Renewing Your Short-Term & Vacation Rental Permit
The city of Nashville is a perfect storm of success for short-term rental properties.
Music City attracts tourists from all over the world who come to visit honky-tonks on Broadway, see a show at the Ryman, or attend a convention at the Music City Center.
With millions of tourists visiting Nashville every year, the hospitality industry has struggled to keep up with demand.
Fortunately for Nashville and its residents, Airbnb provided a new marketplace for homeowners and investors to operate residential properties like a new-age hotel.
Thousands began buying up property around Nashville for short-term rentals and tourists started booking their stays 3, 6, even 12+ months in advance.
Short-term rentals certainly a profitable venture for those willing to jump Metro’s hurdles in order to get a permit.
However, if you want to keep your property readily available for the next bachelorette party, you’ll need to ensure that your short-term rental permit never lapses or gets revoked.
Here’s a guide on how to renew your short-term rental permit in Nashville.
The Different Types of Short-Term Rental Permits
There are two different types of short-term rental permits: Owner Occupied (OO) and Non-Owner Occupied (NOO).
Owner-occupied permits are largely for properties that are in heavily residential areas, so they’re more restricted than NOOs.
In these short-term rentals, the owner of the property has to claim and live in the permitted unit as their primary residence.
Until recently, short-term rentals were fairly unregulated, which caused some uproar from neighborhoods having to deal with rowdy travelers.
Non-owner occupied units are isolated to commercially zoned properties throughout Davidson County.
Most of these properties could also be used for hotel / motel and are in major commercial districts, which cuts down on the potential neighborhood disturbance of operating short-term rentals.
How to Renew Your Short-Term Rental Permit
Your short-term rental permit must be renewed every year, as they’re only valid for 365 days.
You should also make sure to file for renewal prior to the expiration of your short-term rental permit - if you don’t, you may find yourself in a position of having to go through the entire permitting process all over again.
If you’ve hired a short-term rental manager, like us at Parasol Management, they will file your renewal on your behalf.
To renew your short-term rental permit, you can:
Bring a check to Metro Codes Department for $313.00, which covers your annual fee, along with a signed and notarized affidavit .
OR
Mail your check and signed / notarized affidavit to:
Metro Department of Codes and Building Safety
ATTN: STRP Permit Renewal
P.O. Box 196350
Nashville, TN 37219-6350
Please note that if you do decide to mail in your renewal application, it must arrive before the expiration date for the Metro Codes Department to consider your renewal.
I recommend that you do what we do here at Parasol - take the short-term permit renewal affidavit and check to Metro in person.
The risk of losing a renewal application in the mail and subsequently losing your STR permit is just too high for me.
Reminders for Your Short-Term Permit Renewal
Metro Codes doesn’t allow short-term rental permits to transfer between owners or between properties.
If the property changes ownership, even if you take it out of your name and place it in an LLC., your permit will be rendered invalid.
So, once you’ve obtained your permit, do not change anything with the property.
At least not until you’ve consulted with a short-term rental professional.
Nashville also has a three strikes rule.
After three reported violations at the property, your permit will be revoked or denied upon renewal.
Be sure to manage your short-term rental responsibly so as to avoid any complications with permitting in the future.
We Manage Your Property, You Manage Your Bank Account
Parasol Property Management takes the burden of marketing, managing, and maintaining short-term rentals off our clients’ shoulders.
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