I hope that everyone is doing well this Thursday morning in November. As I write this article I have had several clients call me in regard to properties for sale in Nashville and I thought I would write a quick message about this topic in case it helps anyone else in the future or at least throughout the remainder of 2021.

My name is Pete and I am a Short Term Rental Manager and Realtor in Nashville. The topic is in regard to RM zoned properties that are currently able to apply for a NOO (Non Owner Occupied STR Permit). There has been new regulation voted on in the earlier part of 2021 that will phase out new permitting for owners of these RM zoned properties throughout Nashville starting on Jan. 1, 2022.

If you purchase a property in this zoning, close, and apply for your permit prior to Jan. 1, 2022 then you will be grandfathered in on this zoning and your STR permit as long as you keep your permit active with a yearly renewal fee (currently $320 with a credit card).
However, if you purchase a property in Nashville that is currently an STR at a current income-based appraisal approach in these zonings it is important to know that you will more than likely not be able to resell this property to anyone else under this appraisal approach and could greatly affect your long term plans of these types of properties.

I have had several other realtors, investors, developers speak with me recently with the solution that they could simply put the property into an LLC and then sell the whole LLC in order to skirt around this new regulation. While this may potentially be possible ( I AM NOT AN ATTORNEY/ THIS IS NOT LEGAL ADVICE) I do not believe this would work. A new permit is applied for every time the property changes ownership as the permits go with the owner and not the property in Davidson County (Nashville, TN).

Nashville Short Term Rental Regulations Update Blog 11/11/21

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