Proposed Amendments to Nashville’s Short Term Rental Regulations

January 2, 2016

BL 2015-94 proposes four changes to the existing short term rental regulations found in Metro Code 6.28.030. Please see below for each of the proposed changes and brief comments to provide background and address questions that have come up:

Section 1. That paragraph 6.28.030 B. be revised to read as follows: For the purposes of this section, “owner-occupied” means that the owner of the property permanently resides in the STRP. Detached Accessory Dwelling Units shall not be eligible for owner-occupied status.

This change limits the number of DADU’s that can be used for short term rental. It is in response to concerns that allowing unlimited DADU use for short term rental is contrary to Nashville’s goal of providing a variety of housing types and rental rates throughout the city. Renting out a DADU can allow an owner to remain in a house that otherwise has become unaffordable due to rising property values. It also can provide a relatively low cost housing option in otherwise unaffordable area. If there is no limit on how many DADU’s can be used for short term rental, then the potential for their use as long term rental could be significantly diminished. This proposed change will subject new permits for DADU properties to the same 3% cap that non-owner occupied STRP properties are subject to. Existing permits will be unaffected.

Section 2. That the following sentence be added to the end of paragraph 6.28.030 K:

“Advertising a STRP for more occupants than allowed by this regulation shall be grounds for revocation of the permit.”

The existing regulation allows for revocation of a STRP permit if the owner or tenants violate the Metro Code. This proposed change will enable the Metro Codes department to document more easily that a property intends to be rented to more occupants than they are allowed. The existing regulations requires that Codes enter the property and count occupants to establish that the property is rented to too many occupants. The proposed change would allow the advertisement on the internet to serve as documentation of a violation.

Section 3. That the word “detached” shall be deleted from 6.28.030 Q.

The use of the word “detached” with reference to two family homes is confusing in the context of Nashville’s definition of a two family home being either two homes on one lot separated by at least six feet or a single structure with a common wall for two separate families. Removing the word “detached” will clear up any confusion.

Section 4. That the following sentence be added at the end of paragraph 6.28.030 Q:

“Only one permit shall be issued per lot for single and two family homes.”

This is in response to concerns from neighbors that allowing both sides of a duplex or both the main house and its DADU to be used for short term rental would allow for inappropriately large groups on a single lot. Any permits that already exist that fall into this category would continue to be allowed, but new permits would be subject to this limit.

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