In the past five years, the short-term rental market went from non-existent to booming. With sites like AirBnB and HomeAway, renters and owners alike came to the market in droves. Nashville’s short-term rental market especially peaked with a shortage of hotels to the number of tourists visiting our city.
After a long, and often emotional, debate a decision has finally been made regarding a rollback of certain short-term rental permits in Nashville. In late January, the Metro Nashville council voted on the fate of these permits. The council’s vote took a stance against short-term rentals, but falls short of banning short-term rentals all together. It joins several other major cities in adopting more stringent rules around the permits short-term rental owners can get.
Here are three important facts from the ruling that you need to understand.
1. The ruling only applies to non-owner occupied short-term rental properties.
If you’re a short-term rental owner who lives on the property, you don’t have to worry. Your permit stays the same.
2. It doesn’t apply to commercial zoning.
If you own a short-term rental property and don’t live there, your permit will not be impacted if the rental property is zoned commercially or if it is in a multi-unit building.
3. It’s going to take some time.
Wherever you landed in the debate, it requires time to make this type of transition. The projected end for the rollback of permits is June 28, 2020.
If you’re impacted by this ruling and aren’t sure where it will leave you with your investment property, ask questions and learn as much as you can to make the best decision for your situation. Remember, if you no longer are able to use your property as a short-term rental, you can still go the route of long-term leases and protect your investment.
Warmly, Sarah Milligan