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Updated over 4 years ago, 03/31/2020
Detached HPRs and STR Permits.
Unable to get clarity on this subject and getting conflicting answers around. I need to know if detached HPRs in Nashville qualify for obtaining a Short Term Rental Permit. I believe the codes don't state this explicitly, rather it's an interpretation. Some realtors tells me they do, some tell me stay away from HPRs, they do not. Can anyone chime in on this or point me in a definite direction? Thank you much.
I can 100% tell you since I've sold different combinations of HPRs as residential and for STRS. If the property is zoned residential (which most would be) any HPR (detached or attached) cannot be used as a short term rental unless you own both sides. Even then you have to live in one side and rent out the other. If a property is zoned commercial, for instance, MUL, OR, CS, DTC, RM (only up to 1/1/2022), etc. then that zoning overrides the HPR status and you can get a non-owner occupied STR permit on either side of it.
I'm looking at the Nashville gov live map of all STRPs. In the Nations (zoned R6) I see at least three detached HPRs with owner occupied STRPs that have only one owner (not both sides). I'm sure there are more. How do I interpret that? Were they grandfathered in before some law changed? The latest of the three was issued Oct 03 2019.
Yet you're telling me it's a definite no go. A couple other realtors have stated the same. One told me it's fine, it qualifies.
I'm going crazy with the confusion about this.
@Christopher Davis The Nations area is primarily residential but there are pockets that are zoned Commercial (CS primarily). If you're seeing OO STRs in that area, they could either be zoned Commercial which would allow them to get a NOO or a OO STR permit or they could be grandfathered in prior to the rule change back in 2017.
The following link on the Metro Nashville codes website references needing to own both sides of an HPR to secure a OO STR permit.
https://www.nashville.gov/Codes-Administration/Short-Term-Rentals/Permit-Types.aspx
I can verify what Steve is saying is 100% accurate. No need for the confusion unless you did not understand his post. And yes, some may have been grandfathered in pre codes and laws regulating STRs. But as of today what Steve said is the requirements for Detached and Attached HPRs.
Ok thank you both so much. Less confusion now. The original confusion was mainly mixed messages between one particular realtor I know and the chorus of others to the contrary which include your comments here. With my goal in mind of establishing a short term rental I will avoid HPRs altogether now.
If I can just follow up with a little more clarification and then we should be good...
The link you provide contains one passage mentioning HPRs in relation to an STRP: "The property ownership of two-family units cannot be divided. They shall be owned by the same person and one of the two units shall be the primary residence of the owner. Two-family units can include detached duplexes divided under a Horizontal Property Regime (HPR)."
What exactly is a "two family unit"? Is this two tall and skinnys with an umbilical in between?
What does "The property ownership of two-family units cannot be divided" mean exactly? When HPRs are created isn't the original lot ownership divided into two new distinct lots? In parcelviewer it looks as if the new parcel underneath each tall & skinny is distinct and separately owned (A and B side by side). Are they legally connected in any way at this point?
@Christopher Davis HPRs are separate entities but since they share the same lot, they are only allowing 1 permit per the lot and as it mentions you do have to live in one of the units. It doesn't even have to be an A/B type lot. I've seen HPRs with separate addresses that are attached or detached but they share the same overall lot. For instance, I sold 20A/B Fern and 22 / 24 Fern Avenue recently. 20 A/B was attached and the exact same as 22/24 Fern but the latter two got separate address. Those were all zoned RM so they were able to receive NOO STR permits on all of them but even if they bought just one, they could have gotten the permit. I also sold 16 A/B to 2 different investors and they each were able to receive their own NOO STR permit since the property is zoned RM.
Hope that helps. DM me if you want more info.
@Christopher Davis - @Steve Frye is 100% correct in all his advice. "Two family dwelling unit" is not exclusive to an umbilical HPR. What Steve Frye explained is correct and true, separate entities, but 1 permit because they are on the same lot. Ownership is not divided into 2 distinct lots. It is still one lot.
Think of it this way. HPR is kind of like an HOA w/o the fees. Same property as always, but it has been divided into 2 separate units owned that can be owned by the same individual or separate individuals. They share "common elements" and Limited common elements" similar to an HOA. So the grass, driveway, fences, yard etc. are technically shared. Most builders will separate them making it easy to identify which homeowner takes care and maintains which portion of their pie.
An example would be an HPR-attached that shares the same roofline. That roof will need to be replaced one day. It will be hard to replace seamless roof without doing the whole thing. Most HPRs operate as such depending on their language where each homeowner has to agree to fix, change or repair to those "common elements". It will interesting to see 10-15 years from now when roofs need to be replaced how homeowners will handle that. Who will pay for it?
I would go to parcel viewer click on any HPR and look at the HPR docs and their specific language. Everyone is different, but they essentially operate that way. It's not a perfect example, but it at least gets your head wrapped around something most people are familiar with.
Hi Mark, thanks very much for your comments. And the plain English. In this case we're talking detached HPR, with a fence in between, separating the sides physically. I have been on parcelviewer and they are indeed the same lot as you mention.
The frustrating thing is I am hearing completely opposing statements from various realtors and NASTRA as well. I am reading through the numerous bills that are actually in flux at this very moment, as I understand rules have changed just in the past three months or so.
For example, you guys on here all state loud and clear that a detached HPR and OO STRP is a no go.
But what about this bill here? BL2019-7, this seems to state that a permit would qualify. It was heard or deferred to March 3, I don't know the current status if this was passed.
As published by NASTRA:
