Although Tennessee has begun to discuss and change previous existing Airbnb laws and regulations, there is still a long way to go. Local organizations such as the Nashville Area Short-Term Rental Association (NASTRA) are advocating for support within the short-term rental community. Organizations such as these continue to advocate for hosts and residents alike.
- Brentwood Enforces Strict Short-Term Airbnb Laws
- Nashville Residents Concerned About Implications for Updated Legislation
Brentwood, Tennessee, Allows Short-Term Rentals but Enforces Strict Airbnb Laws
The city of Brentwood passed Airbnb laws and regulations in order to protect residents. The municipal code protects homeowners by prohibiting rentals in single-family residential districts for periods of less than three (3) months. The City of Brentwood vigorously enforces this code and has issued various citations to hosts who continue to rent on a short-term basis under the three (3) month requirement.
Aside from the requirement and discussion of various bills in previous years, there are no further Airbnb laws or regulations stated on Brentwood’s official website.
To learn more about the Brentwood ordinance that addresses occupancy in single-family zoning districts, please see the Municipal Code, Section 78-19(e).
Nashville, Tennessee, Still Struggling to Pass Unifying Airbnb Laws and Regulations
In March of 2022, a House Subcommittee voted to advance a bill that could take away local control over owner-occupied short-term rentals. The legislation, HB 0645, appears to target Nashville, where city law requires that anyone wanting to list property as a short-term rental on websites such as Airbnb or Vrbo must receive a permit from the Metro Codes Department. There are two types of short-term rental units: owner-occupied and non-owner-occupied. Owner-occupied rentals are homes where someone lives there most of the year but rents out a room or occasionally the entire property. The bill looks to expand upon the definition of these two rental types. There is still ongoing debate over the bill, as residents are concerned that the bill will permit short-term rentals to cause disruption and conflict within the local community.
Currently, Nashville law allows unlimited short-term rentals downtown and unlimited owner-occupied short-term rentals elsewhere unless a parcel or neighborhood is voluntarily rezoned as “NS,” for no short-term rentals. These regulations were passed in 2018, and Metro included a provision allowing existing short-term rentals that wouldn’t conform with the then-new law to be grandfathered in until the property was sold. As the legislation waits to further progress, anyone with an active short-term rental property should stay up to date on current Airbnb laws and permit regulations such as the one outlined below:
- Anyone with an active short-term rental property – not owner-occupied permit application on file with the Department of Codes Administration as of December 31, 2021, shall be eligible for that permit to be issued if all other conditions are met and if the final use and occupancy letter for the building is issued on or before December 31, 2021.
The city also requires liability insurance stating that hosts need:
- Proof of insurance evidencing homeowner’s fire, hazard, and liability insurance. Liability coverage shall have limits of not less than one million dollars per occurrence. In some cases, the listing company, such as Airbnb, may offer insurance to meet these requirements and provide your profile page as proof of coverage.
Local Regulations and Insurance
Proper Insurance is the nation’s leading insurer for short-term vacation rentals and meets and exceeds local regulations and requirements. Many cities are introducing insurance requirements of $1,000,000 liability insurance for all short-term rental operators. With such a requirement, there is a higher standard for owners, creating a barrier to entry and eliminating non-professionals.
With a requirement for commercial general liability insurance, it’s important to have a comprehensive policy. Insurance provided by platforms such as Airbnb don’t fully cover short-term rentals. To ensure you’re fully covered for your business activity, a commercial general liability policy is needed.
Quote your Short-Term Vacation Rental Today
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