A property management company takes over a mixed Nashville portfolio: long-term units in Davidson County, a few condos downtown, and two houses the previous owner ran on Airbnb. The long-term units follow Tennessee's URLTA. The short-term units follow a separate set of rules, and a permit that existed under the previous owner may not exist at all today.

Every short-term rental in Nashville and Davidson County needs a Short Term Rental Property (STRP) permit from Metro Codes before it can be listed. The permit is valid for 365 days (one year) and must be renewed annually. Nashville has two permit categories, owner-occupied and not owner-occupied. Eligibility depends on ownership, zoning and location. Permits cannot be transferred, so a sale, or a move from an individual into an LLC or trust, ends the existing permit.

Fees, eligibility rules and penalties can change through Metro Council action. Confirm current requirements with Metro Codes before making acquisition or underwriting decisions.

Must Read: Tennessee Security Deposit Laws: URLTA Counties vs Statewide Rules

Here is what this guide covers:

1. Nashville short-term rental rules at a glance

2. What an STRP permit is

3. Owner-occupied vs. not-owner-occupied permits

4. Where not-owner-occupied permits are allowed

5. What happens to a permit when a property is sold or moved into an LLC

6. Tennessee's short-term rental legacy rule

7. Renewal requirements

8. Operating, responsible party and listing requirements

9. Taxes

10. Tenants listing units on Airbnb

11. HOA, condo and multifamily restrictions

12. A compliance checklist for property managers

13. Penalties and enforcement

Nashville Short-Term Rental Rules at a Glance

What Is a Nashville STRP Permit?

A Short Term Rental Property (STRP) permit is Metro Nashville's operating permit for renting a residential unit for less than 30 consecutive days. It is issued by the Metro Codes Department under Metro Code §6.28.030, Nashville's short-term rental ordinance. Metro identifies Ordinance BL2020-187 as the current governing law. Applications moved online on March 11, 2026.

A permit covers one address and one named permit holder. It does not authorize anyone other than the person named on it to operate a short-term rental at the property.

Owner-Occupied vs. Not-Owner-Occupied STRP Permits

The two permit types differ mainly in who can hold them and where they are allowed.

Entity-owned properties cannot use the owner-occupied category. An LLC, trust, corporation or partnership has to evaluate eligibility for a not-owner-occupied permit instead.

For duplexes, an owner-occupied permit has two conditions. Both units must be owned by the same person, and one unit must be that owner's primary residence.

Where Are Not-Owner-Occupied STR Permits Allowed in Nashville?

New not-owner-occupied STRP permits are limited to eligible zoning districts. Property managers should verify the zoning and permit eligibility of each address before underwriting short-term rental income.

• Eligible districts. New permits are issued only in:

  • Mixed-use: MUN, MUL, MUG, MUI

  • Office: OG, OR20 through OR40-A, ORI

  • Commercial: CN, CL, CS, CA, CF

  • Downtown: DTC

  • Other: SCN, SCC and SCR

• Excluded districts. No new permits are issued in AR2A, R, RS or RM zones, which cover most of Nashville's residential land.

• Distance rule. Under §6.28.030(B)(2)(d), no new not-owner-occupied permit is issued within 100 feet of a religious institution, school or its playground, park, or licensed day care, unless Metro Council approves an exemption.

• SP and PUD properties. Permits in Specific Plan or Planned Unit Development zoning are issued only if the SP or PUD allows them.

Metro's Short Term Rental Property Search shows whether a specific address can get a permit.

Does a Nashville STR Permit Transfer When a Property Is Sold?

No. STRP permits cannot be transferred or assigned to another individual, person, entity or address. A change in ownership therefore ends the existing permit, and a new owner must apply for their own.

A buyer must independently establish eligibility and obtain a new permit before operating the property as a short-term rental. In residential zones this is often not possible for entity or investor owners, because new not-owner-occupied permits are not issued in AR2A, R, RS or RM districts.

What happens if you transfer the property to an LLC or trust?

Metro treats this as a change in ownership. Moving a property from a person to a trust or LLC, or the reverse, ends the permit, even when the same people still control the property. Confirm the permit consequences with counsel before any internal deed transfer.

Due diligence checklist for Nashville acquisitions

• Confirm the zoning district and whether a new not-owner-occupied permit is possible at that address.

• Check the 100-foot distance rule and any SP or PUD conditions.

• Value the property on long-term rental income unless a new permit is available.

• Ask the seller about any open STR violations or citations.

• Check condo or HOA documents for STR restrictions.

• Plan for the unit to sit vacant or be leased long-term while a new permit is processed.

Tennessee's Short-Term Rental Legacy Rule: Why Ownership History Matters

Tennessee's Short-Term Rental Unit Act (T.C.A. §13-7-601 et seq.) took effect May 17, 2018. Its legacy clause, §13-7-603(a), says a new local rule generally does not apply to a property that was already operating as a short-term rental before the rule was enacted.

That legacy protection ends when the property:

• is sold or transferred

• stops being used as a short-term rental for 30 continuous months

• has had three or more separate violations of a generally applicable local law that directly resulted from its use as a short-term rental, with no appeal rights remaining for the provider (T.C.A. §13-7-604)

Two separate rules are at work here. For properties that qualify for Tennessee's statutory legacy protection, a sale or transfer ends that protection. Nashville's STRP permit is non-transferable, so a sale or transfer also ends the Metro permit for every property, whether or not it had legacy status.

Whether a particular property has legacy status depends on its facts. These include when it began operating, its violation and appeal history, and any ownership changes.

Nashville STR Permit Renewal Requirements

Nashville STRP permits are valid for 365 days and must be renewed before they expire. Metro sends renewal notification emails 60 and 45 days before expiration to everyone with an email address on the permit.

Documents required for renewal:

• the $313 permit fee

• proof of current property insurance

• proof of Hotel Occupancy Tax payment

• a signed renewal affidavit

The permit is not renewed until payment is made. Metro does not issue a new permit document. Instead, it extends the existing permit by one year from the original issue date.

Metro states that renewal is the owner's responsibility, not Metro's. Property managers should track each permit's actual expiration date rather than relying on the notification emails, which can land in spam or go to an outdated address.

Nashville STR Operating Requirements

Every permitted unit must follow Metro's operating rules:

• Keep occupancy at or below twice the permitted sleeping rooms plus four, with a maximum of 12.

• Rent to only one party at a time. Separate simultaneous contracts are not allowed.

• Rent only to a principal renter aged 21 or older.

• Do not allow stays shorter than 24 hours or longer than 30 consecutive days.

• Keep RVs, buses and trailers connected with the rental out of sight. The permit holder or manager may not serve food to guests.

• Meet state and local building and fire safety codes, and Metro noise and waste rules. The permit holder is responsible for guest behavior.

Responsible party requirements

Every Nashville STR needs a local responsible party who lives within 25 miles of the property. That person's name and phone number must be posted inside the unit. They must answer calls 24 hours a day, 7 days a week, for the whole of every rental period.

Does the permit number have to appear on the listing?

Yes. Metro's application checklist requires the permit number or a picture of the permit on all short-term rental listings. Checking listings for the number is a quick way to spot unpermitted units across a portfolio.

Nashville STR Taxes

Metro states that STRP permit holders are required to remit business, sales and hotel occupancy taxes to the city and state. A third party, such as a property manager, may collect and remit hotel occupancy and sales tax. Each remittance must clearly identify the owner and the property address.

Proof of Hotel Occupancy Tax payment is also a renewal requirement, so gaps in tax filing can block a renewal.

What If a Long-Term Tenant Lists the Property on Airbnb?

A long-term tenant generally cannot obtain an STRP permit for the property, because the permit application requires ownership information to match the recorded deed. A tenant's listing is therefore almost always an unpermitted short-term rental on your property.

Why this matters to the owner and manager:

• Enforcement attaches to the property. Operating without a permit can trigger a one-year waiting period before the property is eligible for a permit.

• Violations can count against the address. Qualifying violations can affect a property's standing under both Metro and state rules.

• Insurance and HOA exposure.

  A standard landlord policy may not cover transient guests.

What to put in place:

1. Add a clear lease clause prohibiting subletting or listing the unit for stays under 30 days.

2. Search Airbnb and Vrbo for your addresses at least quarterly. A listing without a Metro permit number is a red flag.

3. Keep dated screenshots of any listing you find.

4. Send a written notice citing the lease clause. If the tenant doesn't stop, handle the breach under Tennessee's URLTA notice rules.

RIOO's lease management workflows help keep no-subletting clauses consistent across every long-term lease in a Nashville portfolio.

HOA, Condo and Multifamily Restrictions

A valid Metro permit does not override association rules. Metro states that HOA rules can be more restrictive than its own regulations and can prohibit short-term rentals entirely. The permit application also requires the applicant to confirm that operating the STR would not violate any HOA, condominium, covenant or other agreement governing the property.

For condo, HOA and multifamily portfolios:

• Check governing documents first. The declaration, bylaws and rules decide whether short stays are allowed at all.

• Only one party per permitted unit at a time. A unit cannot be split into separately booked rooms.

• Zoning still controls. New not-owner-occupied permits are not available in residential RM-zoned buildings. Mixed-use and downtown buildings are where entity-owned STR units can still qualify.

Nashville STR Compliance Checklist for Property Managers

For each STR property, track:

• Property address and zoning district

• STRP permit number and permit type

• Permit issue date and expiration date

• Ownership name exactly as on the deed

• Responsible party name, contact details and distance from the property

• Insurance status and expiry

• Hotel Occupancy Tax filing status

• HOA or condo restrictions

• Sleeping-room count and occupancy limit

• Permit number shown on each active listing

• Open violations or citations

• Renewal status

For managers overseeing several STR properties, these requirements are easier to manage when permit, insurance, ownership and renewal information sits at the property or unit level, rather than in separate spreadsheets and calendars. RIOO's workflow and customization tools support this kind of property-level compliance tracking, keeping these dates and documents tied to the right unit record.

Penalties and Enforcement

Nashville's penalties depend on what went wrong. The biggest cost is usually losing eligibility for a permit, not the fine.

Decisions by the zoning administrator can be appealed to the Short Term Rental Appeals Board.

Common Nashville STR Compliance Mistakes

1. Assuming the permit came with the purchase.
It never does, and in residential zones it usually cannot be replaced.

2. Moving a property into an LLC without checking the permit.
The ownership change ends it.

3. Applying for an owner-occupied permit in an entity's name.
LLCs, trusts and corporations are ineligible.

4. Relying only on Metro's renewal emails.
Renewal is the owner's responsibility, and missing it triggers a waiting period.

5. Leaving the permit number off listings.
Every listing must show the permit number or a picture of the permit.

6. Naming a responsible party who lives too far away.
They must be within 25 miles.

7. Remitting taxes without identifying the owner and address.
Third-party remittance is allowed only when each payment shows both.

8. Relying on the permit over HOA rules.
Association documents can ban STRs regardless of Metro approval.

Conclusion

Nashville short-term rental compliance comes down to four things: the right permit type, the right zoning, an unbroken ownership record and a renewal that never lapses. A permit cannot be bought with a property, moved into an LLC or reissued in most residential zones once it is lost. That makes permit status an asset-level fact, not a paperwork detail.

Property managers who verify eligibility before acquisition, track expiration dates at the unit level, keep permit numbers on every listing and watch for tenant sublets operate with little exposure in Nashville's STR market. Managers who treat permits as transferable or rely on Metro's reminder emails tend to find the problem only after the permit is gone.

Frequently Asked Questions

1. Do you need a permit for a short-term rental in Nashville?
Yes. Every short-term rental in Nashville and Davidson County needs an STRP permit from Metro Codes before it is listed on any platform.

2. How much does a Nashville STR permit cost?
The permit fee is $313, paid at approval and at each annual renewal. Credit card payments carry a 2.3% processing fee.

3. How long is a Nashville STR permit valid?
365 days (one year). It must be renewed before the expiration date.

4. When should a Nashville STR permit be renewed?
Before it expires. Metro sends renewal emails 60 and 45 days before expiration, but renewal remains the owner's responsibility, and the permit is not renewed until payment is made.

5. Does a Nashville STR permit transfer when a property is sold?
No. Under MCO 6.28.030.A.5.k and B.5.k, a permit cannot be transferred or assigned to another individual, person, entity or address.

6. Can a buyer keep the seller's Nashville STR permit?
No. The permit does not transfer. The buyer must establish eligibility and obtain a new permit, and in residential zones a new not-owner-occupied permit is not available.

7. Can I move my Nashville STR property into an LLC?
You can, but Metro treats it as a change in ownership, which ends the existing permit. The LLC would also be ineligible for an owner-occupied permit.

8. Can an LLC get a Nashville STR permit?
An LLC can hold a not-owner-occupied permit, but only in eligible zones. LLCs, trusts, corporations and partnerships cannot hold owner-occupied permits.

9. Where are not-owner-occupied STRs allowed in Nashville?
Only in eligible mixed-use, office, commercial and downtown zoning districts. They are not permitted in AR2A, R, RS or RM zones. They are also not permitted within 100 feet of schools, parks, religious institutions or licensed day cares unless Metro Council grants an exemption.

10. How many guests can stay in a Nashville STR?
Twice the number of permitted sleeping rooms plus four, up to a maximum of 12. A permitted unit can have no more than four sleeping rooms.

11. Does the permit number have to appear on the listing?
Yes. The permit number or a picture of the permit must be included on all short-term rental listings.

12. Does a responsible party have to live near the property?
Yes. The responsible party must live within 25 miles of the property and answer calls 24/7 during every stay.

13. What happens if you operate without a permit in Nashville?
Operating without ever obtaining a permit triggers a one-year waiting period before the property is eligible. A court finding extends that to three years, and a court can impose a $50 fine.

14. Can an HOA ban short-term rentals in Nashville?
Yes. Metro states that HOA rules can be more restrictive than Metro regulations, including prohibiting short-term rentals.

15. Can a property manager remit STR taxes for the owner?
Yes. A third party can collect and remit hotel occupancy and sales tax if each remittance clearly identifies the owner and the property address.

Disclaimer: This blog is intended for general informational purposes only and does not constitute legal advice. Nashville short-term rental rules are subject to change through Metro Council action, and individual circumstances vary. Property managers should confirm current requirements with Metro Codes and consult a qualified Tennessee attorney before making compliance or acquisition decisions.