collects/disperses rental revenue from a short-term rental property owned by someone else.

Read more about what constitutes a Vacation Lodging Service here »

Read more about designated agents here »

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