A lot of clients ask about what paperwork or permits they need to rent out their home on Airbnb, VRBO, HomeAway or any other site. Knowing that you have to get a permit, what are the steps?
Step 1: Get all the required info
Obtaining a short term rental permit can be a long, tedious process; however, it is the only way to legally list your properties on sites like VRBO, AirBNB, and HomeAway.
Let’s break these down:
- Proof of Ownership / Residence (2 forms) – The easiest way to prove this is with the deed. But you also need to provide a valid driver’s license with the address listed.
- Proof of Liability Insurance – Furthermore, Metro requires that you have proof of insurance of one million dollars per occurrence. While Metro may accept the Airbnb insurance, it is smart to obtain your own policy
- Notification Proof – Additionally, you must notify your neighbors that you are applying for the permit. The letter need not be fancy; just a short statement that you are applying. You must send this notification to all adjacent property owners.
- Create a Floor Plan – This can be a simple drawing of the layout of your home. The most important thing is to identify the bedrooms and the fire-alarms. Circle the fire alarms on the floor plan. A quick easy creator can be found at smartdraw.com. They give you a 7-day trial for free (so draw fast).
- Responsible Party – This can be you, your property manager, or your attorney. If there is a violation or emergency, Metro Nashville will contact this person first. However, the person must be within a 25-mile radius of the property address.
- HOA Check – If you have a home owners’ association, you must get its approval to operate your house as a short-term rental. Note that if you skip this step, the home owners’ association might have a cause of action against you!
- The Affidavit – The affidavit has changed a few times, but a copy of the one as of Aug 27, 2018 is attached here.
- Proof of Tax payments – Lastly, you must bring a copy of your paid property taxes for the applicable year.
Step 2: Field Trip to Metro codes
Next, you must take all this information to Metro Codes and wait your turn.
Warning: this process has been known to take a big chunk of time. A tip from professionals: Go early and be first in line. (Or hire someone to go for you.)
Step 3: Fire inspection
Finally, you will next receive paperwork to schedule a fire inspection with the Fire Marshal. The Fire Marshal will inspect to see if there are the required number of fire alarms and other protections.
Step 4: Pay the fees
Once the Fire Marshal gives the all clear, you are ready to obtain your permit. Don’t forget to pay the $50.00 permit fee! Moreover, remember that this fee is slated to increase to $350.00 in 2019.
For more information on applying for an STRP or operating a short-term rental, contact our experienced Nashville administrative lawyers.