Thinking about buying a Nashville property to use as a short-term rental? You are not alone. With strong tourism and steady business travel, Nashville attracts buyers who want both a great home and potential rental income. This overview will help you understand how short-term rentals work in Metro Nashville, what permits you may need, and the key steps to take before you buy. Let’s dive in.
How Nashville regulates STRs
Metro Nashville Davidson County regulates short-term rentals through local ordinances and administrative rules. Multiple departments can be involved, including codes, finance, and permits. You must follow Metro rules, state tax requirements, and any private restrictions on the property.
You should expect layers of compliance. These include Metro permits, zoning and neighborhood overlays, HOA or deed rules, and state and local tax registration. Nashville’s rules have changed several times and can change again, so always check the current Metro code and the official short-term rental page before you rely on details.
Permit types you should know
Owner-occupied permits
If you plan to live in the home as your primary residence and rent part or all of it at times, you will likely apply under an owner-occupied category. You will need to show that it is your primary residence, such as a driver’s license or a voter registration, and follow any occupancy and safety rules that apply.
Non-owner-occupied permits
If you will not live in the home and you plan to rent the entire property, you are in an investment category. These permits often have tighter rules, higher fees, and may be limited by neighborhood or zoning. You may need to post your permit number in your listing and have a designated local contact.
Accessory units and B&B options
Some homes have guest houses or accessory dwelling units. Others may qualify under a bed and breakfast style category. These options can have specific safety and occupancy requirements. Ask about the exact rules for the property you are considering.
Compliance you will manage
Short-term rentals are a real business. Plan for ongoing requirements that affect daily operations and profit.
- Safety and building features include smoke and carbon monoxide alarms, fire extinguishers, safe exits, and posted emergency info. Maximum occupancy is often tied to bedrooms or square footage.
- A local contact is usually required. Someone must be reachable and able to respond to complaints quickly.
- Listing rules often require you to include the official permit or registration number and accurate details for bedroom count and occupancy.
- Taxes and registration include local hotel taxes and state sales or tourism taxes. You must register with Metro and the Tennessee Department of Revenue and file returns. Even if a platform collects some taxes, you are still responsible for making sure everything is paid.
- Insurance needs are different for STRs. Standard homeowner policies often exclude short-term rental activity, so ask your insurer about proper coverage or endorsements.
- Neighborhood conduct matters. Most enforcement issues start with noise, parking, or trash complaints. Clear house rules and good management help reduce risk.
Zoning, overlays, and HOAs
Metro zoning and neighborhood overlays can affect where short-term rentals are allowed or limited. Historic districts and planned developments may have extra rules. Some areas may cap non-owner-occupied permits or pause new permits at times.
Private rules still apply. An HOA or deed covenant can prohibit or restrict short-term rentals even if Metro would issue a permit. Always get and review the HOA documents and any recorded covenants before you buy.
Enforcement and risks to know
Code enforcement, finance audits, and neighbor complaints drive most actions against short-term rentals. Penalties can include fines, permit suspension or revocation, and court orders to stop operating. Common triggers include operating without a current permit, missing or false permit numbers on listings, repeated nuisance complaints, tax failures, and safety violations.
Buyer due diligence checklist
Before you write an offer, confirm the property can legally operate the way you plan. Use this quick list:
- Permit status: Is there an active permit now? Is it transferable on sale or will you need a new application? Any open violations?
- Zoning and overlays: Confirm the property’s zoning and whether any neighborhood overlay limits STRs.
- HOA and deed rules: Review covenants for rental restrictions or required approvals.
- Taxes and business compliance: Ask for records of hotel and sales tax filings and business registration.
- Financials and history: Request 12 months of booking reports, occupancy, nightly rates, and a full expense breakdown.
- Insurance: Confirm the property can be insured for short-term rental use with proper endorsements and limits.
- Safety and inspections: Verify smoke and CO alarms, fire extinguisher placement, exit routes, and any past inspection records.
- Local contact and management: Identify the on-call manager and written response plan for complaints.
- Title and legal review: Have an attorney check title, easements, and any recorded restrictions.
- Lender and loan terms: Confirm your lender allows short-term rental use and any conditions that apply.
- Application timeline: If a new permit is needed, understand the steps and how long approval typically takes.
Budget and profit reality
Short-term rentals often cost more to operate than long-term rentals. Plan for higher management fees, more frequent maintenance and cleanings, increased utilities, permit and inspection fees, business taxes, and platform fees. Build in a reserve for repairs and slow seasons. If a platform remits some taxes, still reconcile reports to ensure complete and accurate filings.
Common pitfalls to avoid
- Assuming a past listing means you can operate today without a new review.
- Skipping the HOA or deed document review.
- Underestimating total operating costs and insurance needs.
- Relying only on platform tax collection without filing your own returns.
- Misstating occupancy or failing to display your permit number in listings.
Timeline and next steps
Your timeline depends on permit status, zoning, HOA requirements, and inspections. If a permit does not transfer with the sale, you may need to apply after closing before you list the property. Build time into your plan for any inspections, approvals, and business tax registrations so you launch legally and avoid fines.
How our team can help
Buying in the Nashville market while planning for short-term rental use takes clear steps and careful timing. Our team can help you evaluate properties, request and review critical documents from sellers, and coordinate a smooth path from offer to closing. If you are relocating to Middle Tennessee, we also provide concierge-style support to help you get settled and connected to local resources.
When you want a neighborhood-focused guide with deep local knowledge, reach out. We are here to help you weigh the options and make a confident, informed decision.
Important disclaimer
This article provides general information about Metro Nashville short-term rental rules as of January 2026. Regulations change and local requirements vary by property. This is not legal advice. Buyers should verify current Metro Nashville code, confirm permit specifics for the exact property, and consult an attorney and tax professional before purchasing.
Ready to explore properties and get a property-specific STR viability review? Schedule a free consultation with Eddie Poole.
FAQs
What is a short-term rental in Nashville?
- In Metro Nashville, a short-term rental generally means renting a residential property for short stays. You must have the proper Metro permit, follow zoning and HOA rules, and meet tax and safety requirements.
Are non-owner-occupied STRs allowed in all areas of Nashville?
- Not always. Non-owner-occupied permits can face stricter rules, possible neighborhood limits, and caps in certain areas. Check the property’s zoning and any overlays before you buy.
Do short-term rental permits transfer when I buy a property?
- Some permits do not transfer and may require a new application after closing. Always verify current permit status, transfer rules, and any open violations before you write an offer.
What taxes do I need to collect and remit for an STR?
- Expect local hotel taxes and Tennessee sales or tourism taxes. You must register with Metro and the Tennessee Department of Revenue and file returns, even if a platform collects some taxes on your behalf.
Do I need a local contact for my Nashville STR?
- Yes, most permits require a designated local contact or manager who can respond to issues quickly. Document your response plan and keep contact information current with Metro.
Can an HOA override Metro Nashville’s STR permit?
- Yes, private covenants or HOA rules can prohibit or restrict short-term rentals even if Metro would issue a permit. Always obtain and review HOA documents and deed restrictions during due diligence.
What are common reasons STR permits are revoked in Nashville?
- Operating without a valid permit, failing to display the permit number in listings, repeated noise or parking complaints, tax noncompliance, and safety violations are common triggers for penalties or revocation.
